As PYMNTS Intelligence clarifies in its third edition of the 2024 Certainty Project, “Heads of Payments Zero In on Customer Behavior in Uncertainty Debate,” the responsibilities that accompany being a chief financial officer (CFO) are very different from those that head of payments must manage.
CFOs are typically in charge of an organization’s overarching financial strategy and management tactics; these can include identifying capital and risk strategies along with broader investor and financial reporting. They are also concerned with macroeconomic factors in operational areas like staffing and inventory management.
Heads of payments, meanwhile, are asked to oversee payment processing, technologies and regulatory compliance. They also must manage errors, delays and client turnover. Some are tasked with managing vendors.
PYMNTS Intelligence found that these distinct responsibilities tend to color their perspectives; however, both CFOs and heads of payments are expected to be alert to missed opportunities brought on by operational uncertainty.
High levels of uncertainty are common in most smaller revenue middle-market firms. In firms with annual revenues between $100 million and $250 million, 55% of heads of payments we surveyed report seeing high uncertainty levels in the current market, while a smaller share of CFOs (47%) share this view.
However, executives operating in both roles agree on what the top three areas of uncertainty currently are: supply chain integrity, customer behavior and competitive positioning.
But, because their roles hone different perspectives, heads of payments and CFOs each deploy different mitigation techniques to address these areas of uncertainty.
For example, consider supply chain integrity.
Among the CFOs we surveyed, 37% mitigate supply chain uncertainty by leveraging skill-based enhancements, training and using process automation. The heads of payment we surveyed took a different tack, deploying more technological resources to ease supply chain uncertainty. One-third dedicated more staff members to addressing supply chain uncertainty. In addition, they used data-intensive insights and analytics to better forecast trends.
This is just one example. Our report found similar gaps when looking at actions to ease overall uncertainty.
Heads of payments are more likely than CFOs to turn to their business networks for informal advice, for example. They are also more likely to use human resources to reduce uncertainty, with 30% relying on this strategy. As we saw in their approach to easing supply chain uncertainty, CFOs are more likely to focus on skill enhancement and technological advancement. Half of CFOs opt to further train existing personnel, while 48% hire people with specific skills to help reduce uncertainty.
But technology bridges the gap between these two approaches.
Heads of payments and CFOs both employ analytics and process automation extensively, with 47% of heads of payments adding automation and 96% of executives in both roles saying analytics significantly enhance predictability. These tools help to not only manage the volatile business environment but also shore up the foundation for future growth and stability.
The business landscape is challenging, but firms are increasingly flush with innovations designed to beat back any operational challenges with cutting-edge tech.
Artificial intelligence, for example, has become a linchpin of modern financial operations, reshaping processes from fraud detection to credit risk assessment. As companies warm toward harnessing AI-powered algorithms, efficiency and precision are being positioned at the forefront of operational improvement.
At the same time, B2B payments are undergoing a parallel transformation.
Legacy systems, which often relied on manual processes and paper-based invoicing, are being replaced by streamlined, digitized platforms. Businesses are turning to integrated payment solutions that enhance efficiency, security and transparency.
What is the reason for the accelerating digital transformation of back-office technology stacks and payment workflows?
A prominent root cause is the ongoing uncertainty afflicting the business environment. This includes escalating trade tensions marked by the imposition of tariffs, which have introduced a wave of hesitation across various sectors, impacting middle-market companies.
As economic uncertainties persist, financial management has become paramount, and, as the B2B news this week shows, few things support agile decision making and real-time forecasting better than the digitization of previously manual workflows.
Read also: AI Agent Systems Are Here — Will They Transform B2B?
One of the trends in B2B is the integration of AI-powered solutions to enhance operational efficiency. The adoption of agentic AI solutions is being explored to empower chief financial officers and treasurers by enabling autonomous financial decision making and operational efficiency.
Payments technology firm Transcard announced Tuesday (April 1) that it added agentic AI capabilities to its vendor network management solution. The changes to the company’s SMART Exchange are designed to streamline payment interactions between buyers and suppliers, with agentic AI automating onboarding and know your business (KYB).
Tesorio added an AI agent for supplier portals to its platform for accounts receivable automation, collections and cash flow management Thursday (March 27). The company’s new Supplier Portals Agent autonomously manages portal-based invoicing, from invoice submission to payment tracking, eliminating the need for finance teams to submit and track invoices across portals, a task that Tesorio said has become “one of the most manual, fragmented and error-prone parts of the AR process.”
AI-driven platforms can offer CFOs and treasurers insights and analytical capabilities, helping them navigate complex finances. The collaboration between agentic AI and financial operations is one potentially poised to unlock growth by empowering executives to make data-driven decisions with greater confidence.
See also: How CFOs Can Solve for Resource Bottlenecks in Back-Office Innovation
Beyond AI, the B2B sector is witnessing innovation in payment systems and risk management. Mastercard, for instance, launched a program Monday (March 31) aimed at encouraging the adoption of virtual cards for commercial payments. The initiative seeks to provide businesses with a more seamless, consumer-like experience, particularly in the realm of digital transactions.
Meanwhile, EasyPost on Tuesday introduced Forge, a B2B shipping solution designed to optimize logistics and reduce costs for enterprise clients. The development highlights the growing demand for specialized solutions that address the unique needs of B2B commerce, where efficiency and cost-effectiveness are paramount.
Risk management remains a concern for businesses operating on a global scale. To address this, Zip, also on Tuesday, rolled out a supplier risk management solution aimed at helping organizations assess and mitigate potential vulnerabilities in their supply chains. As geopolitical tensions and supply chain disruptions persist, such tools are key for maintaining operational resilience.
See also: What Treasurers Can Learn From How Central Banks Approach Risk
The ongoing evolution of FinTech is also shaping how businesses manage their assets and navigate economic uncertainties. A growing number of treasurers are turning to unconventional assets like bitcoin and gold as part of broader capital allocation strategies. The trend reflects a desire for diversification and a hedge against currency volatility, particularly as inflationary pressures and geopolitical risks continue to loom.
For CFOs, the challenge of maintaining financial visibility in a volatile environment is ever-present. Enhanced financial visibility tools are proving essential in navigating tariff uncertainties and ensuring liquidity management remains robust. These tools empower executives to forecast potential disruptions and respond proactively rather than reactively.
Supply chain transparency is another area receiving heightened attention. Inspectorio’s partnership with Open Supply Hub aims to promote greater transparency through open data platforms. The collaboration is intended to enhance accountability and ensure that sourcing practices adhere to evolving regulatory and ethical standards.
Looking forward, the question is not whether these technologies will continue to gain traction, but rather how quickly and effectively they will be adopted at scale.
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