Data and analytics are an essential component of the analysis and evaluation of payments and treasury operations
The terms ‘data’ and ‘analytics’ are often used interchangeably by many people. For something so important to any organization, this type of simplistic categorization is flawed. The reason is this: analytics are of no value unless the underlying data exhibits a wide and deep range of characteristics, including relevancy and scope. Simply put, weak data will only result in poor and not very useful analytics.
At Vizant, the payments and treasury operations data and information that we have gathered are unsurpassed. Our colossal collection of data, from thousands of client engagements and from many research and collection efforts, is the foundation for the development of our thought leading and industry recognized intelligence and insights. This unequaled integrity of our data combined with our unrivaled and proprietary analytics process, is the reason we stand alone in the payments and treasury world. It is why we are sought out again and again by our new and current clients and anyone seeking real and unbiased data.
The world in which we live in is overflowing with data, numbers, facts, opinions and so called high quality and reliable information. However, the reality is that the utility and relevance of much of it is highly questionable
There is no question that there are volumes and volumes of data and information that is readily available and accessible to all of us. We are bombarded with all types of data in the finance, payments and treasury world. Furthermore, the nomenclature for all this information can be just as vast, overwhelming and arcane. For instance, some of the more “well known” financial and industry terms include: DSO, DWC, DIO, Working Capital Efficiency, DPO, EPS, Net Income, PE Ratio, Return on Investment, APR, Libor, Prime, NPV, Return on Capital, Cost of Capital, IRR, Operating Expense Margins, EBITDA, Effective Rate of Acceptance Per Transaction Rates, Segment Revenue, Segment Profit, Inventory Turnover, Banking Costs, Treasury Costs, Payment Acceptance costs, S,G & A Ratios, Payment Card Costs and this is just the tip of the iceberg.
The reality is this: While any single organization may possess this type of data for itself and a few others, Vizant is the only organization that has the most monumental and complete collected and stored data warehouse of this kind of information for every company in every industry. However, as stated earlier, the robustness of our data is only as good as the expert analytics we apply to it.
Data, analytics and information are a crucial ingredient to the financial success and well-being of any organization
Many common data sets and metrics are readily available for anyone to view, both inside and outside any organization. However, it is also true that caution can never be thrown to the wind when it comes to an organization’s data and information. Why? Any data without the appropriate level of relevance and scope is of little value to any organization. For example, how relevant is it for an organization to compare one data point or data set against a small pool of others, when there are thousands and thousands of data points, data sets and metrics that may have greater relevance and encompass a wider and deeper set of variables that can be utilized.
Analytics involves extensive and deep data analysis that results in insights that can be invaluable. From recommending action steps to guiding overall decision making, all understandings gained must always be rooted in the proper business context. An Analytics approach and process driven by an established payments and treasury industry Expert and Thought Leader form the foundation for helping translate your business strategy into actionable solutions and tactics.
It is a herculean challenge for any organization to attain maximum efficiency and ongoing cost reduction in its payments and treasury operations
When it comes to payments and treasury, it is nearly impossible for any organization to truly measure itself and evaluate the underlying efficiency of its payment and treasury operations. Just as no two organizations have the same processes, procedures and systems in their payments and treasury function, it is also true that no two organizations have the same levels of efficiency nor do they have similar costs and fee structure in their payments and treasury operations.
The payments, banking and treasury ecosystems, along with their associated analytics and data, stands unmatched compared to any other industry
The payments and treasury world have thousands and thousands of service providers: from banks and financial institutions to software application companies and payment card acceptance providers to the card networks and Federal Reserve to NACHA and an endless list of trade groups and many other participants. The complexity of the ecosystem, combined with the sheer magnitude of the types of fees and their associated cost structures, make it very difficult for even the most skilled and experienced payments and treasury practitioner to navigate.
Best practices, efficiency and cost reduction in payments and treasury operations can only be achieved with best-in-class customized analytics applied to data points and data sets that have already been vetted and substantiated for accuracy and reliability. When you are working day in and day out with tens of thousands of rates, rules, regulations and fees, there simply is no short-cut.