Corporate payments services are a reliable source of ongoing business for financial institutions, both in terms of transaction fees and the value of the underlying deposits.
This business is also highly competitive, with corporate clients deciding to switch or remain with providers depending on who offers the most attractive terms.
A primary challenge for banks trying to win new corporate clients is the technical aspect of handling diverse corporate payment file formats and standards, ERP integrations, and APIs during the onboarding process. Today this process is mired in regulatory, technical and manual intervention which dramatically lengthen onboarding times, impacting bank competitiveness.
Effective and speedy onboarding represents a great opportunity for banks to grow their business, as well as change the way their corporate clients interact with them. This drives opportunities to manage their clients’ cash and liquidity more efficiently, reduce processing costs and add overlay services.
By zooming in on the technical aspects involved in onboarding corporate clients in need of automated or streamlined payment services, the pain points such as lack of clarity around file formats, standards and delivery times can be resolved.
The situation is all too familiar; a corporation approaches a bank with a need to process complex bulk payments. Such payments may relate to anything from payroll to vendor payments to scheduling export/import fees. Depending on the amount of business the corporate will potentially provide, the bank responds enthusiastically or not at all.
The process frequently becomes bogged down in a web of discussions across sales, technical development and the bank onboarding team. Often the difference in expertise and alignment between the delivery teams is palpable and exacerbates costly problems. Unsurprisingly, smaller corporates with nuanced needs will steer clear of such expensive, disorganised options.
Removing the technical tripwires between these key divisions is a step in the right direction.
What is stopping banks from offering a service that provides a corporate with a library of standards which work across numerous contexts, enabling straight-through integration between the corporate and the bank, within an achievable, attractive timeframe in which to complete the onboarding?
The issue fundamentally lies in the traditional onboarding approach which inevitably requires new solutions to be programmed from the ground up. By shifting the emphasis to a business-led and configuration focused approach, time, expense and needless complexity can be avoided.
The entire business process or conveyor belt that these processes must travel through should be made streamlined, resulting in efficient onboarding of corporate clients. Doing so will assist banks to increase their competitiveness and concurrently give smaller financial institutions access to bid for corporate accounts once considered out of reach.
Join in this webinar from Finextra, in association with Volante Technologies to discuss the following areas with industry experts:
- What are the inefficiencies of the technical aspects of corporate payments onboarding that stall the process?
- Can this be changed from a technically led onboarding process to a business-led onboarding process?
- What are the moving parts that must be considered in this business-led process?
- What are the business benefits to banks and corporates of improved onboarding?
- How does prioritising speed and configurability enable banks to create attractive value propositions for corporations?
- Gary Wright - Head of Research, Finextra [Moderator]
- Craig Borysowich - Principal Technology Architect, Integration Technologies, APIs, and Standards, Payments Canada
> Register your place now