February 11, 2011
J P Morgan drives paperless receivables
The need for efficient working capital management, the requirement to secure paper documents, plus advances in scanning technology have all come together to drive the growth of paperless receivables, says Craig Vaream, Managing Director at J.P. Morgan Treasury Services.
Having a consolidated view of their receivables and cash position is a challenge for global companies who are dealing with different currencies and different clearing systems, Mr Vaream says. “Typically, multinational corporations use different financial institutions in different countries and each institution usually has a different process, which makes consolidating receivables information, as well as collecting it efficiently, more challenging,” he points out. “As a result, if you ask the treasurer of a multinational corporation about a company’s current receivables position globally, he may not be able to quickly pull that information together.”
The Receivables Edge service from J.P. Morgan provides a website where clients can go to collect their global receivables information. The service provides consolidated remittance and current receivables information to clients in the U.S. and Canada. Clients in the APAC and EMEA regions have more limited access to the service, J.P. Morgan says.
Receivables Edge matches invoices to payments and has an auto-reconciliation capability that reduces the need for manual reconciliation of payments. Another feature, Virtual Remit, offers a remote deposit capture capability, which allows clients to scan transactions and deposit them electronically into their lockboxes.
“By year end, Receivables Edge will be available in 13 languages in Latin America, Asia and Europe,” Mr Vaream says.
J.P. Morgan is advising corporations to go paperless in their transaction processing. “Focus on moving from paper to electronic!” Mr Vaream advises clients. “Regardless of country or geography, paper processing is always more expensive and puts you at greater risk for fraud.”
Mr Vaream also wants clients to look at techniques that they can use to encourage customers and vendors to use electronic payment methods. Go Green campaigns are one example, he says. “Moving to electronic payments while simultaneously having a positive impact on the environment is a message that resonates with many,” Mr Vaream says.
As the product executive for receivables, Mr. Vaream is responsible for lockbox, Receivables Edge, Virtual Remit, Pay Connexion and Healthcare LinkM products. His responsibilities encompass product development, strategy, pricing, profitability and distribution.