Many deposits slip away unnoticed from financial institutions via their outdated receivables systems. For businesses, the day-to-day ease of receiving payments often dictates their banking choices. In fact, 73% of corporate treasurers and chief financial officers say digitizing treasury functions is among their top strategic challenges, highlighting how critical digital payment efficiency is for business banking loyalty.
Within the treasury function, client loyalty could erode if receivables processes are slow or error-prone. Modernizing receivables can translate to stickier deposits, better data insights and new revenue streams. One way to self-assess your institution is through a three-level payments maturity model:
Level 1: Fragmented and reactive. This looks like mostly manual, paper-based receivables such as daily courier pickups for lockbox or siloed remote deposit capture systems. Deposit delays can increase the risk of errors and fraud risks while frustrating clients with friction.
Level 2: Digitizing silos. Here, some processes are digitized, like electronic lockbox, online payments and remote deposit capture, but systems aren’t integrated. Without a unified view of incoming payments, data still lags and clients need to juggle multiple platforms to get information.
Level 3: Unified and intelligent. All payment channels, like check, automated clearing house, wire and card, feed into one integrated platform. Artificial intelligence and analytics automate reconciliation and provide real-time insights. With an end-to-end experience with instant information, deposits become stickier because the bank is embedded in the client’s daily operations and often unlock new fee opportunities.
Clients may opt to keep their operating deposits at the banks where receiving payments and reconciling transactions is easiest. If your receivables process forces them to chase remittances or endure delays, they may be motivated to look elsewhere.
Corporate clients now expect the same speed and transparency in business-to-business payments that they’re accustomed to as consumers, yet about 33% of B2B payments are still made by paper check. The institution that helps clients automate that last paper-based mile and capture the float on those payments has a right to earn their loyalty. Businesses actively using their bank’s treasury services typically maintain deposit balances about 31% higher than those that don’t.
Banks traditionally view treasury operations as a cost, but modern payment services can generate significant revenue, and clients often willingly pay for these conveniences.
Automation also lowers operational costs. Accounts receivable automation alone can reduce processing costs by as much as 80%. Investing in modern receivables platforms can deliver the dual benefits of increased fee revenue and operational efficiency. Financial institutions that proactively modernize can access these competitive advantages, leaving others to chase shrinking market share.
Every receivables transaction generates data insights into a client’s cash flow, customer base and behavior, but legacy systems often keep this goldmine buried in silos. If your institution lacks a holistic view of a client’s payments, you could miss vital warning signs or chances to help them.
A modern, unified receivables platform turns data into a strategic advantage. When all channels funnel into one system, you can analyze patterns and derive actionable insights in real-time — spot fraud, identify a client’s need for a new service or tailor credit based on payment trends. Modernizing payments is about building an information advantage and leveraging the insights gained from each payment. Banks that harness payment data can deepen client relationships with proactive solutions.
When banks treat payments as routine operations, they miss the opportunity to build loyalty and deposits. Leadership must make payment modernization a priority and ask, “Are we making it effortless for clients to do business with us?” Identify one high-friction area in your receivables operation and tackle it. It might be the manual steps in lockbox processing or the lack of real-time payment posting. Set a clear goal and empower your team to achieve it. Partnering with a fintech provider specializing in AI-driven reconciliation or digital lockbox automation can accelerate results. The key is to act.
Modernizing receivables delivers visible benefits:
• Stickier deposits. When you make cash management effortless, clients may opt to keep more balances with you.
• Better insights. Your team can make faster, smarter decisions by offering solutions to clients, strengthening relationships and building trust.
• New revenue. Innovative payment services can generate fee income even as they reduce operating costs.
The choice is simple: treat payments as routine back-office tasks, or leverage them as strategic platforms for sustainable deposits.
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