Payout orchestration is a critical component of every organization's financial operations. Enabling businesses to quickly and securely facilitate payments of any type to their customers or employees worldwide must be standard operating procedure today. However, payout orchestration involves a lot of moving pieces that must be aligned and integrated for a streamlined and efficient process.
Data orchestration is one such example of one of these moving pieces, and although it’s an essential part of payout orchestration, it often goes unnoticed.
In fact, data orchestration is a big part of what makes payout orchestration possible in the first place. It ensures all the necessary information required to send payments is accurate, up-to-date, and compliant with global regulations. In addition, it enables advanced data validation, screening, and enrichment processes that guarantee accuracy and streamline reporting and compliance operations.
Intelligent data orchestration is the key to ensuring this happens without interruption or error.
What is data orchestration, and why does it matter when it comes to payout orchestration?
Data orchestration is the process of collecting, organizing, transforming, and delivering data from one or more sources into a format other systems can utilize. This could include things like customer information, invoice details, payment instructions, etc.
Without data orchestration, all of this data would have to be manually entered into the system before each payout could be processed and sent out.
Once the data is collected and organized, intelligent data orchestration technology can automate many of the tasks associated with payout orchestration, saving your business precious time and money.
For example, as we are squarely in the middle of tax season right now, intelligent data orchestration can help automate the generation of tax forms so they are correctly filled out under relevant laws and regulations. When you’re paying out globally, that is a lot of relevant laws and regulations to account for. It can also use AI error checking to identify discrepancies or incorrect information before sending it out.
These are just two examples of the many highlights of data orchestration. Today's article will tell you more about them (and others).
So, we know intelligent data orchestration plays an integral (but often unsung) role in payout orchestration.
Next, we're going to dig into the details a bit more and explore these five highlights of data orchestration technology:
Anytime there's an opportunity to streamline and automate a tax process, it should be taken advantage of. For example, with smart tax forms enabled by intelligent data orchestration technology, all relevant information can be collected and filled out automatically for each individual payment. Smart tax forms can ease the burden of manual tax filing, giving your team back valuable time that’s better spent elsewhere.
This minimizes the many opportunities for human error that come with manual entry of the same data and ensures all payments comply with applicable laws and regulations. At the same time, it ensures payments are executed on time.
No matter how organized and accurate your data collection is, mistakes can always happen when manually entering information into a system. But with intelligent data orchestration and AI error-checking technology, payment instructions can be double-checked for accuracy before being sent out.
Now, instead of spending long hours combing through payment information for errors, your team can quickly identify any potential discrepancies and make sure they are corrected before they reach your customers.
This provides your business with a level of protection and confidence that the payments are being sent out to the right people, with the correct information.
Another benefit of intelligent data orchestration technology your business will love is its ability to enable electronic consent and e-sign capabilities. These capabilities allow customers to review their payment information, sign digital consent forms, and other related documentation electronically before they sign off on a payment.
This approach guarantees the customer comprehends all aspects of the transaction and safeguards your business from possible legal conflicts that may arise in the future. It can also streamline the payment process, enabling customers to efficiently consent and sign off on each transaction.
When it comes to making sure payments arrive at their intended destination, data orchestration helps by verifying each customer's address is correct and valid before payment is sent out.
With the power of real-time address validation technology enabled by intelligent data orchestration tools, any errors or typos in customer addresses can be spotted quickly, allowing you to resolve these issues before they become a bigger problem. Often, this can be done in a matter of seconds, minimizing any disruption to the payment process.
Finally, when it comes to managing tax withholding on international payments, data orchestration technology can spot discrepancies or potential problems before they become an issue.
Data orchestration helps detect and apply the appropriate foreign tax withholding rates to each payment according to applicable laws and regulations in that particular country. Not a simple task when you’re issuing payouts around the world.
Again, this eliminates any guesswork or manual calculations when it comes to managing international payments, saving businesses money, time, and resources.
As we've seen, intelligent data orchestration plays a vital role in payout orchestration. These five highlights give you an idea of just how powerful this technology is in ensuring payments are sent out accurately and efficiently.
So, if your business is looking for a more efficient way to manage its outgoing payments, don't overlook the power of combining data orchestration and payout orchestration to create a truly connected financial system.
If you're eager to learn more about global payout orchestration and how data orchestration can help optimize your process, contact MassPay today. We help you facilitate global payouts with the broadest selection of currencies and payout methods available in mere days.