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Making a business payment

How to pick the right financial partner in a growing field of claims portal providers.

Many insurance companies have started to replace paper checks to pay out claims in favor of digital portals. These digital payment portals offer claimants a variety of faster payment options to choose from and have been a logical next step for the insurance claims industry. Claimants that have faster access to their funds can start putting money towards repairs sooner as they no longer need to rely on waiting for a check to arrive in the mail.

The rise in popularity of payment portals has led to an increase in providers on the market. But how do you know if your payment portal provider will be around in the long run?

Is your payments partner stable?

The market is currently saturated with financial technology (fintech) companies that have entered the digital payments scene within the last decade. Often, these firms are funded through venture capital and have scores of investors looking to capture the attention of both the insurance industry and other big name fintech investors. While not always an indicator into whether the service and solution they provide is on par with others on the market, would you be comfortable with the idea of your provider being sold to another company? What if you’ve already vetted the purchasing company and declined to move forward with them during the RFP process? The purchasing company may make a statement that their acquisition of your provider will have little impact on the systems you have in place. Yet it may still sting to know that the provider you were excited to use has been replaced with one you’ve already vetted. And what if your new provider chooses to work with a different sponsor bank to handle your funds? Would your business be okay with whatever bank they choose? Likely not. No one appreciates a bait-and-switch, especially when claimants’ livelihoods are on the line.

Company acquisitions are rare, but they do happen. And when they happen, the last thing you want is to go through the RFP process again. You’ve likely invested time and money to build a relationship with a company that aligned with your business’s corporate values and strategies. A new, forced relationship paves the way for the possibility of your service model being sent into another direction that your business was not prepared to handle.

The alternative to fintechs.

It’s recommended to find a partner that’s been established as both a stable entity and an innovator. For example, if you find a financial institution that provides a similar service, it may be best to work with them. Not only can they provide you the same technology that the fintechs have to offer, they undergo additional scrutiny when it comes to mergers and acquisitions and can be seen as relatively stable institutions to work with.

It’s also important to find a financial institution that respects your established banking relationships by allowing you to utilize their payment portal without the need to switch over your entire company’s treasury services. A great payments partner will work alongside your existing bank to help facilitate claims payment.

The power of digital payment portals.

Stability, reliability, and innovation should be key when it comes to picking a financial partner that can help you achieve your future payment strategies. Having been in operation for over 150 years and led by the same family for 6 generations, Commerce Bank is a payment portal provider and a financial institution that has continuously provided smart solutions to our customer’s challenges. Having been ranked among the highest-performing institutions for eleven consecutive years, Forbes recently recognized Commerce Bank among America’s Best Banks in 2020.1

We’ve seen and heard the benefits that claimants receive when their funds become accessible within minutes. It’s no secret that check use among consumers and businesses is at the lowest it’s ever been. The monetary and employee work-hour cost of having to print, sign, approve, mail, and reconcile checks has been adding up for a while. Claimants are hungry for secure digital claims payments and insurers are eager to get on board.

If your business is currently looking to adopt a claims payment portal, check out our six questions that you should consider when shopping for a provider. Finding the right provider to partner with can be time consuming. And in today’s environment, it can be tough to gauge if the provider you choose will be around for the long haul. Working with a provider that has both an established reputation and a passion for innovation is more paramount than ever.


About Commerce Bank

With $30.5 billion in assets2, Commerce Bancshares, Inc. (NASDAQ: CBSH) is a registered bank holding company offering a full line of banking services, including payment solutions, investment management and securities brokerage. Commerce Bank, a subsidiary of Commerce Bancshares, Inc., leverages more than 150 years of proven strength and experience to help individuals and businesses solve financial challenges. In addition to offering payment solutions across the U.S., Commerce Bank currently operates full-service banking facilities across the Midwest including the St. Louis and Kansas City metropolitan areas, Springfield, Central Missouri, Central Illinois, Wichita, Tulsa, Oklahoma City, and Denver. It also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids. Commerce delivers high-touch service and sophisticated financial solutions at regional branches, commercial offices, ATMs, online, mobile and through a 24/7 customer service line. Learn more at www.commercebank.com.

Disclosures:

  1. As of January 2020.
  2. As of June 30, 2020.