Secure Payments Help CFOs Fight Fraud Risk

As more businesses have been exposed to payment fraud and cybercrime as a result of the pandemic, ensuring end-to-end visibility into cash flow, bank account transactions and payments has never been more important to today’s treasury and finance professionals.

According to Jukka Sallinen, CEO of Finnish corporate payment provider Nomentia, the fact that risks come from both internal and external sources further complicates the visibility challenge for chief financial officers (CFOs) tasked with minimizing the potential for financial crime.

“There are studies showing that even half of fraud cases could be internal, and then, of course, we have to count mistakes – that happens too,” Sallinen told PYMNTS in an interview.

To fight back, he said CFOs can mitigate these growing security risks by harmonizing payments through a single banking channel — a significant gap in current financial systems that many companies are looking to fill.

Read more: 59% of CFOs are focused on digitizing payments

“There is still a huge market for centralized payment solutions [and] many companies are looking for a modern cloud-based ERP [enterprise resource planning] systems. And as more companies are more inclined to introduce new services provided by banks, we are seeing a growing need for secure payment solutions,” he said, adding that setting payment limits for Appropriate approvals would also give finance professionals greater control over the process.

See also: Going digital is ‘harder than checks’, but essential for CFOs

Finland’s business-to-business (B2B) payment platform goes even further.

“On top of that, we then introduce algorithms and different types of checks that can automatically recognize different types of suspicious transactions like double billing or an unusual number of payments to a particular creditor,” Sallinen explained.

State-of-the-art solution

Earlier this month, the European treasury and cash management provider, which has expanded beyond the Nordics into the Netherlands, Benelux and the DACH region – Germany, Austria and Switzerland – announced that the value of global transactions on its payment platforms had exceeded 1 trillion euros. ($1.05 trillion) over the past year.

The Helsinki-based company noted the rapid digitization of treasury and finance functions and the growing demand for centralized payment solutions triggered by the pandemic as key factors that helped achieve this record milestone.

The fact that they avoided being a jack-of-all-trades and instead focused on their core strengths in the broader realm of finance and cash management – payments, account reconciliation, cash forecasting and visibility – also contributed to their success, noted Sallinen. , which has earned them the trust of more than 2,000 customers in more than 80 countries around the world.

“We don’t want to be everything to everyone, or even try to [dabble in everything] and end up being average [in those areas],” he said. “We focus on the things we do best and where we can add value to the customer process. [That’s why we] define us as a leading solution.

Related News: Medius expands its global payment capabilities with a partnership with Nomentia

Also this month, the B2B payment processor, which offers integrations with more than 10,000 banks worldwide, announced a partnership with Medius, a provider of invoice automation and expense management solutions, to simplify accounts payable (AP) and payment processes for its customers and further strengthen its Presence in the Nordic market.

Going forward, Sallinen said building better cash forecasting models with predictive analytics and machine learning is a key trend that will continue to gain traction in the corporate world. However, he warned companies and CFOs to prepare adequately before rushing to adopt these sophisticated and complex solutions.

“It’s something that companies are going to ask for more [but they need to be patient]. You can’t get into predictive analytics if you haven’t taken care of the basics like basic cash management and basic short-term forecasting,” he said. “But we see that [demand] because it is definitely booming.

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NEW PYMNTS DATA: THE FUTURE OF BUSINESS SUPPLIER INNOVATION STUDY – APRIL 2022

Plastiq - The Future Of Business Payables Innovation: How New B2B Payment Options Can Transform The SMB Back Office - April 2022 - Find out how all-in-one payment solutions can help businesses streamline B2B transactions and eliminate transaction friction. AP and AR management

On: While more than half of SMBs believe an all-in-one payment platform can save them time and improve cash flow visibility, 56% believe the solution could be difficult to integrate with AP systems and existing ARs. The Future Of Business Payables innovation report, a collaboration between PYMNTS and Plastiq, surveyed 500 SMBs with revenues between $500,000 and $100 million to explore how all-in-one solutions can exceed customer expectations. SMEs and help sustain their activities.

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