Balancing the Binary - Human Touch in Digital Supply Chain Finance

In the dynamic landscape of Supply Chain Finance (SCF), Digital Transformation is rapidly reshaping traditional practices. Implementing digital aspects in the first place requires a human touch, ensuring transparency and alignment with customers’ needs. Here, customers could be both Corporates or MSMEs, based on whoever is engaging with the Bank or Financial Institution for the program. While the allure of automation promises streamlined processes and efficiency, the irreplaceable human touch takes center stage for Financial Institutions (FIs), playing pivotal role across capacities.

A diverse team of experts, including relationship managers and financial advisors, serve as intermediaries and trusted advisors, cultivating and nurturing long-lasting partnerships with corporate clients & their counterparties and ensure their SCF requirements are addressed with precision.

The human element in Financial Institutions (FIs) extends beyond mere intermediaries, encompassing roles such as problem solvers, dispute resolution specialists, and compliance experts. To oversee digitalization and ensure its effectiveness, we need people with an agile mindset to make systems more robust and adaptable, instructing and guiding the technology to serve the needs of both the FIs and the Corporates.

Imagine an FI attempting every aspect of onboarding a new corporate customer to provide ongoing support solely with digital platforms. The overdependency on digitally-driven setup may result in a lack of customization and tailoring of solutions to meet customer requirements, leading to heightened discrepancies and disputes, resulting in delays and strained relationships - ultimately impacting customer satisfaction and loyalty. Moreover, fully digital SCF processes may need help to effectively address onboarding challenges, posing increased risk and decreased transparency in the Corporate-FI Relationship.

Looking ahead, the future of human interaction in Digital SCF is marked by strategic value and client empowerment. Analysts and financial strategists with data-driven insights and market intelligence provide unparalleled expertise to help clients optimize their SCF programs.? Moreover, educators and SCF specialists play a crucial role in empowering clients with in-depth knowledge, enabling them to make informed decisions and harness the full potential of the programs. After all, humans are often the makers and checkers in most cases, ensuring accuracy, transparency, and adaptability.

The relationship managers for counterparties, referred to as Network Sales Team in Vayana, play a crucial role in counterparty onboarding, as they facilitate communication, and expedite the onboarding process. Their expertise not only improves efficiency but, also makes the overall onboarding process more customer-centric as decisions need to be taken based on a deep understanding of the client's unique circumstances, which only humans can provide. Click here to know more.?

Crucially, FIs need not choose between technology and the human touch; a harmonious blend is possible and advantageous. By harnessing technology to empower their teams of experts, FIs can deliver data-driven insights, enhance the overall SCF experience, and navigate the evolving SCF landscape successfully. The transformative potential of technology is maximized when complemented by the expertise of relationship managers, credit analysts, financial advisors, problem solvers, and educators. Success in the Digital SCF era is found in the balanced equation where technology and human proficiency complement one another, forging a path to sustained success and innovation.