Connect with us

News

HACKETT: THE FINANCE 2020 AGENDA – GO ALL-IN WITH DIGITAL TRANSFORMATION TO REDUCE COST WHILE DRIVING ENTERPRISE GROWTH

Published

on

HACKETT

For the first time in 10 years, finance executives predict an uptick in technology spending in 2020, according to new Finance Key Issues research from The Hackett Group, Inc. (NASDAQ: HCKT). By accelerating cloud migration and the adoption of RPA, data visualization and advanced analytics solutions, finance is seeking to optimize cost efficiency while driving enterprise growth. Most finance executives expect to see an increase of 5-10% in the share of the finance operating budget dedicated to technology in 2020, the research found, despite a projected 3.4% decline in the overall budget.

Technology spend as a percentage of the finance budget has been flat or declining since 2009, but finance is prepared to make incremental investment to advance its digital transformation agenda. Our research shows that executives are setting aggressive year-over-year targets for digital technology adoption. At the end of 2019, our study respondents projected that in 2020 they would see a rise of 26% in the adoption of data visualization tools, 24% in RPA implementations, 20% in migration to next-gen cloud-based core finance applications, and an 18% increase in the adoption of advanced analytics solutions.

The research recommended that finance must go digital, faster, in order to support companies’ two biggest objectives for this year: Optimize the cost structure to become more agile in preparation for economic volatility and continue to invest in product and services innovation to maintain competitive advantage. For finance functions, that also means addressing internal cost inefficiencies and working with the business to identify and execute on revenue growth opportunities.

This research is available on a complimentary basis, with registration, at this link: http://go.poweredbyhackett.com/20keyfin1912sm. Note – The full research piece includes 10 charts containing nearly 60 complete metrics.

According to Jim O’Connor, North American Practice Leader, The Hackett Group, “Finance has an aggressive agenda for 2020, with analytics and technological advancement as the top two transformation priorities. Finance executives realize that in the intensely competitive digital economy companies cannot arbitrarily cut cost at the expense of sustainability. It is finance’s job to ensure intelligent cost reduction through smart automation and the use of analytics to help management decide where to cut and where to invest.  

According to Nilly Essaides, Senior Research Director, Finance & EPM, The Hackett Group, “Without advanced analytics, management cannot make fully informed decisions, or make them quickly. So, there’s a tremendous need for finance to improve its data and analytics competencies, adopt new tools, and enhance the business value it provides directly.”

Finance’s transformation progress, however, faces several critical hurdles. The biggest is overcommitment, followed by skills deficiencies, capacity constraints, and technology and process complexity.

Because finance is asked to juggle multiple projects, the function must find ways to prioritize. Our research identified six critical development areas, defined as those with the largest gaps between the importance of its objectives and finance’s ability to deliver on business expectations. They are: redeploying capacity to value-added work; improving performance measurement; improving agility; aligning skills and talent with business needs; improving analytical capability; and leveraging new technologies. It’s imperative that finance organizations narrow these gaps, allowing them deliver value beyond lowering cost and transition into their new role as provider of actionable insight to support tactical and strategic management decisions.

The study found that finance must take a holistic approach to addressing its critical development areas across all elements of its service delivery model. Finance must be clear how services will be delivered, and  must focus on improving human capital, according to Essaides. “The low prioritization finance has placed on human capital, including upskilling and reskilling of staff, is one of the most concerning elements of this year’s findings. It’s towards the bottom of the ranking of service delivery model elements and isn’t even on the top 10 list of finance key issues for 2020. This suggests that not only does finance need to address the skills needed for the future, but it must also clearly design how services will be executed along with defining both new and old roles within finance to deliver on business expectations.  Finance must focus its attention in these areas, because without the right service delivery model, the right roles, people, and skills, even the best technologies will likely fail to produce the results.”

Many finance organizations are still in the early stages of digital transformation, and continue to rely heavily on legacy financial applications, the study found. However, such legacy systems have the lowest rate of meeting business expectations. Finance organizations are hoping to improve realization of business objectives of their technology investment through strong growth in adoption of next-generation cloud-based systems and RPA. 

“Our data shows, for example, strong growth in the adoption of cloud-based core finance applications,” said Essaides.  “And the encouraging news is that more than 70% of the finance function that have adopted cloud-based solution have been able to realize or exceed their business expectations.”

Looking ahead, The Hackett Group recommends that finance keep a keen focus on optimizing service delivery and addressing the skills gap that it is facing in order to support not only finance but also the enterprise.  Driving cost efficiency and supporting growth strategies are the top priorities in 2020 for the enterprise.  Finance has an opportunity to become more of a strategic advisor to support the enterprise growth strategies while also generating the expected cost efficiency improvements.  This will require finance to prioritize building the right analytic capabilities, the right technology for efficiency improvement, and aligning skills and talents with business requirements.

