Does deposit insurance retard the development of non-bank financial markets?

Whether, and how, the introduction of deposit insurance affects non-bank financial market development depends on whether banks and non-bank financial markets are substitutes or complements and theory has conflicting views. Using data on 134 countries over a 28-year period and several identification strategies we find that the introduction of deposit insurance retards the equity market, the non-bank depositaries sector, and the banking sector when law and order is weak.

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Over 300 companies use Alloy’s API-based platform to connect to more than 160 data sources, automate identity decisions during account origination, and monitor them on an ongoing basis. Alloy has helped some of the most innovative banks and fastest growing fintech companies grow and scale operations by allowing them to find more good customers and bring them into their products without increasing the risk of fraud.

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Top Picks in Accounts Receivable Software for Modernization

Article | March 5, 2024

Explore the top accounts receivable software in this article. Discover the benefits of accounts receivable software designed to streamline operations and ensure smoother, faster transactions. Contents 1. How Accounts Receivable Software Empowers Modern Enterprises 2. Key Benefits of Accounts Receivable Software 3. Best Accounts Receivable Software: Top 10 Picks 3.1 Accounting Seed 3.2 ApprovalMax for Xero 3.3 Centime 3.4 BlueSnap Accounts Receivable Automation 3.5 DataServ 3.6 ezyCollect 3.7 Growfin 3.8 Paystand 3.9 ReconArt 3.10 Upflow 4. Way Forward 1. How Accounts Receivable Software Empowers Modern Enterprises Accounts receivable (AR) software is crucial for a business' fiscal stability. It manages the sums owed by customers or other debtors. These amounts, often referred to as billing, are essential for a business' sustainability, as the inability to effectively secure payments for goods or services can jeopardize the enterprise's durability. AR is categorized as an asset on the balance sheet, reflecting the anticipation of future cash flows. Accounts receivable software streamlines the billing cycle, automates the payment process, and reduces the time required to secure payments, facilitating a seamless and timely cash flow. This automation allows businesses to allocate working capital more effectively and ensures that critical resources are available where they are most needed. Additionally, the software minimizes the need for finance and sales team members to expend time and effort chasing unpaid invoices. 2. Key Benefits of Accounts Receivable Software Accounts receivable software offer many benefits, revolutionizing how businesses manage their finances. Some of the advantages include: Maximized Cash Flow: These tools ensure timely payments by streamlining accounts receivable processes, offering a clearer view of cash positions. Through reminders, early invoice identification, and simplified payment options, businesses can effectively manage cash flow, maintaining financial stability. Enhanced Financial Oversight: These software solutions empower businesses to exercise better cash and working capital control, leading to improved accounts receivable performance. With insights into cash positions, informed decisions regarding investments like equipment purchases or expansion can be made while increasing available cash through efficient invoice collection. Heightened Efficiency: Automating repetitive tasks through accounts receivable management software saves valuable time and effort. Reducing the time spent on calls and dispute resolution enhances the overall efficiency and increases focus on soliciting payments. Streamlined Communication: Integrated tools facilitate seamless customer communication, providing easy access to account information, streamlined email and document creation as well as comprehensive interaction logging for future reference. It saves time and elevates customer service levels. Elevated Customer Satisfaction: Preventing late payments and invoice issues is paramount in improving customer satisfaction. Automated invoice delivery, early problem identification, and centralized information ensure smoother interactions and foster stronger customer relationships. Reduced Administrative Costs: Digitizing communication processes eliminates manual tasks such as printing and mailing invoices, resulting in substantial savings on resources and time. By automating communications, administrative overhead is reduced. Accelerated Sales-to-Payment Cycle: Automating invoice delivery and offering online payment options shorten the time between making a sale and receiving payment. Transactions are expedited by providing customers with convenient payment methods, enhancing cash flow. Effective Credit Risk Management: These tools facilitate efficient credit risk management by leveraging third-party credit information and monitoring customer relationships. With features like storing credit reports, establishing credit scoring, and setting up alerts for high-risk accounts, businesses can promptly identify and address potential risks. 3. Best Accounts Receivable Software: Top 10 Picks Here are some of the industry's leading accounts receivable tools, facilitating a smooth transition to more efficient fiscal operations: 3.1Accounting Seed Accounting Seed is a robust cloud-based accounting tool that comprehensively overviews a business' financial status. This accounting solution is a cornerstone for companies seeking to streamline financial processes and establish a unified source of financial truth tailored to meet the diverse needs of modern enterprises. Some of its key features include: Allows meticulous monitoring of invoices, payments, and customer interactions Facilitates automated billing processes, easing administrative burdens Enables efficient handling of cash receipts for streamlined financial operations Generates detailed financial reports, providing insights crucial for informed decision-making Offers a customizable dashboard for personalized user experience and efficient navigation Suited for businesses of varying sizes and industries, ensuring flexibility and scalability Seamlessly integrates with other business processes, enhancing overall efficiency Tracks data across the entire business lifecycle, from marketing and project implementation to product sales and accounting Provides a comprehensive finance solution accessible to companies worldwide, from small enterprises to large corporations 3.2 ApprovalMax for Xero ApprovalMax for Xero optimizes the accounts receivable procedure by implementing automated, multi-tiered approval workflows. It guarantees adherence to established business policies prior to transaction execution. It integrates with widely used accounting software, thus expanding its capabilities to encompass comprehensive controls over the AR process. This platform ensures transparency and accountability, featuring thorough audit trails and real-time reporting functionalities. By facilitating streamlined approvals, ApprovalMax for Xero aids businesses in error reduction, fraud prevention, and regulatory compliance, thereby serving as an indispensable instrument for financial governance. Its primary attributes include: Automated, multi-tiered approval workflows Integration with popular accounting software Enhanced controls over the accounts receivable process Transparent and accountable operations with detailed audit trails Real-time reporting capabilities Error minimization, fraud prevention, and compliance maintenance 3.3 Centime Centime stands as the premier cash management suite, facilitating effective control and management of cash flow for enterprises. The tool's fundamental elements are as follows: Its comprehensive suite encompasses forecasting, collections, invoicing, payments, credit, and reporting, each interconnected to enhance efficiency. By leveraging automation and artificial intelligence, Centime empowers finance leaders to bolster productivity, diminish operational expenses, and proactively address risk factors. It delivers comprehensive analytics and predictive models, facilitating enhanced cash flow management, risk mitigation, and informed decision-making. The tool fosters improved planning and execution of payment collection strategies, ensuring the sustained health of business cash flows. By furnishing clear insights into receivables and payables, Centime enables businesses to optimize their financial strategies, promoting growth and stability. 