Receivables in Motion: The Changing Game Plan to Grow Treasury Management Revenue

by Bob Meara, November 4, 2014
Industry Trends
North America

Abstract

In response to declining business-to-business check volume and nonbank competition, banks are making changes to their receivables management product lineup. Atop their rosters: Integrated Receivables Management.

Banks have offered a relatively stable suite of receivables management solutions to commercial clients for some time. But with the payments mix increasingly electronic, what’s next? Are banks rethinking receivables? Should they be?

In the report Receivables in Motion: The Changing Game Plan to Grow Treasury Management Services Revenue, Celent offers an analysis of how large and midsize banks are keeping their treasury management services product mix relevant alongside the changing business-to-business payments mix and growing nonbank competition.

Based on the results of an October 2014 survey among North American banks, Celent finds that most banks are reliant on treasury management services (TMS) for revenue growth and are placing a great deal of importance on accounts receivables services to sustain that growth — more so than any other product in their lineup.

“Receivables are in motion at most midsize and large banks,” says Bob Meara, a senior analyst with Celent’s Banking practice and author of the report.

The report begins with the need for a new treasury management services game plan and examines banks’ treasury management priorities, current receivables management roster, and the importance placed on each part of the roster.

The report then looks in significant detail at three areas within receivables management: wholesale lockbox, integrated receivables, and remote deposit capture (RDC). In concludes with recommendations to banks seeking many winning treasury management seasons to come.

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

The Need for a New Game Plan

2

Banks’ Current Receivables Management Roster

5

Wholesale Lockbox

9

 

Capabilities and Client Usage

11

 

Vendor Plans

14

Integrated Receivables Management

16

Remote Deposit Capture

23

 

Vendor Plans

26

Final Huddle: Recommendations

27

Appendix I: Survey Methodology

28

Appendix II: Technology Adoption Detail

30

Leveraging Celent’s Expertise

32

 

Support for Financial Institutions

32

 

Support for Vendors

32

Related Celent Research

33

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