Offering corporate receivables solutions provides U.S. banks with better-than-average revenues and stronger corporate relationships
Boston, MA, September 3, 2009 – A new Impact Report from Aite Group, LLC focuses on the unmet needs of corporate receivables groups, and makes actionable recommendations for banks and vendors to meet those needs by implementing receivables offerings, whether through outsourcing or in-house development. The report considers individual product contributions to banks and vendors seeking to increase revenues, and positions these products in the context of an overall accounts receivables solution for bank and vendor clients.
U.S. financial institutions have long benefited from offering services that improve companies' receivables processing capabilities. In fact, Aite Group estimates that receivables products account for better-than-average revenues for 75% of the top 150 U.S. banks' total cash management revenues. Today, advances in technology are making banks' solutions even more compelling to corporations. Vendors, too, are enhancing their products and utilizing new technology to improve the straight-through processing (STP) of payments and receivables. Banks that are considering providing corporate receivables solutions should contemplate vendor technologies as a viable solution.
"Effective management of companies' receivables improves their credit-extension policy management, provides actionable data in support of treasury's cash flow forecasting, and reduces their need to borrow operating funds," says Nancy Atkinson, senior analyst at Aite Group and co-author of the report. "By providing receivables solutions, banks effectively expand the relationships with their corporate customers, increasing customer stickiness to create a strategic partnership."
"Banks play a central role in the ability of a corporation to optimize receivables processes," adds Judson Murchie, analyst at Aite group and co-author of the report. "Before making any investment in a corporate receivables offering, banks and vendors should assess whether its customers demand such a product, and how the product aligns with the overall strategy of the bank."
This 34-page Impact Note contains 13 figures and five tables. Clients of Aite Group's Wholesale Banking Service can download the report.