Five Questions To Consider
Fortunately, carriers are recognizing the importance of creating efficiencies and adopting new technologies to streamline their Payment Processing Function
Traditionally, carriers focus only on the bank charges associated with the actual movement of the money, but that is the least expensive portion of the payment. The loaded cost of the payment transaction includes labor, overhead, paper, postage, etc while ultimately, the most important part of the transaction is the data associated with the transaction. Ie, think of what is on the check or draft for each claim payment – claim number, party, indemnity info, etc – and how that is utilized for the payor and payee to transact the payment.
The following questions are a good place to start as carriers look to the future on integrating new payment technologies into their ecosystem.
THE TOP FIVE QUESTIONS TO ASK YOUR POTENTIAL PROCESSING/BANK PARTNERS
- Are your partners experts in facilitating the movement of money or do they just want to provide you data for you to figure it out yourself?
- Does your partner offer only a minimal solution or do they offer comprehensive solutions COMBINING DATA AND $ for both outbound and inbound payments while allowing the receiving party to decide the best way to receive their payment which makes sense to them?
- Do the solutions eliminate the cost of the workflow or just move money from Point A to Point B with minimal benefit to the carrier?
- Does you partner integrate with the largest claims systems in the industry?
- Does your partner understand the compliance and regulations imposed by the Federal Government on the Banking industry?
Ultimately, your choice should provide a corporate wide solution driving significant savings, impact to your bottom line, and flexibility to your policyholders on how they receive their payments.
The future is now so go and grab it!
*2013 Federal Reserve Study
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