Kauzli profile (1)

Leveraging Electronic Invoicing Data for Credit Risk Modeling and Personalized Customer Experience: An Interview with Partner Hub’s founder Katalin Kauzli

Condividi con

Leveraging Electronic Invoicing Data for Credit Risk Modeling and Personalized Customer Experience: An Interview with Partner Hub's founder Katalin Kauzli

Exploring the Opportunities and Benefits of Utilizing Invoice Data in Banking Services for SMEs

Welcome to the interview featuring Katalin Kauzli, CEO & Founder of Partner Hub, an integral part of the fintech ecosystem of Supernovae Labs. We are excited to bring you this exclusive conversation that sheds light on the groundbreaking utilization of electronic invoicing data in banking services for small and medium-sized enterprises (SMEs). As a leading provider of white label e-invoicing platforms, Partner Hub offers innovative solutions that empower banks to leverage invoice data, revolutionizing credit risk modeling and enhancing the customer experience.

 

As part of the SME, some of the best practices are starting to offer electronic invoicing services with the aim of capturing customer payment and collection data. What opportunities does a bank see in using this data to strengthen its credit risk models?

Yes, already some challenger and innovative banks started to include digital invoice management as a value added service. With providing digital invoice management the bank can provide an end-to-end solution for the financial administration problems of SME customers and also help with digitalisation and e-invoicing compliance. Besides providing a value added service, as you pointed out, the bank can digitalise its payment processes and provide a seamless payment experience for the customer, too.

The incorporation of invoice data into risk models is not in the mainstream, but invoice data provides more detailed and real time information about the company’s business activities then more high level financial information, therefore using invoice data in credit risk models will result more accurate credit risk models. This will have the following implications: 1) current portfolio’s provisioning can be decreased, 2) defaults of companies can be better forecasted, therefore the bank can take action earlier in time 3) new SMEs will become financeable, therefore the bank can realise additional interest revenues, by financing these companies.

Considering the SME customer side, how can such data help to personalize the customer experience and improve the quality of services provided?

Because the bank will have access to invoice data it can provide real time information about the SMEs financial situation, so an enhanced BFM functionality can be provided using invoice data. The bank can provide cash flow projections based on invoice data available in the system, and can provide the SME with a financing offer, when it actually needs it based on its cash flow position. Also, when an invoice is issued, the option can be provided to finance the invoice.

In addition to e-invoicing, there are other ways to monetise data, e.g. through categorisation within Business Financial Management (BFM) systems, to offer benefits to customers through partnerships with players in telephony and other sectors. What opportunities do you see for the use of data in this context and what benefits can be derived for SME customers?

SME priorities are revolving around growing their business, talent acquisition and retention, supply chain management, managing cash flow and taking care of administrative tasks. Any offering that can help them with these priorities, especially if these offerings are provided in an integrated way, then SMEs will be happy to use these services.

A survey conducted by Ernst and Young (EY Global: The five-step journey to SME banking transformation) also shows that 50% of SMEs would be willing to pay for a enhanced personalised experience and that they are willing to share data for a more personalised experience.

So SMEs can realise benefits through cheaper and personalised services and also time savings enabled by integrated offerings for them.

 Partner Hub offers a white label e-invoicing platform. How could a bank convince a customer to use its own platform instead of one of the solutions available on the market? What advantages would using the bank’s platform bring to the customer?

The bank can provide an end-to-end service, integrating invoicing, payments and financing and a real time dashboard about the SME’s finances. The customer does not have to connect various applications, but gets everything in one place. This saves time for SME owners, which is the most valuable thing for them.

However, if the bank does not want to launch its own e-invoicing solution, but integrates with other service providers, it should also get the invoice data and provide the dashboard functionality for the customer, and not only provide the data through its open banking interfaces. Just like with open banking, where the customer can see all its bank accounts together, with presenting invoice-related data, the bank can show a full financial overview insted of only banking related information, which is very usefule for SMEs.

Regarding the integration of the platform, how does Charlie India position itself? Can the platform be defined as “plug and play” or does it require significant intervention from the client’s IT department? How does Partner Hub simplify the integration process and ensure a smooth end-user experience?

With our first customers we worked with a model where they had the opportunity to provide the business requirements, while we invested a lot of time into their education regarding invoicing. This approach can work, but we think it is easier, cheaper and faster for the bank to use the default feature set that we are providing, and treat it as a plug and play solution for the invoicing backend functionalities. We have a low-code integrations technology, and we propose to use the bank’s own open banking APIs for the banking integration, which makes the integration faster.

Embrace the power of electronic invoicing data and unlock new possibilities for your banking services. Discover how Partner Hub can revolutionize your offerings with their white label e-invoicing platform. Contact our sales department to know more about.

Sme
Skip to content