Advantages of Electronic Lockbox for Banks

Across the financial industry, revenue-savvy banks are implementing electronic lockbox solutions as alternatives to legacy processes. Over the past five years, the volume of B2B check payments has been cut in half as more and more non-cash transactions have been transferred to electronic payment systems—a development that presents a potentially serious threat to traditional lockbox revenue streams.

To stay current with the marketplace, banks need technologies that can keep up with the electronic payment routines of today’s B2B organizations. Instead of outdated lockbox systems, banks need electronic lockbox technologies designed to accommodate e-payments, e-invoicing, dispute management, supply chain financing and other stages of the electronic invoicing and payment cycle.

Leveraging Electronic Lockbox for Business Advantage

 For many banks, the transition to advanced electronic lockbox technology seems daunting and costly. Direct Insite’s PAYBOX® solution mitigates financial and operational risk by eliminating the need to replace existing lockbox processing systems. As a leading reverse lockbox solution for financial institutions, PAYBOX is cloud-based and seamlessly integrates with legacy technologies to improve the receivables process and increase the profitability of lockbox processing.

PAYBOX reverse lockbox extends banks’ treasury services with electronic invoice presentment, adjustment and approval capabilities, electronic payments, AR file delivery, discount capture, supply chain financing and other important features and capabilities.
Key advantages for banks’ integrated receivables strategies include:

  • Lower Costs – Banks that implement PAYBOX experience significant cost savings, including a reduction of 90% or more in invoice presentment and collection costs. The average bank achieves immediate operational savings of tens of thousands of dollars by using the PAYBOX open receivables file to resolve paper-based lockbox exceptions.
  • Increased Revenue – PAYBOX enables banks to capture new revenues of $1 to $2 per e-invoicing transaction and increase revenue derived from interchange fees. Reverse lockbox capabilities also create important opportunities for banks to pursue new opportunities in supply chain financing and other business areas.
  • More Flexibility – PAYBOX can be fully customized to banks’ unique business requirements and technology objectives. Seamless compatibility with all legacy lockbox solutions protects the value of previous technology investments, while incorporating electronic invoicing, online approvals, electronic payments, dispute management, discounting/supply chain financing and other capabilities into the organization’s integrated receivables program.
  • Better Customer Relationships – Customer relationships matter. Direct Insite’s PAYBOX reverse lockbox solution allows banks to offer important features and benefits to customers that rely on lockbox services. On average, PAYBOX delivers up to 80 percent improvement in Days Sales Outstanding (DSO) and straight–through receivables posting rates of more than 80 percent—key benefits that corporate AR professionals need to achieve performance objectives.

With PAYBOX, Direct Insite doesn’t just preserve existing lockbox businesses and revenue streams—we help banks grow their lockbox businesses with electronic invoice presentment and payment technologies that are aligned with the needs of today’s B2B receivables professionals.

Ready to Take the Next Step in Electronic Lockbox Technology?

 When you’re ready to take the next step in electronic lockbox technology, give us a call at (610) 212-2487 or schedule a private, online demonstration of Direct Insite’s PAYBOX solution.

Integrated Receivables