Cash Management Trends and Challenges in 2022

Cash Management Trends and Challenges

In 2022, we are experiencing a unique set of challenges within the Cash Management industry. Across the world, we have all been battling to recover after the global pandemic. With concerns to public health, countries introduced restrictions to limit interactions. Therefore, customer behaviour shifted, changing the landscape of Cash Management. We have needed to adapt to these changes, which have produced several outcomes. 


Digitalisation in Cash Management

Recent decades have seen a massive move towards digital technologies. Cash Management processes are deep rooted and have been in place for over a century. Therefore, it is no surprise that these technologies are often met with resistance. However, the time is now to make the change. Other industry leaders are already deploying these solutions and are reaping the benefits. If we do not adapt, then we will fall behind. The trend in 2022 and going forward is educating ourselves and deploying innovative solutions to remain competitive. 

For example, solutions automate reconciliations in real-time. Using cloud-based software, Cash Management companies have much more flexibility over their operations, including working from home. Typical reconciliations take place on spreadsheets and are extremely manual. In addition, they are prone to errors and a lack of transparency. If a service provider fails to identify any lost revenue or has no data to investigate, profits will be minimised. A cloud-based reconciliation solution can seamlessly unearth hidden cash and provide powerful reports to improve business performance. 


The Challenge of Security

There will always be concerns when we discuss customers’ finances alongside digitalisation. There have been a number of breaches in the area of security in recent decades, which has raised everyone’s doubts. However, security has improved ten-fold with innovative solutions. In fact, we are now seeing companies turning to digital solutions to overcome security issues. The Cash Management industry is in need of higher protection and the ability to mitigate the risk of fraud. For instance, theft is common in the cash collection process in developing countries. Digital tracking and creating clear audit trails are able to identify when, where, who, and how much cash has gone missing. With these solutions, we can now rest easy and have assurance over our cash positions. 

These solutions act as insurance policies and give us agility.


The Trend Towards The Cloud

Cloud Technology is not a new term but a term we now hear on a regular basis. A range of companies across different sectors is turning to cloud technology to increase productivity and collaboration. The global pandemic brought an array of issues for organisations. The Cloud was the crutch that gave us back our flexibility in restricted times. 

Security is improved. The Cloud has backups and disaster recovery rather than having all data on one internal server, which can be subject to breaking down and loss of data. Not to mention the limitless storage space we now have access to. 

Cloud technology has given the flexibility necessary over the course of the global pandemic. Employees can now easily access data remotely, permitting them to carry out work functions from home. Remote working has been particularly apt during the pandemic but will remain a prominent approach to work going forward. It also allows teams spread over wide geographic locations to work collaboratively and effectively, improving productivity.


Cash Management Reporting

With the typical outdated processes we have discussed being standard, there is a sheer absence of powerful reporting. Building analytics with spreadsheets is extremely time-consuming, and there is a lack of assurance of accuracy. Using outdated ‘out of the box’ solutions fails to provide the relevant analytics. Fortunately, with technological advancements, there are now solutions out there that provide tailored analytics and reporting. These solutions use Cloud Technology that enables us to see the analytics in real-time and automate the process. The powerful, relevant and accurate analytics are what we need to have full transparency, control, and the ability to improve business performance. 

Having insights into our operations will allow us to identify problem areas quickly and troubleshoot. Although data is not a new thought, in 2022, we will see companies put a higher emphasis on analytics. They are vital to remain vigilant and to remain competitive.


Final Thoughts

As we can see throughout this article, all the trends in 2022 correlate with increased digitalisation. As Cash Management is an old industry and not born in the digital era, there will likely be resistance. However, with the digital world expanding at such an alarming rate, we cannot afford to sit back any longer. Some companies have already adopted innovative solutions to improve operations but still have a long way to go. Others have not started. Fortunately, as technology advancements are so rapid, there are better, modern solutions and mechanisms we can take advantage of. 

To summarise, the trends in 2022 are:

Digitalisation: Automation and efficiency as the driver, a number of digital implementations can improve operations and profitability. 

Security: Always a concern, but instead of trust in technology, we are now seeing a shift to technology to increase assurance and security.

Cloud Technolgy: With the global pandemic and advancement, Cloud technology is being rolled out faster than ever before. With the increasing flexibility of your workforce, information at your fingertips and increased security, there seems to be little room for debate. 

Reporting: The biggest challenge in 2022 is recovering from the global pandemic and remaining competitive. Yet, we do not have the tools to do so. Utilising the data we have available is vital. Solutions exist that collect, collate and transform all of our data into meaningful relevant analytics to improve operations and maximise profitability.