RBS selects Taulia to close Gap in Supply Chain finance offerings

The recent announcement that The Royal Bank of Scotland (RBS) has partnered with Taulia to offer its corporate clients dynamic discounting with e-Invoicing comes at a time when many banks are watching this space. The general banker consensus is that there is an increased “buzz” for a select group of the noted providers but it is still “early days”.

Knowing the bureaucracy in banks to both select vendor partners and then onboard a vendor can take years, not months, it was good to see RBS determine a strategy for the best of their own clients.

After going out with RFI which literally had 300 questions around security, policies, etc. you could imagine the process to narrow the vendors to RFP and then a final selection.  I am sure RBS had a chance to see what both the traditional bank vendors had to offer as well as the P2P and einvocing innovators, and took their time to learn via the RFI process.

A bank’s trade and supply chain vendors are not suited to build platforms to transfer assets. These traditional vendors like CGI, China Systems, Misys and others have built systems to integrate into the bank’s back office systems (general ledger, credit, risk, deposit accounting, etc.). Other vendors like Fundtech , Tieto and Bottomline have built einvoicing platforms for the banks. The P2P vendors include ones we cover here extensively on Spend Matters like Basware, Tradeshift and of course Taulia have taken integration capabilities to another level with the ability to transfer assets via early payment.

In the end, it appears that Taulia and Tungsten (PNC Bank) have the early leg in with the banks and a few other solutions have made their bets (Basware with Mastercard and Arrowgrasss Capital). It will be interesting to monitor how others proceed.

Taulia now has a large commercial customer base to offer its solution. We know einvoicing solutions can be very sticky once implemented, but banks have been hard pressed to get much uptake with their own propositions. Having a partner like Taulia to present the solution, do the integration into a clients ERP and provide the tools and dynamic discounting functionality allows RBS echannels group a way to provide their corporate a better experience than logging onto a bank platform.

We have already seen PNC pick their partner in Tungsten, so banks are beginning to plug gaps.

What do Corporates really think? What do they want? And how will other banks respond?

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