Strategic Value and Transformative Impact of Expense Management Solutions in the Asia-Pacific Region

Visa Worldwide Japan, led by its President Chetan Kitney, has released a pivotal report detailing the strategic value created by expense management systems (EMS) and corporate cards in the Asia-Pacific region, focusing on five countries with a variety of large and mid-sized companies. This report elucidates the business efficiency and enhanced financial management benefits attained through the adoption of EMS amidst a rapidly growing market.

In a comprehensive survey conducted by KoreFusion between October and December 2024, 503 large and mid-sized enterprises from Indonesia, Malaysia, Singapore, Thailand, and the Philippines were examined. The findings reflect a stark contrast in EMS adoption rates, ranging from 77% to 96% for large enterprises and 24% to 50% for mid-sized enterprises. While large companies have taken the lead in adopting EMS, the report notes a significant opportunity for growth among mid-sized firms, particularly in regions where EMS usage has already gained a foothold.

The survey revealed that all companies utilizing EMS platforms also provide their employees, especially those who travel frequently, with corporate cards, indicating that implementing a corporate card system is essential to maximizing the advantages of the EMS.

Key Findings from the Report

Several important insights emerged from the survey:

- Importance of EMS Features: Companies highlighted that crucial EMS functionalities include expense tracking and reporting tools, as well as integration with existing financial and accounting systems. Notably, the need for system integration was expressed by 91% of large enterprises, compared to 65% of mid-sized businesses, which suggests potential for wider adoption in the future.

- Wider Benefits of EMS Adoption: The impact of EMS extends beyond accounting, improving operations, HR, and financial processes as well. A staggering 92% of surveyed companies reported improvements in operational efficiency and enhancements in HR and financial processes due to EMS adoption.

- Demand for Employee Reimbursement Efficiency: A significant proportion of companies, ranging from 79% to 91%, expressed interest in streamlining employee reimbursement processes via EMS. Moreover, digital tools like mobile EMS applications received favorable ratings from 52% of surveyed companies, while online management portals were rated positively by 76%.

- Focus on Fraud Detection and Compliance: Across the board, all participating companies emphasized the importance of fraud detection and compliance functions as paramount features of EMS. The implementation of EMS plays a critical role in preventing unauthorized usage of corporate cards and mitigating external fraudulent threats.

Impact of EMS Implementation

The advantages of adopting EMS are tangible. Companies that have implemented these systems report an average reduction in expense reconciliation time by 12 days and a cost reduction of approximately $4 per expense report processed. This efficiency translates to an annual savings of around $28,000 per finance employee and a total of $75,000 per organization, achieving an average ROI of nearly 16 times the cost of the EMS subscription.

Areas for Improvement

While firms that have integrated EMS platforms commend their benefits, there remains an expectation for further enhancements. Businesses are eager for improved reporting and analytical capabilities, strengthened compliance and fraud management measures, and enhancements in user experience (UX).

For those interested, the Japanese version of the report titled "Creating Strategic Value Through Expense Management Solutions and Corporate Cards in the Asia-Pacific Region" is available for download here.

Visa continues to champion the growth of expense management systems (EMS) to support efficient operations and business growth, contributing to the advancement of the business landscape.

About Visa

As a global leader in electronic payments, Visa connects consumers, merchants, financial institutions, and governments through transactions in over 200 countries and regions. Visa’s mission is to link the world with the most innovative, convenient, reliable, and secure payment network, helping individuals, businesses, and economies thrive. We believe that an inclusive economy improves lives worldwide and that access to payments paves the way for the future. For more information, please visit Visa.com (English) or www.visa.co.jp (Japanese).