RDC as a Receivables Platform - Remote deposit · RDC as a Receivables Platform September 28, 2012...
Transcript of RDC as a Receivables Platform - Remote deposit · RDC as a Receivables Platform September 28, 2012...
RemoteDepositCapture.com
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RDC as a Receivables Platform
September 28, 2012
Blaine Carnprobst Managing Director, Receivables BNY Mellon Sam Golbach Senior Vice President WAUSAU Financial Systems Ed McLaughlin RemoteDepositCapture.com
• Receivables Hub Definition & Purpose • Evolution of Receivables Processing • Integral Parts of A/R & Lockbox
– Remote Deposit Capture – Document Imaging – Long Term Image Archive – Integration Of Field Payments – Decisioning Services – A/R Matching
• Deductions • Consolidated Data Feed • Analytics & Insight
Outline
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BNY Mellon
Asset Management Wealth Management Securities Servicing Treasury Services
Multi-boutique investment manager
Wealth management for individuals and families
Full range of financial operations offerings
Cash management and global payments services
$1.2 trillion assets under management1
8th largest US asset manager3
11th largest global asset manager4
$176 billion in private client assets1 Top 3 ranked private bank in US5
Top 10 US wealth manager6
$26.6 trillion assets under custody and administration1
$11.9 trillion outstanding debt serviced1
$1.8 trillion tri-party balances daily1
$1.4 trillion average payments processed daily1
170,000 transactions conducted daily1
100+ currencies in which we transact
1- As of March 31, 2012. 2- Aggregate assets under management of $1.3 trillion. 3- Institutional Investor, 2011. 4- Pensions & Investments, 2011. 5 - Barron’s Penta, December 3, 2011. 6 – Barron’s, September 19, 2011.
Investment Management1 $1.3 trillion total assets under management2
Investment Services1 $26.6 trillion assets under custody and administration
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• BNY Mellon operates in 36 countries and over 100 markets
• Global Service, Local Delivery – Services delivered around the world – Seamless global network for cross-border speed and convenience – Our experts are located in-market for close collaboration with clients
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BNY Mellon’s Global Presence
Americas 31,000+ BNY Mellon employees
EMEA 9,000+ BNY Mellon employees
Asia-Pacific 8,000+ BNY Mellon employees
BNY Mellon Locations
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BNY Mellon U.S. Infrastructure
Dallas, TX Lockbox
Los Angeles
Chicago, IL Lockbox
Boston, MA Disbursements
Philadelphia, PA Disbursements
Pittsburgh, PA Lockbox, Disbursements, Electronic Services, Data Center
.
Lockbox
New York Trade & Payment Operations, Loan Operations. Disbursements
College Station, TX SourceNet Solutions
Woodland Park, NJ ClearTran B2C solutions
Florida Payments Transfer
Tennessee Data Center
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About WAUSAU Key Facts Founded in 1974
Locations: Mosinee, WI (HQ); Lynn, MA; Omaha, NE
Privately Held by Frontenac
Market Leadership • #1 in receivables*
• 3.5 billion+ payments processed annually
• 650+ customer sites
• 50+ Fortune 500 companies
• 8 of top 10 FIs
*Source: TAWPI/Blueflame 2009, TowerGroup 2012
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• Ability to aggregate all receivables payments, regardless of location or payment method
• Real-time (or near real-time) access • Images for all paper items • Robust search and reporting features • Internet browser access • Workflow enabled • Business rules engines • Consolidated data transmissions
Receivables Hub Definition
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• Aggregates payments from all sources – Lockbox – Remote Deposit - Checks (paper, image) – ACH (pre-auth debit, WEB, TEL, Home Banking, . . .) – EBPP (settling through ACH or Card) – Wire Transfer (FedWire, CHIPS, SWIFT) – Cards
• Common interface architecture (vs. point-to-point) – Devoid of business line or customer specific logic – Uses a common model that is based on industry standards
(e.g. ISO 20022) – Consistent payment information from all payment channels
Purposes of a Receivables Hub
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• Provide streamlined remittance details for single (or at least, consistent) A/R feed – Electronic data – Remote Deposit Capture – Paper (keyed & ICR’d) – Cards – EDI translation – EDI re-association
Purposes of a Receivables Hub (cont.)
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Purposes of a Receivables Hub (cont.)
