cash applications capabilities - the perfect balance of technology, processes and resources
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Confidential - © 2015 iQor, Inc.
CASH APPLICATIONS
SERVICESEXCEPTION PROCESSING IS NO
EXCEPTION TO US!
The Perfect Balance of Technology, Processes and Resources
Confidential - © 2015 iQor, Inc.
About iQor
With over 32,000 Associates, operating in 17 Countries, iQor is a recognized leader in Business Process Outsourcing, Cash Applications, Credit Card Charge Backs and 1st and 3rd party collections.
Through its acquired Commercial division, Receivable Management Services, iQor has gained over a century’s experience in B2B and B2C finance and accounting servicing, turning cash into cash flow for some of the globe’s most prominent commercial businesses.
Our award-winning technology, logistics and analytics enable us to measure, monitor and analyze brand interaction, improve business processes, and find operational efficiencies that lead to superior outcomes for our partners across the customer and product lifecycles.
Confidential - © 2015 iQor, Inc.
What is Cash Application ?
Cash Applications is the process of applying customer payments that fail to apply through the auto-match routine.
When done properly…
Cash application forms the cornerstone of an efficient collections program by providing an accurate representation of what debtors truly owe.
Done incorrectly…
Imminent customer dissatisfaction. Incorrect cash application processes directly affect sales, cash flow and, ultimately the cost of capital!
Confidential - © 2015 iQor, Inc.
Cash Application - Pain Points
- Low Hit Rate – Automated Receipt Posting Issues- Slow Posting Turnaround time- Low accuracy level- Large Suspense/ Exceptions Backlog- Inflated On-Account-Cash (OAC) Volumes- Lack Of Process Metrics and Benchmarks- Decentralized Process- Frequent Resource Turnover – Loss Of Experience- Recent Merger or Acquisition- ERP System migration
Among the pain points that companies face with the Cash Applications process. If your Company experience one or more of these issues, you would benefit from the many services iQor Commercial offers .
Confidential - © 2015 iQor, Inc.
Standard Payment Type Volumes vs. Dollar
Lockbox65%
Electronic30%
Other5%
Receipt Volumes
Lockbox60% Electronic
35%
Other5%
Receipt Value
• Processing payments is complex and labor intensive • Automated Applications’ accuracy levels are low
• Non-Remittance payment volumes are on the rise• Paper checks are not going away anytime soon
Source: Data based on current iQor Commercial Cash Applications Service and trends across several industries
Confidential - © 2015 iQor, Inc.
Cash Posting• Applying Payments Directly to the Clients’ Systems (Credit Card Payments, ACH,
Wire Transfers and Checks)• Reconciliation and Posting of Complex Payments
Exceptions• Payment Investigations (PI). (e.g. Misapplication of payment, dispute by client etc.)• Improve Lockbox Resolution/Hit Rates; implement scorecard/track performance• Aged On Account Cash (OAC) and Credit balance reconciliation• Escheatment process support.
Customer Care Support
• Refunds • Funds transfers • Open A/R clearing • Identify customer payment trends and habits• Deductions management support
General Ledger Reconciliation
• Adjustments – NSF checks, stop payments, etc.• Inter- and Intra- company transfers• General ledger balancing
Our Experience and Capabilities
Confidential - © 2015 iQor, Inc.
Our Experience and Capabilities
ERP Systems• SAP• Oracle• PeopleSoft• JD Edwards• BPICS• Legacy / Mainframe
Systems
Industries Serviced• Automotive
• Computer Networking
• Digital Imaging
• Energy
• Home Improvements
• Mobile Resources
• Safety
• Technology
• Telecommunications
Lockbox Service Providers• Bank of America
• JP Morgan Chase
• Wells Fargo
• PNC Bank
• Deutsche Bank
• HSBC
• Mellon
• CITI Bank
• BMO
• US Bank
Confidential - © 2015 iQor, Inc.
Cash Application Metrics / SLA
• ProductivityPostings within 24 hours
• AccuracyDaily accuracy ratio at 99.999%
• Research and Resolution of Suspense ItemsCleared in less than 48 hours
• Customer Service-Related ActivitiesRefunds – transfers – payments in less than 48 hours
• Month End Close24/7 – 365/Year Support
Time is of the Essence!
Confidential - © 2015 iQor, Inc.
