Aite Group’s Series on Integrated Receivables

According to an Aite Group survey, more than 50% of corporations receive at least a quarter of their payments from other corporations as an ACH payment, making integrated receivables a high priority for banks.

Boston, January 18, 2018 — Aite Group’s latest reports form a series covering the integrated receivable space. The first report, Banks Journey Into Integrated Receivables: A Three-Pronged Approach, explores bank strategies and goals around integrated receivables, their progress to date, and the key drivers for their initiatives. The need for integrated receivables is growing, and Aite Group estimates the initial average spend on integrated receivables by the top four banks to be at least US$4.5 million.

“While not all banks place equal weight on each of them, bank’s integrated receivables initiatives do and will focus on consolidated data and reporting, remittance matching, and a single file,” says Aite Group research director Christine Barry. “Such initiatives address a major customer pain point and one that all banks must address.”

This report is based on an October to November 2017 Aite Group survey of executives at 21 of the 50 largest U.S. banks ranked by total asset size.

The second report, The Corporate Need for Integrated Receivables, explores why corporations need integrated receivables, indicates their adoption to date, and identifies the key pain points and needed features. The report reveals that 67% of corporate users are running more than one enterprise resource planning (ERP) system, and 34% admit to being dependent on Excel spreadsheets to consolidate receivables information and manage cash. The growing volume of electronic payments is creating an immediate need for corporate customers to match payments with remittance information that is being received separately.

“With the rise of electronic payments, automated matching of remittance information to expedite the cash application process sees a sharp decline,” says Aite Group senior analyst Erika Baumann. “Electronic payments’ low straight-through processing rates are creating a new need for corporations to replicate lockbox’s efficiencies in paper check processing for electronic payment types.”

This report is based on an October 2017 Aite Group survey of corporate treasury professionals at 145 U.S.-based corporations.

To request a press copy of this report or to speak with Christine Barry or Erika Baumann about this topic, please contact us at [email protected].

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

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