3.4 BlueSnap Accounts Receivable Automation BlueSnap Accounts Receivable Automation assists businesses in effectively managing their accounts receivable by streamlining online payment processes securely and effortlessly. Its primary aspects involve the following: The platform features extensive support for various payment methods and currencies, rendering it exceptionally suitable for facilitating global transactions. By providing flexible payment alternatives and comprehensive financial reporting capabilities, the software enhances businesses' accounts receivable procedures, thereby fostering revenue growth. This accounts receivable automation software enriches existing accounting and CRM systems with workflow automation, business intelligence, and best practices, optimizing efficiency across finance, sales, support, and HR departments. 3.5 DataServ DataServ offers a tailored accounts payable automation solution designed to reduce costs, liberate staff, mitigate fraud, and streamline processes. The platform simplifies the digitization of accounts receivable processes through its SaaS model, with a focus on document automation and process efficiency. Some of the essential functionalities comprise: Auto-matching technology that ensures the precise application of payments, thereby minimizing discrepancies and the necessity for manual intervention. DataServ's suite of analytics and reporting tools empowers businesses to gain insights into their receivables performance, facilitating strategic decisions to improve cash flow and customer satisfaction. This tool has a proven track record of delivering AP invoice automation solutions, enabling accounting teams to eliminate data entry, enhance accuracy, and concentrate on higher-value tasks. DataServ provides touchless invoice processing with its proprietary AutoVouch system. 3.6 ezyCollect ezyCollect provides a comprehensive solution to automate and streamline the accounts receivable process, thereby substantially alleviating the administrative burden associated with pursuing overdue payments. The tool's key aspects entail the below mentioned: The platform simplifies the automation of payment reminders, offers a variety of online payment options, and provides real-time insights into debtor statuses. This approach assists businesses in enhancing their cash flow management with ease. Additionally, it incorporates a customer self-service portal, enabling clients to access invoices and payment histories and make direct payments, thereby augmenting the customer payment experience and promoting timely settlements. ezyCollect excels in automating account receivables for B2B clients, typically reducing overdue outstanding amounts by 40% within the initial 12 months of utilization. This proven effectiveness instills hope and optimism for the financial health of businesses. This software caters to small and medium enterprises seeking to optimize their accounts receivable processes. It features a payment portal where customers can opt to 'Pay Now' or 'Pay Later' and conveniently access all their invoices from a centralized location. ezyCollect offers centralized communications functionality, allowing users to access a comprehensive record of their customer communications within a unified interface. 3.7 Growfin Growfin offers specialized functionalities such as real-time risk evaluation of accounts, personalized follow-up strategies, and an AI-driven cash application process. It revolutionizes the management of AR for B2B finance teams, particularly in the context of high invoice volumes. Its fundamental elements comprise the following: Growfin automates the collections workflow, transitioning away from manual, spreadsheet-dependent processes. The tool takes a proactive approach by identifying precarious accounts early. It uses a range of metrics to forecast payment timelines and risk levels, providing a sense of security. Growfin allows tailored dunning automation targeting specific segments or individual accounts. Its real-time tracking capabilities enable immediate insights into the status of outstanding cash. The tool integrates with the software ecosystem, ensuring data consistency and up-to-date information across ERPs and CRMs for optimal stakeholder visibility. The tool’s AI-driven solution simplifies the cash application process. It automatically captures and allocates incoming payments to the corresponding invoices and adeptly handles complex scenarios like partial payments, overpayments, and short payments. Its customer portal minimizes the time spent on customer inquiries by enabling self-service. Customers can view and download statements, add promises to pay (PTPs), and log disputes autonomously. 3.8 Paystand Paystand is a leading digital payment solution tailored for B2B enterprises. It comprises a substantial network engaged in transactions. The tool facilitates payment acceptance, simplifies collections, and automates various manual AR tasks. It enables no-fee payments and streamlines complex accounting processes, including collections, payment reconciliation, and customer communication workflows. Its integral features include: The absence of additional fees or markups within Paystand's network offers access to wholesale processing rates and electronic payment collection without transaction fees. Comprehensive support for various ERPs enhances the overall customer payment experience through integrations. Reducing costs and liberating AR resources across enterprises improves cost savings, team productivity, and cash flow. Utilizing blockchain technology delivers an innovative accounts receivable solution, automating the entire billing and collection process. Facilitation of zero-fee transactions enables businesses to economize on transaction costs while ensuring efficient and secure payment processing. Provision of a digital ledger characterized by unparalleled transparency and security mitigates the risks associated with fraud and discrepancies. Integration with ERP systems streamlines the reconciliation process, rendering it an optimal choice for businesses seeking to modernize their B2B payment systems and enhance operational efficiency. 3.9 ReconArt ReconArt is a premier solution within the financial reconciliation domain, offering an extensive suite of tools for efficiently automating and managing accounts receivable processes. Its core features include transaction matching, exception management, and detailed reporting, which ensure precision and adherence to regulatory requirements in financial statements. The core functionalities encompassed are: The platform is scalable, catering to businesses of varying sizes, providing real-time visibility into financial data and optimizing end-of-period closing activities. By minimizing manual interventions and bolstering control over the reconciliation process, ReconArt facilitates faster and more reliable financial close procedures. It represents a unified technological solution, delivering automated, fully web-based reconciliation capabilities to a diverse global clientele. ReconArt offers a next-generation, future-proof reconciliation and financial close management solution to a continually expanding global client base. It enables rapid implementation, exceptional flexibility, intuitive usability, and complete scalability. It is also designed to be entirely business-owned. 3.10 Upflow Upflow offers intuitive invoice management, ensuring timely client reminders and meticulous payment tracking. It aids B2B payments companies in simplifying follow-ups and enhancing debt recovery processes, ultimately leading to improved financial performance. The platform integrates into accounting stacks and provides real-time insights and AI-driven automation, facilitating significant enhancements in cash collection efficiency. Upflow offers a simple yet powerful SaaS solution that manages accounts receivable effectively while improving cash collection processes. Other core elements include: Automation of collection processes Intuitive invoice management Timely client reminders Meticulous payment tracking Insightful payment behavior analytics Integration with accounting software Reduction of days sales outstanding Facilitation of informed decision-making Improvement of cash flow optimization Users can access it with a single click by connecting their billing tool to Upflow, receiving detailed analytics within minutes, and establishing systematic workflows for invoice recovery and streamlined customer payments. 4. Way Forward The future of accounts receivable is on the brink of remarkable transformations driven by technological advancements. Emerging trends highlight a surge in automation, leveraging AI, machine learning, and robotic process automation to streamline AR operations. Businesses are increasingly embracing digital solutions to expedite and enhance the accuracy of receivables management. Looking ahead, accounts receivable software is expected to prioritize enhancing the payment experience for customers, emphasizing convenience and efficiency. Moreover, data analytics tools will play a pivotal role in forecasting cash flow and optimizing payment collection processes. Ultimately, the convergence of technology and customer-centric strategies heralds a promising future for AR, promising improved efficiency and enhanced financial management practices.

