How do you balance innovation and standardization in your payment and collection systems?

Finding the equilibrium between fostering innovation and adhering to standardized processes in payment and collection systems is paramount for sustainable growth and operational efficiency. It's about striking that delicate balance where we leverage innovative technologies and approaches to enhance user experience, streamline processes, and stay ahead of the curve, while also ensuring consistency, reliability, and compliance through standardized protocols. Achieving this balance entails a strategic approach that embraces flexibility for innovation within the framework of established standards, fostering a culture of continuous improvement and adaptability.

From executing a Unified Payment System (UPS) project in the past, the first thing done was to determine how implementing the innovation would be compatible with standard processes. We had to implement standardized protocols and security measures across all payment channels to streamline operations and mitigate risks. Then we conducted periodic reviews to ensure effectiveness and compliance with standards.

Payment and collection systems are important in both financial perspective as well as data and relationship perspective. As much as a system should improve the efficiency of payment and collection treasurers should assess how well these systems facilitate to business of the organization. For example, current systems may facilitate business relationships with certain functions it already has, these should not be restricted by new systems. From a SWOT treasurers should focus on moving to a TOWS approach to assess and improve the systems integrating innovation as well as securing a certain level of standardization to improve the efficiency.

The primary item that will make your first major decision is internal resources. Assess if you have the capability of leveraging developers and product management to build out a payment ochestration layer (POL), then you can "build" your payment network to banks and Payment Service Providers (PSPs). If no, then the alternative route is to borrow the technology from Treasuy Management Systems (TMSs) and PSPs, whereby they can provide you the starting point to initiate payments and collections for transaction management.

Dependiendo del sector en el que se encuentre las necesidades de los sistemas de pago puede ser diferente. Es necesario comparar las necesidades de la organización contra los requerimientos del mercado y los casos de uso de los clientes. Un primer análisis debe ser determinar el uso de las soluciones actuales en porcentaje del número de clientes y de los importes de los pagos recibidos. Ponderando el costo total en comisiones y gastos operativos podremos decidir con que herramientas de pago continuamos y nos dará nuestra primera base de negociación en caso de buscar complementos o sustitutos. Los siguientes análisis, junto con el de costeo, deben ser en función de tiempo de acreditación y facilidad de análisis del flujo recibido.

Balancing innovation and standardization in payment and collection systems starts with defining clear objectives and criteria. For instance, if your goal is to enhance efficiency and reduce costs, consider integrating automated payment processing solutions. Implementing robotic process automation (RPA) can streamline invoice processing and reduce manual errors, achieving significant cost reductions. To elevate customer experience, adopting digital payment platforms that offer multiple payment options is beneficial. Incorporating mobile payment solutions like Apple Pay and Google Wallet can ensure seamless transactions and significantly boost customer satisfaction.

It is important to understand why you're aiming to automate payment processing - it will help you focus on these deliverables. Reviewing your current processes to identify pain points is a good starting point. This step will allow you to understand what issues you're trying to solve. Sitting down with a Treasury consultant is a good way to define the realm of possibilities - not only to resolve the issues, but also transform how you operate. The consultant will also help you develop a roadmap to implementing the best practice solutions and processes, as well as going past the sales talk of the vendors to discuss what practically works. Define the goals clearly and in a quantitative way, if possible, and monitor your progress throughout.

Exploring options and alternatives when standardizing payments and collections is vital for efficiency, cost-effectiveness, and adaptability. It allows you to select solutions tailored to your specific needs, optimizing processes, and reducing errors. Also, diversifying options guards against risks such as system failures or changes in regulations. It encourages innovation, enabling adoption of emerging technologies like mobile payments or blockchain for competitive advantage. Additionally, understanding alternatives provides leverage in negotiations with service providers, ensuring favorable terms.

Less can be more. Pick those methods that are (1) most common and (2) easy to use/implement and finally (3) cost efficient. You don’t have to cater to all your clients payment type wishes

One thing that is commendable is the speed at which the innovations in the global payments and collections space have adapted in various markets over the past 5 years. It is however important for stakeholders to always implement innovation which adequately caters to risks that are inherent with payments. A balancing act between traditional payment processes and the very nimble innovations will help reduce such risks.

