Introduction

Charlie - India Invoice Hub

Invoice related services by

banks – why?

Market potential

References

Charlie-India the globally

interoperable e-invoicing

network

Partner HUB Ltd -

Katalin Kauzli

10/30/2018

www.charlie-india.com

Incorporated in 2015

10+ years of experience

in developing invoicing systems

Flagship product:

CharlieIndia Invoice HUB for banks:

White-label e-invoicing platformCustomers sought:

Banks wanting to provide value added services

for SMEs

New markets:

Europe from 2018

Charlie-India Invoice HUB for banks is

an 80% ready-made white label software

product, which is to be integrated into

the internet bank for invoice related

services.

1. Customer and supplier invoice management:

a) Receiving and processing supplier invoices

b) User interface for paper based/pdf invoices together with OCR

c) Issuing tax regulation compliant e-invoices in any tax jurisdiction

d) Easy integration with ERP/accounting/invoicing systems

2. Integration with the bank’s payment system

a) 1-click supplier invoice payment generated from invoice data

b) matching invoice data with payment data

3. All required back office functions

Level of digitalization and integration of

purchase-to-pay processes

Why

Payment delays are often caused by

inefficient invoice processing,

which affects SMEs the most

• The penetration of e-invoicing is

the lowest in the SME segment

• No proper offering for SMEs for

interoperable invoicing services

• e-invoicing saves 60-80% of

invoice processing costs compared

to paper invoicing

• Banks shall provide invoice and

receipt and convenient payment

services

• Payment transaction will stay at

the bank even after the rise of

open banking (PSD2)

Invoicing 2.0

Connected invoicing with banks

as backbone of the network

• Banks form the backbone of the

network as every business has a

major bank, banks can support SMEs

to digitalize

• Data exchange among networks

• Fully available data assets for

analytics

• Prevent churn, provide additional

financing, decreasing risk costs

• Total efficiency increase potential

realized by enterprises (60-80%

on invoice processing costs) due

to interoperable networks

Market potential

Rationale for banks to

enter the market

• The global e-invoicing and enabler market size: EUR 16.6 Bn* in 2024

• European payment industry: EUR 267.8 Tr in 2016** (with related payment

revenues of EUR 370 bn in 2014), this means EUR 366 Bn financing

opportunity with an additional EUR 9.1 Bn annual interest income for

banks in Europe and 23.8 Bn savings for the enterprise sector) on equity

costs

• The SME sector in Europe will realize EUR 112 bn*** savings on invoice

processing cost on transformation from offline to online invoicing

*Billentis Report http://www.billentis.com

**European Central Bank:Value of payment transactions involving non-MFIs, McKinsey: Global Payments 2015: A Healthy Industry

Confronts Disruption, assuming 10% B2B payment ratio, taking an average 5 days extra financing, 2.5% loan interest rate, not

calculating with related savings on risk cost, 9% required rate of return for enterprises

***estimation based on employee categories per size, 250 invoices per employee (in-and outbound)/year, EUR 3.5 savings/invoice, based on http://www.billentis.com/e-invoicing-businesscase.pdf, for 23.3mn businesses employing 0-249 people in Europe

OTP ebiz functionality

Banking reference casestudy

CharlieIndia Invoice HUB is the core system for OTP Bank Plc’s eBIZ service

INVOICING, HANDLING INVOICES

• Issuing invoices with eBIZ invoicing solution• Time stamping e-invoices

• Sending and receiving e-invoices within the eBIZ network

PAYMENT SERVICES

• Instant one-click payment of received e-invoices, withoutthe need to separately enter the internet banking surface

• Invoices to be paid may be put into a payment package,

which may be digitally signed within the application

• Notification about the fulfilment of signed transactions

(payment of invoices)

LIQUIDITY MANAGEMENT

• Up-to-date information and forecasts about the liquiditysituation of the companes

• Charts relating to money transfers and expected revenues

and expenses based on invoicing data

BANK SYSTEM INTEGRATION

• eBIZ has a direct connection to OTP Bank’s account system, therefore it is possible to have up-to-date account

information, initiate and approve payments within eBIZ

UP-TO-DATE PARTNER

INFORMATION

• Online information about customers and suppliers thanksto the integrated official company registry into eBIZ

• In case of non-payment customers of the client may be

notified through eBIZ

ACCOUNTING SYSTEM INTEGRATION

• Within eBIZ, the banking client has an online connectionto its accountant. The accountant can see all sent and

received invoices, their payment status. The accountant

can set up payment packages for approval related to

wages and tax payments.

Proof-of-concept network in Hungary

• Operational and pilot

solutions• Participants can send and

receive/present invoices from

each other• In the center stands the

market leader bank (OTP Bank) with a full scale e-

invoicing solution for SMEs

• Second bank just has been contracted

• Utility companies and ERPs are already connected