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Investment Management

Learning Accounts Receivable Management from Top Companies

Article | March 22, 2024

Explore this article to learn how leading firms blend traditional and modern approaches in accounts receivable management. Understand the strategies that effectively solve challenges in AR management. Contents 1. Importance of Accounts Receivable Management 2. Traditional Versus Modern Accounts Receivable Practices 3. How to Implement Effective AR Processes 4. Mastering Accounts Receivable: Insights from Industry Leaders 4.1 NCH Software 4.2 Versapay 4.3 BlueSnap 4.4 Billtrust 4.5 Melio 4.6 Serrala 4.7 Finvi 4.8 Agicap 4.9 Pagero 4.10 TreviPay 5. Wrap Up 1. Importance of Accounts Receivable Management Accounts receivable management is the systematic process of monitoring and controlling the funds that customers owe to a business for goods or services purchased on credit. It includes establishing policies and procedures to optimize account management efficiency and minimize the risk of bad debt. This strategic component is essential for ensuring liquidity, profitability, and the avoidance of bad debts. It encompasses far more than the mere receipt of payments; a robust and efficient AR management system, crucial for sustaining capital growth and ensuring business expansion. As businesses evolve, so do their financial processes. The adoption of advanced technologies and automated systems in accounts receivable operations is no longer a luxury, but a necessity. Manual processes can lead to cash flow issues and customer dissatisfaction, while integrated and technologically advanced systems ensure operational efficiency and maintain a competitive edge. 2. Traditional Versus Modern Accounts Receivable Practices This comparison table showcases the transition from traditional to modern accounts receivable practices, highlighting how manual and paper-based methods have evolved into automated and digital solutions. It compares the significant advancements in efficiency, accuracy, and scalability across ten key aspects. Each entry contrasts old and new methodologies, providing insights into changes in invoicing, payment processing, collections, and more. This table is an essential resource for understanding the impact of technological integration on financial operations, clearly outlining the differences between past and current practices in accounts receivable management. 3. How to Implement Effective AR Processes Understanding the value and initiation of an accounts receivable system is crucial for maintaining cash flow and customer accountability in business operations. Here are some of the practical steps to implement an accounts receivable system: Establish Credit Application Policies Define eligibility for credit or invoice systems. Determine situations requiring immediate payment. Set prerequisites for credit eligibility. Outline terms and conditions for credit sales. Detail the credit approval process and responsible parties. Invoice and Documentation Notify customers of their dues through: Paper invoices Electronic invoices Monthly statements Develop a systematic approach for invoice generation and distribution. Set Specific Deadlines Define and communicate clear payment terms and due dates. Adjust deadlines based on customer payment behavior. Track and Monitor Accounts Receivable Assign responsibility for reporting on invoice statuses and financial reconciliations. Utilize accounts receivable tools to monitor payment intervals. Employ appropriate accounting software for tracking. Finalize Accounting for Accounts Receivable Record all payments and link them to specific invoice numbers. Update the balance sheet and adjust for bad debts as needed. Ensure all transactions reflect current and accurate financial information. 4. Mastering Accounts Receivable: Insights from Industry Leaders Here's a list of ten remarkable accounts receivable management companies with insights and proven strategies for optimizing cash flow and reducing financial risks. 4.1NCH Software NCH Software is a prominent audio, video, graphics, and utilities provider. The company's commitment to innovation is evident in its continuous development and enhancement of software solutions. Such dedication facilitates the company's growth and fosters a supportive company culture, emphasizing adaptability and progress. Express Accounts, NCH Software's flagship product, offers enterprise-level accounting solutions tailored specifically for small businesses. By effectively managing income, expenses, and cash flow, Express Accounts addresses critical financial needs and provides comprehensive support for business operations. Moreover, providing this software as a free solution underscores NCH Software's dedication to accessibility and inclusivity, ensuring that businesses of all sizes can benefit from its offerings. 4.2Versapay Versapay streamlines the accounts receivable process by automating invoicing, payments, and collections through a cloud-based platform, enhancing cash flow, reducing manual tasks, and improving customer satisfaction. The company's Accounts Receivable Efficiency Suite simplifies the invoice-to-cash process for growing businesses using artificial intelligence to facilitate B2B payments and streamline cash applications. Versapay's automation software assists thousands of businesses in optimizing AR automation, cash application, and payments, promoting faster cash flow and heightened customer satisfaction. This suite supports all payment types across various channels and aims to eradicate labor-intensive manual tasks, covering the entire AR lifecycle from order to cash to collections. 4.3BlueSnap BlueSnap's Accounts Receivable Automation solution offers businesses a global payment processing platform. This service supports various payment methods and currencies designed to enhance conversion rates and sales by improving payment experiences and streamlining operations. It views payment processes from a unique perspective. Its Payment Orchestration Platform enables global payment acceptance and is crafted to boost revenue while reducing costs. The platform provides comprehensive back-end solutions that simplify the complexities of payment management, overseeing the entire process from inception to completion. BlueSnap facilitates payments across multiple sales channels, including online and mobile sales, marketplaces, subscriptions, invoice payments, and manual orders through a virtual terminal. For enterprises seeking embedded payments, it offers white-labeled payment solutions with automated underwriting and onboarding to support marketplaces and split payments. 4.4Billtrust Billtrust is a leading provider of cloud-based automated invoicing and payment solutions, focusing on enhancing the order-to-cash process. The company helps businesses accelerate cash flow, boost operational efficiency, and deliver superior customer experiences through electronic invoicing and integrated payments. It offers tailored order-to-cash solutions that facilitate quick cash application, including customized invoice delivery, secure multi-channel payment options, and intelligent matching and payment posting. The company's expertise in AR drives its innovations, which include a supplier-driven payments network, automated invoice delivery into AP portals, and an automated credit application process. These innovations help customers increase the electronic adoption of invoices and payments and overcome technological bottlenecks, enabling businesses to operate more efficiently without manual interactions. 4.5Melio Melio is a digital payment solution tailored for small businesses. It facilitates easy management and automates accounts payable and receivable processes. This platform offers simplicity and flexibility in bill payments and receiving funds, supporting various payment methods without necessitating recipient registration. Melio allows businesses to customize payment and receipt methods according to their preferences. The mission of Melio is to sustain small businesses. The B2B payments experience crafted by Melio conserves time and significantly enhances cash flow. The payment workflow is designed for simplicity, enabling firms in accounts receivable management to concentrate on serving their customers rather than managing back-office tasks. 4.6Serrala Serrala, a global provider of financial automation and payments software, offers solutions that enhance the efficiency of payment processes, treasury, and data management. The company's suite of award-winning finance automation applications leverages advanced technologies to automate all working capital processes from order to cash, procure to pay, and cash and treasury.Thisfrees up CFO offices from outdated practices and drives operational excellence by optimizing working capital, providing real-time insights, and improving risk management. Additionally, Serrala's AI-enabled AP automation software revolutionizes accounts payable by automating invoice processing, approval, and posting. Thus, it increases control over vendor payments and facilitates continuous improvements through real-time data access. 4.7Finvi Finvi, previously known as Ontario Systems, is a leadingenterprise revenue cycle management software providerto the healthcare, government, and accounts receivable management industries. The company dedicates itself to automating complex workflows, enhancing revenue recovery, and boosting customer engagement with innovative solutions. The company assists diverse healthcare and accounts receivable clientele by optimizing operational efficiency to bolster revenue recovery. As a frontrunner in the receivables and collections market, Finvi offers downloadable software technology that automates essential front-line and back-office workflows. This technology reduces compliance risks and enhances patient and consumer experiences through digital engagement platforms and fully integrated payment processing systems. 4.8Agicap Agicap offers cash flow management software tailored for small and medium-sized businesses, emphasizing accounts receivable management. This software integrates seamlessly with accounting and banking systems to provide a transparent overview of financial forecasts. It enables real-time visibility into cash positions, facilitating dynamic, reliable forecasting. This comprehensive integration extends to customer relationship management systems, ERPs, and POS systems, enhancing receivables management. The software's proprietary classification technology automatically categorizes inbound cash flows and generates forecasts, whichcan be fully customized. This feature assists SMBs in effectively managing their receivables, reducing the risk of liquidity shortages and streamlining access to financing options, ultimately lowering bankruptcy risks. 4.9Pagero Pagero specializes in digitalizing and automating purchasing, invoice handling, and order processes. Its cloud-based network supports efficient and accurate business transactions globally, enhancing financial transparency and compliance by facilitating the easy exchange of digital documents across an extensive network. Pagero offers a Smart Business Network that connects buyers and sellers for automated, compliant, secure exchanges of orders, invoices, payment instructions, and other business documents. Featuring an open network and a broad selection of value-added apps, Pagero assists businesses in streamlining their order-to-cash and purchase-to-pay processes, unlocking the full potential of accurate and reliable business data, irrespective of location, industry, size, or systems. 4.10TreviPay TreviPay, a leading entity in the fintech sector with over 40 years of experience in B2B payments and trade credit, offers a comprehensive range of payment options, from digital to card payments. Furthermore, it provides proven solutions for streamlining operational efficiency through automation. With seamless integrations into top-tier eCommerce and ERP solutions and flexible trade credit options, TreviPay caters to industry leaders in manufacturing, retail, and transportation. Its notable features include buyer qualification and automated onboarding, omnichannel purchasing and invoicing at the point of purchase, seller settlement, buyer payment collection in preferred currency via direct debit, ACH, or check, and the capacity to manage complexity across geographies, systems, and risk profiles with one platform. TreviPay provides a modular B2B payment solution designed to expedite achieving business goals. 5. Wrap Up Moving from 2024 into 2025, accounts receivable is set to evolve from uncertainty to assurance. Businesses will increasingly adopt advanced tools to ensure smoother integrations and enhanced financial operations. Among the innovations transforming accounts receivable management through digitization is automated invoice processing. Companies are utilizing AI-powered tools to streamline the creation, delivery, and tracking of invoices, significantly improving efficiency. Additionally, blockchain technology is employed to secure transactions and enhance transparency, reducing fraud risks associated with accounts receivables. The integration of mobile payment options is also gaining traction, offering convenience to customers and speeding up cash flow. Furthermore, predictive analytics is expanding, enabling accounts receivable management companies to forecast payment trends, optimize credit terms, and proactively manage cash flows for better financial planning. Lastly, migrating accounts receivable processes to cloud platforms facilitates real-time access, collaboration, and deeper data insights, leading to quicker decision-making and increased responsiveness. These steps collectively reflect a more integrated and technologically advanced approach to accounts receivable management as businesses head into 2025.

