Aliaswire Research Quantifies Big Gains for Banks with Online Bill Pay

  • Banking
  • 15.08.2022 02:45 pm

Aliaswire, a provider of bill payment and credit solutions for businesses and banks, today announced a new research white paper highlighting results gained by leading banks using its DirectBiller payment platform. The research tracked the results for four different U.S.-based banks using DirectBiller over a 48-month period and highlights the impact on their business including new commercial client gains, client retention, the adoption of online bill pay by commercial clients’ customers, and the dollar volume of payments made. 

“As fintechs expand their offerings for businesses around billing and payments, banks risk getting squeezed out,” said Jed Rice, CEO of Aliaswire. “It’s not that banks aren’t interested, they just don’t have the right structure, expertise and resources to innovate at the same pace. Fintechs are turning out sleek, modern products and services that businesses want, leaving clients questioning the bank’s value as a forward-thinking business partner. And it’s costing the bank revenue, market share and profits. With DirectBiller, Aliaswire is helping banks address this challenge head-on.”

DirectBiller, which supports over 800 businesses today, is offered exclusively through banks. The platform enables banks’ commercial clients to offer a modern, custom-branded billing and payment experience to their customers. DirectBiller manages the end-to-end payment process — from invoicing through payment reconciliation — and integrates with banks’ treasury management systems and businesses’ ERP systems. As a result, the banks’ business clients can easily send digital bills, accept digital payments via their customers’ preferred methods, and receive funds the next business day.

DirectBiller Portfolio Research Highlights:

DirectBiller provides a way for banks to fend off fintechs’ advances while generating profitable transaction fee revenue that’s reliable, sticky, and grows. To quantify the platform’s benefits, Aliaswire conducted a study of four different banks incorporating DirectBiller’s modern bill pay capabilities into their offerings for commercial clients. The research highlighted four major benefits.

1.      Increased Client Count

On average, the banks went live on DirectBiller with seven new clients; one with as many as 12.

Client count doubled annually, on average, after the first year of adoption. The highest-performing client count increase was +700% after four years.

Typically, there’s pent-up demand for modern digital bill pay within a banks’ customer base.

DirectBiller meets this need by providing a state-of-the-art billing and payment service that integrates easily with both the bank’s and its clients’ systems. DirectBiller also negates the need for banks’ clients to invest in and maintain modern payment capabilities of their own.

2.      Client Retention

Convenient, cost-effective digital bill pay solutions have been a proven winner for banks when it comes to client satisfaction and retention. With DirectBiller, the banks reported nearly 100% client retention over the course of four years. 

DirectBiller creates client loyalty for banks by providing businesses with a comprehensive view of their account receivables and cash flow, working in tandem with existing accounting and ERP systems, such as QuickBooks and NetSuite. Businesses can send electronic invoices to vendors, track payment status or send reminders, and collect payments electronically. Real-time payments and approval status also let businesses know exactly when payments will hit their account.

3.      Payer Count

As a strong indicator of user satisfaction, average payer counts on DirectBiller grew 110% after the first year and increased to 260% by year three.

Businesses find that their customers are looking for modern billing and payment capabilities. DirectBiller offers a hosted payment portal or can embed the payment experience within the business' site with single sign-on or API. Their customers can easily access electronic bills/ invoices and make automated, scheduled, or one-time payments using the web, mobile, text, CSR and IVR.

4.      Payment Dollar Volumes

Payment dollar volumes also grew consistently for the banks surveyed.  Banks saw an average increase of 170% in the first year using the platform, with an increase of as much as 2,678% in the fourth year. The average growth rate by year four was 1,090%.

Increasing deposits are essential to profitable growth for banks. Aliaswire supports DirectBiller with a dedicated team to ensure strong customer adoption and success for banks and their commercial clients. This includes customer support, solution engineering, marketing, product development and relationship management.

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