Reduce Lockbox Fees
with Remittance Data Capture AI

Reduce Lockbox Fees with Remittance Data Capture AI

Lockbox services can be expensive as creation of the file is priced per keystroke, and scanning the check and remittance advice is charged per page. It’s possible to reduce lockbox fees with remittance data capture AI!

Cash Application has long depended on bank lockbox services to deposit customer payments and create a file of all the remittance advice provided by them. This file has been the key input for automatically applying cash and generating the resulting productivity improvements. For companies that have high customer counts and payment volumes, lockbox fees can be significant – especially when the customer payments contain a large volume of smaller value payments.

Download this ebook titled “Reduce Lockbox Fees with Remittance Data Capture AI” to understand how to:

  • Cut down lockbox fees by 85% with data capture AI
  • Auto-apply cash with hit rates of 90% and above
  • Enhance customer service and improve accuracy
  • Assimilate new businesses units into an SSO

A glimpse into this eBook

  • Major Advancements in Digital Technologies and the proliferation of new digital payment modes have presented an opportunity to realize significant reductions in the cost of lockbox services
  • The technology improvements are in information capture: receiving remit advice directly and extracting required data from the remit advice
  • These capabilities enable the user to reduce lockbox services and their cost

Data Capture AI is faster, cheaper and more accurate than having humans read documents. Even Robotic Process Automation (RPA) doesn’t work as well with multiple unknown document formats.

Data Capture AI accommodates multiple languages and currencies and delivers substantial increases in speed, accuracy and productivity

Receive payments and deposit into bank account

Create file of Remittance data with following charges:

  • 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 lockbox provided 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

Data Capture AI reduces the scanning and data input costs charged by the Lockbox Provider

In addition to Lockbox cost savings, Data Capture AI can raise auto-cash hit rates to ~ 90%, delivering large productivity increases and labor savings. Data Capture AI can automate 70–90% of the manual tasks of Cash Application.
  • Reduced Bank Lockbox Fees
  • Increased Productivity: Fewer FTEs required
  • Faster application of cash – more accurate customer account balances
  • Greater Cash Application Accuracy

Enhanced Customer Experience

  • reduce lockbox fees
    Improved Customer Experience/Satisfaction
  • Data Capture AI
    Enriched Customer Loyalty
  • Traditional Lockbox Service and Its Cost
    Greater Market Share
  • Digital Cash Application
    Increased Revenue & Profit

Customer Value

Deployed Emagia Digital Credit Automation Solution (thecreditapplication.com) with Digital Assistant

  • Digital Credit Application with digital signatures, digital trade and bank reference checks
  • Integrated with Experian & Netsuite analytical tool; automatic credit limit decisions enabled.
  • Automated resale certificate verification process
  • Automated > 80% of Credit Vetting process
  • Scalable foundation for digital ecommerce growth
  • There is a significant opportunity to substantially reduce bank lockbox fees incurred in the Cash Application operation
  • It is achievable using Data Capture Artificial Intelligence (AI) Automation and related technologies
  • AI Automation can perform 70 – 90% of manual operations in Cash Application

Data Capture AI, also known as Intelligent Document Processing (IDP), extracts & converts unstructured data into a usable format (structured data) for the next step in processing that data. It extracts all and only the required data.

Data Capture AI utilizes cognitive Artificial Intelligence (AI) and other related technologies such as Machine Learning, Natural Language Processing (NLP), and Robotic Processing Automation (RPA).

Source documents are scanned & data is extracted:

  • The documents are stored digitally
  • The data is available to authorized users anywhere in the world, 24/7/365 in digital form

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 (CSV & other formats) of remit data to be input into Auto Cash Application

Integrate with bank lockboxes and your own ERP AR and Collection modules

  • Remittance advice is received directly from customer via EDI, with new Digital Payment modes, from customers’ vendor portals, your EIPP/Customer Care portal, and via e-mail
  • Data Capture AI Assistant extracts required remit data and creates a file for input into auto-cash engine (CSV and other formats)
  • Check & remit advice scanning fees from lockbox decreases with lower volume of Remits processed by lockbox
  • Remit data keypunch per keystroke fee from lockbox decreases with lower volume of Remits
  • Savings of $1 to $2 per payment can be realized
  • Processes payments in multiple currencies and Remit Advice in multiple languages
  • Integrates with multiple ERPs
  • Enables utilization of multiple banks & their lockboxes
  • Accommodates the new Digital Payments (e.g., Square, PayPal, etc.)
  • Processes Remit Advice received in a number of modes:
    • Paper or scanned images
    • EDI
    • e-mail
    • Downloads from customers’ vendor portals and your EIPP portal
    • Bank files in various formats
  • Processes Remit Advice received in infinite number of formats (varies by every customer)
  • Adapts to wide variances in customers’ Vendor Portals
  • Operates in 45 countries, 15 languages, 16 bank accounts
  • Established in-house Global SSC in Portugal (ended BPO)
  • Embarked on Digital O2C Transformation

Implemented Data Capture AI Assistants for :
Cash Application: Auto-cash hit rate increased from 30 to 70%
Deductions: Resolution time decreased from several weeks to < one week

Suggested Resources

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