How Bank and FinTech Partnerships are Redefining the Future of A/R and Payments

26 February, 2021
10 min read
Brett Johnson, AVP, Global Enablement
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What you'll learn

  • Learn how banks are embracing digital transformation collaborating with FinTech partners
    such as HighRadius to reshape their A/R and payments landscape
The Need for Digital Transformation in Corporate Banking
Corporate Bank’s Response to the Emerging Need for Digital Transformation
How HighRadius Helps Banks Modernize their Payments and Receivables Ecosystem
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When it comes to digital transformation, corporate banks have always prioritized retail customer experience over corporate banking experience. Due to the complex switching or implementation process for end customers, associated costs, or even product complexity, corporate banks have always taken a back seat in embracing digitization.

However, according to The Financial Brand, “the new normal of banking is quickly moving from product-centric organizations with legacy technologies and cultures to consumer-centric organizations with more personalized solutions that can be delivered seamlessly.”

The Need for Digital Transformation in
Corporate Banking

Recently, banking leaders such as Bank of America, Citibank, HSBC, and BNP Paribas initiated a digitization trend in the banking ecosystem. Instead of building on their own, banks are partnering with FinTechs such HighRadius. This collaboration has become a powerful driving force for the bank’s digital transformation initiatives. The growing number of these digital partnerships leads to improved customer journeys and delivers a real competitive advantage for the banks. Partnerships around accounts receivables and payments are at the forefront of this innovation-led partnerships.

Let us understand what the reasons behind this radical change were, based on recent research from Forrester:

1. Enterprise CFOs are prioritizing real-time insights and innovation

According to a 2020 survey by Forrester, 46% of enterprise CFOs have identified the importance of data-driven decisions in their business.

Source: Forrester Analytics Business Technographics® Priorities And Journey Survey, 2020

Access to real-time data and actionable insights for the business: No wonder why digital transformation has become the CFO’s priority #1.

2. CIOs are prioritizing an agile, cloud-based upgrade in business applications

Finance has gradually evolved from being a paper-based function to an example of end-to-end digitization. In a survey by Forrester, we have observed that at least 25% of CFOs are focusing on building an agile finance framework using cloud applications and AI capabilities. As a result, the CIOs prioritize data analytics, upgrading legacy systems in Finance and Receivables.

3. COVID-19 has acted as an accelerator to digital transformation initiatives

The onset of COVID-19 has led to a ‘new normal’ where organizations have transitioned to a contactless way of working. Due to the pandemic, the C-suite has identified the importance of a digital transformation and digital banking experiences. So, enterprise CFOs have prioritized the requirement for transforming banking experiences.

Corporate Bank’s Response to the Emerging Need for Digital Transformation

Corporate banks are actively collaborating with technology innovation partners to transform their banking experiences. A technology innovation partner also plays a digital transformation consultant role – one who frequently monitors the end-user experience and uses a robust outcome-based value realization framework to measure the success of a digital transformation initiative.

The recent Forrester report titled “The Digital Transformation Of Corporate Banking,” authored by Arnav Gupta( Analyst, Forrester), mentions how Commerce Bank in the US expanded its partnership with HighRadius to include the modernization of Accounts Receivable and treasury operations.

Read the complete press release here.

How HighRadius Helps Banks Modernize their Payments and Receivables Ecosystem

HighRadius, a global leader in Receivables and Treasury automation, offers dedicated solutions for corporate banks. HighRadius collaborates with banking leaders such as Bank of America, Commerce Bank, JP Morgan Chase, and PNC to transform their payments and order to cash processes.

Here’s how banks leverage HighRadius’ products to enhance customer experience and transform their accounts receivables and payments process:

1. Integrated Receivables Platform

HighRadius Integrated Receivables Platform eliminates the silos within credit, billing & payments, cash application, deductions, and collections processes. With dedicated solutions for each process, AI-powered Integrated Receivables helps enterprise clients to reduce DSO and create a working capital impact.

2. Consumer E-Lockbox

Consumer E-Lockbox is a single-stop platform that consolidates all your consumer payments from multiple bill service providers such as MasterCard RPPS, FiServ. Consumer E-Lockbox enables straight-through bill processing by automatically validating account numbers with a positive file(active account numbers) and a stop file(closed account numbers).

3. Virtual Card Reconciliation

Virtual Card Reconciliation enables the end-to-end automation of virtual card payment processing. This cloud-based solution does not require complicated on-premise installation and can be implemented without any hassle.

4. Electronic Invoice Presentment and Payment(EIPP) Cloud

With EIPP Cloud, organizations can automate invoice delivery across various channels. EIPP Cloud helps to enable frictionless billing and payments for buyers by supporting 150+ payment methods worldwide. Additionally, with dedicated portals for buyers and suppliers, EIPP portal allows easy collaboration and provides a seamless self-service experience.

5. Cash Application Cloud

With Cash Application Cloud, enterprises can achieve 95%+ straight-through cash posting across all standard payment and remittance formats. Cash Application Cloud automatically captures remittances across emails, EDIs, customer web portals. With AI and ML capabilities, invoices are auto-matched to payments along with automated deduction coding.

Recently, HighRadius has integrated with bank APIs to ensure the real-time transfer of bank statements.

6. Receivables Hub and Analytics

Receivables Hub & Analytics enables banks to offer a simple, user-friendly UI experience for enterprise clients. Enterprise clients can achieve a holistic view of incoming receivables, including all electronic and paper-based transactions, across all payment channels and banks.

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HighRadius Cash Application Software enables the end-to-end automation of the cash application process that covers major benefits such as AI-enabled data capture for remittances, auto-linking of payments with open invoices, cost-cutting on lockbox fees and easy compatibility with any system due to its ERP-agnostic Saas infrastructure. Apart from the major benefits that it has, there are some key features which can not be missed out, some of them are Email Remittance capture, Discounts and Deductions Handling, Check Remittance Capture, Web Remittance Capture, Invoice Matching, and RDC & Mobile Payments.

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