Banks can seize advantages by providing lockbox services to other banks or outsourcing their processing to external providers.
Boston, January 29, 2015 – As check payments decline, companies' fixed costs will force their per-item payments processing costs to rise, and outsourcing that processing will be their only viable solution. Banks of many sizes consider lockbox solutions valuable as a way to meet these clients' needs, but slow lockbox volume growth may require lockbox providers to consolidate and banks to outsource some or all processing. But how do lockbox banks determine whether to offer outsourced services or use another provider?
Based on a 2014 online survey of bank lockbox providers' senior managers, this research posits a number of rationales for choosing to outsource and determines the importance of each to the banks facing such decisions.
This 28-page Impact Note contains 23 figures and three tables. Clients of Aite Group's Wholesale Banking & Payments service can download this report.