Difficult times dictating change
The past few years have greatly strained businesses to shift their focus on enhancing and revolutionizing customer and supplier experience; ultimately leading them to revisit their entire value chain framework. Even Industrial companies and big manufacturers sensed the need to streamline their B2B channels through digitalization, a process which mainly took place out of necessity because of Covid-19 restrictions. These restrictions led to large chunks of the workforce having to work from home. Moreover, in a recent study by McKinsey & Co, data showed that even after physical shops started to welcome back walk-in customers, it was clear that buyers preferred a “cross-channel mix” of engagement1 (Harrison et al., 2021).
Corporations felt the shift in B2C dynamics drastically affect their B2B engagements. Soon, it has become abundantly clear that change should take place in financial dealings, as well as in working capital and cash flow management as well __ an area which was never in a rush to embrace digitalization
"The principles of accounting remain the same, even in the digital age. However, technological trends have the potential to transform accounting. Digital technologies can process data far more quickly and reliably than human beings can. They provide an opportunity to fundamentally redesign many financial procedures and generate added value"
- Prof. Dr. Rüdiger Loitz, Leader Capital Markets & Accounting Advisory Services at PwC
Unlocking cash and increasing profit in the digital age
For big manufacturers, digitalization of finance is key to leaving behind outdated paper-based and excel-based accounting processes, automating them with new and secure AI-based solutions and robotics, and finally gaining the ability to extract useful data from these dealings to add value to customers. Human resource and capital, originally allocated to perform such highly manual accounting practices, now become available to focus on analyzing the findings of the now automated processes. Consequently, industrial companies cut down on operational costs and unlock working capital that allows for more investment opportunities and wider horizons. The need for an all encompassing transformation at big companies has never been higher.
A time to connect
Troc Circle, being an up-and-coming and disruptive Fintech offering a quick and secure netting platform that offsets a company’s receivables with its payables on the fly, offers itself as a catalyst in the digital transformation of companies and businesses. Troc Circle proposes two genres of netting schemes, circular netting and chain netting, with various customizations and tweaks.
Circular cash flows are identified between merchants and the common amounts are netted
Algorithm works on finding payment chains in between merchants that do not complete a circular cash flow. Then the payment chain is incentivized through a discount to the first merchant, thus triggering the netting chain.
Troc Circle is aiming at creating a paradigm shift in financial dealing between businesses. Along the way, Troc Circle considers a partnership with another Fintech and AI-based solution provider like CollectAI, to be a valuable synergy of forces. CollectAI’s services offer digitalization of a business’s accounts payable and receivable with customized and comprehensive e-payment solutions like interactive invoicing and intelligent dunning solutions.
Partnering with Troc Circle
CollectAI presents itself as the link that was always missing between a business, its payment policies and procedures, and the customer; leading to familiarizing the payment process with the brand and enhancing customer experience. And just like CollectAI looks to add value to a business’s customer experience, Troc Circle looks to add value to a business through netting and helping it unlock working capital that was stuck in inefficient account receivable and account payable transactions. Various applications of combining both services lead to a multitude of advantages benefitting businesses.
- Versatile business model with capabilities to accommodate both B2C and B2B applications.
- Quicker on-boarding processes thanks to a customer-focused payment experience, optimized with netting solutions.
- Swift exchange and collection of data furnishing businesses with crucial data and analytics.
- Added value to businesses through digitalizing supplier operations from start to finish.
- Increased customer retention with buying experiences becoming more and more personalized
Interactive invoices and smart payment reminders from the intelligent payment solution provider, CollectAI, are ideal additions to the platform’s app portfolio. Collect AI leverages machine learning from billions of dollars in transactions and Troc Circle’s expertise to automate smart payment is supreme. Collect AI &Troc Circle’s customers can notice an increase in revenue and improved subscriber retention.
- Harrison, L., Spillecke, D., Stanley, J., & Tsai, J. (2021, April 16). Omnichannel in B2B sales: The new normal in a year that has been anything but. McKinsey & Company. https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/omnichannel-in-b2b-sales-the-new-normal-in-a-year-that-has-been-anything-but
- Justenhoven, P., Loitz, R., & Sechser, J. (2018, July). Digitalisation in finance and accounting. PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft. https://www.pwc.de/en/digitalisation-in-finance-and-accounting.html