For the last several years most banks have kept Integrated Receivables on the back burner, not seeing this technology as a strategic component of Treasury Services. Based on the results of a recent Aite Group study — the time for action is now. The study, published on January 18, 2018, indicates 73% of business customers rated Integrated Receivables as extremely important or important when selecting a new bank partner.
This means 73% of a bank’s best and most profitable customers are willing to switch banks in order to gain access to this powerful new technology.
This wake up call should encourage banks to rethink their existing product approach of waiting for business clients to ask for services before taking action. In fact, it’s possible for banks to become great strategic partners for their business customers by delivering solutions, like Integrated Receivables, that solve growing business problems.
An article in Banking Exchange outlines the business problems uncovered in the Aite Group report. According to the study, the majority of b2b transactions are rapidly moving to a variety of electronic channels. The problem with this rapid transition to electronic payments is the lack of remittance detail that accompanies the payments, primarily ACH credits. Corporations are wasting valuable staff time matching ACH payments to remittance information, which is usually in a different electronic system, such as email.
By not offering an Integrated Receivables solution, banks are forcing their corporate customers to search for a solution themselves, as the high cost of manual posting demands action. There is a clear opportunity for financial institutions to provide a strategic service that lowers costs for its customers while generating non-interest fee income…and keeps them as customers. Smart.
As a leader in Integrated Receivables, we want to help your bank become a strategic partner to your business customers. Contact Kathy Harkey at firstname.lastname@example.org or 770-331-3086 to get started today.