Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
Moving Money & Data Together: Making
Payments Smarter – Not Just Faster
10:30a –
11:45a
Monday
October 21st
AFP 2019
Boston, MA
Fintechs are shifting from startup “disruptors” to
“collaborators” in the financial services industry
A N N U A L G L O B A L F I N A N C I N G T O V C - B A C K E D F I N T E C H C O M P A N I E S ( $ B )
Source: CB Insights
2.63.9
8.2
16.619.6 18.8
40.5
30.2
0
5
10
15
20
25
30
35
40
45
2012 2013 2014 2015 2016 2017 2018 2019 (P)
Rank Company Country Market Cap
1 Microsoft $1.067B UNITED STATES
2 Apple $1.066B UNITED STATES
3 Amazon $856.7M UNITED STATES
4 Alphabet $843.7M UNITED STATES
5 Facebook $525.6M UNITED STATES
6 Berkshire Hathaway $510.6M UNITED STATES
7 Alibaba $510.6M CHINA
8 Tencent Holdings $394.2 CHINA
9 Visa $394.2M UNITED STATES
10 JPMorgan Chase $385.3M UNITED STATES
11 Johnson & Johnson $371.3M UNITED STATES
12 Walmart $346.6M UNITED STATES
13 Exxon Mobil $342.3M UNITED STATES
14 Procter & Gamble $309.8M UNITED STATES
15 Mastercard $303.2M UNITED STATES
16 AT&T $294.4M UNITED STATES
17 Bank of America $291.8M UNITED STATES
18 Taiwan Semiconductor $283.1M TAIWAN
19 Home Depot $282.4M UNITED STATES
20 Verizon $280.3M UNITED STATES
T O P
G L O B A L
P U B L I C
C O M P A N I E S
B Y M A R K E T
C A P
( A S O F 1 0 / 1 6 / 1 9 )
Source: Dogs of the Dow
N I N E O F T H E
T O P 2 0 A R E
T E C H
C O M P A N I E S
Strategic Drivers
Of Bill Pay
Transformation
Consumers are in the driver seat,
and payment behaviors are
clearly shifting toward digital.
Organizations are outsourcing the
compliance burden and pursuing
payment automation.
Banks, billers and vendors are creating
the programmable experience with APIs.
More data fuels consumer insights, and
new touch points create additional data
streams that can be used for insights to
better serve customers.
Real-time payments could
transform bill pay.
Poll 1:
Which type of
organization are
you with?
Answer Choices:
A. Corporate +
B. Bank
C. Provider
Introductions
K I M S I P E S
Director, Treasury
F R A N K D ’ A M A D E O
Director, Treasury Operations
M A N A L T O U K A N
Senior Vice President, Bill Pay
J O E P R O T O
Chief Executive Officer
Top Utility
Companies
in the US
Assets $145B $53.9B
2018 Operating
Revenue$24.5B $12.3B
2018 Net Income $2.6B $1.4B
Employees 30,000 13,685
Owned Generation 51,000 megawatts 750 megawatts
Renewal: Solar,
Wind2900 megawatts 2.6 gigawatts
Service Area 95,000 sq mi 1960 sq mi
States ServedNC, SC, IN,
OH, KY, FL
NY, NJ (17 States
Solar & Wind)
Transmission Lines 31,000 mi 1853 mi
Distribution Lines 280,000 mi 140,585 mi
Electric Customers 7.7 million 3.8 million
Gas Customers 1.6 million 1.2 million
Utility Industry Overview
Customer Pays Bill
Bill Issued
Meter Read
Customer uses
Power
Budget Billing
Pay Online
Pay by Mail
Pay by Phone
Online Access
Paperless Billing
Mobile Alerts & Payments
Automatic Payments
Pay in Person
Utility Payment Channels
• Mail-In - Processing• Internal lockbox
• ICL & ARC deposit and clearing
• Walk-In – 3rd Party Processing• Utilize two 3rd parties
• Electronic settlement
• Electronic Payments – Company & 3rd Party Processing
• One-time and recurring payments
• Multiple payment methods
• Biggest challenge B2B payments Electronic
76%
Mail, 21%
Walk-in, 3%
Electronic, 68.48%
Mail, 27.25%
Walk-in, 4.27%
2018
Payment
Statistics
Check by mail (Lockbox)
% of Payments 27.3% 22.8%
% of Dollars 39.3% 35.0%
ACH Debit (Internet, Phone CSR, IVR and Kiosk)
% of Payments 27.4% 46.2%
% of Dollars 19.9% 40.6%
ACH Credit (External Agents, Home Banking, Consolidators)
% of Payments 22.4% 26.3%
% of Dollars 23.7% 21.0%
Credit/Debit Card
% of Payments 22.9% 4.6%
% of Dollars 17.1% 3.3%
Mastercard Focus: New Payment Flows
With the acquisition of Vocalink, Mastercard is playing a broader role in
the payment ecosystem.
