Automated Collections & Payments: Banks Partner with Fintech

Every financial institution (FI) has faced the demanding needs of digital services across a decade and even more. Customer expectations have risen above basic offerings to automated collections and payments with several flexible and digitized banking facilities emerging each day. To meet such growing demands, fintech collaborations with banks have seen an upsurge in recent times.

Financial institutions partner with fintech organizations to help them offer suitable services like automated receivables and real-time payments for facilitating seamless transactions. One such fintech partner is Hylobiz, a part of Vayana group, empowering banks with holistic B2B solutions across Cash, Commerce, Compliance and Credit capabilities for SMBs and Corporates.

A platform with B2B accounts receivables and collections automation, Hylobiz helps customers of the Bank to streamline their collections, get real-time visibility of their transactions, send reminders for overdue, and ensure a positive cash flow for their businesses.

The Digital Disconnect: Challenges faced by Banks

Complex processes, various system integrations, inefficient processes, manual errors, and slow transactions are some of the neglected cries of businesses suffering from digital disconnect. Let’s look at such woes:

• Complex processes: Manual data entry and invoicing only leads to multiple errors and is bound to consume more time seeking for closures. Collections are delayed.
• Multiple system integrations: Integration of various banking systems, payment gateways, and CRM platforms require time and may lead to customer frustration due to lack of user-friendliness.
• Poor user experience: Lack of accurate and efficient processes may lead to customer dissatisfaction and churn in the long run.
• Heavy expenditure on technology: Banks often tend to spend a lot on getting the system integrations, which often requires extra resources for use and maintenance leading to further bills.

All these struggles create a room of expectations for automated collections and digitized payments to bridge the gap between traditional banking and modern fintech.

How can Banks Partner with Fintechs?

The unified solution, Hylobiz is designed to streamline and automate collections for SMBs and corporates by –

• Auto-importing invoices from ERP – Bank customers can connect with pre-integrated accounting platform or ERP and import invoices to send automated payment links or reminders.
• Automated Collections – This is executed via a payment hub that enables digital payment collection through Credit/Debit cards, Net banking, Aani, Direct debit, POS and Virtual accounts.
• Configurable Reminder Rule Engine – Hylobiz helps businesses to improve Daily Sales Outstanding by automating payment reminders and follow-ups to send messages through SMS, email and WhatsApp as per the defined frequencies.
• Field Collection and Audit Trial – Customers can update a transaction for any payment made outside the Hylobiz collection hub using cash, cheque, or other methods. An end-to-end audit trail is maintained for each action at a transaction level.
• Comprehensive Dashboards and Business Reports – Dashboard shows ageing, upcoming and overdue transactions and business health. The transaction report comes with various filters and options to take effective actions.
• Connected Banking – Hylobiz integrates with our Connected/Corporate/Core Banking APIs to bring powerful banking experience to your customers to enable seamless payouts.

Should Fintech Firms and Banks Collaborate?

Bank customers have an advantage after undergoing digital transformation; automated collections, seamless transactions while processing invoices and automated payments, and accelerating payment cycles and streamlining cashflows via automated payment reminder system.  

Simultaneously, banks overcome several challenges and ultimately gain success by providing a more efficient and transparent payment experience. Here are some perks for banks and their customers after Hylobiz integration: 

• Data Security: All data is safely stored as Hylobiz comes with bank grade security and zero downtime.
• Automated Processes: Custom configurations help customers to set automated payment reminder rules, send consolidated ledgers and get powerful business dashboards etc.
• Connected Banking: Hylobiz offers current accounts with the bank to enable connected banking which allows vendor payouts automation reconciliation in real time. Banks can offer automated collections and payables with connected ERP and connected banking.
• Value-added banking services: Bank customers can carry out invoice management, digital collections, inventory management along with workflow automation.
• Better Risk Management: By leveraging advanced analytics, financial institutions can gain a deeper understanding of risk factors and detect fraudulent activity more effectively.

How is Fintech Shaping the Future of Banking?

Hylobiz embraces all emerging trends and is committed to partnering with leading financial institutions to develop innovative solutions that enhance customer experience, improve efficiency, and drive growth. By focusing on innovation, collaboration, and customer satisfaction, Hylobiz is shaping the future of automated collections and payments to serve financial institutions and their customers in the best way possible.

As a Fintech, Hylobiz is at the forefront of the research and development, supporting banks with their digital journey.

Still wondering how to deliver smooth transactions? Why not try out fintech bank partnerships?

Get along with Hylobiz. Book us for a demo and talk to our experts.

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