Advantages of an Integrated Receivables Solution for Banks

Banks can add value to corporate clients and drive growth by offering a comprehensive integrated receivables solution. Corporations struggle to manage their accounts receivables and payments processes. According to a recent study by the Aite Group, 60 perfect of companies are dissatisfied with their current invoicing processes. Dealing with multiple payment channels, inconsistent payments handling and lack of real-time remittance reporting negatively impacts more than half of corporations.

Banks can help their corporate clients solve these pressing business challenges, while generating new revenue and growth opportunities. The key for financial institutions is providing integrated receivables services as complementary offerings to traditional lockbox processing and management services. This includes e-invoicing, e-payments, supply chain financing and dispute management.

Benefits of an Integrated Receivables Solution

Financial institutions and banks can reap several important business benefits by extending their traditional lockbox payment processing services to incorporate an integrated receivables offering.

  • Creates New Revenue Streams: Many financial institutions face dwindling revenues from traditional lockbox processing services. While paper-based checks remain the leading form of B2B payments for more than 67 percent of organizations according to the Remittance Coalition, these types of payments are on the decline and banks must find new ways to support corporate clients and increase revenue. By providing a reverse lockbox and integrated receivables solution to corporations, banks can increase revenue by $1 to $2 per invoice and pursue new lucrative opportunities such as supply chain financing. It also increases P-card utilization among B2B buyers.
  • Strengthens Customer Relationships: Corporate AR departments are hungry for value-add banking and cash flow management services. Banks that provide integrated receivables and e-invoicing solutions will help corporations drive growth with benefits including improved DSO by 80 percent, more than 90 percent lower invoice presentment and collection costs, and straight-through posting rates of more than 80 percent. By providing these services, banks will improve customer relationships and increase profitability in the long term.
  • Drives Significant Operational Savings: With a comprehensive reverse lockbox offering, banks can dramatically reduce operating costs and security risks associated with paper-based check processing and traditional lockbox services. Banks can expect to save tens of millions of dollars in operational costs by streamlining handling and management of remittance. Integrated receivables also improve the security of invoice handling and processing for banks, with a lower risk of lost or stolen check information and less manual data entry requirements.

Banks that rely solely on traditional lockbox processing solutions to support corporate clients are missing out on a significant opportunity for growth. Banks need to adopt integrated receivables solutions to drive revenue and better serve corporate clients.

How to Implement an Integrated Receivables Solution

Direct Insite’s PAYBOX solution is the industry’s leading integrated receivables solution used by global banks and financial institutions. As a cloud-based, technology-agnostic solution, banks do not need to do any heavy integration to launch and manage their reverse lockbox offerings. Are you ready to transform your banking lockbox franchises and capitalize on new growth opportunities? Call us today at (610) 212-2487 to learn more or to schedule a risk-free demo of our technology.

Integrated Receivables