The new reality of 2020 has laid bare the discrepancies among business processes and the gaps in the supply chain finance function. And before the COVID-19 pandemic disrupted supply chains across the globe, there were shifting global trade agreements, and there were increased buyer and supplier expectations, and there were stifling economic headwinds, and there were margin compressions. Basically, the last few years brought – disruption after disruption – and banks with legacy on-premises supply chain finance applications have had to patch, update, and customize their systems to keep up with ever-changing business needs.
In an increasingly disruptive world, many business leaders have looked ahead to 2021 to figure out how they can incorporate more automation, resiliency, flexibility, and agility into their supply chain finance processes. Reducing costs and controlling spending have always been the main drivers, and will remain, but in a perpetually volatile world, incumbent banks must shift to a more multi-dimensional value framework that puts equal weight on speed, risk reduction, sustainability, and adaptability.
