More NewsAlmost Half of Corporates are Willing to Switch Banks for Better Payments Services

Almost Half of Corporates are Willing to Switch Banks for Better Payments Services

SunGard has released the results of a recent corporate business-to-business (B2B) payments study: ‘Consolidated Payables Solutions: What do Corporations Want from Their Banking Partners?’. The study captured perspectives from 171 respondents representing a wide cross-section of corporations from multiple industries and ranging in size from under US$250m to over US$5bn in annual revenue. Almost half (45%) of those responding to the question said they would be willing to leave their current bank if they believed another bank offered better payment services.

The study found that a typical corporation sends thousands of payments to hundreds of vendors each month, with some spending upwards of 80 hours a month processing payments internally and, altogether incurring tens of thousands of dollars in annual direct and labour costs. Amid this effort, the study revealed that many corporations simply do not know about their current bank’s payments options: 48% either did not know what payments services their bank offered or skipped the question. Among those who did respond, more than 80% reported that their current bank does not offer both of the payments services they wanted most: an integrated solution and vendor enrolment services.

The apparent willingness of corporations to consider alternatives means banks can help reduce attrition risk and potentially gain new customers by expanding their payments offerings to include the services most important to corporations.

“Globally, banks continue to focus on their payments franchises,” said Nancy Atkinson, senior analyst with Aite Group. “Payments are fee-based, and were strong contributors to bank revenue during the economic crisis. By implementing the key solutions most sought after by business customers, banks will achieve cost savings and greater revenue opportunities going forward.”

Related Articles

Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

2m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

3m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

3m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

3m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

4m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

4m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

4m Tasja Botha
FX for corporates: 5 best practices for treasurers

Economy FX for corporates: 5 best practices for treasurers

4m Mateo Graziosi