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SURVEY RESULTS
TREASURY SERVICES
THE FUTURE OF PAYMENTS—A Corporate Perspective
Payment digitization. Real-time payments. Artificial Intelligence (AI). Application Program Interfaces (APIs).
How are rapidly-evolving developments like these impacting the corporate treasury space? And what does this level of change mean for the industry’s collective future?
Enclosed are the comprehensive results of a recent in-depth BNY Mellon Treasury Services survey (N=55) that asked a set of U.S. domestic and multinational corporations about these issues. With questions on the level of impact their organizations are experiencing from, and expectations they have for, the many important payments system changes that are occurring in the financial industry, the survey gathered recipients’ feedback on:
• Key pain points in today’s payments processes, and what’s needed to improve those issues • Using digital interactions to improve tracking, inquiries and investigations for payment efficiencies• Incorporating data intelligence and analytics to improve payment processes• Realistic timeframes for incorporating the latest industry payment tools
Commentary and trends gathered from these survey results, and discussions among payment industry professionals on these topics, are combined and reported in our companion whitepaper, “The Future of Payments – a Corporate Perspective”. We invite you also to read this accompanying thought leadership paper for in-depth insights we gleaned from the survey feedback presented herein.
BNY Mellon is committed to helping you stay current as you seek to embrace and derive value from these new and emerging technology-driven capabilities. As part of that commitment, we strive to provide real, actionable insight into these issues to help you navigate your plans to expand and improve your day-to-day payments-related activities.
For more information on BNY Mellon Treasury Services’ comprehensive efforts to help move your payments operation into the future, please feel free to contact us at [email protected].
1
With respect to payments, please indicate the following possible areas of improvement.
MeasureReliableSecureInformation richEasy to executeCost (internal within your company)Recipient SatisfactionCost (banking fees)Transparency
54%
51%
51%
46%
44%
43%
36%
32%
22%
23%
34%
41%
46%
32%
56%
45%
24%
26%
15%
14%
10%
24%
8%
24%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Total Number of Records
High Medium Low
Organizations representing the following industry segments participated in the survey: · Communications, Telecom, Media and Cable· Technology· Manufacturing· Auto and Trucking· Energy, Utility· Healthcare (Insurance, Provider, Pharma, Healthcare [manufacturer/distributor])· Services· Transportation· Real Estate· Mortgage· Other
2
For payment initiatives that might have an impact on your company, how would you rate your company’s readiness for the following?
2
3
2
2
4
MeasureLockbox
Vendor payments from check to electronic
Expanded use of commercial cards
Same-Day ACH paymentsConsumer and/or business-to-business payments made to your company online or via phone
SWIFT global payments innovation (gpi)
Moving from cards to lower-cost alternatives
Tokenized payments
Real-time payments
Blockchain or Distributed Ledger Technology
Use of “bots” (robots) for payment and/or reporting
Use of (AI) for payments and/or reporting
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Ready now Less than a year 1-3 years 3-5 years More than 5 years
% of Total Number of Records
60%
43%
32%
31%
29%
29%
23%
17%
11%
6%
6%
6% 19%
17%
9%
31%
29%
20%
20%
23%
26%
15%
29%
23% 11% 6%
26% 2%
9%
43%
41% 3%
6% 6%37%
23% 9% 20%
6%
9%
2%
2%
4%
42%
54%
43%
54%
43%
49%
17%
6%
20%
17%
17%
23%
Which payment initiatives do you believe will have an impact on your company (within the next 3 years)?
MeasureVendor payments from check to electronic
Lockbox
Real-time payments
Tokenized payments
SWIFT global payments innovation (gpi)
Same-Day ACH payments
Use AI for payments and/or reporting
Moving from cards to lower-cost alternatives
Blockchain or Distributed Ledger Technology
Use of “bots” (robots) for payment and/or reporting
Consumer and/or business-to-business payments made to your company online or via phone
Expanded use of commercial cards
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%% of Total Number of Records
Very high impact High impact Low impact No impact
39%
32%
29%
8%
14%
15%
16%
17%
18%
19%
23%
26%
49%
38%
37%
40%
23%
36%
34%
42%
29%
38%
42%
33%
7%
16%
27%
30%
35%
36%
39%
25%
32%
38%
28%
39%
5%
14%
7%
5%
20%
8%
8%
17%
24%
8%
17%
19%
3
Which payment initiatives do you believe will have an impact on your company (within the next 4 years or more)?
MeasureVendor payments from check to electronic
Consumer and/or business-to-business payments made to your company online or via phone
Lockbox
Same-Day ACH payments
Blockchain or Distributed Ledger Technology
Moving from cards to lower-cost alternatives
Use of “bots” (robots) for payment and/or reporting
Tokenized payments
Expanded use of commercial cards
Real-time payments
SWIFT global payments ºinnovation (gpi)
Use of (AI) for payments and/or reporting
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Total Number of Records
Very high impact High impact Low impact No impact
26%
24%
24%
24%
19%
15%
14%
14%
11%
11%
11%
11% 49%
23%
57%
34%
50%
40%
50%
35%
41%
38%
32%
53% 9% 12%
15%29%
21% 18%
21% 15%
19% 27%
21% 15%
37% 9%
8%
20%
28%
34%
20% 11%
34% 31%
31% 9%
For payment initiatives that might have an impact to your company within the next 10 years, how would you rate the potential benefits of the following?