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Investment Management

Industry Leaders Pioneering Transformation in Insurance Software

Article | February 22, 2024

Uncover the transformation in insurance software through this article. Discover how top insurance software companies are integrating AI to revolutionize claims processing and risk assessment. Contents 1. Fundamentals of Insurance Software 2. Diverse Types of Insurance Software Solutions 3. Advantages of Embracing Modern Insurance Software Solutions 4. Overcoming Challenges in Digital Insurance Solution Software 5. Top Insurance Software Companies Setting New Standards 5.1 ePayPolicy 5.2 Aclaimant 5.3 OneShield ClaimseaMaker 5.4 360Globalnet 5.5 Snapsheet 5.6 DataCare 5.7 Tia 5.8 Zywave 5.9 JBKnowledge 5.10 JW Software 6. Future of Insurance Software Industry 1. Fundamentals of Insurance Software The insurance industry is continually evolving, driven by advances in technology and changing consumer expectations. A crucial aspect of this transformation is the integration and enhancement of insurance software, which offers a comprehensive suite of tools designed to manage day-to-day operations effectively. At its core, insurance software assists brokers, agents, agencies, and carriers in optimizing their workflows, thereby maximizing efficiency and reducing costs. Transformation in insurance software has introduced capabilities that extend beyond traditional functionalities, integrating advanced analytics, artificial intelligence, and machine learning. These innovations improve operational efficiencies and also enable more personalized and predictive services. On the administrative side, the software supports essential tasks such as underwriting, policy issuance, team management, claims tracking, regulatory compliance, and timely policy information updates. On the client-facing front, modern insurance software systems offer enhanced user interfaces and interactive platforms. These facilitate seamless interactions for customers, allowing them to perform a range of activities such as making policy inquiries, checking eligibility, applying for insurance, submitting forms, and making online payments. Moreover, the integration of chatbots and automated customer support tools has revolutionized client service, providing instant responses and support. 2. Diverse Types of Insurance Software Solutions Various solutions are available to address specific insurance requirements, with many software solutions integrating with other tools and applications to offer comprehensive insurance management capabilities. Here are some of the categories of software utilized by insurance firms and their respective features. Document Management Software: Insurance companies require document management software to securely store, organize, and retrieve essential documents such as policy applications, customer proofs, contracts, and policyholder agreements. Nonetheless, insurers may not necessarily require a standalone document management system, as functionalities for this purpose are often provided by their CRM, ERP, or other internal systems. Customer Relationship Management:CRM software designed for insurance companies offers a comprehensive platform that enhances operational efficiency by connecting teams, distribution channels, agents, and sales personnel. Apart from managing customer relationships, CRM is crucial for driving digital transformation in insurance software. It provides extensive functionality beyond lead management, facilitating product management, team coordination, and channel optimization, which improves processes like verification, policy sales, renewals, and cross-selling. Insurance Workflow Automation Software: Workflow automation involves the utilization of software systems to organize, monitor, control, and coordinate diverse business processes encompassing human resources, sales and marketing, lead management, and more. An example of workflow automation in insurance software is straight-through processing (STP) or digital sales, where the entire insurance process undergoes automated progression, from lead generation and online application to verification and policy issuance. Policy Management Software:Insurers employ policy management software to create, administer, and oversee insurance policies. Some software solutions offer facultative arrangements and reinsurance treaties, enabling insurers to mitigate risks and manage reinsurance processes efficiently. Underwriting Software: Underwriting constitutes a critical facet of the insurance business, involving the assessment of risks associated with insuring assets or individuals. Underwriting software facilitates the management of underwriting processes for insurance companies, enabling the formulation of rules and policies for automatic execution during the underwriting process. This reduces the manual efforts and minimizes human errors. Insurers also utilize ERM solutions to digitize their risk assessment processes. Claims Management Software:This software aids insurers in streamlining claim management workflows, automatically generating claim documents, managing payments, detecting fraudulent claims, and integrating policy administration systems. Enterprise Resource Planning Software:ERP solutions tailored for insurance companies facilitate the tracking of customer credentials, transactional data, and legal agreements. Integration of ERP with CRM enables effective management of operations and customer relations. Mobile Applications for Field Agents and Representatives:Insurance firms equip their field sales representatives with mobile CRM applications to monitor activities, plan schedules, receive meeting recommendations, identify upselling and cross-selling opportunities, and instantly update meeting notes, among other functions. Call Center Software:This software enables sales representatives and call center agents to communicate with existing and prospective customers via voice, web, chat, or email. Modern approaches involve integrating CRM software with cloud calling, Voice over Internet Protocol (VoIP), or telephony systems, allowing representatives to directly call customers from the portal and eliminating the need for manual dialing and record updates. 3. Advantages of Embracing Modern Insurance Software Solutions Operations within the insurance sector encompass a myriad of tasks and interactions among diverse stakeholders, including consultants who offer expertise, agents who facilitate transactions, and third-party agencies involved in various aspects of policy administration. These operations historically encountered challenges marked by redundant processes and interdependencies, resulting in considerable delays and inefficiencies. However, contemporary software solutions have emerged as effective remedies to these issues, revolutionizing the insurance industry and significantly improving the overall customer experience. Some of the advantages of modern software solutions comprise: Enhanced efficiency and productivity:Insurance software solutions inherently understand data storage formats and centralize information retrieval, allowing for streamlined operations as well as significant time and resource savings for agents and organizations. Improved client communication:These solutions facilitate positive client-agent relationships by providing real-time access to information on form statuses, memos, and deadlines, thereby reducing errors and miscommunication. Cost reduction:By optimizing processing operations and minimizing manual errors, insurance software systems enable employees to work more efficiently, leading to reduced operational hours and costs. Enhanced communication with agents and carriers:Access to real-time policy information empowers agents and brokers to swiftly compare rates and policies across multiple insurance companies, enabling quicker response to customer needs. Compliance management:In-built compliance protocols ensure adherence to evolving regulations, sparing firms the expense of rectifying errors and the time-consuming task of manually interpreting changing directives. Superior customer service:Prompt communication facilitated by insurance software enables accurate assessment of client needs and timely provision of quotes, alongside convenient service request processes. Advanced features like opportunity management in insurance CRM software further elevate customer service by providing upsell and cross-sell signals to sales representatives and agents. Enhanced data security:Opting for automation over manual methods significantly enhances data protection, with insurance software solutions typically incorporating user authentication and encryption protocols. Analytics and reporting:Integrated CRM/ERP systems provide robust analytics and reporting capabilities, furnishing standard statistical reports and enabling data export for deeper insights into firm performance. Accuracy:Insurance software solutions boast built-in tools for data authentication, including QA systems, audit systems, and address converters, thereby minimizing errors. Additionally, dedicated solutions aid in fraud detection and expedite investigation processes, with artificial intelligence adopted by the insurance industries and RPA technologies to further enhance operational efficiency. 4. Overcoming Challenges in Digital Insurance Solution Software While the benefits of custom insurance software development are numerous, tackling the road to successful implementation comes with its own set of challenges. By anticipating these challenges and implementing appropriate solutions, insurance businesses can ensure the successful development and implementation of custom insurance software. Let's explore these common hurdles and the solutions that can effectively address them: Legacy System Integration Integrating new software solutions with existing legacy systems poses a significant challenge in insurance software development. However, employing strategies such as API integration, data migration, and phased implementation can ensure a smooth transition. API integration facilitates communication between new and legacy systems, while data migration ensures the preservation of essential information. Phased implementation allows for gradual adjustments, minimizing the risk of operational disruption. Security and Compliance In the insurance sector, safeguarding client data against breaches is critical, while simultaneously adhering to stringent regulatory standards to ensure ethical management and confidentiality. Failing to meet these obligations can result in severe legal penalties and loss of consumer trust. Measures like encryption, access controls, and adherence to industry standards and regulations are essential to safeguard data and ensure compliance. Custom software solutions can be designed with built-in security measures and compliance checks to mitigate risks effectively. User Adoption and Training Resistance to change can present a significant challenge during the implementation of new software. Ensuring that the software features a user-friendly interface can enhance its acceptance among users. Additionally, providing comprehensive training programs and ongoing support can equip employees with the knowledge and confidence to effectively utilize the new system. 