Power of Direct Insite
Direct Insite Blog
When we think about business banking relationships, some of the first things that come to mind are things like lockboxes, disbursement accounts, and positive pay arrangements. But what about things that help operationally with receivables and payments processes? Are they in the mix? That was one of the questions we wanted to explore in a collaborative survey pilot between Blue Hill Research and Direct Insite.
Despite the continuing push of companies to eliminate paper processes to reduce costs and support “green” initiatives, the adoption of electronic payments and remittances has been painfully slow.
An overreliance on paper-based payment processes represents a missed revenue and growth opportunity for enterprise organizations. Although e-invoicing is gaining traction in the enterprise space, traditional mail-in check payments still account for approximately 60 percent of all business-to-business invoice payments.
Corporations and banks increasingly recognize the inefficiencies with receivables processes.
Electronic payments adoption is maddeningly slow.
During Bill Clinton’s first campaign for president, his advisors famously hung signs in his campaign headquarters that read, “It’s the economy, stupid!” Clinton’s advisors did not want staff to become distracted by marginal campaign issues, and lose sight of what would truly motivate voters that year.
The benefits of using electronic invoicing for accounts receivables are clear to suppliers.
“The future of lockbox is murky.” That was the sobering message that Andy Schmidt, a senior analyst at CEB TowerGroup, told a room full of bankers at a recent industry conference.
… Shared Services and Outsourcing Week
… IOFM AP Conference East
… Fusion 2014
… Accounts Payable Leadership Conference
Facing tremendous pressure to help corporate customers streamline receivables posting, lockbox providers are hampered by the very systems they rely on to run their lockbox franchises. Many of their lockbox processing systems have been in service for years – some for more than a decade.