• Standardized & centralized for all payment locations and types
• Trend analyses Reporting
• Intra-process Decisioning • Consistent research & resolution tools • Workflow functionality – manual & automated • Trend analyses • Evolving payer knowledge • Consistent return item workflow
Exceptions
• Multi-currency • Ability to “learn” and correct common payer issues • Real-time information • Integration with Trade transactions – LC’s & Open
Account
Future possibilities
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Evolution of Receivables Processing
Checks - Branch Checks –
Remote Deposit
Checks – Lockbox
ACH Pre-Auth
Debits
ACH WEB & TEL
ACH Home Banking
FedWire
Deposit A/R System
A/R Staff
Check & Doc
Images
Deposit Data
Credit & Debit Cards
Exceptions
Merchant Processor
Non-Bank Accounts
Electronic Billing & Payment
Exce
ptio
n D
ecis
ioni
ng
A/R Data
Electronic Billing & Payment
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• Building blocks for your lockbox provider becoming more closely integrated to your A/R system: – Document Imaging – A/R Matching – Long Term Image Archive – Integration Of Field Payments – Decisioning Services – Extending A/R Matching & Decisioning – Integrating Even Further Into A/R
Integral Parts
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• "The Standard" For Retail & Wholesale Lockbox
– With A/R transmissions, Remote Deposit Capture, Remote Lockbox and document imaging assists with exception resolution
– Without A/R transmissions, particularly lower volumes, A/R posting can be completed intra-day via images
Document Imaging
RDC and Imaging eliminates the courier costs associated with overnight packages and the internal expense of
imaging and filing of paper remittances.
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• Viewing your Processor/Bank as your “Digital Fiduciary” – Eliminate need for original paper remittances – Transitioning from CD’s to Long Term Online Access
• On-line retention for seven to ten years • Ease of access & search functionality • Reduces the opportunity for privacy theft by eliminating transport of
CD or paper remittances – No longer restricted to paper lockbox items
• Adding images of electronic transactions (ACH & Wire)
Long Term Image Archive
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• Remote Deposit Capture – Check image deposits – Payment detail capture
• Automated posting to General Ledger
– Quick Books to SAP
– Multiple payment types • ACH and credit card from same platform
• Mobile eCheck Applications – Point of service deposit
• Improve DSO by 1+ day
Integration Of Field Payments
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• Repairs within the integrated (RDC and lockbox) operation – Systemic – Manual / keying queues
• Intra-day access by receiver’s A/R or Credit staff to resolve remaining exceptions – Unbalanced multi’s, unresolved check-only’s,
“soft stops” • Extending the strength of lockbox to ACH & Wire
– Reuse existing lockbox receivables business rules for all payment types
Decisioning Services
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• Open Invoice File Utilized by Lockbox Processor – Match invoice and payment to open A/R items – Correct invoice numbers that are truncated, etc.
• Applying Rules Engines – Decision short-pays by reason codes – Utilizing pre-determined thresholds – Ability to split & merge prior to transmission file
• Produce clean posting files – XML feeds directly to ERP systems
A/R Matching
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• Hard core exceptions! – Short payments for anticipated business needs
• marketing deductions – Short payments for unforeseen events
• damaged goods, carrier disputes, failure to comply with buyer terms of shipment, etc.
• Utilizing workflow – Route items based on reason code, amount, or customer – Automate the approval escalation
• Root cause analysis
Deductions
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• History of data & images across systems (RDC, Lockbox etc.) getting better and better
• ACH & Wire payments have been exceptions to this well refined process
• Bringing ACH & Wire into similar consistent processes • Evolving payments & technology will lead the process to
be more timely
Consolidated Data Feed
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• Once the data is together, putting it to productive use . . . – Better understanding of current day receipts
• Liquidity management & working capital management – Transform the data into insight for the receiver
• Supply Chain Financing (SCF) • Globalization / Global Payments / Integration with Trade
Analytics & Insight
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• Investigate level of functionality employed by your Remote Deposit Capture systems and Lockboxes -- Are you taking advantage of: – Full document imaging (including payment transactions &
correspondence)? – Intra-day decisioning (where it makes sense to use)? – Systemic data “manipulation” (where feasible)? – Integration of electronic payment data with paper payment data
(A/R data transmission, reports, and document images)?
Key “Take Away’s” (1 of 2)
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• Do you have statistical reports regarding deductions? – Deductions by customer – Most common types of deductions – Ongoing trend – Time to resolve deductions – Average daily unapplied cash
• If you polled your A/R staff, what would be the TOP 3 issues they typically face? What TOP 3 changes do they feel would make their job easier?
Key “Take Away’s” (2 of 2)
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Questions?
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About The Presenters Sam Golbach • WAUSAU Financial Systems • [email protected]
Blaine Carnprobst • BNY Mellon • [email protected]
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RemoteDepositCapture.com
• This audio session was recorded at the RDC Summit 2012. • Please be sure to register for future RDC Summits. • Visit: www.RDCSummit.com
• Gain exposure for your organization by having a listing in the
RemoteDepositCapture.com Buyer’s Guide. With hundreds of thousands of unique visitors, you are sure to get noticed. Visit the “Advertise with Us” section of the website. http://www.remotedepositcapture.com/site/advertise.aspx
• Looking for a solution? Visit the RDC Solution Finder on RemoteDepositCapture.com. It’s fast and free.
• http://www.remotedepositcapture.com/solutionfinder
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