Where Financial Institutions Fit in the AR/AP Value Chain

Summary

In this episode, Hugh Thomas of Javelin Strategy maps the complex AR/AP value chain and explains how banks and card networks can find sustainable roles without overreaching into procurement. He highlights successful partnerships—such as Mastercard with SAP Taulia and Visa’s embedded finance models—that let financial institutions embed payment and liquidity tools at multiple points, improving cash‑flow and risk management for both buyers and sellers. Thomas also warns that fintech SaaS providers are encroaching on traditional banking services, urging banks to identify execution gaps and partner selectively to protect revenue while leveraging real‑time data and AI to optimize payment timing.