Today, many financial institutions are using cloud-based Software-as-a-Service (SaaS) applications for what are considered non-core or non-critical use cases. These include customer analytics, CRM, email, financial accounting, HR, and development and testing. At the edge, SaaS point solutions are commonly used for account verification, Know Your Customer (KYC), and security analytics.
However, as digital becomes mainstream and CxOs look for new ways to attract new clients, maximize retention, and slash costs, core services are moving to the cloud.
A report by PwC, Financial Services Technology 2020 and Beyond: Embracing Disruption, states that “by 2020, core service infrastructures in areas such as consumer payments, credit scoring, and statements and billings for asset managers’ basic current account functions will be well on the way to becoming utilities.”
Why? The same report states that cloud-based infrastructure has resulted in plummeting data storage costs making it easier to manage “big data’ and apply sophisticated analytics in the cloud. A lower price also translates to lower barriers to entry for new innovative and driven FinTech disruptors.
Financial services organizations are also digitally transforming their operations by deploying state-of-the-art technologies for fraud prevention, business processes improvement, regulatory compliance, and spend management. One target of FinTech is the elimination of paper processes and lengthy approval cycles with accounts payable automation.
Increasing collaboration between finance and procurement, Purchase to Pay platforms allow companies to control, regulate, and automate their purchasing policies.
By standardizing the ordering of goods and services, finance can optimize expenditure, reduce indirect spend, negotiate discounts with key suppliers, and gain critical insights. Private P2P services also ensure compliance with evolving regulatory demands, mitigating high financial fines and penalties that often come with non-adherence.
Financial services institutions are uniquely positioned to take advantage of client demand for integrated invoicing and payment services. Providing P2P-as-a-Service gives banks access to a new and exciting range of services to attract new clients, increase retention, and maintain a competitive edge.
Following a risk-based approach with multiple layers of security and best practices, SecureCloud P2P’s host environment encompasses a set of 16 necessary operating procedures and practices that continuously evolve according to industry trends and regulatory policies.
To get your copy of the whitepaper articulating these procedures and practices, go to: https://www.palettesoftware.com/whitepaper/bank-security-standards/