The Hackett Group’s 2020 Finance Key Issues research, “Balancing Cost Reduction with Adding Value,” is based on results gathered from nearly 200 executives in finance, HR, IT, and procurement at a global set of midsized and large enterprises.

 

News

Real-time payments are here to stay and with good reason 

Published

on

By

Real-time Payment (RtP) models are here to stay for the foreseeable future alongside traditional payment schemes. But as businesses increasingly recognize their potential, further cases for real-time payments are coming to the fore. That’s according to Buckzy Payments Inc., (https://buckzy.net/) the Toronto-based global fintech on a mission to make international payments quicker, more reliable, and more affordable.

Umesh Maini, Chief Product Officer at Buckzy, stated, “Customer-oriented businesses such as retailers and hospitality providers value the increased speed with which they receive funds through real-time payments. In addition, during the Covid-19 pandemic, cross-border online purchasing increased, which put more pressure on liquidity for merchants due to the settlement times involved. But with the pandemic far from over, businesses from a wide variety of industries are also now looking at RtP with increased interest as a remedy to this issue, since with RtP it is the payer that is responsible for and controls the flow of funds rather than the payee and their bank or payment provider.

“RtP not only speeds up client payments – it can also improve cash flows, budgeting, financial projections and cash management,” explained Maini. “And if that’s not enough to get every Chief Financial Officer sitting up and paying attention, RtP also offers an opportunity to support and accelerate other digital innovations and trends, such as expedited bill payments, faster payroll disbursements to workers, and the ability for current account holders to manage their cash better. In other words, it acts as a major catalyst for businesses to digitally transform their business models by being able to accept payments that are settled in real-time.”

“Across the world, tech-savvy consumers and companies alike now want their bill payments, online shopping and cross-border transactions completed instantly, cheaply and at scale. That’s the power of RtP,” added Maini.

Maini summarizes the main benefits for financial services providers to adopt and support real-time payments as follows:

  • RtP helps with customer acquisition a real-time payment provides an additional set of services that will help to attract new customers
  • RtP removes the need to use costly, outdated fund transfer methods like SWIFT
  • RtP provides extra clarity for users to manage cash through up-to-the minute transaction histories and real-time account balances
  • Increased revenue through improved economies of scale and customer retention
  • Manual processes can be reduced, which in turn saves costs
  • RtP enables better customer insights compared with cash, which can then be used by the payment provider to improve their other financial services
  • RtP data can also improve anti-money laundering (AML) and fraud monitoring

“As with any major shift in technology, payment providers will face both costs and benefits to upgrade their systems to a new faster payments infrastructure. Investment by providers and adoption by users will both depend on the specific benefits each gains from real-time payments. Consumers today expect to get what they want quickly and at any time, at the push of a button. This also goes for their payments and it’s why RtP will quickly become the new normal,” concluded Maini.

Continue Reading

News

Union Bank of India goes live with RuPay Credit Card on UPI with Kiya.ai as a technology partner

Published

on

By

Nitesh Ranjan, ED Union Bank of India with Rajesh Mirjankar, Managing Director & CEO, Kiya.ai at the launch

 

Kiya.ai, one of the most innovative digital solutions providers in India, announced that Union Bank of India was among the first banks to launch NPCI’s UPI linked to Rupay Credit Card and UPI Lite on the unified payments interface (UPI) platform with Kiya.ai as their technology partner in this achievement.

The announcement comes after the RBI Governor Shri Shaktikanta Das and National Payments Corporation of India (NPCI) launched RuPay credit card on UPI, UPI Lite and Cross Border payments for BBPS at Global Fintech Fest 2022.

Until now, UPI allowed the linking of bank accounts by mapping an account linked with a mobile number and an savings / current account. Earlier in June 2022, the RBI allowed the linking of credit cards with UPI, stating that RuPay credit cards would be initially linked with UPI “to provide additional convenience to users and enhance the scope of digital payments”.

Rajesh Mirjankar, Managing Director & CEO, Kiya.ai, “We are extremely delighted to partner with Union Bank of India in this pilot project of linking RuPay Credit card on UPI. Kiya.ai has partnered with Union Bank of India for various digital payment initiatives including UPI, UPI Lite, UPI linkage to credit card, and sandbox for API banking.  The linking of credit card to UPI will significantly enhance high-volume transactions while also increasing average amount per transaction given the ease of using credit facility on UPI. This is a game-changing initiative as it will ensure safe and contactless transactions, reducing the risk of credit card frauds too.”

