Debit what comes in, credit what goes out.
By that accounting rule, digital finance is definitely on the debit side. And old-school customer payments are going out – from the credit side. They had to. Because many existing ways of customer payments are not just full of delays but also sloppy, clunky, and botched – ruining the entire end-customer experience. With digital finance, companies are discovering a new landscape where they can add speed, precision, and a high-level experience in customer payments.
Digital finance – the magic button
It matters a lot. Whenever a payment is delayed, it leaves a wrong impression with a strong ripple effect on the entire customer ecosystem. Bad words travel fast. And it’s deplorable to risk an awful customer experience not because the company lacked funds but because a snag in the process of red tape somewhere led to a delay. Digital finance easily avoids these pitfalls by injecting automation, acceleration, and intelligence into the finance system of an enterprise. Savvy players are already discovering the power of digital finance to expedite and add high fidelity and visibility to their customer payments. This gives them a bonus advantage of gaining transparency and simplified tracking for enabling compliance and reporting areas as well. When digital finance enters the fray, companies can tap:
- Speed in payment process – right till the last mile
- Efficiency and cost-reduction in the entire process
- Enhanced security and data control
- Improved transparency and visibility in customer payments
- Better accuracy and tracking for aberrations and errors
Digital finance – the new way of finance
In fact, as per The International Monetary Fund’s thirteenth annual Financial Access Survey (FAS) based on 2021 data, there has been a continued expansion in the use of digital financial services—and this is substantially higher than pre-pandemic levels. The usage of digital financial services went up (the value of mobile money transactions grew from about 40 percent of GDP to 70 percent in low-income countries, and the value of mobile and internet banking transactions shot up from 225 percent of GDP to 324 percent in middle-income countries between 2019 to 2021). In India, too, the total digital payments transactions have shown a YoY 59 percent (YoY) growth to 8,840 Cr in FY22 from 5,554 Cr in FY21, as seen in India’s Economic Survey 2022-23 report.
These trends echo in other reports too. Like the 2022 McKinsey Global Payments Report, tells that digital payment transactions have grown rapidly in emerging markets during the past two years- driven by the pandemic-led triggers for contactless payments and e-commerce. As seen here, revenue growth in 2021 was 11 percent (the highest since 2017), hitting a record $2.1 trillion globally. It is all set to reach $3 trillion by 2026.
What’s worth zooming in on here is the emergence of embedded finance (i.e., the integration of a financial product into a broader customer journey). According to a Global Digital CFO Survey from PwC study 2022, 73 percent of CFOs agree that digitalization of the finance function is a high priority, and 44 percent expect their digitalization budget to grow in the future. Their goals are reduced costs and improved decision-making. And two-thirds of companies already use dashboards in management reporting. A significant chunk of the CFO’s time is going toward digitalization. But what cannot be denied is that they struggle with implementing digital finance projects and often actually introducing the company-wide digitalization strategy into operations.
How to execute and leverage digital finance?
As we can gather by now, companies can achieve a lot quickly by ensuring timely customer payments. This can be done by leveraging digital finance for seamless customer payment experiences.
They can achieve unprecedented speed and precision through automated invoicing and reminders/notifications and by implementing digital finance strategies for timely customer payments. But for this, they need to have the perfect execution flair too. Just slapping on any software won’t work here. The solution has to be cohesive, comprehensive, and intelligent enough to understand all pain points and delay spots in customer payments. That’s where DforD can help you. This specially-designed solution addresses all goals and possibilities of digital finance. Through:
- Real-time financial insights
- Simple and user-friendly interface
- Complete visibility of statement account
- Real-time updates and notifications
- Flexibility in managing the channel finance
- Manage outstanding and credit with ease
- Quick, actionable, and data-driven statements and reports
- Data flow with no manual intervention
- Inter-connecting with Manufacturer Digital Systems (SAP etc.)
- Transactional visibility through the feature-rich web and mobile modules
- Seamless integration with ERP for large-scale data transaction
- Easy integration with banks and financial institutions
- Real-time data exchange
- Data at your fingertip
- Channelizing notifications
- Complete MIS
Start tapping the power of digital finance to transform your customer payment processes from a grunt area or a risk spot to an impressive factor that sets your company apart.
Debit simplicity and speed. Credit complaints and delays. Debit the new. Credit the outdated.
For more information, talk to our experts or request a demo.