Integrated Payables: Raising the Bar on Customer Experience

by Alenka Grealish, June 15, 2017
Vendor Reviews
North America

Abstract

The time is ripe to invest in integrated payables with demand and supply aligning.

Celent has released a new report titled Integrated Payables: Raising the Bar on Customer Experience. The report was written by Alenka Grealish, a Senior Analyst with Celent’s Banking practice.

With demand and supply aligning, the time is ripe to invest in integrated payables. Given banks’ increasing drive to differentiate, Celent expects the adoption of integrated payables to increase from around 3% of total B2B addressable payments value in 2016 to nearly 6% by 2020.

“Supply,” the ability to deliver reliable, results-driven (i.e., migration from check to e-payments and material cost savings) solutions to small and mid-market companies has been proven. “Demand” from companies has been not only unmet, but also is now increasing, driven by rising fraud exposure and cybersecurity risks, increasing payments complexity, and pressure to operate more efficiently.

A successful partner selection process is part art and part science. The art is in judging how collaborative and flexible the partner is in areas such as integration with the bank and revenue sharing. The science is being as data-driven as possible.

“For banks, the strategic key to success is shifting from selling product to embedding their services in the financial workflow of their customers. An integrated payables offering can be their catalyst,” commented Grealish.

“The time is nigh to invest in digitizing the financial supply chain because it will be hard to displace early movers,” she added.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Mapping the Models in Integrated Payables

2

 

File-Based Online Model

3

 

Buyer-Supplier Network Model

3

 

Accounts Payable Integration Model

4

Integrated Payables: Breakthrough in Improved Customer Experience

6

 

Driving Improved Experience and Performance

6

 

The Crux of E-Payment Adoption in the US

8

Leading Integrated Payables Technology Providers

9

 

File-Based Online

12

 

Buyer-Supplier Network

13

 

Accounts Payable Integration

16

Path Forward

25

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

27

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