Transcript Banking Technology Receivables NCLGIA 2-2013

Banking Technology in Receivables
Collection Strategy Overview
Trends in Consumer Behavior
 Movement towards electronic based solutions
– Decrease in paper bills/statements
– Decrease in sending payments to lockboxes
 Desire for consumers to have multiple ways to make payments such as
– Direct debit
– Web-based
– Phone-based
– In-person
– Kiosk
– Wireless
 Desire to use alternative payment channels such as
– ACH
– Credit cards
– Debit cards
2
C-2-B Strategy Trends in Consumer Behavior
3
How to Get Ready for the Future?
 Focus on electronic payments
– Paper is declining, so many billers who process internally should really examine
their cost structure
– As paper payments continue to decline, the cost of maintaining in-house lockboxes
will continue to increase
– US Postal changes likely to hasten migration to electronic payments
 Focus on consolidating vendors for electronic payments and standardizing the
posting and financial settlement of the payments
 Don’t try to build everything yourself
– Use valued vendor relationships to accomplish the transition to electronic
collections
 Strategize how you want your collection process to look in the end prior to
starting projects
– Get the game plan first before running plays
– This will reduce the chance of moving down paths that conflict with one another
4
C-2-B Paper and Electronic Presentment Model
Billing
File(s)
Print/Mail
AR Customer
Billing File
Paper bill
print and mail
(To consumer)
Biller branded
web presentment
of bill to consumer
AR
Master File
EBPP/EIPP
BANK bill payment
sites
web presentment
of bill to consumer
5
C-2-B Paper and Electronic Collection Model
Payment Sources
ACH
Services
&
E-Lockbox
ACH Direct
Debit program
Online bill
payment
transactions
Walk-in payment
centers
AR
System
EBPP/EIPP
BANK info systems
and internet reporting
Collection
agencies, etc.
Biller direct EBPP
solution
Merchant
Services
IVR (interactive
voice response)
Deliver bills to
consolidation sites
1.
2.
3.
A single A/R posting file
Financial settlement for all transactions
Detail reporting of all payment
streams for reconcilement and control
Mobile/SMS
Lockbox
services
6
Paper checks &
return items
E-Lockbox
Online Bill Payment Consolidation
E-Lockbox Overview and Benefits
 Questions
– Do payments coming to you via a computerized check from bill-payment providers
require manual data entry?
– Are you getting transmissions of bill payments from multiple sources such as
CheckFree, Metavante, Online Resources, Western Union, IPay, etc?
 What is it?
– An efficient, streamlined process to collect incoming payments that have been
initiated by consumers using various financial institutions, collection agencies,
credit counseling agencies or walk-in payment center
 Benefits
– By automating the collection of these bill payments with a single transmission, you
can reduce the number of check and list remittances you receive
– Also, eliminates the need to manage multiple electronic transmissions from
individual vendors that produce these types of payments
– Gives your company the ability to perform customer service using an internet
based platform for paper and electronic transactions
8
E-Lockbox Process Flow
Pay
Bills
Consumer
Internet based Client Service
Module
Collection and Credit
Counseling
Agencies, and Walk-in
Payment Centers
Biller
1.
2.
Dollars Immediately Available
Invoice Information in A/R File.
Information can be combined with
BANK Lockbox data file.
Dollars and Consumer
Payment Information
Consumer’s Online
Banking/Bill Payment
Provider
Customized
Filtering/routing
available
9
BANK
EBPP/EIPP Services
Biller Direct Electronic Bill/Invoice Payment and
Presentment
EBPP/EIPP Overview and Benefits
 What is it?
– A secure way to present invoices to your customers online and an electronic
payment collection system that enables your customers to make timely, reliable
payments in a secure, online environment
 Benefits
– Allows you to eliminate paper invoices, while streamlining and receiving automated
payments
– Secure – presentment and receipt
– Can be accomplished without major investment or complex implementation (BANK
developed and maintained website)
11
EBPP/EIPP Process Flow
Payment Channels
A/R Posting
File
(Download
Or
Lockbox Merge)
Web
IVR
EBPP/EIPP
Engine
CC
Settlement
Instr.
BANK
Merchant
Svc
ACH File
BANK
ACH Ops
Generate
Files
Call
Center
E-mail
Notification
Payment Options
Billing File
Loading
(upload
Or
file transmission)
12
Next Day
Settlement
Biller
Account
@ BANK
Next Day
Settlement
13