Deutsche Bank’s Andrew Reid in The Paypers: B2B payment innovation is possible only through collaboration

Andrew Reid explains in The Paypers that collaboration is needed for banks to achieve the same level of transformation and convenience in the B2B space that they have already delivered in the retail banking space.

In an interview previously published in the B2B Fintech: Payments, Supply Chain Finance & E-invoicing Guide 2016, Reid says that banks and corporates need to invest in real-time payments. These will benefit corporates who wish to execute time-sensitive transactions – such as High-Value, critical vendor or M&A-related payments – while receiving close-to-immediate proof of execution.

“For large banks, involvement in establishing such future payment/collection platforms is a “revenue loss avoidance” tactic rather than a “profit creation” one, as they will otherwise lose market share to disruptors,” says Reid. This is why Deutsche Bank and others are helping to develop a Pan-European Instant Payment Solution.

Reid goes on to talk about the benefits   ̶  but also the challenges  ̶  of implementing pay-on-behalf-of/collect-on-behalf-of (POBO/COBO) structures. These can help corporates consolidate cash flows and rationalise account structures, as well as increase their purchasing power when negotiating cash management terms with banks.

You can read the full interview here.



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