Fundtech Bank Survey: 61% see the opportunities of EIPP

On Monday Fundtech issued the results of a recent survey they carried out on European banks. The main subjects of the survey were SEPA, EIPP and Mobile Banking. What is particularly interesting for the e-invoicing community is that 61% of the banks interviewed see EIPP as both a revenue and cost saving opportunity. Survey participants see significant growth in the adoption of EIPP over the next three years. 38% predict that between a quarter and half of their customers will adopt the service, while 15% believe that over 50% will adopt it. Read full press release.

So why do banks see EIPP as a new revenue stream? There are a number of reasons. One of the most significant is that by combining EIPP with existing transaction services, banks can extend visibility beyond payments to the complete invoicing cycle. This gives banks an invaluable insight into a customer’s business and makes it easier to calculate risk. Greater visibility also leads to:

Increased revenue through cross-selling - A better understanding of a customer’s business makes it easier to sell high-end services such as invoice factoring, supplier finance provision, enhanced treasury lending and foreign exchange services.

Better, more profitable customer relationships - Becoming more integrated with a customer’s finance process will help encourage loyalty and increase retention. This presents an opportunity to develop deeper more profitable business relationships.