Digital Treasury Management for the Remote Economy

As businesses shift to a new normal, financial officers are evaluating their traditional operational processes. 

Falling revenues and unanticipated expenses have made managing receivables and payments an especially pressing priority. 

Conventional means of initiating and approving financial transactions often involve exchanging cash or checks and require real signatures. In our current work-from-home reality, efficiency and convenience are more important than ever. The answer to these challenges is to move from manual, paper-based processes to digital ones. 

Digital processes mean greater efficiency, consistency and coordination. They can also integrate with other accounting and enterprise reporting platforms so companies can get real-time insights that’ll help them assess and forecast their financial positions. 

Finance leaders and industry experts have identified three areas where moving to a digital platform can unlock the most potential: remote banking, remote supplier payments and remote customer payments. 

Convenient Remote Banking Solutions

1. Remote and Mobile Banking Platforms

In recent years, companies have been moving to remote and mobile banking platforms. These platforms have grown in sophistication. They often go far beyond simple account management, which makes them indispensable as we move toward a more remote economy.

Many platforms offer users the ability to initiate ACH, wires and book transfers. And they have the capability to approve payments and deposit checks – users can either scan checks or snap a photo with a smartphone. 

2. Remote Cash Transactions

Remote cash transactions are especially convenient for companies trying to minimize their employees’ interactions with others. 

With express deposit products, companies place cash receipts in a tamper-proof bag and place an order for U.S. Postal Service® pickup and delivery. The complementary product, express orders, reverses this process for companies that need additional cash on hand.

3. Payroll Debit Card

This is a convenient option that allows employers to simply refill their employees’ debit cards at the end of each pay period. 

With payroll debit cards, employees have access to their pay without finding a bank or store to cash their checks. They can even use them to get cash back.

Simplified Remote Supplier Payments 

Fine-tuning payments has become a necessity for treasury professionals managing changes to their normal operations.

Given extensive supply chain disruption in many sectors, treasurers need to preserve their access to essential services and supplies. This requires timely payments. 

At the same time, it’s imperative for them to preserve cash during uncertain times. Automating payables is an essential first step to managing these opposing goals.

1. Integrated Payables

With integrated payables, companies can consolidate payments across a wide range of payment types. This becomes a single, standardized data file of approved payments. 

Following a company’s instructions, its bank can print and mail checks or generate ACH or wire transfer payments. It can even create a positive paycheck issue file to ensure that checks presented for payment match issuance data. 

2. Virtual Card

Many bank customers can gain added control of vendor payments by using a virtual card program. 

Virtual card programs use individual card numbers for each vendor or even each payment. They can specify a maximum or specific payment amount for an added layer of risk management. 

Another advantage of virtual cards: Companies can qualify for rewards and rebates that offset their administrative costs.

Safe and Secure Remote Customer Payments

1. Payment Portals

For years, companies have been trying to reduce their customers’ dependence on checks. 

With online payment portals, companies send their customers invoices with links that connect back to the portal, where they can pay via ACH, credit, or debit card. 

2. Electronic Bill Presentment & Payment

This remote payments solution streamlines the accounts receivables process by eliminating paper checks sent by customers’ bill payment providers. 

Companies receive funds via ACH the next business day rather than having to wait for the check to arrive by mail and then depositing it. As part of this product, banks provide a daily remittance file that companies can import directly into their Enterprise Resource Planning (ERP) software to simplify reconciliations.

Chose the Combination of Remote Solutions that Meet Your Needs

The movement of businesses from in-person to remote transactions and from manual to digital processes has unlocked new efficiencies. Companies can affect real change, optimizing their businesses for a new normal. 

In addition, automating and integrating their relationship with their bank opens a stream of real-time information. 

Companies can use what they learn to make changes that will support financial resiliency and growth over the long term.