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19% of Technology Firms Say Financial Fraud Is Their Top Accounts Receivable Pain Point

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Some universal challenges impact accounts receivable (AR) effectiveness across sectors, such as payment delays and complications around processing different forms of payments. However, the intensity of these various pain points depends a great deal on the nature of the industry and market conditions. 

For technology firms, financial suffering from fraud is the top AR pain point. While this is a key pain point cited by organizations overall, it is particularly likely to cause problems for technology firms. 

In fact, 19% of technology firms say financial fraud is their top AR pain point, according to the “Smart Receivables Playbook,” a PYMNTS and Flywire collaboration. That places it far ahead of the second-ranked frustration, managing multiple vendor relationships, which is cited by 12% of technology firms. 

Get the Report: Smart Receivables Playbook 

Coping with Growing Concern About Fraud 

Widespread concern about financial fraud was highlighted by the Monday (Jan. 17) report that cryptocurrency exchange Crypto.com suspended withdrawals on its platform after users reported “unauthorized activity” on the platform. The withdrawals were reactivated in the early afternoon Eastern Time. 

Read more: ‘Unauthorized Activity Leads to Withdrawal Suspension on Crypto.com 

Financial fraud has been a mounting concern for companies across the economy as bad actors have sought to exploit the growing share of economic activity online. Not only are firms’ funds at risk but also those of their business partners. These risks must also be factored in how a company calibrates its cybersecurity strategies since ineffective fraud detection can create “false positives” and improperly block legitimate payments. 

The challenges facing AR departments are magnified when companies do business in foreign markets, and this often comes with the territory for technology companies. The Payments 2021 study found that every firm surveyed made at least some of their sales outside the U.S. and 51% made at least 20% of their sales across borders. 

Despite their lackluster view of the efficacy of their payments operations, technology companies are spending significant shares of their budgets (2.7%) on these operations. A large share of technology firms’ spending likely goes to third parties to handle various complexities around payments and billing. 

Choosing a Payment Solution Provider 

More than half of technology sector firms work with at least one vendor in addition to their payment processing partner. Technology companies are most likely to turn to vendors for support in fraud detection, with 29% of these companies reporting that they work with vendors in this area. 

Looking for alternatives to the ways they are now doing things, a growing number of companies are placing AR digitization at the center of their investment strategies. The pandemic has lent new urgency to optimizing back-office payments operations as the crisis has severely disrupted business relationships and scattered work teams from offices that once hosted vital on-premises payment systems. Organizations need cloud solutions that can keep AR processes up and running, and they may very well discover a host of other benefits that range from security to efficiency. 

When choosing a payment solution provider that can offer comprehensive, modern AR capabilities, there are several key considerations financial decision-makers at technology firms should bear in mind. Among them is the question of security: Does the provider employ data and payments protection protocols that are certified by accredited international bodies? 

Original Source: pymnts.com

Finance

China’s Economy Grows Despite Int’l Challenges: Turkish Expert

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© Provided by Xinhua

China would continue to contribute to the global economy, especially with the Belt and Road Initiative, and the Regional Comprehensive Economic Partnership (RCEP) agreement, said Turkish economist Sinan Alcin.

ISTA

Original Article: bignewsnetwork.com

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UK PM Boris Johnson Arrives in India for Two-day Visit

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Ahmedabad (Gujarat) [India], April 21 (ANI): UK Prime Minister Boris Johnson on Thursday landed in Gujarat’s Ahmedabad for a two-day visit to India with focus on stepping up cooperation in the Indo-Pacific, giving momentum to negotiations on Free Trade Agreement (FTA) between the two countries as well as enhancing defence ties.
Johnson started his visit from Ahmedabad where he is scheduled to meet with leading business gr

Original Article: bignewsnetwork.com

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Senate Panel Advances Sandra Thompson’s Nomination As FHFA Director

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The Senate Committee on Banking, Housing and Urban Affairs confirmed the nomination of Sandra Thompson to serve as the next director of the Federal Housing Finance Agency, sending her nomination to the full Senate.

The vote passed 13 to 11, with all 12 of the committee’s Democrats and one Republican voting in favor of advancing Thompson’s nomination.

During the session, the committee also approved the re-nomination of Federal Reserve Chair Jerome Powell, the nomination of Federal Reserve Gov. Lael Brainard to be Vice Chair, and Philip Jefferson was confirmed as a member of the Federal Reserve.

Lisa Cook’s nomination to be a member of the Federal Reserve concluded in a tie. Cook, if confirmed by the full Senate, would be the first Black woman to serve on the Federal Reserve board.

Thompson in a statement said that she appreciates the support from Committee members and looks “forward to continuing to work with Congress as [she] fulfills [her] current role as Acting Director while the nomination process proceeds.”

In February 2022, the confirmation process of Thompson and a handful of Fed nominees stalled after Senate Republicans boycotted the vote.

At the time, Pennsylvania Sen. Patrick Toomey, the ranking Republican on the committee, critiqued the nomination of Sarah Bloom Raskin, who was nominated to be vice chair for supervision of the Federal Reserve.

Toomey questioned Raskin’s ties to Reserve Trust Company, a Colorado-based fintech startup that gained access to the Fed’s payment system in 2018. After Democratic West Virginia Sen. Joe Manchin said he would not vote for Raskin due to her views on climate change, Raskin withdrew her nomination.

The committee’s confirmation of Thompson, who has been leading the FHFA since June 2021, will be welcome news to many industry stakeholders and affordable housing advocates who have been calling on her confirmation.

Bob Broeksmit, president of the Mortgage Bankers Association, called Thompson “a breath of fresh air” during the ICE Experience Conference in Las Vegas this week.

“Her administration is really focusing on the ways in which Fannie Mae and Freddie can achieve its mission to make homeownership available and affordable to low- to- moderate income borrowers and to black and Hispanic borrowers who own homes at shamefully lower rates in this country, than people who look like me,” he said. “And I think that Fannie and Freddie, under Sandra Thompson’s direction, will come up with some really innovative ideas.”

Early on in her tenure leading the FHFA, Thompson said that she would prioritize sustainable lending practices and expand credit to underserved communities.

“As a longtime regulator, I am committed to making sure our nation’s housing finance systems and our regulated entities operate in a safe and sound manner,” Thompson said in June 2021, when she was appointed acting director. “We can accomplish this, and at the same time have a laser focus on mission and community investment. There is a widespread lack of affordable housing and access to credit, especially in communities of color.”

Since then, Thompson has made substantial headway. Within three months of her tenure, she set new affordability benchmarks to expand access to credit in underserved communities, made on-time rental payment history part of Fannie Mae’s underwriting process and signed a historic interagency fair lending agreement.

The post Senate panel advances Sandra Thompson’s nomination as FHFA director appeared first on HousingWire.

Source: housingwire.com

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