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Grow Commercial Client Revenue with FIS Integrated Payables & Invoice-to-Pay
May 24, 2017
Matthew Dragiff, SVP Product Management & Client Services
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Agenda
Commercial Clients
01Invoice-to-Pay
02Going to Market
03Q&A
04
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FISTM Integrated Payables
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Drivers for Commercial Payment Projects
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*FIS B2B Payments & Bank Connectivity Study - 2016
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Drivers for Virtual Card Payments
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*FIS B2B Payments & Bank Connectivity Study - 2016
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FIS is Seeing the Trend Play Out
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“Virtual cards could serve as a "catalyst" for card adoption in commercial and business-to-business (B2B) payments which could double US purchase volume to $160 billion by 2018 (reaching above $500 billion by 2024) from $83 billion in 2015”
- Ashish Sabadra of Deutsche Bank, September 2015
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FIS Addresses your Diverse Commercial Base
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Microbusinesses(Quickbooks, Excel)
Growing SMB, Middle Market, and Small
Corporate Businesses(NetSuite, MS Dynamics, Sage, Intacct, Quickbooks, other)
Large
Corporations(SAP, Oracle, other)
Less than 100 invoices & payments per month
Up to $3M in revenue
From 100 to 500 invoices & payments per month
$3M - $10M in revenue
From 500 to 5,000 invoices & payments per month
$10M - $250M in revenue
Greater than 5,000 invoices & payments per month
Greater than $250M in revenue
FIS Business Bill Pay
FIS Invoice-to Pay
Powered by Mineral Tree with FIS Integrated Payables
FIS Integrated Payables Standalone
28 Million US Businesses
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FIS Invoice-to-PayPowered by MineralTree
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Invoice Payments are Manual, Ad Hoc,Paper-based, Risky and Poorly Controlled
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Costs Add Up for Middle Market Companies
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FIS Invoice-to-Pay Automates the Entire Process
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Why Banks Offer Invoice-to-Pay Solutions
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• Acquire New Customers
• Increase Wallet Share with Existing Customers
• Compete effectively with Fintech disruptors and the 5 largest FI’s
• Sticky application => integral part of AP workflow
• Complete solution that is “out of the box” with technology and people
• Become a value-added solution provider to commercial customers
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Invoice-to-Pay Criteria
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• Using a SaaS version of NetSuite, Quickbooks, MS Dynamics, Intacct or Sage
• Processing in excess of 100 total invoices and payments per month
• No need for complex check print or remittance formats
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FIS Integrated Payables
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Why Are Commercial Customers Moving Away From Checks?
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Higher risk of fraud
Potential for errors
High transaction costs
B2B checks rack
up $25 billion in
processing costs
annually
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Barriers To Migration To Electronic Payments
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Resource Constraints
(Staff, CapEx, or
IT related)
Bank Account Management
(Security, obtaining, maintaining)
Remittance Delivery
Loss of Visibility
Enrolling Vendors
VENDOR ENROLLMENT COSTS
• Initial Enrollment - $50
• Calling
• Forms & Verification
• Account change - $25
CHECK PAYMENT COSTS
• WSJ Article ($4-$20)
• Ardent Partners ($7-$11)
• AP Network ($5.14)
• Payroll Association ($4.40)
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Commercial Customer AP Departments
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• Reduce Paper checks– Labor & material costs of check printing & mailing
– Fraud risk with paper-based payments
– Green initiatives
• Overcome difficulty of moving to electronic payments– Labor obtaining vendor bank account information and changes - $50 per vendor + $25 per change
– Compliance risk managing vendor bank account information
– Labor handling inbound vendor calls about payments already made
– Remittance data delivery
• Remove IT resource dependencies– Creating – Maintaining – Changing bank file formats for PosPay, ACH’s and wires
– Single Source for Reporting on Payments
• Capitalize on the rebate opportunity from migrating AP vendors to virtual card
– These AP transactions are not the same ones that use Commercial Card, T&E Card, and P-Card
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Why Banks Offer Integrated Payables Solutions
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• Acquire New Customers
• Increase Wallet Share with Existing Customers
• Compete effectively with Fintech disruptors and the 5 largest FI’s
• Sticky application => integration and vendor data management
• Complete solution that is “out of the box” with technology and people
• Become a value-added solution provider to commercial customers
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FIS Integrated Payables Base Services
• Check Printing Service
• Over 1 million checks per month
• US Mail & Express Courier
• Postal pre-sorting for maximum discounts
• Payer flags payment as ACH
• Payer provides beneficiary data in payment file
• Payment information and remittance information delivered to recipient
• Transforms payments to NACHA (or bank) format & automates delivery to ODFI
• Payer flags payment as Wire
• Payer provides beneficiary data in payment file
• Payment information and remittance information delivered to recipient
• Transforms payments to appropriate format & automates delivery to ODFI
• Payer flags payment as Card
• Unique, single-use card number issued for invoice payment
• Card, payment & remittance information communicated via email and secure Vendor Portal
Check Printing
ACH
Wires
Card
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FIS Integrated Payables Value-Added Services
• For vendors that will not take Card payments or Card payments are not practical
• Dramatically reduces per transaction cost
• Leverages Vendor Database for Check-to-ACH payment migration (over 150K vendors)
• FIS assists in ACH enrollment campaigns
• Automated payment notifications
• Vendor Portal for payment history, download of remittance data
• Custom campaigns conducted by FIS
• Campaign design, vendor segmentation, execution, response tracking, reporting
• Email, phone, print
• Ongoing campaigns
• Card payments on invoice transactions
• Receive rebates back on spend
• Leverages Vendor Database for Check-to-Card payment migration (over 100K vendors)
• FIS Vendor Enrollment drives adoption across vendors
• Automated payment notifications
• Vendor Portal for payment history, download of remittance data
Check-to-Card
Migration
Check-to-ACH
Migration
Vendor
Enrollment
Vendor
Management
• Vendor inquiries
• Bank account management
• User Administration
• Payment assistance (authorization declines, multi-swipe, resend email, block card)
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Solution Overview
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Why Banks Partner With FIS
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• Industry leader in payments space
• Customer retention
• Clients value in the service
• Ability to support all payment methods
• Payment file coding expertise
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Why Customers Say Yes To Integrated Payables
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• Streamlines Process
– “One-step” payment origination
– Clients maintain control while automating AP functions
– Reduce tasks associated with check production and reconciliation
• Increases Revenue
– Check transactions can be converted into Card transactions which are eligible for a rebate
– IP Card-related rebate revenue
• Reduces Cost
– Reduce internal costs such as labor
– Spend less time tracking errors and booking general ledger entries
• Eliminates Payment Errors
• Limits Fraud
– Positive Pay file processed when payment initiated
– Client can mimic their current payment approval process
– Submit, Review and Release capability
– File level
– Payment level
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Sampling of Industries Served
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• Advertising
• After-Market Parts
• Airport Authority
• Automotive Parts Distribution
• Building Supply
• Charities
• Charter School System
• Commercial Furniture
• Commercial Glass
• Constructions
• County/City/Local Government
• Entertainment
• Farm Cooperative
• Fitness
• Food Distributors
• Freight Logistics
• Gas Utility
• Healthcare Practice
• Hospital System
• Insurance
• K-12 Education
• Laboratory Testing
• Manufacturing
• Not-For-Profit
• Oil & Gas
• Pharmaceutical
• Property Management
• Retail
• Staffing
• Transportation
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Questions