Global corporate payments technology is changing at a rapid pace. So rapidly, in fact, that internal IT-managed platforms are not able to keep up and the challenges that ensue are left for the IT team to sort out.
These challenges include:
Let’s evaluate some of these in the context of the return on investment (ROI) your organization would achieve by deploying a connectivity as a service global payment hub.
The most common vulnerabilities to fraud include technical, process and simple human mistakes – and, worst case scenario, internal collusion. All of these become significantly more vulnerable when corporations rely on internally built systems and processes that depend on human control workflows with multiple checkpoints.
Today’s fraudsters are more sophisticated, able to easily penetrate corporate infrastructure and pass internal human dependent control workflows. They utilize social networks to penetrate organizations with phishing schemes that include email, as well as deep fake voice simulation software via phone that can sound exactly like your CFO or CEO requesting payment execution.
The best payment hub solution will aid the human dependent controls with machine learning technology, bringing to their attention anomalies that they must further investigate. The solution must be able to keep up with technical assets at the fraudster’s disposal – for example, based on history alerts related to banking change and volume as well as OFAC exception. Payment hubs with machine learning capabilities have demonstrated the ability to reduce corporate fraud exposure by at least 70%
Global banking format customization requirements are extremely complex with very limited, if any, corporate tribal knowledge related to the technical architecture and deployment. Each bank has their own specific requirements. In many cases, there may even be differences of formants within the same bank depending on branch locations. The cost of building and maintaining payment connectivity infrastructure given the customization requirements can be in the millions of dollars.
Payment hubs eliminate this cost in several ways:
If you are considering an ERP cloud transformation or are in the process of the transition, all of the bank connectivity that is established in the current environment will have to be re-built. Given the considerations highlighted earlier tied to the complexities, re-building all of the connections internally will be costly and risk go-live.
Connectivity as a service with the right payment hub will de-risk and accelerate cloud transformation projects. In fact, payment hub solutions provide a more than 80% improvement in time-to-value related to payment go live. This return on investment is inclusive of internal man-hour efforts, external consultant fee elimination, as well as the speed of bank on boarding timelines from up-to 9 months to only a few weeks.
In conclusion, payment hubs enhance controls and keep up with the ever-changing fraud environment, eliminate any risk tied to business continuity due to internal infrastructure or tribal knowledge, and finally enable a successful ERP cloud transformation deployment eliminating any risk to internal timelines or objectives.
Want to learn more? Watch our recent webinar recording, “How a Payment Factory can help reduce the cost of your ERP migration.”
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