Grow Commercial Client Revenue with FIS Integrated Payables & Invoice-to-Pay

May 24, 2017

Matthew Dragiff, SVP Product Management & Client Services

Agenda

Commercial Clients

01Invoice-to-Pay

02Going to Market

03Q&A

04

2

FISTM Integrated Payables

3

Drivers for Commercial Payment Projects

4

*FIS B2B Payments & Bank Connectivity Study - 2016

Drivers for Virtual Card Payments

5

*FIS B2B Payments & Bank Connectivity Study - 2016

FIS is Seeing the Trend Play Out

6

“Virtual cards could serve as a "catalyst" for card adoption in commercial and business-to-business (B2B) payments which could double US purchase volume to $160 billion by 2018 (reaching above $500 billion by 2024) from $83 billion in 2015”

- Ashish Sabadra of Deutsche Bank, September 2015

FIS Addresses your Diverse Commercial Base

7

Microbusinesses(Quickbooks, Excel)

Growing SMB, Middle Market, and Small

Corporate Businesses(NetSuite, MS Dynamics, Sage, Intacct, Quickbooks, other)

Large

Corporations(SAP, Oracle, other)

Less than 100 invoices & payments per month

Up to $3M in revenue

From 100 to 500 invoices & payments per month

$3M - $10M in revenue

From 500 to 5,000 invoices & payments per month

$10M - $250M in revenue

Greater than 5,000 invoices & payments per month

Greater than $250M in revenue

FIS Business Bill Pay

FIS Invoice-to Pay

Powered by Mineral Tree with FIS Integrated Payables

FIS Integrated Payables Standalone

28 Million US Businesses

FIS Invoice-to-PayPowered by MineralTree

Invoice Payments are Manual, Ad Hoc,Paper-based, Risky and Poorly Controlled

9

Costs Add Up for Middle Market Companies

10

FIS Invoice-to-Pay Automates the Entire Process

11

Why Banks Offer Invoice-to-Pay Solutions

12

• Acquire New Customers

• Increase Wallet Share with Existing Customers

• Compete effectively with Fintech disruptors and the 5 largest FI’s

• Sticky application => integral part of AP workflow

• Complete solution that is “out of the box” with technology and people

• Become a value-added solution provider to commercial customers

Invoice-to-Pay Criteria

13

• Using a SaaS version of NetSuite, Quickbooks, MS Dynamics, Intacct or Sage

• Processing in excess of 100 total invoices and payments per month

• No need for complex check print or remittance formats

FIS Integrated Payables

Why Are Commercial Customers Moving Away From Checks?

15

Higher risk of fraud

Potential for errors

High transaction costs

B2B checks rack

up $25 billion in

processing costs

annually

Barriers To Migration To Electronic Payments

16

Resource Constraints

(Staff, CapEx, or

IT related)

Bank Account Management

(Security, obtaining, maintaining)

Remittance Delivery

Loss of Visibility

Enrolling Vendors

VENDOR ENROLLMENT COSTS

• Initial Enrollment - $50

• Calling

• Forms & Verification

• Account change - $25

CHECK PAYMENT COSTS

• WSJ Article ($4-$20)

• Ardent Partners ($7-$11)

• AP Network ($5.14)

• Payroll Association ($4.40)

Commercial Customer AP Departments

17

• Reduce Paper checks– Labor & material costs of check printing & mailing

– Fraud risk with paper-based payments

– Green initiatives

• Overcome difficulty of moving to electronic payments– Labor obtaining vendor bank account information and changes - $50 per vendor + $25 per change

– Compliance risk managing vendor bank account information

– Labor handling inbound vendor calls about payments already made

– Remittance data delivery

• Remove IT resource dependencies– Creating – Maintaining – Changing bank file formats for PosPay, ACH’s and wires

– Single Source for Reporting on Payments

• Capitalize on the rebate opportunity from migrating AP vendors to virtual card

– These AP transactions are not the same ones that use Commercial Card, T&E Card, and P-Card

Why Banks Offer Integrated Payables Solutions

18

• Acquire New Customers

• Increase Wallet Share with Existing Customers

• Compete effectively with Fintech disruptors and the 5 largest FI’s

• Sticky application => integration and vendor data management

• Complete solution that is “out of the box” with technology and people

• Become a value-added solution provider to commercial customers

FIS Integrated Payables Base Services

• Check Printing Service

• Over 1 million checks per month

• US Mail & Express Courier

• Postal pre-sorting for maximum discounts

• Payer flags payment as ACH

• Payer provides beneficiary data in payment file

• Payment information and remittance information delivered to recipient

• Transforms payments to NACHA (or bank) format & automates delivery to ODFI

• Payer flags payment as Wire

• Payer provides beneficiary data in payment file

• Payment information and remittance information delivered to recipient

• Transforms payments to appropriate format & automates delivery to ODFI

• Payer flags payment as Card

• Unique, single-use card number issued for invoice payment

• Card, payment & remittance information communicated via email and secure Vendor Portal

Check Printing

ACH

Wires

Card

19

FIS Integrated Payables Value-Added Services

• For vendors that will not take Card payments or Card payments are not practical

• Dramatically reduces per transaction cost

• Leverages Vendor Database for Check-to-ACH payment migration (over 150K vendors)

• FIS assists in ACH enrollment campaigns

• Automated payment notifications

• Vendor Portal for payment history, download of remittance data

• Custom campaigns conducted by FIS

• Campaign design, vendor segmentation, execution, response tracking, reporting

• Email, phone, print

• Ongoing campaigns

• Card payments on invoice transactions

• Receive rebates back on spend

• Leverages Vendor Database for Check-to-Card payment migration (over 100K vendors)

• FIS Vendor Enrollment drives adoption across vendors

• Automated payment notifications

• Vendor Portal for payment history, download of remittance data

Check-to-Card

Migration

Check-to-ACH

Migration

Vendor

Enrollment

Vendor

Management

• Vendor inquiries

• Bank account management

• User Administration

• Payment assistance (authorization declines, multi-swipe, resend email, block card)

20

Solution Overview

21

Why Banks Partner With FIS

22

• Industry leader in payments space

• Customer retention

• Clients value in the service

• Ability to support all payment methods

• Payment file coding expertise

Why Customers Say Yes To Integrated Payables

23

• Streamlines Process

– “One-step” payment origination

– Clients maintain control while automating AP functions

– Reduce tasks associated with check production and reconciliation

• Increases Revenue

– Check transactions can be converted into Card transactions which are eligible for a rebate

– IP Card-related rebate revenue

• Reduces Cost

– Reduce internal costs such as labor

– Spend less time tracking errors and booking general ledger entries

• Eliminates Payment Errors

• Limits Fraud

– Positive Pay file processed when payment initiated

– Client can mimic their current payment approval process

– Submit, Review and Release capability

– File level

– Payment level

Sampling of Industries Served

24

• Advertising

• After-Market Parts

• Airport Authority

• Automotive Parts Distribution

• Building Supply

• Charities

• Charter School System

• Commercial Furniture

• Commercial Glass

• Constructions

• County/City/Local Government

• Entertainment

• Farm Cooperative

• Fitness

• Food Distributors

• Freight Logistics

• Gas Utility

• Healthcare Practice

• Hospital System

• Insurance

• K-12 Education

• Laboratory Testing

• Manufacturing

• Not-For-Profit

• Oil & Gas

• Pharmaceutical

• Property Management

• Retail

• Staffing

• Transportation

Questions

Please stop by our booth (512C)

Matthew Dragiff: matthew.dragiff@fisglobal.com