KeyBank announced yesterday (Sept. 23) that it has selected AvidXchange as its strategic partner for leading the charge for its payment automation solutions.
By pairing with AvidXchange, KeyBank's clients will be able to shed their paper-based process with a more innovative payment process that utilizes end-to-end digital capabilities. Because the platform is integrated with more than 100 of the most common accounting systems, KeyBank said this will allow its clients to get their new systems off the ground without intensive IT work.
“Our strategy centers around targeting the customers we want to do business with and delivering them best-in-class solutions that truly make their businesses better,” said Group Head of KeyBank Enterprise Commercial Payments Clark Khayat. “That’s why we canvass the FinTech landscape to find the emerging technologies, like AvidXchange, that are true differentiators. The success we’ve had with these partnerships demonstrates that our clients trust us to find the right solutions, especially when they complement our core services so well.”
AvidXchange has been making headlines recently after it secured a $225 million funding round, led by Bain Capital. Foundry Group, NYCA Partners, KeyBank, Square 1 Bank, and TPG Special Situations Partners also contributed. AvidXchange works with 5,000 customers in North America (with revenue between $5 million and $1 billion) and close to 300,000 vendors.
AvidXchange will use some of its newfound capital to use the data that its network has captured over its 15 years in business to create a dynamic cash management option that gives vendors the option – in real time – of choosing when they want to get paid, with AvidXchange reducing their credit underwriting risk since they have all of the history between that vendor and that customer.
“Combining our investment along with the strategic partnership is a critical aspect, because it fully aligns Key’s interests with AvidXchange and ensures an integrated view of the product roadmap and client experience,” adds KeyBank Enterprise Commercial Payments Head of Product & Innovation Ken Gavrity.
“We consider KeyBank to be one of the most innovative banks in the country and we’re thrilled to have them as both an investor and partner. From the outset, they’ve had a strong commitment to the partnership and a team truly focused on delivering a great client experience. It’s a win for AvidXchange, KeyBank and, most importantly, our collective client base,” said AvidXchange CEO and Co-Founder Michael Praeger.
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