Winner: BankLink
BankLink, a company that provides systems and software solutions that remove the stress for accountants servicing small businesses, earning more than $20 million annually, has won the award for Most Innovative Approach to International Business in the New Zealand International Business Awards 2009.
Thousands of accountants in New Zealand and Australia pay a monthly fee to use the BankLink system, says Director Derek Jones. Instead of the small business owner entering their transactional data into an accounting or cashbook product, BankLink collects this transaction data electronically from financial institutions and then supplies it to the small business’ accountant. The accountant then processes this data using BankLink software and prepares financial reports and tax returns for their client.
Mr Jones says this saves the accountant time and money by ensuring they receive more accurate and timely information and means the small business operator doesn’t have to “struggle with the books”.
Founded in 1986, BankLink expanded into Australia in 1993 where it now has about 3,000 accounting practices using the system, ranging from sole practitioners to large international firms, between them servicing around 150,000 clients. Sales to Australia took off rapidly after 2000, when GST was introduced. BankLink also has a significant niche market in Australia processing data for self-managed super funds.
BankLink is marketed exclusively to accounting practices, who in turn sign up their small business clients to use the system. “It’s a strategy that gives us a strong competitive advantage,” explains Mr Jones, “as it means the accountant is in control of the system used by his or her clients – BankLink is not seen as a threat to that relationship.”
BankLink has also engaged channel partners to provide additional reach to its sales effort. These include MYOB, the largest supplier to accounting service providers in Australia. By collaborating with and supporting potential competitors, Mr Jones says it has defused the potential for competition. He points to MYOB, which used to market a competing service in Australia but has terminated it and shifted the client base to BankLink.
The first phase of entering a new market is getting supply agreements with the financial institutions to purchase the transaction data. In Australia it got three major banks on board and then took the product to market. It now has supply agreements with 100 different financial institutions in that market.
Mr Jones says there is a lot of potential to further grow its Australian business, through sales to new clients, and more importantly by intensifying the usage within individual accounting practices. It is also selling Workflow Manager, a complementary software tool to help accountants plan and manage their work more efficiently.
After 2000, BankLink appointed people on the ground in Australia and today has a 25-strong sales and consulting team working throughout the country.
“They are constantly talking with clients to make sure they understand the breadth of the systems and how many of their clients are applicable to the service. We also provide information and training seminars for clients and prospective clients, with the enthusiasm of the former for the system helping generate new sales.”
BankLink is also expanding into the UK, where it is currently running a pilot programme and working to secure supply agreements with financial institutions. To support the growth of its international business it has increased staff numbers in its Auckland office to about 80.
“Our extremely dedicated and loyal staff are one of the keys to our success,” says Mr Jones. “The other key is our single minded focus. We supply to accounting practices only, providing the tools that enable them to deliver a more efficient service to their clients. By doing that, we also remove the drudgery of doing the accounts from the small business owner.”
For further information
Derek Jones, Director, BankLink, 0800 226 554, derek.jones@banklink.co.nz, www.banklink.co.nz, www.banklink.com.au
Ann Clifford, Corporate Communications Manager, New Zealand Trade and Enterprise, 04 816 8321, 027 283 3858, ann.clifford@nzte.govt.nz
