Community Banking Case Study Series Part 2 – Crown Jewel in the Rough

by | Mar 27, 2019 | Case Study, Community Banking, Series, Supply Chain Finance

As you may recall from part 1 of our 5-part Community Banking Series, we are investigating how bank clients have benefited from implementing an ArtisPay Supply Chain Finance program. In part 2 of this series, we will be examining our Case of the Crown Jewel in the Rough.

 

Client

Type: Government Administrator/ Government Customer
Deposits: ~$100MM
Annual Payable: ~$200MM
Line of Credit Facility: None

 

Client Overview & Needs

Client is one of the bank’s largest depositors – a crown jewel client. It was of the utmost importance to the bank to ensure the bank was meeting and exceeding the needs of this client. The client had been searching for a way to improve their payment processing – specifically, they were looking to eliminate paying with checks and aiming to extend their payment terms in order to better manage working capital as well as invest in short term projects. However, the client did not want to enact these procedures to the detriment of their vendors; the client sought a solution that also ensured its vendors had access to their working capital as well.

 

Solution

ArtisPay Supply Chain Finance

 

How

The client not only achieved all of the goals described above, they were also astounded by the ease, simplicity and speed of the process. With no installation and a brief platform tutorial, the client was able to use ArtisPay FastTrack to extend the majority of their payables to 60 days (from 3 days) in about 10 minutes. For the vendors uploaded to ArtisPay, the client successfully eliminated their payment processing and check cutting while extending their terms to 45-60 days.

 

Results for Client

  • Extended majority of their payables an additional 57 days
  • Eliminated a material amount of payment processing costs
  • Eliminated check payments
  • Allowed A/P dept to recoup significant time/resources

 

Results for Bank

  • Trending toward $1MM plus fee income
  • Client is reliant on bank to process more than 60% of their vendor payments
  • Integrated into the bank’s product offerings

 

MORAL

With ArtisPay, banks can eliminate some of the junk that keeps their jewels from shining. By extending payment terms, mitigating processing costs and eliminating clunky check payments, ArtisPay provides the tools and the service that allow those crown jewel clients to dazzle.