PR Newswire
New study from AutoRek reveals direct risks posed by legacy technology and the urgent need for businesses to modernize their systems
With global transaction volumes rising by 32% over the past two years and stricter regulatory controls on the horizon, firms must modernize operations or risk inefficiencies, escalating costs, and compliance failures. This is according to AutoRek’s latest annual payments survey, which found that spreadsheets are still integral to financial operations in 90% of organizations. These findings show a heavy reliance on what is quickly becoming an outdated solution.
Further findings reveal that while automation and artificial intelligence (AI) are poised to reshape payments processing, adoption remains sluggish because of reliance on legacy systems and fragmented data management.
While this reflects a sector striving for agility, 64% of organizations are still processing and reporting data at a transaction level, which introduces bottlenecks and delays. Without automation, businesses face mounting difficulties in responding to customer demands, scaling operations, and maintaining their market position.
“The reliance on outdated solutions is a barrier that firms cannot afford in business today – where speed and accuracy are mission critical,” said Jack Niven, Vice President, North America, AutoRek. “Our latest survey highlights the urgent need for firms to streamline their operations and embrace automation to remain competitive. Those that fail to act now risk being left behind.”
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As businesses grapple with the rapid rise in the volume of transactions, a desire to embrace digital transformation has been felt across the payments industry. Automation and AI solutions will significantly help both enterprises and small and medium-sized businesses (SMBs) to adopt an accelerated approach to processing payment data. Most of the study’s respondents (82%) say automation is on their organization’s roadmap, with 43% planning implementation within the next six to 12 months.
However, while the desire for transformation is clear, many require guidance and support to navigate the complexities of implementing new systems and processes. Addressing the challenges posed by legacy systems, fragmented standards, and manual processes demands a multifaceted approach rooted in modernization, standardization, and automation.
“Our research shows a worrying disparity between how payments are made and how they are processed,” adds Nick Botha, Payments Lead at AutoRek. “Payment methods have become more sophisticated, yet the industry is still heavily reliant on legacy solutions to process transactions. This needn’t be the case when automation tools are now primed for mass, widescale, adoption.”
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