Organizational Advantages of Outsourced Lockbox Remittance Service
As fewer paper checks come through and the demand for faster billing processes increases, more banks are considering outsourced lockbox remittance services. Billers have historically relied on manual, in-house payments processing – but in today’s digital landscape, these outdated practices only have a negative impact for banks using them.
The Problem with Manual, In-House Lockbox Remittance Processing
Bank lockbox processors must be flexible to keep up with increasing customer demands and new industry technology. Unfortunately, manual and semi-automated solutions do little to help banks adapt to evolving market trends, and come with a variety of other pitfalls:
- In-house remittance solutions drain time and monetary resources.
- Manual lockbox technology provides little functionality for clients.
- Banks often don’t have the staff or resources to handle in-house remittance processing.
The bottom line: Banks need an agile, client-centric approach to payments processing. The answer lies in outsourced lockbox remittance services, and the benefits they can provide to organizations.
Advantages of Outsourced Lockbox Remittance Services
Lockbox processing is often one of the most important services banks offer. And working with trusted third-party remittance processing professionals allows banks to provide high-quality service to customers while experiencing their own organizational advantages:
- Zero IT Upheaval – New technology doesn’t always mean overhauling legacy solutions. Third-party remittance providers export payment information to relevant accounts receivables (AR) systems via electronic transmission, meaning banks can continue using existing platforms staff and clients are familiar with.
- Increased Flexibility – Banks leveraging outsourced lockbox services have access to automated, new technologies that process virtually any document on customers’ behalf. This flexibility creates opportunities for banks to capture data they couldn’t with manual practices.
- Ease-of-Use – Outsourced lockbox remittance services are easy for new users to migrate to and require little ongoing support, but service providers are on hand for technical support when needed.
- Better Customer Service – With access to same-day deposits and electronic delivery of payment data, deposit information and images, banks can provide better customer service and faster information delivery.
Remittance Processing for Stronger Business Results
There is always a demand for lockbox services. It’s the way banks handle this demand that’s changing. At ibml, we partner with small, mid-tier and large banks to provide outsourced lockbox remittance services. Tailored to meet the needs of organizations across several industries, ibml’s remittance services speed cash flow by providing timely deposits, reporting and automatic updates to AR systems through secure transmissions. It’s time to upgrade your lockbox remittance processes. Let’s chat.