5. Top Insurance Software Companies Setting New Standards Here’s a list of pioneering firms that are at the forefront of transformation in insurance software. These insurance software vendors are leveraging cutting-edge technologies to revolutionize customer experiences, streamline claims processing, and enhance data security and compliance, setting new standards in the industry. From advanced analytics to AI-driven automation, explore how these insurance leaders are crafting the future of insurance through technological excellence and innovative solutions. 5.1 ePayPolicy ePayPolicy is recognized as the premier solution for swift and highly secure financial transactions within the insurance sector. It simplifies the payment process considerably, requiring no contracts, setup fees, or concealed charges. Importantly, it demands no technical efforts for initialization. Numerous insurance firms rely on ePayPolicy to enhance the efficiency of their payment systems using an integrated, user-friendly platform. The service includes secure processing for both ACH and credit card transactions, a daily collection of checks, and a comprehensive network for managing payables, all accessible via a unified dashboard. Additionally, it features integrations with numerous management systems, significantly reducing time spent on administrative tasks and simultaneously increasing satisfaction levels among accounting teams and clients alike. 5.2 Aclaimant As the initiator of active risk management, Aclaimant equips organizations to diminish risk-related costs and enhance productivity by integrating every employee into the risk management framework. This approach revolutionizes the management of data, personnel, and procedures through superior RMIS capabilities, encompassing workplace safety, incident and claims management, and analytics. The system automates the risk management process from the initiation of an incident to the conclusion of claims and transforms proactive safety protocols such as job safety analyses, job hazard analyses, observations, and inspections into digital formats. This comprehensive workflow system not only standardize business operations but also enhance collaborative efforts in incident documentation, inquiry, and evaluation of claims, all supported by instantaneous analytical feedback. 5.3 OneShield Claims OneShield offers business solutions tailored for property and casualty insurers and managing general agents of varying sizes. The company's offerings encompass cloud-based and SaaS platforms that provide comprehensive capabilities including enterprise-level policy management, billing, claims, rating, relationship management, product configuration, business intelligence, and smart analytics. These solutions, specifically designed for personal, commercial, and specialty insurance, facilitate support across more than 80 lines of business. OneShield's client base includes some of the world's foremost insurers who gain from optimized workflows, pre-built content, seamless upgrades, collaborative implementations, and pricing models that aim to minimize total cost of ownership. The principles of security and compliance are integral to the company's delivery methodology, ensuring simple and secure access to the digital realm for all users. 5.4 360Globalnet 360Globalnet heralds a new era in insurance claims management by digitizing the entire claims lifecycle from first notice of loss (FNOL) to settlement. It utilizes a no-code online digital claims core system technology, while its modular infrastructure seamlessly integrates with existing legacy systems, revitalizing their functionality and prolonging operational viability. 360Globalnet equips leading global insurers to deliver a digital customer experience that rivals top online retailers and simplifies the transformation of claims processes. Its eFNOL is merely the initial step; the technology empowers insurers to set up automated workflows and orchestrate the entire supply chain from a desktop environment, eliminating the need for IT development teams, cutting operational costs, and allowing claims specialists to concentrate on providing empathetic customer service during critical times. 5.5 Snapsheet Snapsheet has emerged as a leader in the introduction of virtual appraisal technology and cloud-native claim management software globally. It offers a flexible approach that enhances customer experience, increases organizational agility while delivering transformational benefits. The company's advanced InsurTech solutions revolutionize claims management by providing a cloud-based platform that streamlines every aspect of the process. Key features include efficient damage estimation, swift payment processing, and seamless communication with claimants, enabling automation and significant reductions in time and costs. By leveraging Snapsheet's capabilities, organizations can unlock the full potential of their claims operations and experience the transformative power of advanced technological solutions. 5.6 DataCare DataCare offers software solutions tailored for the workers' compensation industry, aimed at enhancing the management of medical treatment and billing. The Medical Process Manager and UR platforms from DataCare facilitate the integration of medical components into the claims workflow and accelerate the communication process between the Utilization Review Organization (URO) and the requesting physicians. Specializing in workers' compensation and managed care, this software company delivers tools via a web-based platform to support nurses, physicians, and adjusters. These tools are essential in case management, utilization review, and claims workflow processes. The company provides a cloud-based solution that adheres to HIPAA compliance and SOC 2 certification standards, accompanied by dedicated support customized to meet the specific business needs of each organization. 5.7 Tia Tia provides open and flexible software solutions to insurers globally. Recognized as the ‘system of records’, the company supports all core processes within insurance companies and offers a comprehensive portfolio of add-on solutions that enhance digital and analytics capabilities. In 2020, Tia was acquired by Sapiens, which further strengthened the software offerings available to insurers. This acquisition has provided enhanced support and development opportunities, as well as access to a wider range of additional products and offerings. This collaboration aims to infuse speed and agility into insurance ecosystems, striving to become the first choice for insurers in the core markets and to establish long-term relationships with satisfied customers. 5.8 Zywave Zywave stands out by providing comprehensive solutions necessary for automating growth. A leader in insurance technology, Zywave spearheads business expansion with an extensive range of cloud-based solutions encompassing sales management, client delivery, content, and analytics. The company boasts a wealth of robust data and an unrivaled content library, enabling smarter business decisions across the customer lifecycle, thereby promoting health, wellness, and safety. As a pioneer in innovation, Zywave continuously seeks new methods to support business enhancement, ensuring adaptability to industry changes. The company's commitment to development and innovation remains unwavering, always prioritizing the enhancement of business capabilities. 5.9 JBKnowledge JBKnowledge's Insurance Technology Solutions division offers software and technology services specifically for the insurance services industry, with particular expertise in workers' compensation, property and casualty, as well as health and life commercial lines. The company is recognized for pioneering the first mobile application for claims management, which facilitates the collection, uploading, storing, retrieval, and issuance of claims documents and data. JBKnowledge's solutions are adept at analyzing, managing, and reporting performance data. A highly customizable dashboard enables users to interact with real-time graphical representations, tables, and charts detailing claims, reserves, payments, and workers' compensation statistics. These visual tools are designed for easy adjustment to enhance monitoring and accessibility, with options to integrate additional widgets as required to consolidate or present necessary data from risk management records. 5.10 JW Software JW Software operates as a privately held entity committed to delivering premier claims management software. The company is recognized as a pioneering force in claims management, policy administration, and underwriting. With over 30 years of service to the insurance sector, JW Software team provides client partners with robust tools for business management that promote workflow automation and productivity enhancements throughout their operational cycle. The company's flagship software, FileHandler, offers claims organizations a user-friendly, cost-effective means to enhance business operations, incorporate automation, and expedite data access. 6. Future of Insurance Software Industry The future of the insurance industry is tightly interwoven with advancements in digital technology. As insurers increasingly depend on digital solutions to enhance product development, claim assessments, and customer experiences, the overhaul of core IT systems becomes imperative. This transformation, driven by the need to optimize costs through effective procurement and vendor management, and the necessity for agile application development and maintenance, positions IT as a strategic partner rather than a backend support. The path forward includes modernizing legacy systems, developing new proprietary platforms, or adopting standard software packages, with the choice heavily reliant on a thorough cost-benefit analysis. Such strategic IT modernization is crucial for improving front-end interactions while enabling real-time data integration and comprehensive digitalization across the insurance value chain, ultimately amplifying the overall business model.

