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Integrated Receivables for Banks: The Time is Now

by Bill Zayas, President & CEO

Payment complexity is changing as check payments decline and electronic payments are rising, compelling businesses to actively seek banking partners who can deliver a seamless and integrated end-to-end cash application process for accounts receivables, regardless of payment type or channel. Known as Integrated Receivables, forward-thinking banks recognize its potential to help with new customer acquisition and retention, as well as unlock potential new streams of revenue through enhanced value-added treasury services.

DadeSystems recently hosted a webinar in conjunction with Celent’s Bob Meara explaining why it’s critical that banks begin flushing out their integrated receivables strategy and implement technology that supports an increasingly sophisticated payments landscape. Here’s a summary of the presentation.

The Landscape is Changing

As paper B2B payments decline, wholesale lockbox services are no longer enough to support business customers. In response to increasing electronic payments and electronic invoice presentment, most banks have implemented payment solutions, but few offer invoicing matching solutions. Banks have delayed in responding to the market needs, resulting in FinTechs stepping in to fill the gap. However, they are beginning to realize that the business banking customers are actively seeking partners that will deliver a solution for multiple payment and invoice mechanisms—thus the need to implement Integrated Receivables technology.

Integrated Receivables: Good and Bad News

So, what exactly is Integrated Receivables? In short, Integrated Receivables encompasses consolidated receivables reporting, invoice matching, and the delivery of a single payments file, with the goal of helping businesses get paid faster, reduce errors and support any payment type through any channel.

With lockbox services losing relevance, some—but not enough—banks have responded with simple integrated receivables offerings and remain uncompetitive. As a result, businesses have been acquiring integrated receivables directly from FinTechs offering compelling capabilities, which are disintermediating the banks.

The good news is FinTechs are eager to collaborate with banks to form stronger offerings by leveraging banking expertise, data and networks.

What to Look for in FinTech Partnerships

According to Celent there are several things banks should look for before partnering with a FinTech:

  • Functionality is important, but it’s equally important that your FinTech partner like DadeSystems demonstrate a successful track record selling to corporate clients.
  • Make sure the vendor has banking experience. Banking is a complex business, and you need a vendor that has the insights of commercial banking.
  • Ensure the vendor has a track record of successful implementations and success driving customer adoption. Integrated Receivables doesn’t sell itself, so you need a partner with a extensive background in delivering services to banks, and to your customers.
  • Ensure a broad range of support for a diverse set of field-based payments and that the partner can navigate complex buyer/supplier networks.

 

DadePay Integrated Receivables

DadeSystems’ DadePay solution recently received the 2018 xCelent Award for Advanced Technology from Celent. DadePay Integrated Receivables will give you a competitive advantage by providing your treasury management team the tools that enable your corporate customers to get paid faster with artificial intelligence-enabled invoice-to-cash automation to process any payment through any channel.

DadePay Integrated Receivables is a single platform that expedites each step of the payment processing chain. It allows businesses to customize workflows based on their unique business processes.

For more information about DadePay Integrated Receivables, use the Contact Us form.

To view the replay of the webinar, click here.