Hello members. This the second edition of the Commercial and Enterprise Payments Advisory Service quarterly newsletter for 2022. Here we provide a recap of member research releases from the first quarter, including a look at the trend towards platform banking, the continuing transformation of treasury management systems, insights on card spend management software based on a recent sponsored survey, and finally a dive into B2B payments fraud with the costs surrounding that continuing challenge for banks and corporates alike. We also added a blog on business travel prospects for those tracking developments in what we hope are the waning days of the pandemic. In addition, we preview coming research in the second quarter of 2022.

Cloud Banking for B2B Commercial Payments Is on the Rise

As we continue into 2022, one of the main themes in corporate banking is the steady acceleration of payments infrastructure to cloud delivery models. This is not a new trend for payment fintech disrupters and some of the more forward-thinking financial institutions, but general industry resistance to more comprehensive cloud strategies started to visibly wear down in 2020 and continued as a movement during 2021. This cloud delivery trend creates a more streamlined cost base and allows faster product adaptation for banks in these uncertain times of lower net interest margins and non-traditional competition. In this Viewpoint, we discuss some of these contributing factors and how the cloud infrastructure trend is changing bank approaches to technology in delivering products and services.

See more at: Cloud Banking for B2B Payments Is on the Rise

Treasury Automation: Adapting to Changing Expectations

Treasury management has traditionally been a specialized and lightly resourced area of corporate finance. After the global financial crisis of 2008-2009, a shift began regarding the strategic role of treasury in the planning and execution of corporate financial imperatives. That evolution continues and has received a boost from tailwinds generated by the pandemic, with the clear recognition of digitized financial processes as a catalyst for improved financial operations among previously lagging organizations. In this report, we review the traditional role played by treasury departments along with the foundational types of functions and technology that define this critical area of corporate finance. We then review the latest trends that are driving rapid advances in the treasury automation space.

See more at: Treasury Automation: Adapting to Changing Expectations

Insights From Recent Mercator Study: Commercial Card Users Underscore the Importance of Card Spend Management Tools

In the commercial credit card space, use cases for spend management software have traditionally been related to travel and expense management tied to corporate card programs as the product set. Market share is widely distributed among various industry players and internally developed solutions. As technology in the space continues to improve, an opportunity exists to capitalize on the more digital, cloud native and integrated experiences available through these spend management solutions. In this Viewpoint, we highlight key findings from a recent card spend management survey (deployed Q4 2021) conducted on behalf of Visa, which included 460 corporate and 53 issuer respondents across ten global markets. We focus on the perspective of corporations with some insight also gained from issuing banks across these markets.

See more at: Insights From Recent Mercator Study: Commercial Card Users Underscore the Importance of Card Spend Management Tools

The Cost of Fraud: B2B Commercial Payments Experience 10% Increase During the Pandemic

Payments fraud is an ongoing threat. Fraudsters see new opportunities as organizations continue digitization efforts in response to the COVID-19 pandemic and payment initiatives such as real-time payments that continue to be adopted in the B2B space. Real-time fraud is an unfortunate reality that businesses cannot ignore. In this report, we cover the trends in B2B payments fraud affecting large to mid-size organizations and the strategies they are using to fight back. Although fraud is inevitable, organizations that stay current with fraud prevention strategies can mitigate damages and reduce losses.

See more at: The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic

Coming Research

As we move into Q2 2022, we will be addressing the following topics:

  • Middle Market Payment Trends
  • Commercial Credit Cards International Markets Review
  • Supplier Enablement Insights

Thanks, and feel free to send me or Ben Danner a message any time. My email is smurphy@mercatoradvisorygroup.com, or you can call me at 1-781-419-1710. You can find Ben at bdanner@mercatoradvisorygroup.com or call 1-781-419-1727.

Best wishes and stay safe.

Steve

Steve Murphy
Director, Commercial and Enterprise Payments Advisory Service