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There’s an old quote that says, “There are decades where nothing happens; and there are weeks where decades happen.” That adage can certainly apply to the first half of 2020, when the COVID-19 pandemic and associated lockdowns changed economies and digital habits almost overnight. Suddenly, traffic spiked to digital platforms as people worked, socialized, and conducted commerce online in greater numbers than ever before.
While these circumstances accelerated trends like digitization that were already happening in the B2C world, the reliance on digital presents a chance in the B2B payments space to streamline and revolutionize processes long overdue for modernization. Even in today’s world, accounts payable (AP) departments are still dealing with paper-based and manual processes. TD Bank is committed to helping mid- market companies create efficient and productive B2B payments practices.
A Desire for Change
Finance departments realize that AP processes need to be modernized and have a keen desire to do so. There is opportunity to realize cost savings and efficiency gains by reducing manual and paper-based functions. In fact, according to the 2019 B2B Payments Survey, 60% of respondents ranked manual payment generation as a top operational challenge, second only to security concerns.
Meanwhile according to the 2019 AFP Electronic Payments Survey, 46% of middle market companies’ B2B payments continue to be made by check, 47% of respondents cited cost savings as the top benefit of using electronic payments, followed by fraud control at 42% and better supplier relations at 38%.
Still, there are obstacles to modernization. These include vendor resistance to electronic payment adoption, difficulty meeting vendor requirements for electronic remittance delivery, and technology challenges with which to implement electronic payment solutions.
Internal resources must also be deployed when it comes to digitizing payments. For example, appropriately authenticating suppliers’ requests to change bank account details for ACH and wire payments. It takes time and human capital to authenticate such requests to avoid being the victim of a fraud attack seeking to redirect payments.
There are also strict security controls that must be met in B2B payments, such as securely storing and managing your suppliers’ bank data to prevent a breach and having proper fraud measures in place to detect and stop fraudulent use.
Smart businesses are now devoting the time, resources and capital to towards streamlined, digitized payment processes.
Driving Innovation and Efficiency in AP
That’s why TD Bank is focused on helping companies digitize payments in a cost-effective and simple manner. Middle-market companies are in a unique position – generally not having access to big tech budgets that large global companies have in order to build their own systems – but with more complex internal processes and systems than small and micro businesses.
TD Bank’s solutions for middle-market businesses, such as our TD Integrated Payables product, Paymode-X, helps modernize and digitize AP systems without undergoing a costly or lengthy implementation process.
Here are just a few benefits:
TD Bank is focused on delivering robust solutions, not merely products, that can help businesses navigate this changing landscape. This solutions-based approach was expressed well by David Nemi, Sales & Marketing Manager for Franklin Printing in Farmington, Maine.
“As a growing business, we look for a bank that offers services that support our efforts,” Nemi said. “Whether it be a safe and secure platform to manage our money online or a lease for a capital investment, TD has risen to the challenge. The team supporting us locally really goes the ‘extra mile’ to make sure our needs are met, and we understand all the options. Whenever we talk with someone at TD, we can tell they care about us and our success. TD is a large bank that feels small, which makes all the difference to us.”
Navigating Through Uncertain Waters
A crucial lesson from 2020 is that business dynamics and the economic environment can change rapidly and without any warning. As the pandemic drove life to virtual channels at much higher rates than ever before, businesses were suddenly thrust into unforeseen circumstances. TD Bank can help businesses become more nimble and respond in an agile manner to the needs of vendors and customers amidst the changing digital landscape.
That’s exactly how Greater Philadelphia YMCA navigated these unchartered waters.
“The day the governor mandated the shutdown of non-essential businesses in Pennsylvania, TD was sitting in our conference room ready for a pulse check on our recently launched Payment-Card program and to work on our Paymode-X initiative,” said Neely Rosen Chief Financial Officer for the Greater Philadelphia YMCA. “While definitely delayed by COVID-19, we opted to continue working with TD and expect to launch our Paymode-X initiative by September. This will help ensure optimal payment terms for our organization and leverage TD’s network to shift our check-centric payment process to ACH – saving precious labor hours, reducing fee, and allowing for more insightful reporting. In the meantime, the recently launched P-Card digital workflow for approvals has allowed us to remain nimble, work remotely and still ensure compliance over our expenses.”
In a changing world, businesses are looking to the smart use of technology to help them achieve their goals and navigate uncertain terrain. TD Bank can provide the AP solutions that enable businesses to not only survive but thrive amidst this ongoing digital revolution.
To learn more about TD Bank’s solutions, visit tdbank.com/commercialbanking
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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