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BILL.COM AND BARLOW RESEARCH ASSOCIATES UNCOVER MASSIVE DISCONNECT AND TREMENDOUS OPPORTUNITY FOR SMALL BUSINESSES AND BANKS

September 5, 2012

BILL.COM AND BARLOW RESEARCH ASSOCIATES UNCOVER MASSIVE
DISCONNECT AND TREMENDOUS OPPORTUNITY FOR SMALL BUSINESSES AND BANKS

White Paper Explains Why Cash Flow Management is Critical for SMBs and Lucrative for Banks

PALO ALTO, CALIF. and MINNEAPOLIS, MINN.— Sept. 5, 2012 — Bill.com, the leader in integrated
bill payment, invoicing and cash management solutions for businesses, today
announced the availability of a whitepaper by financial services research firm Barlow Research Associates, Inc. entitled “Financial Institutions Can
Win by Helping Businesses Manage Cash Flow, ” available at http://www.bill.com/for-banks. The whitepaper argues that multiple disconnects, including the lack of integration between accounting systems and banks,
represent a huge hindrance and massive opportunity for SMBs and banks.  

According to the
whitepaper, “managing cash flow continues to be a complex and time-consuming
task. Whether using paper ledgers or accounting software, checks or online bill
payment, the pain of managing cash flow still plagues businesses due to the
manual and disjointed nature of the process.”

Although accounting
software and Internet tools are both highly used as of today, they are not
connected. For example, Internet banking has become an integral part of
managing cash by giving businesses real-time access to information on their
bank accounts. A 2011 study from Barlow Research indicates that 60% of small
businesses ($100K-<$10MM in annual sales) and 83% of middle market companies
($10MM-<$500MM in annual sales) use Internet banking. The top rated feature
for online banking users is the ability to monitor account balances and account
activity, both critical inputs for managing cash flow. With advancements in
technology and the increase in availability of services such as mobile banking,
financial institutions are making the task of monitoring accounts more
accessible than ever.

When
assessing bookkeeping methods, Barlow data suggests that 49% of small
businesses and 82% of middle market companies use accounting software to help
them balance their books. Despite high adoption of online banking and
accounting software, the two tools often operate in isolation, causing
dissatisfaction among online banking users. In a 2012 Bill.com survey, 53% of
respondents cited “a lack of integration between online banking and accounting
software” as the reason for their dissatisfaction with their bank’s online
banking offering.

Bill.com delivers
a complete web-based financial solution for businesses and accountants that provides the tools, information,
and collaboration required to better manage their financial tasks and optimize
cash flow. Bill.com's game-changing technology digitizes a historically
paper-based and time-consuming process, allowing users to access online bill
payments, e-invoicing, document management, and automated workflow through one
easy system. In addition to seamlessly integrating with business' existing
accounting software programs, Bill.com provides financial leaders with a
comprehensive view of their cash forecast – making it the only solution that
connects a user's banks, bookkeeping, and business. The Bill.com system is being
embraced by the banking industry, bringing banks a first-of-its-kind platform
that enables them to offer business customers powerful accounts payable and
accounts receivable services, develop additional revenue streams, and increase
customer acquisition and retention.

“Now is the time for
financial institutions to solidify their position as a central partner to
businesses of all sizes,” said John Barlow, President, Barlow Research
Associates. “As our report states, the future of Internet banking needs to
leverage technology that fully addresses the customers’ pain while delivering
financial benefit to the bank. Companies like Bill.com are leading the way in
taking a burden away from SMBs while giving banks lucrative new revenue
opportunities.”

According to the whitepaper, “with the high level of adoption of
accounting software, it is not surprising that 96% of Bill.com customers rate
accounting integration with Bill.com as ‘mission critical’ or ‘essential’ to
their businesses. Bill.com syncs with five leading small and middle market
accounting software packages, including QuickBooks, QuickBooks Online, Sage 50
(formerly Peachtree), Intacct, and NetSuite. The robust integration provided by
Bill.com eliminates the manual processes of data entry between systems.”

