Real-time payments, machine learning, decentralized ledgers – how do you sort through the hype and figure out what’s important in 2020? That's what this year's AFP Treasury and Finance Conference was all about. The event, which attracted more than 7,000 attendees, highlighted how technology is expected to continue disrupting accounting and finance. Read on for an insider’s recap of the event's top takeaways.
The fact that this year focused so heavily on tech is one of the most concrete signs of just how far and how quickly our industry is changing. A few years ago, artificial intelligence and blockchain hardly came up at AFP (if at all). But this year, speakers and exhibitors scrambled to outbid one another in announcing bold predictions for how emerging technology will reshape the B2B Payments landscape.
While addressing a lot of different topics, this year's sessions all paint a picture of a digital future speeding up in all directions. Here are three takeaways from the Paystand team on the ground
How, in such a rapidly shifting world, can treasury and finance professionals educate themselves to prepare for the future? This was by far the most common theme we overheard at the event, with many attendees noting how quickly the payment landscape has changed in recent years, while others felt the digital transformation journey had no end in sight. Kevin Ang, who oversees treasury advisory for Citi's Americas region, flipped the conversation by suggesting digital transformation is actually "constantly evolving" with a destination that keeps shifting.
In his role, Kelvin Ang is charged with advising clients on treasury operations and treasury technology. This role gives him a unique perspective on the challenges of digital transformation. During his session, he continued the conference's theme of determining which technologies to pay attention to (‘reality’) and which to avoid (‘hype’), and offered the following sage advice:
There's a lot to unpack in these two points, so below I'll touch base on a few actionable tips you can use to put this advice into action:
Right now, we generally only hear about reducing and eliminating payment fees from more radical startups, but Kristopher Riley, head of business development at Paystand, says this dynamic is quickly changing and many companies are now realizing the benefits of ditching legacy payment methods.
"Organizations are demanding lower costs, so they're dipping their toes into digital payments, which include more data, control, and automation," Kristopher said, noting that while this does reduce costs and risks in general, the greatest benefits lie in eliminating inefficiencies and fraud. "While traditional payment rails are still reliable, the shift to digital options is really about fixing broken processes and reducing operational risk. That's why eliminating fees is no longer seen as such a radical idea."
Sticking to the legacy payment methods of the past will only serve to drive new potential customers away, and cost a lot of money while you’re doing it. Here are some tips from the event:
Without a doubt, real-time payments was top of mind for everyone in attendance. However, some still felt skeptical about the implementation and execution. Overheard on the shuttle to the event, "I'm really interested in real-time payments, but I don't know if it's going to happen. Getting a real-time balance is almost impossible, never mind a real-time payment." This was from a banking treasurer relating her challenges about "giving customers what they want, when they want it and where they want it."
As someone in the payment space, I hear that and can't help but notice how quickly the demand for real-time payments is growing. More companies appear to be investing in real-time technology than any other area, with 33% of companies saying they plan to roll out real-time payment innovations in the next three years. Now consider that more than 600 retail banks have already signed up to pursue real-time payments through Zelle, and wholesale banks are now testing new services that could shift volumes from ACH and Wire while protecting margins.
During the "Realizing the Benefits for Faster Payments for the Corporate Treasurer" session at the conference, panelists offered several takeaways for attendees hot to try real-time payments:
We spent last week navigating through the maze of sessions, keynotes, and bold talks at MindShift Row, trying to soak up every bit of knowledge we could. These are just three of the takeaways from our jam-packed days of AFP ideas from some of the most forward-thinking minds on the planet.
We were lucky enough to get this inspiration first-hand, and now we can share with you. To get started implementing some of these learnings, download our free eBook The Controller's Guide to B2B Payment Optimization. If you found this advice helpful, you’ll be in for a great read that provides real value for what’s next in your profession.