François Masquelier (Simply Treasury):
Re-orchestrating payment processes at the corporate level for treasurers
In today’s rapidly evolving corporate finance environment, treasurers face growing complexity and increased responsibility. Global expansion and technological shifts require re-orchestrating payment processes to improve efficiency, security, and regulatory compliance. This article explores key strategies treasurers can adopt to adapt to these demands—especially in a riskier context with rising fraud and the need for stronger internal controls.
Understanding the Current State of Payment Processes
Treasurers encounter various challenges in managing payments, particularly as fraud sometimes evolves faster than technology. Key issues include:
Complexity of Payment Systems: Operating across jurisdictions with diverse regulations and infrastructures adds complexity.
Security Concerns: Growing cyber threats and fraud risks make secure processes essential.
Compliance and Regulation: Adhering to local and global standards requires continuous oversight.
New Payment Methods: Emerging tools can create competitive advantages for operations.
Manual Processes: A significant share of payment workflows remains manual, increasing inefficiencies and error risks.
Current Practices
Most corporations rely on a mix of in-house and third-party tools for payment management. These systems are often disconnected, creating data silos and fragmented workflows. Treasurers must handle multiple platforms, formats, and local connectivity—time-consuming and error-prone tasks.
Solutions like Bank Single Gateways (BSG) or outsourced platforms (e.g., FINOLOGEE, COBASE) can help streamline this landscape. Some CFOs remain convinced that Electronic Banking Solutions (EBS) the local tools offered by banks are sufficient, unaware of more effective alternatives. This disconnect often stems from a general lack of interest in treasury matters at the CFO level.
Strategies for Re-orchestrating Payment Processes
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Centralizing Payment Systems
Consolidating processes on one integrated platform such as LYNKS, TIS, COBASE, or COMO Digital Life offers several benefits:-
Streamlined Operations: Reduced complexity and improved manageability
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Improved Data Visibility: Unified systems provide better insights and control
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Enhanced Security: Centralization allows for stronger and more consistent security protocols
(Visit www.treasurymap.com for a comprehensive list of solutions.)
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Adopting Automation
Automation improves efficiency and reliability by:-
Reducing manual effort and operational burden
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Minimizing human error
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Accelerating transaction processing and enabling better cash flow planning
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Leveraging Blockchain Technology
Blockchain brings potential improvements through:-
Enhanced Security: Decentralization makes systems more resistant to fraud
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Greater Transparency: All transactions are traceable
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Lower Costs: Fewer intermediaries reduce transaction fees
(Despite the potential of DLT, reliable SaaS and outsourced solutions remain viable options.)
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Implementing Real-Time Payment Solutions
Real-Time Payments (RTP) bring clear advantages:-
Improved Cash Flow: Instant access to funds supports better liquidity management
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Operational Value: More payment methods can add business value
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Stronger Relationships: Faster payments enhance satisfaction among clients and suppliers
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Better Forecasting: Real-time insight supports financial planning
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Ensuring Regulatory Compliance
Staying compliant with evolving EU directives (PSD2, AML, Instant Payments, Late Payment Directive) requires:-
Regular internal and external audits
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Ongoing monitoring of regulatory changes
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Use of compliance tools to ease adherence and reduce legal risks
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Enhancing Cybersecurity Measures
With fraud attempts increasing, especially in digital environments, payment security must be reinforced:-
Multi-Factor Authentication: Adds extra protection
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Employee Training: Increases awareness and reduces risk
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Advanced Technologies: AI and machine learning can detect and prevent anomalies in real time
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Benefits of Re-orchestrating Payment Processes
Increased Efficiency
Automation and centralization free up resources and allow treasurers to focus on strategic initiatives.
Enhanced Security
Stronger protections lower exposure to cyber threats and fraudulent activities.
Better Compliance
Integrated systems make it easier to comply with regulatory frameworks and avoid penalties.
Cost Savings
Streamlined operations reduce manual processing, human error, and transaction costs.
Improved Cash Flow and Liquidity Management
Real-time visibility allows for better liquidity control—a critical factor in corporate finance. As the saying goes: “Accounting losses may repeat; a liquidity crisis may kill.”
Securing payment processes is a “must”, not anymore a “plus”
Re-orchestrating payment processes is no longer optional. Treasurers must adopt resilient, future-ready systems to combat both internal and external threats. Through centralization, automation, innovation, regulatory alignment, and stronger cybersecurity, corporations can gain efficiency, reduce risk, and achieve long-term competitiveness in a fast-moving financial world.