Evolution of Wholesale Lockbox: Let the Good Times Roll!

by Bob Meara, July 29, 2008


New York, NY, USA July 29, 2008

After many years of stagnation, wholesale lockbox is suddenly the land of opportunity. Plenty of revenue growth opportunity remains for banks willing to be proactive.

In a new report, , Celent contends that there are many good years ahead for financial institutions offering wholesale lockbox services. Wholesale lockbox has enjoyed mid-single-digit revenue growth over the past decade, but can growth continue as check volumes decline?

Celent finds continued growth entirely manageable for most financial institutions. However, doing so may require some banks to move from their reliance on lending to investing in both upgrading lockbox platforms and revisiting selling strategies. Others simply need to put their existing capability to better use. For example, while the image lockbox is used by approximately 70% of wholesale clients, nearly half of them still get paper back, at great expense to both banks and wholesale lockbox clients.

According to Bob Meara, senior analyst with Celent’s Banking group and author of the report, "Growing the lockbox business for most financial institutions will not require massive capital spending. Even if a solution refresh is needed, a growing number of application service provider and outsource alternatives exist." 

There are distinct, tangible opportunities in wholesale lockbox. Both revenue growth opportunities and cost reduction are explored in the report. However, with these opportunities comes an increasing need to modernize lockbox platforms. 

The 64-page report contains 21 figures and 7 tables. A table of contents is available online.

Members of Celent's Corporate Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

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

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Michele Pace
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Table of Contents

New York, NY, USA July 29, 2008


Executive Summary 3
Introduction 7
  B2B Payments: Long Live the Check 7
  The Larger Treasury Management Picture 11
  Client Adoption 12
Anatomy of Wholesale Lockbox 14
Processor Landscape 22
  Financial Institutions 22
  Third Party Processors 26
Platform Provider Landscape 33
  Primary WLBX Platform Vendors 34
  Virtual Lockbox Landscape 40
Let the Good Times Roll! 43
  Improve or Outsource 43
  Organic Growth: Selling Additional Services 44
  Winning New WLBX Clients 50
Potential Roadblocks 55
  Alternative Workflows--OPEN SCAN 56
Summary 62


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