How CFOs Can Solve for Resource Bottlenecks in Back-Office Innovation

When it comes to the tools and solutions available for back-office architectures, today’s chief financial officers (CFOs) have more choices than ever.

But as B2B payments innovation continues marching forward with the rise of embedded finance, digital currencies and the expansion of cross-border transactions, the question isn’t whether firms will adapt. It’s how quickly and effectively they can do it.

Back-office functions, once considered support roles, now play a crucial role in ensuring compliance, fraud prevention and seamless transaction processing.

The problem? Back-office implementations can often be easier said than done. Traditionally, payments professionals needed knowledge of settlement processes, reconciliation and financial reporting. Today, they must also understand API integrations, machine learning applications in fraud detection and regulatory technologies.

In a market driven by innovation and user expectations for seamless digital experiences, a lack of trained professionals in these areas can contribute to bottlenecks, slowing down digital transformation initiatives and leaving organizations vulnerable to inefficiencies, errors and security risks.

See also: The Integration Pros: How CFOs and Treasurers Bridge Operational Silos

While the talent gap in payments and back-office transformation is a significant hurdle, it is not insurmountable. After all, automation and even artificial intelligence (AI) solutions provide scalable operational impacts that help enhance efficiency, reduce costs and improve overall business performance.

B2B payments, for instance, have long been burdened by manual workflows, such as invoice processing, reconciliation and fraud detection. By implementing automation and integrating AI, companies can reduce processing times to minutes from what used to take days, while also improving accuracy and compliance.

“We’re super-focused on automating all the financial flows within the finance function,” Chris Taylor, newly appointed CFO at Flashfood, told PYMNTS during a discussion for the PYMNTS series “A Day in the Life of a CFO.”

PYMNTS Intelligence research found that more than one-third of middle-market firms now utilize AI for at least half of their accounts payable (AP) processes. Because of this, these businesses are 47% less likely to report high levels of operational uncertainty. This is a critical advantage, as they often operate with tighter margins and have greater sensitivity to cash flow disruptions than larger competitors.

“Within the space of the office of the CFO and accounts payable, that’s where GenAI may be most transformative,” Alex Hoffmann, general manager of North America at Edenred Pay, told PYMNTS.

The marketplace is responding. Deloitte on Wednesday (March 19) unveiled a platform that offers a suite of artificial intelligence agents designed to perform business functions, including functional agents for finance. The solution will be expanded to include other AI agents for human capital, supply chain, procurement, sales and marketing, and customer service.

See also: Your Business Has Its Payments Data. Now What?

Automation, artificial intelligence and cloud-based solutions are streamlining operations, reducing human error and accelerating reconciliation processes. Yet, this transformation also exacerbates the talent problem. Employees who were skilled in manual ledger entries and compliance reporting may not be equipped to manage cloud-based payment orchestration platforms or interpret AI-driven risk assessments.

As compliance regulations become more stringent — particularly with initiatives like ISO 20022 messaging standards and evolving anti-money laundering (AML) directives — organizations need access to resources who understand both the regulatory landscape and the technology solutions designed to ensure compliance.

Without tech-savvy resources at hand, companies may fall behind competitors who are better equipped to adopt next-generation payment solutions. At the same time, rather than relying solely on external hiring, financial institutions and FinTech firms can invest in training programs to upskill current employees.

One other example is the rise of AP automation-as-a-service providers. These companies offer cloud-based solutions that integrate directly with ERP systems, automating invoice approvals, vendor payments, and reconciliation without requiring firms to scale their internal workforce.

Rather than developing their own payment solutions from scratch, firms are also increasingly partnering with embedded FinTech providers to integrate advanced payment capabilities directly into their existing platforms. This approach allows companies to bypass the hiring bottleneck by leveraging ready-made, regulatory-compliant solutions that require minimal internal oversight.

However, firms must be mindful that these solutions are not one-size-fits-all. Success depends on a thoughtful approach that aligns technology adoption with business goals, compliance requirements and the evolving needs of suppliers and customers.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

The post How CFOs Can Solve for Resource Bottlenecks in Back-Office Innovation appeared first on PYMNTS.com.