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Investment Management

Beyond the Cart: Best Order Management Software Trends in 2024

Article | March 22, 2024

Read this article on order management software trends in 2024 to discover how order management system (OMS) technologies are setting new standards and transforming the way businesses handle orders. Contents 1. Significance of Order Management System 2. Top 10 Order Management Software Trends in 2024 2.1 AI and Predictive Analytics Integration 2.2 Blockchain for Transparency and Security 2.3 Real-time Order Tracking 2.4 Personalized Customer Experiences 2.5 Integration with IoT Devices 2.6 Voice-enabled Order Processing 2.7 Augmented Reality for Order Visualization 2.8 Robotic Process Automation for Order Processing 2.9 Dynamic Pricing Strategies 2.10 Multichannel Order Management 3. Future Scope 1. Significance of Order Management System Order management system (OMS) plays a crucial role in enhancing efficiency and customer satisfaction within the logistics and retail sectors. Businesses encounter complex challenges in processing customer orders, ranging from acquiring inventory to swiftly shipping products. By automating and integrating tasks such as stock management with e-commerce and inventory systems, OMS enables companies to manage the complexities of order processing more easily and accurately. This move toward digital tools not only streamlines operations but also provides real-time updates on orders and stock levels, improving business operations and customer support. 2. Top 10 Order Management Software Trends in 2024 Order management systems are undergoing significant transformations, with major technological innovations and new ideas making processes more efficient, accurate, and customer-friendly. Here are the top 10 order management software trends in 2024 that are making a significant impact. These include utilizing AI to enhance data understanding, ensuring a seamless shopping experience across various platforms, among others. Discover how these key trends in order management systems can streamline business operations. 2.1 AI and Predictive Analytics Integration Integrating AI and predictive analytics into order management significantly improves how businesses manage orders, offering advantages by using technology to analyze large datasets. This analysis helps predict customer demand with greater accuracy, considering factors like historical data and market conditions, and adjusting inventory accordingly. AI also boosts efficiency and accuracy in order picking by automating processes and optimizing routes, and it improves packing by selecting suitable materials and ensuring packages meet quality standards. Additionally, AI improves shipping reliability and flexibility, aiding in carrier and route selection, and providing real-time tracking of shipments. Predictive analytics enhances these benefits by helping forecast data, optimizing inventory management, and increasing supply chain performance. 2.2 Blockchain for Transparency and Security This order management software trend in 2024 represents a transformative shift toward leveraging blockchain technology's decentralized and immutable ledger capabilities to enhance supply chain transparency, traceability, and security. This innovative approach addresses the challenges of globalized trade and complex supply chains by recording every product's journey from production to consumer, significantly reducing information gaps and vulnerabilities to fraud and counterfeiting. Blockchain technology enhances supply chain management by offering real-time tracking, verifiable transactions, and an unparalleled level of precision, streamlining operations and optimizing efficiency. This approach not only minimizes the risk of errors and fraud but also builds trust among stakeholders, setting a new standard in the pursuit of operational excellence. 2.3 Real-time Order Tracking The trend of integrating real-time order tracking software in OMS marks a pivotal shift toward more efficient and responsive retail operations. This capability enables businesses to quickly identify and address any issues within the order cycle, thus enhancing customer satisfaction. According to a report by Optimoroute, 24.6% of online shoppers said they want to return to a brand that offers real-time order tracking [Source: Invensis] Moreover, real-time data tracking is crucial for understanding customer demand patterns and market trends, playing a vital role in strategic planning. Enhanced by powerful data integration and transformation tools, this technology ensures a seamless connection between various systems, maintaining consistent and accurate data across order, inventory, and supply chain management. Automated inventory tracking and real-time visibility into stock levels prevent common issues such as overselling or shortages, leading to smoother order fulfillment, fewer errors, and reduced delays. This method streamlines operations and significantly reduces costs by eliminating stockouts, overstocking, and product expiration. 2.4 Personalized Customer Experiences Personalized customer experiences in order management refer to the increasingly customized approach businesses adopt while fulfilling orders for their customers. It not only enhances customer satisfaction, but also strengthens the relationship between businesses and their clientele, potentially increasing loyalty, satisfaction, and, ultimately, sales. A positive customer experience is hugely meaningful to a retailer’s success: it yields 20% higher customer satisfaction rates, a 10-15% boost in sales-conversion rates, and an increase in employee engagement of 20-30%. [Source: McKinsey] The process involves tailoring the ordering, processing, and delivery phases to align with individual customer preferences, needs, and expectations. By collecting and analyzing data on customer behavior, preferences, and past interactions, companies can offer personalized recommendations, adjust their services based on customer feedback, and ensure that every aspect of the order management process is as convenient and satisfying as possible for the customer. Possible customizations include personalized packaging, tailored messages, flexible delivery options, and even specific product selections. 2.5 Integration with IoT Devices IoT devices revolutionize order management in warehouses and distribution centers, leading to more automated, efficient, and secure operations. This shift reduces goods damage and empowers staff to focus on customer-related tasks, boosting productivity and safety. IoT devices revolutionize order management in warehouses and distribution centers, leading to more automated, efficient, and secure operations. This shift reduces goods damage and empowers staff to focus on customer-related tasks, boosting productivity and safety. Nearly 72% of respondents have agreed to IoT as the key and most impactful technology within their premises or organization [Source: Fact.MR] Robotics, smart shelves, and wearable tech enable unparalleled real-time information gathering and monitoring. In transport logistics, IoT ensures optimal routing and item condition tracking, allowing quick managerial responses. IoT enhances workplace safety by using sensors to detect hazards, preventing accidents and reducing risks. Predictive maintenance through IoT data analytics predicts equipment failures, reducing downtime and costs, and maintaining productivity. 2.6 Voice-enabled Order Processing Voice-enabled order processing marks a transformative step in enhancing interactive and efficient customer service in order management. Currently, approximately half of the U.S. population already rely on voice search features on a daily basis, with 71% of consumers preferring to conduct queries via voice rather than typing [Source: Hypotenuse AI] By integrating advanced voice recognition technology, such as VoiceOS powered by artificial intelligence, this innovation simplifies the ordering process. Customers can effortlessly place new orders, manage existing ones, inquire about inventory levels, and track their shipments through straightforward voice commands, bypassing the need for traditional and often cumbersome order-taking methods. This automation frees staff to focus on providing exceptional service, improving operational efficiency, and ensuring a seamless customer experience. The adoption of voice-enabled order processing reflects a broader trend toward more accessible, convenient, and personalized customer interaction, setting a new standard for customer service practices in the digital age. 2.7 Augmented Reality for Order Visualization AR in order management represents a transformative shift toward interactive and immersive customer experiences. AR is bringing in extremely high satisfaction levels with 73% of mobile AR users reporting high satisfaction levels. [Source: Webinar Care] By integrating AR technology, businesses are now offering customers the ability to visualize products in their own environments before making a purchase decision. This innovative approach enhances the shopping experience by providing a realistic representation of products and also reduces the likelihood of returns and dissatisfaction. Furthermore, for logistics and inventory management, AR facilitates the efficient organization and retrieval of items, thereby streamlining operations and improving accuracy. Overall, augmented reality in order management is setting a new standard for customer engagement, operational efficiency, and the way companies manage their orders and inventories. 2.8 Robotic Process Automation for Order Processing Robotic process automation (RPA) employs software robots to automate complex, redundant, and rule-based tasks in order processing on a daily basis. The global robotic process automation (RPA) market is forecast to grow to more than 13 billion U.S. dollars by 2030, an increase of more than 12 billion compared to 2020 [Source: Statista] This includes tasks such as reading customer-provided item details, checking inventory availability, and efficiently managing order notifications and invoicing with unparalleled speed and accuracy. This technology significantly reduces task completion times from minutes to seconds, enhances precision, and addresses key challenges like manual order processing and non-standard data management. By eliminating the need for manual 'swivel-seating' between systems, RPA streamlines complex workflows, improves order fulfillment, and supports 24/7 operational capabilities without manual intervention. Its flexibility in task scheduling and resource allocation highlights the multitasking ability of RPA bots. Financially, RPA delivers substantial returns on investment by cutting down the need for additional personnel and reducing administrative mistakes, offering a compelling value proposition for the order processing sector and other industries seeking efficiency and accuracy improvements. 2.9 Dynamic Pricing Strategies Dynamic pricing is an advanced pricing strategy where the cost of goods or services is adjusted in real time according to market demand, offering benefits like enhanced revenue, efficient inventory management, and improved customer satisfaction. This approach utilizes various methodologies, including time, demand, segmentation, and event-based pricing, while requiring consideration of customer perception and competitor pricing to remain effective. Key strategies within dynamic pricing include penetration pricing to build initial market presence, competitive pricing that balances quality and value, segmented pricing for tailored offers to specific customer groups, and psychological pricing to influence buying behavior. The adoption of dynamic pricing, facilitated by sophisticated order management software, allows businesses to optimize prices based on current market conditions, thereby maximizing profitability and maintaining a competitive edge. 2.10 Multichannel Order Management Multichannel order management system trend represents a pivotal shift in how retailers and brands manage their sales and inventory across diverse platforms. The multichannel order management market size is estimated at USD 3.27 billion in 2024 and is expected to reach USD 5.01 billion by 2029, growing at a CAGR of 8.92% during the forecast period (2024-29) [Source: Mordor Intelligence] This innovative software solution integrates order and inventory control for businesses operating across various sales channels, including brick-and-mortar stores, e-commerce sites, and online marketplaces. By centralizing order and inventory data onto a single platform, it simplifies the management of operations ranging from order placement to fulfillment, shipping, pricing, and warehouse oversight. This consolidation eradicates the manual burden of tracking and reconciling each channel's orders and inventory, streamlining processes, minimizing errors, and enhancing overall efficiency. Furthermore, it supports a comprehensive approach to multichannel sales, enabling businesses to optimize operations, boost customer satisfaction, and seize the evolving opportunities within the retail landscape. Multichannel order management solutions, particularly beneficial for businesses focused on online commerce, offer functionalities for manual order placements, refunds, exchanges, and a host of order-related tasks while providing real-time inventory data, thereby promoting operational profitability and expedited fulfillment processes. 3. Future Scope The future of order management is poised to be reshaped by a suite of emerging technologies that extend beyond current trends, aiming to further enhance efficiency, accuracy, and customer satisfaction. Quantum computing could revolutionize logistics and inventory management through superior optimization capabilities, while digital twins offer a virtual modeling solution to predict and streamline supply chain dynamics. The integration of 5G and edge computing promises ultra-fast, real-time data processing, enabling more agile decision-making. Advances in neural networks and machine learning will refine demand forecasting and return process optimization, making inventory management more precise and reducing waste. Sustainable technologies will become increasingly central, focusing on reducing environmental impact through smarter logistics and eco-friendly practices. Furthermore, the use of collaborative robots (cobots) in warehousing and biometric verification for secure deliveries will enhance operational efficiency and security. These developments collectively indicate a move toward an online order management system that is not only interconnected and smarter but also sustainable.

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Spotlight

Alloy

Over 300 companies use Alloy’s API-based platform to connect to more than 160 data sources, automate identity decisions during account origination, and monitor them on an ongoing basis. Alloy has helped some of the most innovative banks and fastest growing fintech companies grow and scale operations by allowing them to find more good customers and bring them into their products without increasing the risk of fraud.

