Ebook

Lockbox and Remittance Data Extraction with AI

Lockbox and Remittance Data Extraction with AI

How to automate most of the data extraction required to apply cash to your customer accounts?

Cash Application has long depended on manual efforts to read and create a file of all the remittance advice provided by customers with their payments. Data extraction from lockboxes and remittances is cumbersome and very costly for global finance and treasury services.

AI-driven Document Data Capture Assistants can extract payment and remit information accurately from a wide range of formats and sources such as EDI transmissions, hard copy remit advices, vendor portals, Customer Care/EIPP portals, and from the new Digital payment methods (Stripe, PayPal, Square, etc.). The Digital Assistants reduce labor cost to very low levels, whether in-house or with lockbox fees.

Download this eBook to understand how to:

  • Automate lockbox and remittance data with 90% and above accuracy levels
  • Improve remittance process efficiency and reduce lockbox fees
  • Achieve 90% and above straight through processing
  • Enhance customer service and improve accuracy levels
  • Assimilate new business units into a Shared Services Organization

A glimpse into this eBook

  • Major Advancements in Digital Technologies and the proliferation of new digital payment modes have presented an opportunity for lockbox automation to realize significant reductions in the cost of lockbox services.
  • The technology improvements are in information capture: receiving remit advice directly, extracting required remittance data from the remit advice, and automatically applying it to open invoices.
  • Machine Learning, Natural Language Understanding, Artificial Intelligence (AI), Document Data Capture Assistants, and AI Data Extraction/Intelligent Document Processing (IDP) are capabilities that improve Cash Application processing.

AI Enabled Digital Data Capture Assistants extract remittance data from multiple sources in multiple formats, such as:

  • Customer Vendor Portals
  • Your own EIPP Portal populated by your customers
  • Excel/PDF files and statements from customers and lockboxes
  • EDI 820 or BAI2 transmissions from customers
  • New Digital Payment modes (Square, PayPal, etc.,)

AI Enabled Digital Data Capture Assistants create file of remit data to be input into Auto Cash Application

  • Integrate with bank lockboxes and your own ERP AR and Collection modules
  • There is a significant opportunity to substantially reduce bank lockbox fees incurred in the Cash Application operation
  • It is achievable using Artificial Intelligence (AI) Automation and related technologies
  • AI Automation can also perform 70 – 90% of manual operations in Cash Application

Receive payments and deposit into bank account

Costly handling of Remittance data:

  • Monthly bank lockbox fees (rental & maintenance) are fixed cost
  • Check & remit advice scanned for per transaction fee
  • Remit data keyed by lockbox staff into file for a per keystroke fee, which is then transmitted to client
  • Total processing cost for a check approximately $2.50
  • Client uploads file into Cash Application engine or manually inputs data
  • An issuer of a high volume of invoices pays high lockbox service fees

Significant volume of outreach to customers via email or phone to secure remittance data is often still required

Document Data Digital Assistants reduce the scanning and data input costs charged by the Lockbox Provider

  • Receive remittances directly from customer via EDI, with new Digital Payment modes, from customers’ vendor portals, your EIPP/Customer Care portal, and via e-mail
  • Document Data Capture Assistant extracts required remit data and creates a file for input into auto-cash engine
  • Check & remit advice scanning fees from lockbox decreases with lower volume of Remits
  • Remit data keypunch per keystroke fee from lockbox decreases with lower volume of Remits
  • Savings of $1 to $2 per payment can be realized

Program to change Customer Payments from checks to other modes will drive lower payment processing costs as well as scanning and keypunch fees.

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