Some
additional findings from the whitepaper include:

  • Financial service delivery is no longer “one size fits all.” As
    digital touch points expand, the challenge is to simplify usability and
    consistency not only within the bank, but also between the bank and customer
    bookkeeping systems. Integration of financial management desktop tools can be a
    game changer for online banking. In a 2011 Barlow Research survey of online
    banking users, 45% of small businesses and 39% of middle market customers
    indicated they would consider changing banks if offered a significantly better
    business Internet banking system.
  • Retention of business customers is vital to financial
    institutions. According to Barlow Research Associates, the average net
    potential revenue to a financial institution for a small business customer is
    $5,784 and $140,433 for a middle market customer, based on nine major fee and
    balance contributors. With 8.4 million small businesses and 85,000 middle
    market businesses, the value of the market is over $60B in revenue annually.
    Business customers represent high value to banks, therefore securing the
    customer relationship can deliver considerable financial value.
  • Decreasing fee income has become another pressure point for
    financial institutions. The FDIC Call Reports indicate fee income from
    institutions with >$50B assets has decreased by more than 20% from a total
    of $31B in 2009 to $24B in 2011. Integrating Bill.com’s services allows banks
    to monetize the cash flow management process to the tune of nearly $750K in
    gross revenue for every 1,000 customers on the system.

“This whitepaper
validates what has been our driving force since day one: the manual, disjointed,
and inefficient process of managing cash flow today simply does not work,” said René Lacerte, founder and CEO of Bill.com. “By offering an automated,
integrated, and comprehensive cash flow system online, banks can deliver new
value to their clients and add new revenue streams. Being central to their
client’s cash flow management process means that banks can capture a broader
base of payment volume as alternate business payment methods emerge. We look
forward to watching banking evolve as cash flow management becomes more and
more important to their business.”

About Bill.com’s Banking Solution

The Bill.com cash flow command and control
system is the only solution that makes banks the core of their customers’
business. By allowing banks to integrate the Bill.com solution with their own
platform, Bill.com empowers banks to own the entire cash flow management
process—from payables to receivables to cash flow visualization. Bill.com makes
banks the focal point of all their customers’ transactions, letting banks
monetize the full cash management process while solving a significant pain
point for SMBs by finally automating and connecting all of their financial
processes. The award-winning Bill.com platform is being embraced by banks
because it creates significant new revenue streams while enhancing customer
loyalty and satisfaction. For more information, please visit http://www.bill.com/for-banks.

About Barlow Research Associates

Barlow Research Associates, Inc. (BRAI)
was founded in 1980 to provide research and consulting services to the financial
services industry in the United States and overseas. BRAI specializes in custom research and
strategic consulting, and has developed a widely used proprietary product in the Customer
Relationship Audit®, a customer satisfaction research tool designed to provide actionable data at
all levels of the bank. As a top research company serving many of the largest banks in the United
States, BRAI continuously tracks normative data in their Small Business, Middle Market, and
Business Internet Banking programs. BRAI’s experience allows the company to select the
methodology that will provide clients with the most useful findings and
in-depth analysis.

About Bill.com

Bill.com
is a cash flow command and control system that manages accounts payable and
receivable for businesses of all sizes. Offering online bill pay, custom
invoicing services, unlimited document storage, collaboration tools, and mobile
access, Bill.com's services easily sync to users' accounting software programs
and online bank accounts to better control company financials. Bill.com guards
against errors and employs enterprise-class fraud protections that current
methods cannot match. More than 100,000 users are now getting paid and paying
millions of bills, worth billions of dollars, using Bill.com. Financial
institutions can now offer these benefits to their business customers by
integrating Bill.com with their banking platform.

###

 

For more information,
please contact:

Eileen Conway

Scout PR

650-245-9015

Eileen@scoutprsf.com

 

 

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