X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Cash management banks have bragged for years about their ambitions to provide robust A/P and A/R outsourcing, but so far they have approached that turf only indirectly via purchasing cards or electronic invoice presentment and payment (EIPP). In December, Pittsburgh-based Mellon Financial Corp. changed all that when it wrote a check to buy a privately held College Station, Texas–based A/P outsourcing provider, SourceNet Solutions Inc. With that purchase, Mellon made a big bet on the world of integrated financial processes–even though it will be months before the bank is able to link SourceNet’s A/P services to its global cash management services. “Until now, we were primarily helping customers execute payments, including printing and mailing checks on their behalf,” notes Robert W. Stasik, executive president and head of Mellon’s global cash management operation. “Now, we have a solid presence in both handling payments and doing the back office activities like invoicing, matching, getting necessary approvals and resolving disputes. This really complements our strategy to offer total financial solutions.”

Mellon made its move only after asking clients what they wanted and would be willing to buy. “A/P was near the top of their list,” Stasik reports. “So we started looking for ways to enter the space.” Unlike EIPP, which generally has failed to take off, A/P outsourcing has the advantage of taking the world as it is and improving it, rather than forcing companies to make fundamental changes, says Dave Robertson, a Chicago-based partner at Treasury Strategies Inc. A/P is a strong candidate for outsourcing since it is less fragmented and easier to hand off than A/R, he adds.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.