Present, Pay and Post: Transform bill presentment, make the most of new

payment options and automate the posting

process

Vram Ismailyan

Senior Vice President, eReceivables Consultant, Wells Fargo

Seth Blacher

Senior Vice President, Global Product Management, Wells Fargo

SoCal Expo

Los Angeles, CA

April 20, 2017

1 1 Sources: Mediabistro, Dream Systems Media, AdAge

6 billion people on earth

4.8 billion have a mobile phone

4.2 billion own a toothbrush

2 2

Objectives

Payment trends

Mobile

How to improve bill presentment, payment and posting efficiency

How it all comes together

Key takeaways

Discuss trends, new technology, and solutions that can transform your accounts receivable processes

Agenda

3 3 3

Remember this?

C2B & B2B receivables trends

5 5

Top AR priorities:

• Let customers pay where, when, and how they want

• Provide value to back office, including credit professionals

• Make it easy with integration into existing receivables stream

• Align with provider that stays ahead of the market

6 6

• Efficiency

• Convenience

• User Experience

Utility Company – Paperless Billing Case Study

7

Number of customers selecting paperless billing continues to grow

– 30% of total customer base

Signing-up for electronic recurring payment requires you to go paperless, unless you say no.

– 65% of these customers keep paperless billing

Signing up for on-line services defaults to paperless unless you “Uncheck the Box”

– 94% of customers agree to go paperless

19% of all our customers are “douple-dipping” – New policy change to eliminate double dippers

8 8

Let customers pay where, when, and how they

want Millennials want to pay differently

Sources: 1 “There’s no slowing down millennials, A First Data White Paper,” First Data Corporation, 2015. 2 “Millennials and money – The unfiltered journey,” Facebook IQ, Jan 2016. 3 Steven Anderson, “Are Millennials Not Interested in Mobile Payments?” Payment Week, July 15, 2015.

9 9

Many benefits realized by transitioning from

checks to electronic payments Percentage of respondents

36% more efficient reconciliation

35% better supplier /

customer relations

33% straight-through

processing to A/R

35% fraud control

Source: 2016 AFP Electronic Payments Survey

10 10

Top AR Pain Points for B2B Payments

75% Payers sending remittance detail via US mail, email or fax

73% Companies say they receive incomplete or inaccurate A/R data

#2 A/R challenge is matching payments to invoices

75% Companies handling A/R application and posting manually

Sources: Aite Group and AFP Payment Survey 2014

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Needle in a haystack

Consumer behavior is changing …

12

2005 Today

13 13

Mobile payment basics

Feature Description

Bank/Biller mobile website

Bill pay app within existing bank or biller direct site

Bank/Biller app Application specifically designed for phone or tablet

Responsive design Application detects and delivers right user interface for device

Mobile photo bill pay Snap photo of bill to enroll payee, snap photo of check or credit card to pay

Nearly 50% of mobile photo bill pay end-users were not previously viewing bills online or making bill payments electronically

Mobile bill pay doubled from 2013 to 2014.

Pay/view bill: #1 and #2

reasons consumers access biller mobile site

Sources: Mobile bill payment surge, Fiserv, February 2014. Bank Systems and Technology: How Mobile Photo Bill Pay is Helping Community Banks Appeal to Mobile Only Customers., January 2014

Improving accounts receivable

for consumer or small business

payments

15 15

Best practice: Electronic payments – AR Partnering with payers to receive payments electronically

65%

86%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Peer group World class

Percentage of customer remittances that are

electronic

43%

66%

0%

10%

20%

30%

40%

50%

60%

70%

Peer group World class

Automatic remittance posting match rate

Source: Almanac 2014 Functional Benchmark

16 16

What really adds value for the AR professional

Daily, low cost billing/invoicing

It’s easy for the customer

Incoming payment visibility

Integrated into existing payment streams

Allows credit to assist customers

with payment management

Instant payment processing

during collection call

Automation improves DSO performance

17 17

Electronic Bill Presentment and Payment

Your company Your customers

Invoice/bill file

Online ACH and credit/ debit card payment

ACH and credit/debit card payment by phone

Payment AR posting

file

Online/mobile invoice/ bill presentment

Email bill notification

Presentment

EBPP site

Receivables data

aggregation service

ACH Wires

Lockbox Online bill pay

Remote deposit Merchant card

Posting file

AR posting file

18 18

Success Story: Midwest Rental Company

Challenges

– Bridging a Legacy system to todays needs

– No options for customers to pay thru website

– View invoices on website

Objectives/Goals

– To create a central place for invoice viewing and payments

– Offering needed to be secured and feel client owned

– A partner that understood payment trends and engage new ideas

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19 19

Success Story: Midwest Rental Company

Solution

– Biller direct solution at Wells Fargo

– Implementation

– Creative problem solving to bridge legacy data and ability to send data back

Results

– Customer Feedback has been very positive at the ease and use of the biller direct solution

– Over 400 customers using with little advertising

– 1,700 transactions over $6mil in dollars

Improving accounts receivable

for business to business

payments

21 21

Best practice: Electronic payments – AR Receiving customer payments electronically drives cost savings

$6.44

$5.27

$3.47

$1.26

$0

$1

$2

$3

$4

$5

$6

$7

0% 1-25% 26-75% Greater than75%

Cash application process cost per remittance

Source: Hackett Benchmark

Dollars Remittance advice

with or without dollars

Invoice record

Solution | Capture

Re-association Matching invoice record to

open AR

Matching outcomes

Perfect match

Fixable error

Research

Solution | Clean: payments without data

Reformat Matching invoice record to

open AR

Matching outcomes

Perfect match

Fixable error

Research

CTX

Rem

itta

nce

tem

pla

tes

Wire

freeform

Solution | Clean: payments with data

Electronic data file

Information

reporting

to your ERP

Solution | Connect

26 26

Customer remittances email, paper, portals

…to provide clean payment files for automatic processing

Clean file Clean data

Decisioning portal

Payments with data

Open invoice file

…and payment data from multiple sources…

…as is remittance from customers…

…fallouts are matched online…

…and other payments are combined and formatted…

Open invoices are received from your ERP…

ERP system

Matching engine …errors can be corrected…

Repair

How it all comes together

ACH, wire & checks

Download reporting

Data repository

…all three are auto-matched…

27 27

What is possible for your B2B cash application and

posting….

“In our first month, we went from a 30% to 77% straight through processing rate”

“80% of cash receipts went straight through today. That is wicked awesome!”

“Our new online receivables exception management tool is really easy to use”

“I like being able to set up payers and manage profiles myself.”

“Enhanced remittance looks exactly like our existing file”

28 28

We can’t stop… We’re too busy!

This way works fine!

29

Thank you