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Digitalization: Why Your Credit Department Should Pay Attention Now!

Posted on: September 3, 2016

Digital Wave. New Markets. New Customers.

Digital technologies are empowering sales and marketing teams to achieve higher levels of performance than ever before. IDC, a leading IT research analyst firm, forecasts that spending on digital CRM applications will reach $31.7B in 2018, attaining a CAGR of 6.9%. The forecast includes spending on digital applications related to contact center, customer service, marketing automation and sales automation. Businesses today are embracing new generation systems to expand their reach to new markets and to new customer segments faster than ever before.

Put Your Credit Department in the Driver’s Seat

As companies gear up for more rapid customer acquisition as well as into new markets, finance departments are expected to play a critical role; of being the trusted navigator for the business. How does this translate to the credit department?. Having the ability to manage risk proactively, ensure faster and successful customer on-boarding and empowering Sales with customer payment behavior information. Maximizing revenue opportunities, minimizing risk and improving customer experiences when delivered properly and most importantly, at the new speed that the business demands, is what a modern credit department expected to achieve.

Digitalization: Why Your Credit Department Needs to Pay Attention Now?

Where Does Your Credit Department Spend its Time?

Most credit departments spend more than 60% of their resource time in chasing paper; credit applications, bank references, trade references, tax certificates, business licenses, credit reports, financial statements, signatures for credit check authorizations, internal reviews from sales or service teams, excel-based scoring models, email-based credit limit approvals, etc. Most departments today are busy with the more administrative activities of the credit process and are less proactive in playing a strategic role in strategic business management.

Times are changing and at a very rapid pace. Most finance transformation projects are aimed at revamping the credit function with next generation skills for the teams and new technologies (SMAC – social, mobile, analytics and cloud) for modern times.

Digitalization Key Factor for Success

According to Gartner, the leading IT research analyst firm, digital transformation has become a key factor in future business growth and success. The digital revolution is about customer behavior and business opportunity, not technology. The future of business will be defined by how well companies leverage the technology to enable customer engagement across a wide range of digitalized processes.

Going digital can put your credit department in the driver’s seat. Understanding customer behavior and helping to seize business opportunities rapidly is the role of the credit department. Digital technologies can empower the credit department to better partner with Sand Marketing for precise product decision making, incisive new customer targeting, stronger customer relationship building and a wiser approach to credit risk.

First step forward

Take your first step by going paperless. Experience the time and cost savings immediately with digital credit applications and embrace the future as you move forward. The digital credit process including digital signatures, digital reference checks, digital credit checks, digital scoring, digital approvals, daily dashboards on your portfolio risk and many others are at your fingertips.

With decades of experience empowering credit departments with modern productivity tools, we have created a modern, digital credit department experience for you at www.thecreditapplication.com.

For more information on transforming your credit department to digital and future ready, meet our solution experts at the following upcoming events – CreditScape Fall Summit and Workshops, NACM CONNECT Upstate NY Conference, NACM CONNECT Midwest Conference, NACM CONNECT MIDWEST Conference , Oracle OPENWORLD, SOLIX EMPOWER.

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