MeasureReduced risk
Important to our customers
Increased reliability
Reduced cost
Ease of execution
Important to our vendors
Enriched information
Important to our employees
More transparency
Increased speed of payments
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Total Number of Records
Significant Considerable Low
77%
72%
15% 8%
23% 5%
8%
3%
25%68%
65% 33%
11%29%61%
29% 11%
10%
18%
15%
18%
61%
60%
56%
51%
50%
31%
26%
33%
33%
4
Which of the following are necessary to drive change in your company with respect to embracing future payment efficiencies?
Platform support (ERP, Treasury Workstation, other internal payment systems)
Process re-engineering to increase automation and offer seamless (timely, accurate) services to our customers
Standard, consistent and comprehensive payment and message format across country infrastructures and banking systems
24%
42%
34%
Please indicate on a scale of 1 to 5 (1=Not Challenging and 5=Most Challenging) how challenging you foresee the items below in achieving the ideal future payment experience.
MeasureAvailability of IT resources to implement and maintainCompeting priorities
Level of investment required
Don’t see measurable benefit (e.g., ROI)
Appetite for change
Lack of in-house expertise
Don’t fully understand my options
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Total Number of Records
Challenging 3 (Mid Range) Not Challenging
69%
66%
57%
33%
31%
32%
18% 48%
42%
41%
38%
24%
24%
17% 14%
10%
19%
30%
28%
26%
35%
5
What are the top five common reasons for payments/investigatons/enquiry tracking that interrupt straight through processes within your organization today? (Choose all that apply.)
For the following, please rank their importance on a scale of 1 to 5 (1=Most Important and 5=Least Important) to improving your company’s payment process.
MeasureLive tracking services to capture the payment status, inquiries, and cash positions at any point in time
Electronic bank account management and cash monitoring and efficient management of accounts and liquidityReal-time payment validations and directory look up services for better straight through processing and intelligent enrichmentEnhanced analytics and business intelligence to facilitate decision making, identify trends for business opportunities and achieve capital efficiencies
Flexibility in access for enhanced communication with our bank(s)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Total Number of RecordsMost Important 3 (Mid Range) Less Important
69%
58%
54%
50%
46%
36%
28%
23%
43%
29%
41%
15%
23%
8%
24%
23%
MeasureReconciliation issuesPayment formatting errorsCompliance screeningVendor inquiryDispute management Bene non receipt of fundsAudit requestLegal obligationOther
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Number of Responses
2423
18
1713
12
114
3
6
Do you think that direct peer-to-peer system interaction through APIs will bring a fundamental shift in how corporations communicate with their banking partners, and is a step towards overcoming some of the current challenges?
Yes
No
Too early to tell
47% 51%
%
How far away do you think your company’s first meaningful API interaction with your bank would be?
LengthReady now
Less than a year
1-3 years
3-5 years
More than 5 years
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%
% of Total Number of Records
Ready Now Less Than a Year 1-3 Years 3-5 Years More Than 5 Years
17%
7%
20%
54%
2%
7
2
What would be the best API use case that will solve some of the current challenges in payments and is most likely to add value for your company’s payment process?
Would you be looking to use your banking partner(s) to integrate and facilitate API services?
Yes
No
Not sure
55%
5%
40%
Measure
Account reconciliation
Live tracking, amendment and cancellation of payment instructions
Virtual investigation/enquiry center with up-to-date status tracking
Exception management through direct system integration
In context advisory (e.g., pertaining to cash position and up-to-date tracking on status)
Directory look ups, real-time validations and payment assistance
Payment initiation to providers via API
Intelligent decision making with systems and models designed to emulate human reasoning and decision making processes through machine/deep learning and neural networks
Interaction with a “trader” bot for FX rate
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Total Number of Records
Must Have Nice to Have Not Needed
50%
46%
45%
43%
28%
26%
17%
6%
5%
44%
49%
47%
51%
58%
68%
69%
75%
53% 42%
19%
14%
5%
14%
5%
6%
5%
8%
8
How far away do you think your company’s first meanful AI implementation would be?
LengthReady now
Less than a year
1-3 years
3-5 years
More than 5 years
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34%
% of Total Number of Records
Ready Now Less Than a Year 1-3 Years 3-5 Years More Than 5 Years
9%
7%
32%
18%
34%
Which of the following would be your top use case for AI?
Use case measure
Auto-reconciliation and matching on manual intensive processesRevenue forecasting through pattern predictions and network analysisFraud detection and monitoring of payments based on predefined risk filters
Customer and market share analysis
Other
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%% of Total Number of Records
48%
23%
15%
10%
5%
9
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BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally and may include The Bank of New York Mellon, 240 Greenwich Street, New York, NY 10286 , a banking corporation organized and existing pursuant to the laws of the State of New York and operating in England through its branch at One Canada Square, London E14 5AL, England. The information contained in this material is for use by wholesale clients only and is not to be relied upon by retail clients. Not all products and services are offered at all locations.
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