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Bo Harald

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Bo Harald - ZEF, Transmeri, Demos, Real Time Economy Program

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Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

We all know where we are heading

27 February 2014  |  2839 views  |  2

We all know that administrative processes will be fully automated in the future and continue their march towards real time. Still far too many of us continue to sit on our hands - perhaps not hoping that this inevitable change is a bad dream - but not having the energy or time needed to get out of daily chores.

All this despite the whole process being so important both for badly needed improvements in corporate productivity, public sector costs, EU Single market progress, fighting grey economy, x-sector innovation etc.

Individual enterprises and public sectors could already today take their fate in their own hands by just boldly declaring that the future is here and papers or PDFs are to be replaced by structured e-documents (starting from the all-important e-invoice or no invoice policy). 

But when it comes to the next layers - Data Extraction to automate reporting, cash flow estimates and accounting -  we need to come together - in xEU public-private partnerships. To get x-EU interoperability, open standardized interfaces, rulebooks etc in place. All parties need to see the big need and stop driving selfish interests and still often pure populism.

It should be noted that DG Taxud at the EU-commission for its part has delivered on its promise regarding jointly standardising VAT reporting - so that it will be possible to move faster and X-EU to fully automated e-invoice based reporting (present cost to enterprises easily 35bn€/year - most of which can move the bottomline and save costs considerably in the public sector). 

So - we know where we are heading - why not get there faster?

TagsMobile & onlineInnovation

Comments: (3)

Christopher Williams
Christopher Williams - RTpay - Boca Raton | 28 February, 2014, 09:53

Bo, I am sure you are correct in pushing for e-invoicing to be promoted better - and faster - by governments and companies. Where it runs into resistance is from those international companies that continue to take advantage of the inefficient way VAT is collected within the EU. If we could get greater concentration on moving to real time, automated settlement within the transaction flow - with high costs for those not moving to this format - then e-invoicing would get a shot in the arm.

My other comment is that we should aim to see e-invoicing as a part of the solution to the BEPS targets of the G20/ OECD for later this year. The clearer we can track the flow, the sooner we can eradicate the tax evasion. To this end, working with LDC governments is very important - and can get better responses than just in the EU.

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Bo Harald
Bo Harald - ZEF, Transmeri, Demos, Real Time Economy Program - Helsinki Region | 01 March, 2014, 15:02

We are focusing on automation of VAT-reporting. A move to real time payments is another aspect - and that has to be an EU-wide move for obvious reasons and enterprises should be compensated for the loss of interestfree financing this would be.



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Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 04 March, 2014, 11:44

Reading about "No Invoice Policy" brought back the old memory of reading about support for the related "Evaluated Receipts Settlement" feature in a leading ERP in the late '90s. At the time, I was stunned about how technology could be used to cut costs, increase accuracy and all those nice things. I continue to be stunned now, but about why ERS hasn't quite taken the world by storm yet. Although there might be a few early adapters of ERS, I've come across just one company - a Top 5 USA Bank - to have implemented ERS in these 15 years. Goes to show why, on certain things like business processes, people tend to overestimate the amount of change even in 10 years.

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