Una vez que decidimos que tenemos identificadas las fortalezas y debilidades de nuestro portafolio de soluciones de pago, tenemos que proceder a identificar con que vamos a continuar, que vamos a abandonar y que necesitamos incluir. Para ello tenemos que pensar en soluciones punto a punto: ¿Cómo va a interactuar nuestro cliente con esta herramienta? ¿Qué facilidades damos para la identificación de pagos para su acreditación? ¿Cómo lo vamos a integrar con nuestro modelo de conciliación bancaria y registro contable? ¿Existen soluciones para la automatización? Es muy importante validar el canal de aclaraciones y soporte, ya que, en caso de un fallo de las soluciones, el malestar del cliente no será con el operador de pagos si o con nosotros.

Begin with thorough testing and a pilot phase. Start with a small group of customers to gather feedback. For example, if you're rolling out a new mobile payment option, test it with a select group of users to get real-world insights on usability and functionality. Use their feedback to make necessary adjustments before a full-scale launch. Regularly gather user feedback to address issues and spot opportunities for improvement. Implement a system to track and report these insights. For instance, use customer surveys and support tickets to understand user experiences and identify pain points. If users frequently report problems with a specific feature, prioritize fixing it and let them know about the improvements.

Los procesos de implementación deben de hacerse de una manera ordenada, consistente y validada. Para ello es necesario contar con un entorno de pruebas donde podamos evaluar el comportamiento de la herramienta de pagos en un ambiente simulado y validar la interacción con nuestro ERP y nuestros procesos de tesorería. Se tienen que identificar los casos de prueba, de aplicación de pagos y, en el caso de México, la generación de complementos de pago. De la misma manera es importante tener claro el canal de reporte de incidencias durante las pruebas, en la fase de lanzamiento y una vez que se está trabajando en el día a día. De manera previa al lanzamiento es necesario capacitar al personal involucrado en servicio y soporte al cliente.

I've consistently reviewed and optimized payment and collection systems for innovation and standardization. Conducting regular audits and evaluations has allowed me to gauge effectiveness, streamline processes, and ensure compliance with regulatory standards. Soliciting feedback from stakeholders has been instrumental in identifying areas for improvement, leading to the implementation of necessary changes to enhance efficiency and alignment with organizational objectives. This iterative approach has facilitated continuous improvement and maximized the effectiveness of our cash management practices.

Una vez que los clientes entran en contacto con nuestra solución de pagos, es necesario realizar seguimientos periódicos. Este seguimiento es interno, mediante auditorias, conciliaciones y cuadres de los importes gestionados, y externo: mediante llamadas de seguimiento con los clientes, el departamento de servicio al cliente y el equipo comercial. Con esta información es necesario crear una base donde identifiquemos las características bien recibidas de nuestra solución, las quejas o errores detectados y con base a ello construir una matriz de satisfacción/severidad para poder reforzar aquellos que es positivo en la experiencia del usuario y solucionar de manera urgente aquello que así lo requiera

know when it is best to outsouce. There are so many payment methods and types you cannot implement and maintain all yourself. Worldwide and local PSP's (payment service providers) can be a huge help here. They can also connect to your ERP system streamlining your reconciliation. Even the big multinationals are doing this so no need to invent the wheel yourself

I've prioritized continuous learning and innovation in our payment and collection systems. Staying updated on industry trends, regulations, and technological advancements has allowed us to adapt proactively to changing landscapes. Encouraging a culture of innovation within the treasury management team has fostered creativity and led to the implementation of novel solutions to enhance efficiency and effectiveness. Embracing change and adaptability has been integral to striking the right balance between innovation and standardization in our practices.

Companies learn and innovate their collections and payment systems by (a)Regularly gathering and analyzing customer behaviour and feedback which will help ascertain customer purchasing preference (for eg. Biometric payment methods) and pain points( for eg. lengthy checkout processes). This can be done through surveys, reviews, and direct customer interactions (b)Implement smart technologies which enhances User experience and ease of use (for eg. Amazon One which allows palm scanning technology, Apple Face ID or Amazon Alexa (voice activated payments) (c) Maintaining industry standard security protocols and ensuring consistency across all interface\touch points (For eg. PCI DSS) emphasizing on data encryption and secure authentications.