Whats Next in Payments Automation Presenter Mark Brousseau

What’s Next in Payments Automation Presenter: Mark Brousseau, Brousseau & Associates

Today’s Speaker Mark Brousseau & Associates Mark Brousseau is a noted analyst, speaker, writer and marketer, with more than 27 years of experience in advising leading providers of financial operations solutions and services.

Critical Challenges in Accounts Payable Risk, fraud & compliance Control & visibility International payment requirements Exception handling Inefficiency: workflows & process Growth management Supplier demands Vendor data management Decentralized AP

How Businesses Pay Suppliers What % of payments do you make via the following methods? 90% 39% 30% 11% 9% 6% 5% Mark Brousseau, President of Brousseau & Associates Paper check ACH P-card Source: Institute of Finance and Management (IOFM) Future of Accounts Payable Study Wire transfer Virtual card Other

Traditional Payment Processes Bog AP Teams Down ation r g e t n i ired u q c a of s entitie expansion in number of physical locations security exposure global nts payme more than one ERP system te duplica invoice nts payme thousands of suppliers payment risk tens of thousands of payments failed payments pressure to reduce operational costs complex system integration multiple approva l workflow s lack of IT resources frustrat e supplie d rs manual reconciliations multiple bank accounts changing compliance requirements everchanging supplier information antiquated processes

How the Typical AP Practitioner Spends Their Time [CATEGORY NAME], [VALUE] Manual processes, [VALUE] Source: Institute of Finance and Management (IOFM) Future of Accounts Payable Study

ACH Will Dwarf Checks within 3 Years How do you expect you will pay suppliers 3 years from now? 38% 18% 70% of businesses currently have a strategy in place to increase the percentage of payments to suppliers that they make electronically 16% 12% ACH Paper check Virtual card Source: Institute of Finance and Management (IOFM) Future of Accounts Payable Study P-card 9% Wire transfer 7% Other

Best-in-Class AP Departments Pay Suppliers Electronically AP technology utilization, best-in-class versus all others Self-service supplier portal 21% 53% 27% Business or payment network 49% 28% Complete P 2 P solution 63% 36% e. Invoicing 42% e. Payments 72% 54% Automated data capture 63% 64% Automated workflow 65% Document imaging/scanning All others Source: Ardent Partners 2019 State of e. Payables Report 69% Best-in-class 80% 82%

Why Businesses Pay Suppliers Electronically Source: Institute of Finance and Management (IOFM) Future of Accounts Payable Study

Mark Brousseau, President of Brousseau & Associates

Accounts Payable as a Profit Center Source: Institute of Finance and Management (IOFM) Future of Accounts Payable Study

Mark Brousseau, President of Brousseau & Associates

Senior Management is Championing Payments Automation Who will champion your AP department’s automation initiatives? 33% 28% 26% 8% CFO Controller Accounts Mark Brousseau, President of Brousseau & Associates payable 1% 2% Procurement Treasury Source: Institute of Finance and Management (IOFM) Future of Accounts Payable Study 3% IT Someone else

Payments Impact the Metrics Senior Management Cares About Most Which metrics are most important to senior managers? Accruals Annual fraud losses Value of annual card rebates/rewards Cost per invoice processed Cost savings and cost avoidance Number or percent of touchless transactions Number of suppliers in our vendor master database Percentage of duplicate supplier payments Percentage of supplier payments made electronically Percentage of early-payment discounts captured Value of early-payment discounts offered Percentage of invoices paid to terms Days Payables Outstanding None Source: Institute of Finance and Management (IOFM) Future of Accounts Payable Study 15% 9% 29% 33% 37% 26% 11% 13% 30% 18% 28% 37% 13%

Payment methods that were targets of attempted and/or actual payments fraud in 2018 Checks Wire Transfers ACH Debits Corporate/Commercial Credit Cards ACH Credits Source: Association for Financial Professionals

Historical Trend of Fraud for Payment Methods • Checks are the payment method most subject to fraud, but instances being reported are on the decline • Wire fraud continues to be at elevated levels, Business Email Compromise (BEC) a likely cause of attacks • Fraud activity with cards on the decline • ACH debit fraud has increased to record levels and continues its upward trend • A steady increase in ACH credit fraud since 2012 Source: Association for Finance Professionals

Barriers to Electronic Payments Source: Institute of Finance and Management (IOFM) Future of Accounts Payable Study

Panel Discussion