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Financial Management

Finastra showcases strategies for lending growth and compliance at its User Connect series

Finastra | December 05, 2023

Finastra, a global provider of financial software applications and marketplaces, brought together leaders from community banks and credit unions across the United States to discuss innovation in lending technology, operational and strategic initiatives, and trends in mortgage and retail lending. The series, open to current Finastra lending customers, was hosted in Chicago, Orlando, Dallas, and Scottsdale from September through mid-November. With presentations from Lending business unit product and compliance experts, various financial institutions, and industry partners, User Connect explores how financial institutions can maximize their fintech solutions, offering strategies for achieving increased growth, productivity, and compliance readiness. User Connect is a unique opportunity to come together with customers and ecosystem partners to share ideas and best practices. Insights from the event are invaluable, and we look forward to conversations like this throughout the year so that we can enable more seamless customer journeys and more productive time to revenue for lending teams across the US. Mitch Lucas, head of retail lending at Finastra Throughout the series, several significant takeaways were highlighted: Optimization of tech stack is key: To generate leads more quickly and easily, nurture these leads, and increase chances to convert them to being a customer, a modern end-to-end tech stack is crucial. If a borrower encounters any technical obstacles from application through the onboarding process, the risk of losing the lead to a competitor increases significantly. Automation and streamlined processes address operational challenges: To process loans quickly and underwrite more efficiently, leveraging integrated services, embracing workflow automation, and utilizing document management for a paperless loan file eliminates many operational challenges. Systems that migrate borrower information from the point-of-sale to the loan origination system automatically reduce human error, decrease incidences of regulatory compliance issues, and speeds up prequalification, approvals, and processing times. Research from Finastra and East & Partners supports this takeaway, noting that lending process automation remains a major area for improvement, with significant room for growth in approvals, closing, origination, and servicing. 11% of respondents said they utilize automated approvals, while just 10% offer automated loan closing processes. Even fewer respondents have succeeded with origination and servicing automation, at 7% and 6% respectively. Importance of readiness for increased loan applications: According to the Mortgage Bankers Association (MBA), the mortgage origination market is expected to improve by 19% to $1.95T in 2024, a rebound after the estimated 30% drop from 2022 to 2023 and 50% fall from 2021 to 2022. While volume has significantly slowed, lenders must be ready for an uptick in applications, so they do not lose leads to competitors. Financial institutions can prepare by investing in scalable technologies, setting up parameters for automatic prequalification, focusing on personalized experiences, and building self-service portals for document management. Section 1071 is looming, and financial institutions need to be ready: Although Section 1071 of the Dodd-Frank Act is currently wrapped up in ongoing litigation, borrowers and compliance experts agree preparation is important. Users throughout the series were polled and noted that banks and credit unions are paying close attention in order to train staff and align processes. Attendees agreed that since commercial lending practices are often challenging to implement, preparing early is critical should the litigation fail. Supporting younger generations on their homebuying journey: According to a presentation from David Lykken, chief transformational officer at Transformational Mortgage Solutions, the typical American dream of home ownership has not gone away, but younger buyers are struggling to break into the market, noting that people aged 28-38 have only a 28.87% rate of home ownership. When rates decrease, an increase in this number is expected, but planning is important. Brian Bone, president and CEO at American Partners Federal Credit Union stated during a panel discussion, "My kids are very concerned about their ability to buy a home. We as an industry need to do everything we can to help them, whether that means credit coaching, down payment assistance, or other programs. This also includes ensuring we offer the best of both worlds – the human touch of financial services with a technology stack suitable for their needs." Brian Bone added, "The User Connect series in Orlando was a valuable experience for me and my credit union. I learned a lot from Finastra's experts and partners. I also appreciated the opportunity to network with other financial institutions and share best practices. Finastra's User Connect series is a great event for anyone who wants to stay ahead of the curve in the lending industry." About Finastra Finastra is a global provider of financial software applications and marketplaces, and launched the leading open platform for innovation, FusionFabric.cloud, in 2017. It serves institutions of all sizes, providing award-winning software solutions and services across Lending, Payments, Treasury & Capital Markets and Universal Banking (Retail, Digital and Commercial Banking) for banks to support direct banking relationships and grow through indirect channels, such as embedded finance and Banking as a Service. Its pioneering approach and commitment to open finance and collaboration is why it is trusted by more than 8,000 institutions, including 45 of the world's top 50 banks. For more information, visit finastra.com

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Digital Banking

Dragonfly Financial Technologies Adds FedNow Payments to Digital Composable Banking Solution

PR Newswire | October 25, 2023

Dragonfly Financial Technologies Corp., a digital banking and treasury management FinTech, today launched FedNow Payments, which gives banks the ability to use the recently deployed FedNowÒ Service. Launched in late July 2023, the FedNow Service is a new instant payment infrastructure developed by the Federal Reserve that allows financial institutions of every size across the U.S. to provide safe and efficient instant payment services. Dragonfly's FedNow Payments is a standalone solution that can be added to any bank's digital offering. Dragonfly's FedNow Payments enables instant, 24/7/365 payments, which permits faster payroll processing, more intuitive bill payments, improved cash flow improving reconciliation, cash forecasting and liquidity management and enhanced overall transaction efficiency. The solution will be interoperable with existing payment systems, enabling seamless integration with various digital banking platforms and financial service providers. Real-time payments are forecasted to facilitate additional economic output to the tune of $173 billion in formal GDP, as well as forecasted to drive $184 billion in aggregated net savings for consumers and businesses. The FedNow Service is set to transform the current payment ecosystem. As we continue to expand our digital composable banking platform, we know it's of critical importance to have the latest payment solutions available for our customers. said Jim Gillespie, Chief Product Officer at Dragonfly Financial Technologies Corp. Our FedNow Payments enables banks to provide their customers with real-time, flexible payments that are secure and scalable, and we're excited to offer this new payment option to banks that are making the jump to the FedNow Service. Dragonfly's FedNow Payments will also be added to its industry-leading Universal Online Banking platform - the only composable banking platform on the market purpose-built for today's digital and embedded business banking needs. Because the Dragonfly platform is designed for ultimate flexibility, agility and ease of use, customers can choose the implementation option best suited for the needs and size of the bank and their corporate clients. FedNow Payments is a payments option available in each composable banking deployment: Dragonfly Digital, Dragonfly as a Service and Dragonfly Embedded Banking. About Dragonfly Financial Technologies Corp. Dragonfly Financial Technologies is a banking-as-a-service FinTech powering innovative digital customer experiences for commercial banking institutions. Dragonfly Commercial Banking Platform unites internal banking systems and unlocks their collective value, enabling banks to provide a superior customer experience and introduce new services with speed and ease. And with the industry's largest portfolio of APIs, the Dragonfly platform connects seamlessly to the world's most popular FinTech applications. Commercial banking customers worldwide – including top-10 banks in the US and Asia – rely on Dragonfly to initiate and collect payments and manage daily financial operations for their corporate clients. For more information, visit www.dragonflyft.com.

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Trading Systems

Finastra and ELCY partner to bring Corporate Trade Finance Portal to market

PR Newswire | October 23, 2023

Finastra, a global provider of financial software applications and marketplaces, is partnering with ELCY, a specialist in e-commerce solutions for the processing of international trade finance, to provide a trade finance solution for corporates. The Corporate Trade Finance Portal from Finastra and ELCY will enable corporates to communicate in a secure and authenticated manner with all their banks through one centralized platform. As a result, corporates will benefit from greater visibility and real-time control of all trade finance exposures across their organizations. The transition away from the complexity of connecting to multiple bank proprietary systems and the removal of inefficient paper-based processes will also deliver significant cost and efficiency savings. Finastra is thrilled to build on our long-term relationship with ELCY through a global collaboration that creates immediate value for both parties, said Jaime Lynn, Vice President, Enterprise Solutions, Finastra. ELCY brings a wealth of expertise in meeting the trade finance needs of corporates, while Finastra meets the end-to-end digitization needs of banks focused on international trade and supply chain finance. Our close collaboration with ELCY expands our suite of solutions for corporates, enabling them to connect to all banks supplying them trade finance through a single portal. Corporate users benefit from much greater visibility and control in managing their cash flow and trade finance exposures and in reducing risk. Robin Cohen, Chief Executive Officer, ELCY added: "Our partnership with Finastra will further increase our visibility and reach in the market, helping us deliver the benefits of our multi-bank portal solution to corporates globally. Customers using our joint Corporate Trade Finance Portal will be equipped to communicate seamlessly, both on the import and export side, with any SWIFT-enabled bank in the world to manage their day-to-day trade finance processing. All instructions or messages sent through the portal can be tailored to conform with the message type preferred by the bank in question. Furthermore, the portal includes extensive modular functionality enabling corporates to monitor counterparty and bank exposure, manage global bank limits and provide reports for credit and treasury departments all in real time." The Corporate Trade Finance Portal is available as a cloud-based, multi-tenant SaaS solution meaning no software installation is required on site and all users benefit from the ability to adapt quickly to new market requirements through centrally-managed software upgrades.

