RDC as a Receivables Platform

Transcription

1 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

2 Outline 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 Copyright 2012, RemoteDepositCapture.com 2

3 BNY Mellon Investment Management 1 $1.3 trillion total assets under management 2 Investment Services 1 $26.6 trillion assets under custody and administration Asset Management Wealth Management Securities Servicing Treasury Services Multi-boutique investment manager $1.2 trillion assets under management 1 8 th largest US asset manager 3 11 th largest global asset manager 4 Wealth management for individuals and families $176 billion in private client assets 1 Top 3 ranked private bank in US 5 Top 10 US wealth manager 6 Full range of financial operations offerings $26.6 trillion assets under custody and administration 1 $11.9 trillion outstanding debt serviced 1 $1.8 trillion tri-party balances daily 1 Cash management and global payments services $1.4 trillion average payments processed daily 1 170,000 transactions conducted daily currencies in which we transact 1- As of March 31, Aggregate assets under management of $1.3 trillion. 3- Institutional Investor, Pensions & Investments, Barron s Penta, December 3, Barron s, September 19, Copyright 2012, RemoteDepositCapture.com 3 3

4 BNY Mellon s Global Presence BNY Mellon operates in 36 countries and over 100 markets Americas 31,000+ BNY Mellon employees Asia-Pacific 8,000+ BNY Mellon employees BNY Mellon Locations EMEA 9,000+ BNY Mellon employees 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 Copyright 2012, RemoteDepositCapture.com 4 4

5 BNY Mellon U.S. Infrastructure Chicago, IL Lockbox Pittsburgh, PA Lockbox, Disbursements, Electronic Services, Data Center. New York Trade & Payment Operations, Loan Operations. Disbursements Boston, MA Disbursements Woodland Park, NJ ClearTran B2C solutions Los Angeles Lockbox College Station, TX SourceNet Solutions Dallas, TX Lockbox Tennessee Data Center Florida Payments Transfer Philadelphia, PA Disbursements Copyright 2012, RemoteDepositCapture.com 5

6 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 Copyright 2012, RemoteDepositCapture.com 6

7 Receivables Hub Definition 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 Copyright 2012, RemoteDepositCapture.com 7

8 Purposes of a Receivables Hub 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 8 all payment channels Copyright 2012, RemoteDepositCapture.com 8

9 Purposes of a Receivables Hub (cont.) 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 Copyright 2012, RemoteDepositCapture.com 9 9

10 Purposes of a Receivables Hub (cont.) Reporting Standardized & centralized for all payment locations and types Trend analyses Exceptions Intra-process Decisioning Consistent research & resolution tools Workflow functionality manual & automated Trend analyses Evolving payer knowledge Consistent return item workflow Future possibilities Multi-currency Ability to learn and correct common payer issues Real-time information Integration with Trade transactions LC s & Open Account Copyright 2012, RemoteDepositCapture.com 10

11 Evolution of Receivables Processing Checks Remote Deposit ACH Home Banking Electronic Billing & Payment Checks - Branch Checks Lockbox ACH Pre- Auth Debits ACH WEB & TEL Exception Decisioning Deposit Deposit Data A/R Data Check & Doc Images A/R System Excepti ons FedWire Non-Bank Accounts Credit & Debit Cards Electronic Billing & Payment Merchant Processor A/R Staff Copyright 2012, RemoteDepositCapture.com 11

12 Integral Parts 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 Copyright 2012, RemoteDepositCapture.com 12

13 Document Imaging "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 RDC and Imaging eliminates the courier costs associated with overnight packages and the internal expense of imaging and filing of paper remittances. Copyright 2012, RemoteDepositCapture.com 13

14 Long Term Image Archive 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) Copyright 2012, RemoteDepositCapture.com 14

15 Integration Of Field Payments 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 Copyright 2012, RemoteDepositCapture.com 15

16 Decisioning Services 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 Copyright 2012, RemoteDepositCapture.com 16

17 A/R Matching 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 Copyright 2012, RemoteDepositCapture.com 17

18 Deductions 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 Copyright 2012, RemoteDepositCapture.com 18

19 Consolidated Data Feed 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 Copyright 2012, RemoteDepositCapture.com 19

20 Analytics & Insight 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 Copyright 2012, RemoteDepositCapture.com 20

21 Key Take Away s (1 of 2) 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)? Copyright 2012, RemoteDepositCapture.com 21

22 Key Take Away s (2 of 2) 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? Copyright 2012, RemoteDepositCapture.com 22

23 Questions? Copyright 2012, RemoteDepositCapture.com 23

24 About The Presenters Sam Golbach WAUSAU Financial Systems Blaine Carnprobst BNY Mellon Copyright 2012, RemoteDepositCapture.com 24