Modern Payment Processing: Smart and Functional
Raiffeisen Bank International is supporting the INGKA Group, the largest IKEA franchisee with over 300 locations worldwide, in implementing a new reporting system for card payments in eight markets in the CEE region. In this interview, Samuel Langsford, Inbound Payments Specialist at INGKA's Group Treasury, provides insights into the process.
Can you explain the basics of the new reporting and reconciliation system?
We have initiated an operational transformation to simplify and digitize cash flows and reports. Our partners were tasked with providing daily, automated reporting at the transaction level, which optimizes our reconciliation and reduces manual intervention. This increases data quality and identifies data leaks. We were previously using batch-level reconciliation, but now we use automatic multipoint reconciliation, which covers the entire process from sale to account receipt. Our extensive collaboration with RBI was initially based on their robust platform and commitment to sustainability.
What specific advantages does the new solution offer and what distinguishes the collaboration with RBI?
We particularly appreciate the level of detail in the data provided by RBI, which enables very specific analyses and sets them apart from many of their competitors. In addition to the desired simplification and digitization, we were also able to identify process optimizations that were not previously apparent. This greatly improves the efficiency of our setup in various markets. We therefore plan to use the data obtained for further analysis and to support our organization with “Payment Data as a Service”.
In your opinion, how important is it for retailers to always be at the cutting edge of technology when it comes to payment processing and reporting?
Our transformation is a necessary step to remain competitive. Opportunities such as AI cannot be realized without timely and high-quality data usage. Manual reporting and financial “leaks” will be a thing of the past as companies consistently push for simplification, standardization, and digitization of back-end operations. Those who fail to do so will struggle to be efficient enough to remain profitable. With this in mind, service providers must already consider automated reporting to be a hygiene factor that does not necessarily lead to new business but prevents the loss of customers. Retailers who are not yet on this journey should contact their service providers now to at least keep pace in this new world, or better yet, help shape it. Transformation is an ongoing process that you either drive yourself or watch as it leaves you behind.