TSB simplifies payment for SMBs
Revenu, TSB Bank's new application for business customers, allows them to collect payments from customers based on requests sent via SMS, WhatsApp, email and QR codes.
FACTS
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TSB has launched a new app called Income, designed to help SMEs receive payments faster and manage their business finances.
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The banking technology, developed by BankiFi, allows TSB's business customers to collect payments from consumers from requests sent via SMS, WhatsApp, email and QR code.
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The application uses Open Banking to speed up the billing process. The platform also connects to existing accounting software to streamline invoice management.
CHALLENGES
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Digitalising payments for businesses: With the Covid crisis, small and medium-sized enterprises have faced supply difficulties, which have led to payment delays. This situation highlighted the importance of improving and digitalising payment processes for businesses. TSB's digital solution aims to give a vital boost to cash flow, while providing customers with essential business management tools.
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Speeding up the payment process: As part of its Do What Matters plan, TSB Bank exceeds the requirements of the UK Government's Voluntary Prompt Payment Code by paying 97% of its SME suppliers in an average of seven days and 97% of all suppliers in an average of nine days.
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Offering an end-to-end solution by leveraging open banking: The application uses an open banking infrastructure and also connects to existing accounting software to streamline invoice management.
MARKET PERSPECTIVE
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On average, SMEs in the UK owe more than £6,000 in late payments. The Federation of Small Businesses also recently reported an increase in late invoice payments over the last three months, meaning that over 400,000 SMEs could be forced to close by 2022.
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The app has been developed exclusively for TSB by Bankifi, which recently secured a £500,000 investment from the Co-Operative Bank as part of an agreement to co-develop a payment request application (RTP), Incomeing, allowing SMEs to manage invoices, link their accounting software and receive payments.