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Financial Management

Finastra showcases strategies for lending growth and compliance at its User Connect series

Finastra | December 05, 2023

Finastra, a global provider of financial software applications and marketplaces, brought together leaders from community banks and credit unions across the United States to discuss innovation in lending technology, operational and strategic initiatives, and trends in mortgage and retail lending. The series, open to current Finastra lending customers, was hosted in Chicago, Orlando, Dallas, and Scottsdale from September through mid-November. With presentations from Lending business unit product and compliance experts, various financial institutions, and industry partners, User Connect explores how financial institutions can maximize their fintech solutions, offering strategies for achieving increased growth, productivity, and compliance readiness. User Connect is a unique opportunity to come together with customers and ecosystem partners to share ideas and best practices. Insights from the event are invaluable, and we look forward to conversations like this throughout the year so that we can enable more seamless customer journeys and more productive time to revenue for lending teams across the US. Mitch Lucas, head of retail lending at Finastra Throughout the series, several significant takeaways were highlighted: Optimization of tech stack is key: To generate leads more quickly and easily, nurture these leads, and increase chances to convert them to being a customer, a modern end-to-end tech stack is crucial. If a borrower encounters any technical obstacles from application through the onboarding process, the risk of losing the lead to a competitor increases significantly. Automation and streamlined processes address operational challenges: To process loans quickly and underwrite more efficiently, leveraging integrated services, embracing workflow automation, and utilizing document management for a paperless loan file eliminates many operational challenges. Systems that migrate borrower information from the point-of-sale to the loan origination system automatically reduce human error, decrease incidences of regulatory compliance issues, and speeds up prequalification, approvals, and processing times. Research from Finastra and East & Partners supports this takeaway, noting that lending process automation remains a major area for improvement, with significant room for growth in approvals, closing, origination, and servicing. 11% of respondents said they utilize automated approvals, while just 10% offer automated loan closing processes. Even fewer respondents have succeeded with origination and servicing automation, at 7% and 6% respectively. Importance of readiness for increased loan applications: According to the Mortgage Bankers Association (MBA), the mortgage origination market is expected to improve by 19% to $1.95T in 2024, a rebound after the estimated 30% drop from 2022 to 2023 and 50% fall from 2021 to 2022. While volume has significantly slowed, lenders must be ready for an uptick in applications, so they do not lose leads to competitors. Financial institutions can prepare by investing in scalable technologies, setting up parameters for automatic prequalification, focusing on personalized experiences, and building self-service portals for document management. Section 1071 is looming, and financial institutions need to be ready: Although Section 1071 of the Dodd-Frank Act is currently wrapped up in ongoing litigation, borrowers and compliance experts agree preparation is important. Users throughout the series were polled and noted that banks and credit unions are paying close attention in order to train staff and align processes. Attendees agreed that since commercial lending practices are often challenging to implement, preparing early is critical should the litigation fail. Supporting younger generations on their homebuying journey: According to a presentation from David Lykken, chief transformational officer at Transformational Mortgage Solutions, the typical American dream of home ownership has not gone away, but younger buyers are struggling to break into the market, noting that people aged 28-38 have only a 28.87% rate of home ownership. When rates decrease, an increase in this number is expected, but planning is important. Brian Bone, president and CEO at American Partners Federal Credit Union stated during a panel discussion, "My kids are very concerned about their ability to buy a home. We as an industry need to do everything we can to help them, whether that means credit coaching, down payment assistance, or other programs. This also includes ensuring we offer the best of both worlds – the human touch of financial services with a technology stack suitable for their needs." Brian Bone added, "The User Connect series in Orlando was a valuable experience for me and my credit union. I learned a lot from Finastra's experts and partners. I also appreciated the opportunity to network with other financial institutions and share best practices. Finastra's User Connect series is a great event for anyone who wants to stay ahead of the curve in the lending industry." About Finastra Finastra is a global provider of financial software applications and marketplaces, and launched the leading open platform for innovation, FusionFabric.cloud, in 2017. It serves institutions of all sizes, providing award-winning software solutions and services across Lending, Payments, Treasury & Capital Markets and Universal Banking (Retail, Digital and Commercial Banking) for banks to support direct banking relationships and grow through indirect channels, such as embedded finance and Banking as a Service. Its pioneering approach and commitment to open finance and collaboration is why it is trusted by more than 8,000 institutions, including 45 of the world's top 50 banks. For more information, visit finastra.com

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Digital Banking

Dragonfly Financial Technologies Adds FedNow Payments to Digital Composable Banking Solution

PR Newswire | October 25, 2023

Dragonfly Financial Technologies Corp., a digital banking and treasury management FinTech, today launched FedNow Payments, which gives banks the ability to use the recently deployed FedNowÒ Service. Launched in late July 2023, the FedNow Service is a new instant payment infrastructure developed by the Federal Reserve that allows financial institutions of every size across the U.S. to provide safe and efficient instant payment services. Dragonfly's FedNow Payments is a standalone solution that can be added to any bank's digital offering. Dragonfly's FedNow Payments enables instant, 24/7/365 payments, which permits faster payroll processing, more intuitive bill payments, improved cash flow improving reconciliation, cash forecasting and liquidity management and enhanced overall transaction efficiency. The solution will be interoperable with existing payment systems, enabling seamless integration with various digital banking platforms and financial service providers. Real-time payments are forecasted to facilitate additional economic output to the tune of $173 billion in formal GDP, as well as forecasted to drive $184 billion in aggregated net savings for consumers and businesses. The FedNow Service is set to transform the current payment ecosystem. As we continue to expand our digital composable banking platform, we know it's of critical importance to have the latest payment solutions available for our customers. said Jim Gillespie, Chief Product Officer at Dragonfly Financial Technologies Corp. Our FedNow Payments enables banks to provide their customers with real-time, flexible payments that are secure and scalable, and we're excited to offer this new payment option to banks that are making the jump to the FedNow Service. Dragonfly's FedNow Payments will also be added to its industry-leading Universal Online Banking platform - the only composable banking platform on the market purpose-built for today's digital and embedded business banking needs. Because the Dragonfly platform is designed for ultimate flexibility, agility and ease of use, customers can choose the implementation option best suited for the needs and size of the bank and their corporate clients. FedNow Payments is a payments option available in each composable banking deployment: Dragonfly Digital, Dragonfly as a Service and Dragonfly Embedded Banking. About Dragonfly Financial Technologies Corp. Dragonfly Financial Technologies is a banking-as-a-service FinTech powering innovative digital customer experiences for commercial banking institutions. Dragonfly Commercial Banking Platform unites internal banking systems and unlocks their collective value, enabling banks to provide a superior customer experience and introduce new services with speed and ease. And with the industry's largest portfolio of APIs, the Dragonfly platform connects seamlessly to the world's most popular FinTech applications. Commercial banking customers worldwide – including top-10 banks in the US and Asia – rely on Dragonfly to initiate and collect payments and manage daily financial operations for their corporate clients. For more information, visit www.dragonflyft.com.

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Trading Systems

Finastra and ELCY partner to bring Corporate Trade Finance Portal to market

PR Newswire | October 23, 2023

Finastra, a global provider of financial software applications and marketplaces, is partnering with ELCY, a specialist in e-commerce solutions for the processing of international trade finance, to provide a trade finance solution for corporates. The Corporate Trade Finance Portal from Finastra and ELCY will enable corporates to communicate in a secure and authenticated manner with all their banks through one centralized platform. As a result, corporates will benefit from greater visibility and real-time control of all trade finance exposures across their organizations. The transition away from the complexity of connecting to multiple bank proprietary systems and the removal of inefficient paper-based processes will also deliver significant cost and efficiency savings. Finastra is thrilled to build on our long-term relationship with ELCY through a global collaboration that creates immediate value for both parties, said Jaime Lynn, Vice President, Enterprise Solutions, Finastra. ELCY brings a wealth of expertise in meeting the trade finance needs of corporates, while Finastra meets the end-to-end digitization needs of banks focused on international trade and supply chain finance. Our close collaboration with ELCY expands our suite of solutions for corporates, enabling them to connect to all banks supplying them trade finance through a single portal. Corporate users benefit from much greater visibility and control in managing their cash flow and trade finance exposures and in reducing risk. Robin Cohen, Chief Executive Officer, ELCY added: "Our partnership with Finastra will further increase our visibility and reach in the market, helping us deliver the benefits of our multi-bank portal solution to corporates globally. Customers using our joint Corporate Trade Finance Portal will be equipped to communicate seamlessly, both on the import and export side, with any SWIFT-enabled bank in the world to manage their day-to-day trade finance processing. All instructions or messages sent through the portal can be tailored to conform with the message type preferred by the bank in question. Furthermore, the portal includes extensive modular functionality enabling corporates to monitor counterparty and bank exposure, manage global bank limits and provide reports for credit and treasury departments all in real time." The Corporate Trade Finance Portal is available as a cloud-based, multi-tenant SaaS solution meaning no software installation is required on site and all users benefit from the ability to adapt quickly to new market requirements through centrally-managed software upgrades.

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