How to Approach Finance Automation in the Digital Age

While it is a smaller part of the bigger machine, automating bill processing and payment workflows is fast becoming a competitive advantage for companies. Inaccuracies, poor experience, incomplete or wrong data can be the source of negative reputation and credibility.

Across all industries, automation has shown its transformative potential. In manufacturing, large-scale robotics is allowing for faster and more precise production. In logistics, we are seeing faster order fulfillment and reduced human error. Across retail, optimized inventory management systems are saving money and improving supply chain efficiency. In banking and finance, automating routine tasks has improved operational efficiency and reduced the risk of errors and fraud.

Automation will transform industries far beyond what we might have imagined. Still, to integrate automation successfully, companies need a holistic strategy that considers its impact on employees, fosters goodwill, and aligns automation with their long-term goals. Successful automation integration can separate the leaders from the followers in today’s digital landscape. Start where it matters most — finances.

Improved Quality and User Experience

Traditional manual bill processing and payment workflows are time-consuming, error-prone, and inefficient, leaving much room for improvement. Businesses still using manual processing run a higher risk of payment delays and cash flow disruptions. Manual workflows are also more susceptible to errors and inaccuracies, which can result in financial losses and reconciliation challenges.

In this context, intelligent process automation and robotic process automation (RPA) are game-changers. Already, industry leaders are demonstrating how automation integration can streamline the payment process, from initiation to settlement, for improved customer satisfaction and business performance. Amazon Go turned the traditional checkout on its head with its cashier-less shopping experience. Starbucks’ latest foray into contactless payment experiments with identification via geolocation for “scanless pay,” which would allow drive-through customers with the app to pay without even having to pick up their phone. Serving more customers in less time has a positive ripple effect on customer experiences.

With automation technology reducing human error, finance and accounting departments can process payments faster, more accurately, and with lower processing costs, including transaction fees, staff salaries, and technology expenses. The overall effects can be dramatic. RPA and AI enable the integration of various payment systems, analytics, and messaging platforms to create a more cohesive and efficient payment ecosystem. By visualizing data from one central source of truth, finance and accounting departments can improve decision-making and strategic planning to better meet customer demands.

Greater Transparency for More Informed Decisions

McKinsey found that penetration of digital payments among Americans reached 78% in 2020, but there was a systemic barrier limiting growth to the remaining group. Trust in digital payments showed some decline. Almost half of consumers had never heard of contactless payments or were uninterested in them, seeing little value, security, and availability in such digital solutions.

But while manual processes make payments harder to track and monitor, digitalization and automation do the opposite: Make payment systems more transparent. By getting customers to understand this, they are more likely to trust these emerging technologies. Companies that can provide customers with open and honest communication through real-time updates and detailed information about their payment processes, fees, and risks foster long-term, trusting relationships.

One of those evolving technologies is blockchain. While digital payment solutions leverage encryption and tokenization to protect payment information, blockchain can transform systems even further by providing a decentralized and transparent ledger of transactions. But that is not its only use case. Starbucks’s mobile app tracks rewards, purchases, and loyalty benefits in real time, but the company also leverages Microsoft’s Azure Blockchain Service to give hundreds of thousands of coffee farms visibility into the movement of their coffee and customers a window into where their coffee beans come from, through real-time digital traceability. As always, greater transparency is about taking customer service and convenience to the next level.

Convenience, Security, and Competitive Advantage

Integrating automation into payment systems can provide convenience, security, and competitive advantage in the digital age. Transactions can be processed instantly, saving time and resources for businesses and customers alike. With user-friendly payment systems leveraging automation technology to streamline operations, employees and leaders can redirect valuable time and resources to critical thinking, innovative solutions, and other strategic initiatives. Automation integration in data analytics and visualization tools can help companies identify trends and patterns for more informed decision-making.

But all this can only happen against a background of robust security. Today’s consumers depend on online payment systems, but they want to trust they are secure and that their sensitive financial information is safeguarded, even as they expect hassle-free transactions. Minimizing the need for manual data entry and reducing the potential for human error not only improves the production quality and overall customer experience but also enhances the security of financial information.

In addition, AI algorithms can analyze payment patterns and identify potential fraudulent activities for an extra layer of security. Automation solutions should also protect mission-critical processes to mitigate the risk of security breaches or data leaks, while encryption, access controls, and secure data storage can safeguard sensitive payment data. At our company, we conduct regular audits to identify and address any vulnerabilities in our systems. By continuously updating security protocols, we stay one step ahead of cybercriminals.

Bring Employees Along for the Journey

Organizations should approach automation in a balanced, holistic, and transparent manner to ensure a smooth transition. Avoid automating faster than the company’s growth rate and approach the process with transparency and a focus on empowerment. Employees who feel threatened by automation may resist it, so involve them from the beginning. Build a long-term strategy that transforms roles so they can focus on higher-value work: Upskill jobs rather than eliminating them.

As certain tasks become automated, those new skills may include data analysis, financial modeling, and strategic decision-making. Provide employees with the education, resources, and opportunities to make informed decisions about their future within the organization. In this space, the only certainty is change, so we all need to remain agile to leverage the automation revolution for our ultimate competitive advantage.