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The leading and independent German magazine for credit managers is published four times a year. In line with the association's motto "From Credit Managers for Credit Managers", established industry experts have their say in practice-oriented specialist articles. With its affiliation to the Federation of European Credit Management Association (FECMA), the Bundesverband der Credit Manager offers its members an exchange of information and experience within an international network.
Below you can read the interview "Digitalization NOW!" with Wilm Schweer, Sales Director IP at SOA People AG. We recommend accessing all other articles in the first 2024 issue of the credit management magazine here via the online edition.
Digitization now!
What challenges are credit managers facing this year? In an interview with the German CreditManager magazine, Wilm Schweer from SOA People describes what he believes the industry will have to deal with this year - between data protection and digitalization, AI and a shortage of skilled workers.
DCM: Who is SOA People?
WS: SOA People Group is one of Europe's top 3 privately owned providers of SAP software and services. The heart of our company is our multicultural team of young and experienced employees across Europe. Our mission is to help companies transform into more efficient and higher performing organizations. Thanks to our unique software products and services, which extend the potential of SAP in the areas of credit and risk management, maintenance, professional services as well as performance management through add-ons, we support our customers today in applying worldwide future technologies quickly and easily.
DCM: Credit managers are faced with the challenge of mapping the different strategies - collections versus risk management - in one reporting world. Are there solutions for this?
WS: Yes. You can use for example customizable reporting tools to create tailored reports that reflect the specific requirements and strategies for collections and risk management. Integrate your data from different sources, including KPIs from your collections and risk management systems as well as other data sources such as ERP systems. Furthermore, customizable dashboard solutions or FIORI apps allow you to visualize key figures quickly and clearly. Credit managers who want to reliably identify future trends and risks and take appropriate measures should use advanced analysis techniques.
As a specialist for credit management processes in SAP, we offer comprehensive reporting solutions in the areas of collection, risk, dispute, insurance, etc. with our "Ready4 Credit Management" suite.
DCM: What professional, technical and legal challenges will credit management face in the coming years?
WS: In our view, one of the most important issues is the ongoing digitalization. It requires credit management processes to be adapted in order to work more efficiently and remain competitive. In particular, this includes the end-to-end automation of tasks such as credit decisions, credit checks, debt collection and dispute processes. With the increasing amount of personal and sensitive data, data protection and compliance with regulatory requirements such as the General Data Protection Regulation (GDPR) are also of crucial importance. At the same time, companies are under increasing pressure to implement sustainable and ethical business practices. To this end, credit management must develop guidelines to ensure that lending and collection processes are implemented in a socially and environmentally responsible manner. Another challenge is new technologies such as artificial intelligence, machine learning and assistance systems, which will transform credit management.
Companies must utilize these innovations in order to remain competitive and meet the demands of the next generation. SOA People has therefore been working on these topics and possible application scenarios in our software products for a long time.
DCM: The shortage of skilled workers is an important issue. How can this risk be minimized in credit management?
WS: The shortage of skilled workers is a challenge in many sectors. Credit management is no exception. Therefore, invest in the training and development of your employees so that they have the necessary skills and knowledge. Use technologies such as artificial intelligence and machine learning to automate repetitive tasks. This can disencumber employees to focus on more challenging tasks. In some cases, outsourcing certain tasks to external service providers makes sense. This can further distribute the workload and free up specialist staff. Modern credit management software accelerates your processes through a high degree of automation, allowing you to grow faster and more efficiently.
DCM: Artificial intelligence (AI) in credit management. Where do you see opportunities and risks?
WS: There is no doubt that AI will influence credit management in the coming years. The automation of repetitive tasks through AI will optimize credit management processes and make more accurate credit decisions. This enables better risk assessment and reduces the risk of default. In addition, AI-based systems process large amounts of data and identify trends or risks in real time. This allows you to react more quickly to changing market conditions. However, AI algorithms can also lead to discriminatory decisions due to insufficient or biased data. Therefore, the use of AI requires comprehensive data security to protect sensitive information from misuse. Overall, it can lead to far-reaching changes in workplace dynamics and make traditional roles in credit management obsolete. It is therefore essential to prepare employees for these changes.
We are also pushing the use of AI components in our products. We are convinced that a large proportion of routine activities can be processed by AI components in the future, making the current work of a credit manager more varied and important.
Short Biography
Wilm Schweer, born in 1968, studied business informatics in Passau, Germany. He has been working in the field of credit management solutions and processes for almost 30 years. As an experienced expert, he is part of the European SOA People Group, where he is responsible for sales of SAP AddOns in the DACH region. With his decades of experience, comprehensive expertise and strategic approach, he actively drives the corporate strategy and innovative strength of the proprietary solutions (Credit Management & Maintenance). In his free time, he mainly devotes himself to his family, his dogs and his garden.