Integrated receivables are a concept that many bank customers are now considering as they look to consolidate all their payment streams, whether paper or electronic.
Typically, when an ACH payment is received electronically, the company gets a deposit from its customer into a banking account, while payment details are emailed to the corporation. It’s then someone’s job to match the payment to the appropriate remittance document.
For fairly obvious reasons, these customers are looking to provide as much remittance matching as possible, and to do so in an automated fashion.
Bringing disparate payments and payment information together in a straight-through process like this would eliminate one of the biggest headaches in the marketplace. Such a single-file approach would also make it easier for corporations to post those payments to their accounting or enterprise resource planning system.
Bill Zayas, CEO of DadeSystems, said this is exactly the problem his startup is working to fix.
Zayas said DadeSystems’ approach from day one has been to develop a next-generation payment processing solution from scratch, focusing on what the corporate needs from the solution instead of looking at it from the bank’s perspective — which he said is the approach most take.
DadeSystems, he said, set out to develop its technology from scratch rather than borrowing from previous innovators. That enabled the startup to embrace unique elements such as creating a pure cloud-based offering using open-source technology from the start. Machine learning also plays a substantial role in the solution, he said.
“We have provided solutions directly to the corporate marketplace, but provided by experts in the banking world,” Zayas said.
DadeSystems has recently entered the banking space, signing its first major banking client, Fifth Third Bank, in January. Zayas said the focus remains on serving corporates, but that partnering in the banking space can help the startup “reach the high shelf” due to the enormous reach of existing marquee players.
Zayas noted that he, DadeSystems Founder David Wilson and CMO Tom Berdan all hail from the FinTech space — bringing with them unique experience sets that enable them to speak to banks in their own language while ultimately serving the bank’s customer.
Zayas was formerly president of Harland Financial Solutions, a major FinTech provider of core, lending and point solutions covering back-office processing, internet banking, online account opening and compliance documents.
Harland Financial was owned by private equity firm MacAndrews & Forbes. Zayas took the role of COO when Canadian check printer D&H bought out the firm. It was via his network at Harland Financial that Zayas eventually got connected with DadeSystems in 2014.