CHERRY HILL, N.J., Nov. 15, 2022 (GLOBE NEWSWIRE) — Corcentric, a leading global provider of payments, procurement, accounts payable, and accounts receivable solutions to enterprise and mid-market companies, and PYMNTS released a new report, “Digitization Strategies: How CFOs are Prioritizing Digital Payments to Maximize Efficiency,” to address how current economic challenges present a new sense of urgency for chief financial officers (CFOs), who say they are prioritizing digital payments and process innovations to navigate businesses’ growth.
According to the report, to align with market changes, CFOs’ priorities and investments are shifting. In fact, 87% say they are planning to invest in one or more areas of payments and finance digitization, and 94% already are doing so. CFOs said the investments in digital technologies have already improved operations in fraud and risk management (83%), working capital and credit (77%), procurement (72%), accounts receivable (75%), accounts payable (72%), days sales outstanding (66%), and days payable outstanding (49%). They are relying on the financial benefits recouped here to reinvest in innovation projects and business expansion.
The report is based on a survey conducted between Sept. 9-27, 2022, of 250 CFOs from retail trade and manufacturing firms generating annual revenues from $250 million to more than $1 billion. Respondents said financial digitization investments, particularly in AR, AP, and fraud and risk management solutions, are valuable to the business because they helped sustain operations during the last two years. CFOs therefore expect future investments in working capital and credit to help their organizations focus on expansion, not only cutting costs.
“As the role of CFOs evolves, they continue embracing more innovation and automation to keep their companies thriving, so it’s no surprise they are planning more technology investments to grow the business,” said Matt Clark, President and Chief Operating Officer at Corcentric. “CFOs recognize that financial digitization has proven its value, and they continue to advance their strategies to capitalize on it.”
Fintech investments proved advantageous over the past two years
According to the report, CFOs revealed that implementing digital technologies was key to successfully navigating the last two years’ economic challenges.
The primary reasons for success are investments in the following project areas:
Modernizing processes for procurement (56%), working capital and credit (32%), AR (30%), and AP (28%).
Improving payment processes in AR (51%) and AP (67%).
Reducing costs within procurement (21%) and working capital and credit (43%).
Improving security for fraud and risk management efforts (70%).
Technology innovation continues to be a priority and critical success factor for CFOs
Looking ahead, respondents indicate their investments in digitization will continue to remain a priority for businesses for widespread reasons, including:
AP: Modernizing processes (23%) and improving payment processes (66%). In fact, 68% of firms that did not invest in AP in the past now are or are planning to over the next two years.
AR: Modernizing processes (31%) and improving payment processes (48%).
Fraud and risk management: Modernizing processes (30%) and improving security (51%).
Procurement: Modernizing processes (61%).
Working capital and credit: Modernizing processes (33%), reducing costs (28%), and expanding business (26%). CFOs indicate a change in strategic investments in this area, with reducing costs dropping 15 percentage points in importance, while business expansion doubled.
“As CFOs develop plans to steer their organizations forward, they are turning to the proven value of comprehensive, end-to-end digitization throughout the entire finance function,” Clark explained. “In its collaboration with CFOs, Corcentric has helped them prioritize investments in digital payments and finance solutions to achieve a well-rounded solution to spend smarter, optimize cash flow, and drive profitability.”
To review the full report’s findings, click here.
Corcentric is a leading global provider of payments, procurement, accounts payable, and accounts receivable solutions to enterprise and mid-market companies. Corcentric delivers software, advisory services, and payments focused on reducing costs, optimizing working capital, and unlocking revenue. To learn more, please visit www.corcentric.com.
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