While there have always been challenges in partner management, the pandemic complicated things to a point of destruction for some management processes.
Financial Institutions work with various partners who bring in business for financial products and build the social network. These partners have different fields of expertise and work on a commission basis.
These partners provide services basis product type, regardless of geography, and season. For which the commission slab varies from partner to partner. So managing a large set of partners, their commission & invoicing in manual mode, is operationally challenging.
In this article, we’ll cover the most common challenges of management in partner relations and how to overcome them.
Most Common Partner Management Challenges
A recent study from Venminder shows that the top challenge most partner relationship personnel face is time management.
In every industry, there is one similarity… despite the fact that it doesn’t fully capture the risk management challenges that have the greatest impact on your bottom line.
The most impactful challenges include
- Manual processes (lack of automation)
- Missing or not updated partner information
- Database creation
- Payment & compliance risk
Our product, ezPayout helps to automate end-to-end partner management. It consists of 3 modules as follows,
ezOnboarding: Module focusing on automated partner/vendor onboarding
ezPayout: Module focusing on payout calculations
ezInvoicing: Module Focusing on invoicing
Read more about the soft cost of vendor commission management using the spreadsheet, read here!
Manual processes
Even if the business process is optimized, still there are some processes that are carried out manually. The manual process includes manual onboarding of the partner, then calculating the commission payout, and even the invoicing, which makes the entire partner management tedious.
Sticking with manual processes instead of automating them means less time for more important tasks, wasted resources, and information that is not accurate or up to date.
Financial Services companies work with various sets of partners, & onboarding these many people across different branches, is a manual process.
Then calculate commission payout for various ongoing schemes, on monthly basis & keep a track of their performance, carrying out it manually is an error-prone task, one single error can cost a lot.
Solution
Automating the manual process partner process ensures that internal communication improves, improves operational efficiency, reducing the amount of time spent on manual, repetitive, and time-consuming tasks.
Automating the payout calculation, ensuring accuracy, total system-driven system reduces the possibility of number malfunction risk. So it saves time, cost & resources. So that the FI’s employees can focus to scale the business.
Missing or outdated partner information
Whether the partner data collection & management is done on paper or spreadsheet, the data is either incomplete or inaccurate and again it requires manual verification of the entity. So this again increases the TAT.
When using paper or spreadsheets, it is also necessary to manually collect and maintain vendor documentation & question the authenticity of the partner.
Solution
Automating & standardizing the process, helping to organize & centralized the data. A standardized process ensures complete & correct data. Plus the automated software does real-time document verification, so saves a lot of time or resources in verification.
Centralized data storage
When managing vendors without a repository- a centralized data storage solution- it is difficult to store, retrieve, and collaborate with multiple partners at once.
Through improved visibility, you can also streamline resource allocation and redesign enterprise risk mitigation – whether you’re auditing for compliance or streamlining resource allocation.
Compliance and partner payment risks
Without standardizing your relationship management with partners, you may be working with partners that don’t suit your business needs or that are not performing well.
With a large set of partners, detailed KYC verification, and periodic contract renewal is challenging task, from a compliance perspective.
Solution
Automating the Onboarding & invoicing, making the processing system driven. And automates the contract renewal, for the partners. And making the system standardized process of onboarding, with detailed KYC & real-time verification.
Helps to reduce the risk in the partner management lifecycle, and builds stronger relationships.
To know more about ezPayout schedule a demo @ sales@analyticsfoxosftwares.com
