Community Banking Case Study Series Part 1 – Introduction

by | Mar 13, 2019 | Case Study, Community Banking, Series, Supply Chain Finance

Banks and lenders come in a variety of shapes and sizes, with different geographic characteristics, specializations, client populations served, etc. Businesses within a particular industry share similar goals and often engage the same set of general strategies and tactics to accomplish these goals. More specifically, if you were to poll a bank or lender regarding their objectives, you are likely to get some variation of these:

  1. Enhance the digital experience
  2. Improve data analytics to understand customer needs
  3. Reduce operating costs
  4. Innovation
  5. Improve their core business and processes
    • Client Retention
    • Attract New Clients
    • Fee income
    • Line of Credit Utilization
    • More deposits
    • New industries
    • Client satisfaction

To highlight how an ArtisPay Supply Chain Financing program can help a bank or lender achieve a number of these goals simultaneously, we are going to examine a case study highlighting the manner in which banks have employed ArtisPay across three specific client types. The banks, like many of their lending peers, serve a vast, diverse breadth of clients who vary in size, mission and needs. In order to representatively sample the depth and scope of the utility of ArtisPay, we will explore how the banks utilized ArtisPay in serving a large government depositor, a small and fast-growing services business, and a not-for-profit, and we will also examine how one bank itself employed ArtisPay to enhance its profitability and balance sheet.

Overview

Two banks, $3B and $750MM in assets were searching for a way to differentiate themselves from competitors, better serve their existing customers and generate new fee income. After an extensive search of products and client offerings, the banks decided to explore Supply Chain Financing, also known as Reverse Factoring. Following an exhaustive RFP process, the banks both selected ArtisPay as their Supply Chain Finance platform.

 ArtisPay was selected by the banks as it was determined ArtisPay provided the best economic model, furnished a valuable tool for their clients and their client’s suppliers, and supplied a platform that was tailored to their specific attributes and needs. Given ArtisPay’s low cost of entry and affordable pricing models, the banks understood they could test the software with little risk and grow into the program. Of equal importance, the banks saw an opportunity to create a partnership with an entrepreneurial partner committed to them succeeding in their Supply Chain Finance programming efforts, instead of merely having a transaction with a company just focused on selling software. The banks concluded that the ArtisPay team could help them sell and scale their Supply Chain Finance program given the team’s deep and extensive industry knowledge and expertise.