CINCINNATI – Fifth Third Bancorp (NASDAQ: FITB) today announced a strategic relationship with Mastercard and AvidXchange™ to bring a best-in-class automated accounts payable solution to Fifth Third Bank’s clients. The collaboration is one of several recent business relationships with a financial technology company intended to bring efficiency and innovative digital solutions to clients.
As part of the relationship, Fifth Third will become the first bank to join The Mastercard B2B Hub powered by AvidXchange, a solution announced earlier this year.
“There are a number of inefficiencies and complexities that traditionally come with managing payments,” said Bridgit Chayt, senior vice president and director of commercial payments and treasury management for Fifth Third Bank. “Joining The Mastercard B2B Hub will help eliminate these pain points for our clients in an innovative and user-friendly format. The relationship aligns with and supports our NorthStar strategy to better serve our clients through technology.”
Delivered through card issuers, The Mastercard B2B Hub is an end-to-end automated platform that converts payable processes traditionally done by paper into an electronic transaction. More than half of U.S. business-to-business payments are still made by paper check, a costly, inefficient and insecure method.1
The Mastercard B2B Hub leverages AvidXchange’s technology to maximize electronic payments using virtual cards and enhanced automated clearing house (ACH). With it, businesses will no longer face the burden of costs or potential errors associated with manual accounts payable processes.
“The North American market for B2B payments is $25 trillion and yet, in the U.S., over 50 percent of B2B payments are still being made by check. It is inefficient and expensive. Fifth Third is meeting these challenges head on by offering the B2B Hub to businesses who want to increase their financial control by outsourcing their payments processes,” said Colleen Taylor, executive vice president of new payments business for Mastercard.
This announcement follows an equity investment in AvidXchange last year by Fifth Third Capital Holdings LLC, an indirect subsidiary of Fifth Third Bancorp. Mastercard also invested in the Charlotte, North Carolina-based financial technology company earlier this year.
“As a result of our partnership with Mastercard, which we announced in June, we’ve created a great solution for banks to make it easy to offer accounts payable and payment automation solutions with The Mastercard B2B Hub powered by AvidXchange,” said Michael Praeger, AvidXchange’s chief executive officer. “We’re very excited about Fifth Third being the first bank to use the B2B Hub to bring our great value-added solutions to their customer base. We admire Fifth Third’s dedication to being on the forefront of revolutionizing commercial payments, and we feel honored to be selected as the Bank’s technology partner in this endeavor.”
About Fifth Third
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of June 30, 2017, the Company had $141 billion in assets and operated 1,157 full-service Banking Centers and 2,461 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. In total, Fifth Third provides its customers with access to more than 45,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2017, had $330 billion in assets under care, of which it managed $34 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the Nasdaq® Global Select Market under the symbol “FITB.” Fifth Third Bank was established in 1858. Member FDIC, Equal Housing Lender.
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
AvidXchange revolutionizes the way companies pay their bills. Serving more than 5,500 clients throughout North America, AvidXchange is an industry leader in automating invoice and payment processes for midmarket companies spanning multiple industries including Real Estate, Non-Profit, Financial Services, Energy, and Construction. AvidXchange has been recognized as one of the 50 fastest-growing private companies in the Charlotte area for four consecutive years, as well as ranked among Deloitte’s Fast 500 this past year. In the midst of record growth, AvidXchange has remained true to its most valued competitive advantage—its people. AvidXchange has been recognized as one of the Best Places to Work in Charlotte for eight consecutive years. For more information, contact AvidXchange at 800.560.9305 or info@AvidXchange.com.
12016 AFP Electronic Payments Survey.