Whether your organization currently utilizes an on-premise ERP solution, has made the move to Cloud, or is considering a move to Cloud in the near future, an external solution for managing your organization’s payments is worth considering.
A Payment hub is designed to be a singular connection that extends from a client to multiple banks and is charged with wire and ACH payment initiation as well as receiving bank statements. Any payments being sent out of Accounts Payable (AP) or Cash Management (CM) flow through the payment hub system and are directed towards the appropriate banking partners.
By delivering a single interface to log in and monitor payments, a payment hub service provides one designated area where communication and file formatting for each bank is handled. For clients dealing with multiple banks, file formats, and payment types, outsourcing these tasks can be a game-changer. With the ability to free up internal staff bandwidth and reduce occurrences of human error, organizations will see benefits to their bottom line as well as increases in both process and worker efficiency.
For organizations looking to make the move to Cloud, a case should be made to upper management for a payment hub solution. A typical ERP implementation takes approximately three months to connectivity, but with a payment hub, responsibility on the part of the client can require as little as a weeks’ worth of effort.
Beyond the benefit of a shortened implementation timeline, these hubs will also alleviate the burden on internal resources by shifting responsibility to trusted industry professionals. The number of functional and technical people required for the implementation is reduced as well, saving resource costs and bandwidth.
Highlighting the expedited implementation timeline and the ability to remove the responsibility from internal IT and treasury staff is key to making your business case for a payment hub to upper-level management. For more information on solutions available or to evaluate your organization’s readiness for Treasury systems transformation, contact our Treasury Advisory Team.