Stanbic Bank has launched a new suite of financial solutions designed to make cash collection and payments more efficient for organisations and to help them streamline their supply chains.
The solution dubbed Lipa 360, offers the bank’s clients across various sectors, an end-to-end platform to better reconcile and manage their funds and cash flows in real time whether making or collecting payments to and from vendors respectively.
Speaking in Nairobi during the launch, Stanbic Head of Business Banking Ben Wandawanda said the new payments and collection will be holistic in the case of schools collections and payment solution or will be specific to certain collection and payment capabilities such as tax payments, and utility payments.
“What the bank does at the onset is look at the entire value chain and identify opportunities to facilitate better cash management solutions,” he said.
Mr. Wandawanda said the solution is applicable across sectors and has already been successfully deployed at Strathmore University, KenolKobil, and Meru Dairy Farmers and at several flower farms in Naivasha, with significant benefits to the organisations.
He said that the solution will change the way organisations track payments made and received.
“For instance, currently in the education sector, the parent initiates payment through different options into a school account at a branch for their children. The student then presents a physical receipt of confirmation of payments made when they report to school. These copies are then shared with the finance team who reconcile all payments and advice on any shortfalls,” said Wandawanda.
He said the other payment processes have several flaws and is time consuming to both the parent and school accountant. Reconciliation more so for students who pay in instalments as per prior agreements with the school becomes a recurring nightmare for both parties.
“With the new solution, all payments to the school account contain the student number as a reference. Payments are validated electronically and reconciliation with the student account is done automatically in real time eliminating the tedious manual reconciliation inherent in the current set-up,” he said.
The same process applies when dealing with firms in other sectors like Oil and Gas as well as Agriculture where organisations such KenolKobil and Meru Dairy Farmers, use the client number as reference. Head of Transactional Products and Services Joe Alaro affirmed that the platform will go a long way in streamlining transactional flows.
“In today’s business environment where cost management is a high priority, it is our aspiration to help organisations to significantly improve their operational and cost efficiency by automating their transactional flows. These solutions offer unique savings features by optimizing cash flows and working capital.”
The solution is either provided by the bank as a whole or plugs into an existing system that the client has already implemented.