Mr. Nitesh Ranjan, ED Union Bank of India said, “We are pleased to embrace the decision taken by the Reserve Bank of India and NPCI to enable Rupay credit cards through UPI. Union Bank of India is proud to be a part of this launch. This is a game changer as one would be able to use a credit card for doing payments using UPI. We are excited to partner with Kiya.ai on this journey, and together, we can provide a smooth user experience to customers and make India even more digitally advanced.”

As part of the pilot project, NPCI will integrate the UPI AutoPay feature with credit card transactions to reduce the risk of defaults on credit card payments.

Continue Reading

Magazine

Trending

Business10 hours ago

Solving the Future of Decarbonisation in Real-Time

Jamil  Ahmed, Distinguished Engineer at Solace   The energy sector has faced many disruptions and challenges in recent years, from...

Banking16 hours ago

Resilient technology is the most important factor for successful online banking services

By James McCarthy, Director of Solutions Engineering, NS1   More than 90 percent of people in the UK use online...

Technology16 hours ago

Why anti-spoofing fingerprint technology is essential for the continued growth of digital payments

Anthony Eaton, CTO, IDEX Biometrics   The digital payments revolution is being driven by consumer demand for ever increasing convenience....

Finance17 hours ago

Why Financial Services must ‘Change its Change’ to deliver results

By Hervé Mazenod, Managing Director, Financial Services Sector at Webhelp  You can almost hear the collective sigh of relief from financial...

News17 hours ago

Real-time payments are here to stay and with good reason 

Real-time Payment (RtP) models are here to stay for the foreseeable future alongside traditional payment schemes. But as businesses increasingly...

Business17 hours ago

Criminal Minds: Account Opening Fraud Tactics put to the Test

By Raj Dasgupta, Director, Global Advisory, BioCatch   The last two years have created a perfect storm for account opening...

Business4 days ago

Know Your Business (KYB): Exceeding KYC

Victor Fredung, CEO at Shufti Pro   Money laundering costs the UK more than £100 billion pounds a year, according...

Finance1 week ago

Mini-Budget 2022:

Tax giveaway is a boost for business, but will it drive growth or fuel inflation?   Chancellor Kwasi Kwarteng has...

Finance1 week ago

A zero trust environment is critical for financial services

Boris Bialek, Managing Director of Industry Solutions at MongoDB Not long ago security professionals were still focused on protecting their...

Banking1 week ago

Digital Banking – a hedge against uncertainty?

Ankit Shah, Head of Digital Banking, Apex Group   The story of the 2020’s thus far is one of crisis....

News2 weeks ago

Union Bank of India goes live with RuPay Credit Card on UPI with Kiya.ai as a technology partner

Nitesh Ranjan, ED Union Bank of India with Rajesh Mirjankar, Managing Director & CEO, Kiya.ai at the launch   Kiya.ai,...

Finance2 weeks ago

Anyone Can Become an R&D Tax Expert with the Right Foundations

Ian Cashin is a Customer Success Manager at Fintech company and R&D tax software provider WhisperClaims   For accounting firms,...

Business2 weeks ago

Addressing the ongoing global pilot shortage issue

By Bhanu Choudhrie, Founder of Alpha Aviation   The Covid-19 pandemic brought the aviation industry to a halt, causing vast...

Business2 weeks ago

How exporters can mitigate risks and operate smoothly in stormy, post-Brexit waters

By Morgan Terigi is Co-Founder and CEO of Incomlend   The past few years have presented a series of hurdles...

Business2 weeks ago

From employees to customers, workforce management can benefit the entire banking ecosystem

Michael Cupps, SVP of Marketing of ActiveOps explores the significant impact workforce management can have on the employees and customers...

Business2 weeks ago

Redefining the human touch with digital transformation

Simon Kearsley, CEO of bluQube   It may not be a new phrase, but digital transformation is still inducing anxiety...

Finance2 weeks ago

CFOs – the forgotten ally in the fight against ransomware

Justin Vaughan-Brown, VP Market Insight at Deep Instinct   Ransomware attacks have nearly doubled in the past couple of years....

Technology2 weeks ago

7 cost benefits of cloud accounting software

By Paul Sparkes, Commercial Director of iplicit, an award-winning accounting software developer   Is your accounting software having a laugh...

Business2 weeks ago

How does Identity Access & Privileged Access Management help in PCI DSS Compliance?

Narendra Sahoo is a director of VISTA InfoSec. Introduction The Payment Card Industry Data Security Standard also commonly referred to...

Finance2 weeks ago

Listed private debt deserves a closer look from investors

By Michel Degosciu, Managing Partner, LPX AG Over the past few years, the private debt asset class is attracting serious...

Trending