Technology as a partner for the credit manager.

Artificial intelligence is no longer absent from the news: chatGPT and what its impact may be, at least prompts thought. What about artificial intelligence in credit management: what concrete applications already exist and will the credit manager soon be an endangered species? Together with Marc Brems (BASF), we explored how artificial intelligence in credit risk can bring you closer to your customer.

AI brings you closer to the business

Automation just creates more time for people: both internal and external customers. AI can help to greatly reduce administrative tasks, freeing up more time for consultations with internal customers (such as sales) and phone calls with customers and why not: personal contact with the customer. So that the customer once again becomes central to the life of the credit manager and credit management becomes an active part the of customer journey.

Cross Functional Connectivity

Technology increases connectivity between different functions in the organization and facilitates exchange of real-time information and insights. For example, credit management is connected to master data teams, e-commerce channels, sales teams, customer service, ... This contributes to smoother cross-team communication and efficient process flows. AI can also help avoid unnecessary order blocking and ensure a focus on real risks.

Every 'no' is a Next Opportunity

Being able to better assess and predict credit risks can also help bury the hatchet between sales and credit. Although many companies have already committed to constructive collaboration between sales and credit, some conflicting interests are still seen. A philosophy where the system also helps think along in converting a "no" to a "yes" where there are some conditions attached contributes to profitable growth.

From credit manager to working capital manager

Pigeonholing into functions and roles in an organization is a thing of the past. Where the last decade has seen a strong professionalization of the credit management function and further automation, we see many companies taking the step to the next interpretation. A broadening of the role where responsibility for cash in and cash out is bundled in 1 function. At BASF, this is seen as a step to strengthen the connection with customers and suppliers.

Credit management as a strategic business partner

As has been seen in the past with technological advances, we also expect in credit management that technology and artificial intelligence will contribute to a different job content. The purely functional credit risk calculations: calculating ratios, credit limits, etc. will be replaced by a more strategic role. This therefore translates into a change in the ideal credit manager profile. The future proof credit manager has a helicopter view with profound market insights, is close to the customer and emerges as a strategic business partner.