Vocalink designs, builds and
operates industry-leading bank-
account-based payment systems.
Vocalink powers real time payment
systems across the globe.
Mastercard connects
individuals, businesses
and organizations around
the world, creating greater
opportunities for all.
Real-time data & messaging can transform experiences
& drive efficiencies for consumers, banks & billers
Source: ATKearney, Payment System Modernisation
Poll 2:
What percentage
of your consumer
payments are
electronic?
Answer Choices:
A. Over 50%
B. 25% - 50%
C. 25% or Less
Consumer lifestyle trends are more varied than ever –
influencing a shift in payment options & choices
44%
38%
32%
19%
18%
13%
12%
13%
15%
21%
29%
40%
9%
14%
13%
16%
7%
6%
6%
4%
6%
8%
7%
8%
0.50%
0.40%
0.40%
0.30%
Millennials
Gen X
Baby
Boomers
Seniors
Bill Payments Made by Channel by Generation
Biller Website In Person Mail Bank Portal Phone Direct Debit 3rd Party Site
Source: Aite
15B+ US bills are paid every year
Source: Aite
Paid Online,
56%
Paid Offline,
44%
Where Do Consumers Pay Their Bills?
Practitioners must
meet payers where
they are, offering
every channel to
convert more
payments to digital
channels.
Challenge finding a solution that can align consumer
expectations with business needs.
– Bill presentment often separate from payment
– Lack of tools for stakeholder preparedness
• Payer Education
• Impact on Internal Teams
• CSR Training
– How can payment data be used to address this gap?
Key Takeaways
The payment experience is currently fragmented for
both businesses and consumers.
Utilizing the integration of data with real-time tech
transforms AR processes, and offers a superior
experience for payers.
Poll 3:
What percentage
of your corporate
payments are
electronic?
Answer Choices:
A. Over 50%
B. 25% - 50%
C. 25% or Less
A. 25% or Less
B2B Payments
Still Made by
Check
– Systems don’t facilitate straight-through processing
– Business payers are slow to adopt digital channels
– Lack of data standardization
– Accounting systems not designed for payment solutions
Business payments have
numerous pain points
70% of treasury professionals cite a lack of a
standard format for remittance information as a
barrier to e-payments adoption.Source: AFP
Key Takeaways
The use of data in business payments will connect
the silos of the current process, revolutionizing AR
(& AP) functions.
The industry needs to address standards for data for
application across platforms to realize maximum
benefits.
Poll 4:
How important
is RTP to your
organization?
Answer Choices:
A. Critical
B. Important
C. Neutral
D. Not Ready Yet
E. I Don’t Know Enough
Data, Customer Experience, and RTP
– Data is key to improving payments – both consumer & business payers• Personalization of billing and payment process
– AI & ML developments (Voice?)
• Cohesive & consistent billing experience
• Make payments not only faster, but smarter (& strategic)
– Speed to market of RTP rails• The Clearing House Network
• Faster Payments Network (Fed) effect (+/-)
However, there are challenges…
– Lack of complete package of integrated treasury solutions
• Partner products can be silo’d and end up competing
– Risk considerations – ‘Bad Actors’
– Are business payers ready for RTP?
• If not, what are the hurdles?
– There is no ubiquitous solution, applicable to consumer & business payments
• Strategic need to ‘Do it right the first time’
Key Takeaways
Treasury managers need to balance customer expectations with
business needs.
Key to educate and align all internal teams (bill pay, remittance,
benefits, etc.) on processes and goals.
Now is the time to plan how your organization will connect with
RTP rails.
Be thoughtful with finding a solution (or package of
complementing solutions).
Moving Money & Data Together: Making
Payments Smarter – Not Just Faster
Q&A