By Michael Lamm
Corporate Advisory Solutions (CAS) predicts that while the current work-from-home movement will not entirely replace brick and mortar, members of the accounts receivable management (ARM) industry have seen the beginning of a transformation in corporate culture. This transformation will allow for a hybrid remote/commercial office existence going forward. We can expect both short- and long-term ramifications for the Tech-Enabled ARM sector.
In the short-term, ARM companies will be able to manage their cost structures more effectively while they work through the challenges associated with inconsistent client business volumes. In the long-term, it may create a more competitive labor environment vs. near and offshore resources.
Another critical market trend is the ongoing development of artificial intelligence/machine learning solutions. Chatbots are currently the rage. When combined with improved data and speech analytic solutions, they are starting to effectively replace “butts in seats” for certain client interactions.
This trend, too, will have short- and long-term ramifications for ARM companies. In the short-term, members of the ARM community that can offer these solutions will hold a competitive advantage over those who do not. In the long-term, these solutions will likely change the ARM landscape leaving potentially fewer vendors supporting reduced staff. Surviving vendors will be larger and more profitable.
Financial and strategic buyers are aware of this trend and are proactively seeking to acquire strong platforms to reap the benefits.
Michael Lamm, managing partner of CAS, an ACA International member in Philadelphia, hosts the ACA Cast podcast series Leadership Fuel With Michael Lamm. He is also a frequent contributor to ACA International’s award-winning Collector magazine.