Banks and Credit Unions
If you’re a bank or credit union that doesn’t offer lockbox services, or a bank that maintains a bare-minimum in-house courtesy, you might be missing out on leveraging a lockbox service provider to its fullest potential. Below are just a few of the reasons why you might want to take a second look at incorporating a robust lockbox solution into your cash management program:
Lockbox customers routinely carry relatively high balances. This is because by offering lockbox service to your customers, you enable them to directly integrate your customers’ accounts receivable process into their banking relationship. Consequently, this serves as a compelling argument for your customers to keep a larger share of their wallet with you. Furthermore, it provides you with opportunities to sell other cash management products and services as well.
Many banks who have an in-house lockbox solution offer bare bones functionality or don’t stay on top of any new advancements in payment processing. On the other hand, we specialize in lockbox remittance processing, so we’re constantly innovating our service. This is why currently over 80 banks and credit unions have partnered with us for lockbox service, and many of those banks also rely on us to process their loan payments.
A lockbox relationship increases your customer’s ‘stickiness’. It used to be that the more products and services a customer has with you, the less apt they are to attrite. This old school retention approach doesn’t hold true as much as it used to. Even worse, it runs the risk of making your customers unprofitable if their relationship is rife with shell accounts or products they don’t use. On the other hand, a lockbox relationship still serves as the core of a deposit relationship as well as an effective means of cementing customers to stay with your bank.
Most of all, you’ll want to offer lockbox services because your competitors are offering lockbox services. When you’re calling on prospects, the subject of lockbox doesn’t come up all that often, yet when it does come up, it’s a deal-breaker if you can’t support it. As a result, proactively implementing a lockbox service should merit serious consideration. This way, when prospects ask “Do you offer lockbox services?” rather than deflecting the question, relationship managers can respond with an unequivocal “We sure do.”
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If you're a bank or credit union looking to enhance your cash management offerings with lockbox service, we'd love to hear from you!
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Lighthouse Payments Services is a third-party provider of bank-branded lockbox service. We offer both wholesale lockbox service and retail lockbox service as well as many other solutions designed to benefit your cash management clients.
331 Montvale Avenue
Woburn, MA 01801
Sales: (617) 365-1898
Service: (781) 279-0901
Fax: (781) 279-0903