Survey Shows Forecasting a Rising Pain Point for Corporates, Potential Blind Spot for Banks
Results show a potential disconnect between corporations and their banks, rising concerns over receivables fraud, ongoing movement in lockbox locations and providers, and more.
Atlanta, GA, Oct. 18, 2023 (GLOBE NEWSWIRE) -- Strategic Treasurer and Corcentric recently released the results of the Modernizing AR Processing Survey. Results show a potential disconnect between corporations and their banks, rising concerns over receivables fraud, ongoing movement in lockbox locations and providers, and more.
This survey’s questions probed respondents knowledgeable about their companies’ accounts receivable (AR) processes and, accordingly, their current pain points, complexity levels, plans, and perspectives. Details were gathered about payment types, technology options, and timeframes for visibility, and the longitudinal data gathered over the past four years has revealed trends and notable shifts in the landscape.
Among the top findings were the following:
1. Corporate View of Forecasting as a Pain Point Grows, While Bank View of Forecasting Services’ Importance Subsides. For three consecutive years, corporate respondents were asked to identify “the largest pain point in the AR process.” From 2021 to 2023, forecasting as a top pain point tripled, moving from 13% in 2021 to 39% in 2023. This moved it from eighth place to first place. Meanwhile, however, the importance banks place on their forecasting services has trended downward, dropping from 77% ranking its importance as high or very high in 2020 to only 57% in 2023.
2. Lockbox Movement Expected to Continue. As banks and third parties reduce physical lockbox locations, 35% of corporate respondents who still use physical lockboxes reported shifting locations or providers in the past three years. Another 8% expect to make a change in the coming year.
3. Inbound Payment Security a Rising Concern. A total of 70% of respondents stated that inbound payment security has become more important (45%) or significantly more important (25%) over the past two years. None noted reduced importance. There seems to be good reason for the concern, as a quarter of respondents reported suffering a loss or inconvenience due to redirected payments.
The Modernizing AR Processing Survey asked more than 50 questions and was taken by upwards of 200 respondents. More extensive results from the survey are available via a downloadable report and a webinar replay. The webinar featured Craig Jeffery of Strategic Treasurer and Anthony Mignogna from Corcentric.
About Strategic Treasurer
Strategic Treasurer was founded in 2004 by Craig Jeffery, a financial expert and trusted advisor to executive treasury teams since the early 1990s. Partners and associates of Strategic Treasurer span the US, the UK, and continental Europe. This team of experienced senior treasury advisors are widely recognized and respected leaders throughout the industry. Known for their expertise in treasury technology, risk management, and working capital as well as other cash management and banking operations, they efficiently identify issues, creatively explore ideas and options, and provide effective solutions and implementations for their valued clients. For more information, visit strategictreasurer.com.
About Corcentric
Corcentric is a leading global provider of payments, procurement, accounts payable, and accounts receivable solutions to enterprise and middle-market companies. Corcentric delivers software, advisory services, and payments focused on reducing costs, optimizing working capital, and unlocking revenue. To learn more, please visit corcentric.com.
Kylene Casanova Strategic Treasurer 678.466.2221 [email protected] Rob Tacey Corcentric 856.843.6751 [email protected]