Cash Application US/Offshore Blended Solution
Potential cost savings and ROI due to the lower cost structure offshore
√Quality Assurance Audit
√Escheatment process Support
√OAC-Credit Balances Reconciliation
√Initial Quality Assurance
√Specialized Customer Care Application
√Basic Customer Care Application
√End User Contact
√Specialized Application
√Complex Payment Escalation
√High Volume Payment Application
India Cash App Team
US Cash App Team
Cash Application Daily Tasks - US vs. India
√Quality Assurance Audit
√Escheatment process Support
√OAC-Credit Balances Reconciliation
√Initial Quality Assurance
√Specialized Customer Care Application
√Basic Customer Care Application
√End User Contact
√Specialized Application
√Complex Payment Escalation
√High Volume Payment Application
India Cash App Team
US Cash App Team
Cash Application Daily Tasks - US vs. India
Leveraging our blended solution provides the following benefits:
All voice work / customer facing is fulfilled onshore out of our Bethlehem, PA (US) center
Client’s points of contact (Sales and Operations Management) are located within the U.S.
Quality Assurance and SLA adherence is proactively managed by U.S. management
Confidential - © 2015 iQor, Inc.
Our Approach
iQor is the leading provider of exception cash applications process servicing; the single most important step in managing customer payments exceptions. Exceptions are generated by auto- matching algorithm inefficiencies; low hit-rates lead to high exception volumes, there by creating inventory backlogs and cash flow problems.
A Process that Works
Our proven process focuses on:
• Early detection of remitters’ “bad habits”• Accurate identification of invoices to be
cleared at front end.• Effective coding to increase recovery rates• Reduce time to resolve outstanding items• Tracking and quality checks throughout all
stages of the process• Improve accuracy and first attempt
resolution
Integrated Outsourcing Solution:
• Combined lower cost and higher accuracy as a result of process efficiencies
• Consultative review of the current process and resource allocation.
• Production modeling to effectively forecast resources
• Development of process maps to pinpoint and eliminate process inefficiencies
• Metrics for exception handling, accuracy, resolution turnaround time and quality
Confidential - © 2015 iQor, Inc.
Features
Time-sensitive processes to apply receipts and process suspense items and/or exceptions on your required timeline
Dramatically reduce Time-To-Process (TTP); less then 8 Hours in comparison to industry standards of 1.5 to 3 days.
Projected daily accuracy of 99.999%
Suspense and escalation resolution within 48 hours of receipt
Onshore-Offshore blended solution option
Dedicated and highly experienced team, with years of “know-how” in the Cash Applications arena.
Confidential - © 2015 iQor, Inc.
Benefits
iQor Connect proprietary technology platform streamlines the cash applications process and creates efficiencies.
Improved cash flow with a significant reduction in backlog
Reduction of overhead and processing cost through iQor Commercial Services Outsourcing
Further cost savings available by leveraging an onshore-offshore blended solution
Little, to no, start up cost
Confidential - © 2015 iQor, Inc.
Benefits
People
Highly trained in all aspects of the Cash Applications process and experienced with all ERP systems and platforms used within the industry
Hands-on management team facilitates, and simplifies, process transition and resource management
Compliance
All procedures are thoroughly documented and regularly updated to ensure compliance with all government acts such as Sarbanes-Oxley.
Secure work environment – PCI compliant (Payment card Industry), SSAE16 compliant.
A robust disaster recovery plan (DRP), with several recovery sites and comprehensive redundancies.
Confidential - © 2015 iQor, Inc.
Benefits
Technology
iQor Connect provides efficient workflow automation and schedule of authorization adherence
Each iQor Connect implementation is customized to support mutually agreed upon workflow, service level and reporting requirementsReal-time communication and tracking
Secure web-based platform. Customized workflow and skill-based routing.
Confidential - © 2015 iQor, Inc.
Key Cash Application Customers/ Industry
IndustryServicing Location
• Telecommunications• Chemical Manufacturing• Pharmaceutical• Data Storage
Manufacturing• Life Science • Office Supplies• Electronics Manufacturing• Water Treatment
Technology • Safety Applications• Sanitation Industry• Industrial Specialty Gases
Distribution
• Bethlehem PA / Delhi
• Bethlehem PA • Bethlehem PA • Bethlehem PA • Bethlehem PA /
Delhi• Bethlehem PA /
Delhi• Bethlehem PA • Bethlehem PA /
Delhi• Bethlehem PA • Bethlehem PA /
Delhi• Bethlehem PA
Length of Servicing
• 16 Years• 5 Years• 9 years• 5 years• 8 Years• 6 Years• 4 Years• 2 Years• 15 Years• 1 Year• 2 Years
Confidential - © 2015 iQor, Inc.
Contacts & References
For additional information, please contact:
Jeffrey VenzkeVice President– Sales732 - 867 – [email protected]
Jean-Pierre ElmouderribVice President– Operations484 – 242 - [email protected]
Reference will be provided upon request