Published in: transformingfinance.eu
Could you achieve benefits just by simplifying the business without a single system?
Laurent Tabouelle, COO of CODIX Group, a world software provider for the financial industry, incl. commercial finance and debt collections, explains: “… Regarding commercial finance, you hear a lot about products – Invoice discounting in the UK, Inhouse Factoring in Germany, supply chain finance, commercial finance – but these are mainly marketing terms. When you really look at the details of those products, they are broadly the same but with different names in different details, and legal constraints.”
According to L. Tabouelle from a systems standpoint it is not effective to have different systems to handle different products and clarifies: “If you have thought of those products in a flexible way up front, then you can very easily handle them in the same system, even in the same contract for the same customer. Today, I am speaking to prospective clients who have two or three systems: … One for invoice discounting, one for financing of receivables, one for leasing and other types of commercial finance. … But the bottom line is that you have a creditor and collaterals; then all products are variations around those key concepts. By having several systems, companies spread their risks over systems, which is not what is wanted. It increases the operational risk because it can’t be seen. Handling all these products on a single system, in the same way, is our focus.”
Read the whole article on software packages that cover all of the finance products and the efficiencies that can be gained from business operations: transformingfinance.eu