According to a recent WEX Worldwide survey commented on by Treasury Today – 52 percent of organizations admit to being victims of payments fraud. Many times treasury is directly affected, because their payments were compromised, while other times, the treasurer is pulled into the conversation to fix whatever vulnerability was exploited for someone else’s payment.
Making payments is generally an expensive process for large organizations, in terms of both time and money. The process tends to be particularly expensive when an organization has its own in-house bank connectivity for connecting its payment systems to its bank – connectivity that is maintained either by its own internal IT function or by an external consultancy.
Treasury professionals and finance leaders in the Middle East certainly face their share of challenges, from concerns about payment fraud and counterparty risk to the time-consuming management of trade finance instruments such as letters of credit and bank guarantees. Meanwhile, many corporates in the region work with as many as 100-150 banks, leading to significant obstacles where cash visibility and connectivity is concerned.