Reducing complexity of cash app in europe with ai
- 1. Reducing Complexity of Cash Application In Europe with AI Sep 23, 2021 | 10:00 AM PST
- 2. • Introduction • Cash Application: Europe vs North America • Challenges of Cash Application in Europe • Solutions: • AI Enhanced Intelligent Document Processing (IDP) • AI Digital Assistants • Benefits • Customer Success Story • Conclusion • Your Questions Agenda
- 3. Introduction • Major Advancements in AI Digital Technologies have presented an opportunity to realize large improvements in the cost, speed, and accuracy of applying cash TODAY! • The European economy presents a number of unique challenges to achieving world class performance in Cash Application. • Cash Application in Europe can benefit substantially from AI Digital Technologies 3
- 4. • Multiple currencies in Europe vs two in NA (US & Canadian dollars) • Multiple languages vs. one (two with French) • More lockboxes & banks vs. fewer banks and lockboxes Cash Application: Europe vs. North America (excluding exports)
- 5. • Payments in multiple currencies – managing foreign exchange differences • Remit Advice in multiple languages • Utilization of multiple banks located in many countries with local banking regulations and practices. Data transmission issues can be frequent. • Accommodating newer Fintech Digital Payments (e.g., Square, PayPal, etc.) • Evolving Payment Services Directive (PSD2) requirements • Remit Advice received in a number of modes: a. paper or scanned images b. EDI c. e-mail d. downloads from customers’ vendor portals and your EIPP portal e. bank files in various formats • Remit Advice received in infinite number of formats (varies by every customer) • Wide variance in how Remit information is displayed in customers’ Vendor Portals • Substantial number of deductions • Integration with multiple ERP’s for most companies • Hackett World Class Auto-Cash Hit Rate is 75% 5 Challenges of Cash Application in Europe
- 6. 6 Increase in Use of FinTech Digital Payments • Digital Payments, aka Real Time Payments (RTP), FinTech Payments, and “Frictionless Digital Payments” are electronic payments that transfer funds and remit advice together • Digital Payments are made directly between buyer and seller through a direct, secure, payment gateway using credit card, direct ACH debit or credit, wire, direct transfer on an Account to Account (A2A) basis. • Digital Payments provide ability to pay in multiple currencies globally • More customers, especially Small & Medium Size Businesses (SMB’s) are adopting Digital Payments
- 7. GiaDocs – Cognitive Data Capture/Intelligent Document Processing Eliminate manual extraction of remittance data entry and document handling Extract all required data from remittance documents, files, vendor & customer portals, EDI transmissions, e-mails, etc. Eliminate manual keypunch of remittance data into a file; data automatically entered into data file Machine Learning enables continuous improvement of remittance data extraction from wide variety of sources Solutions: AI Enhanced IDP 90% automatch
- 8. AI-driven Cash Application Eliminate manual application of payments to open invoices AI Digital Assistants perform the receipt-to-invoice matching and clearing of open AR items Automated Deductions Creation Auto identify short pay (and over pay) with reason codes, auto generate deduction and route to designated Resolver thru workflow Eliminate manual creation of deductions Solutions: AI Digital Assistants 90% automatch
- 9. AI Enabled Digital Data Capture Assistants extract remittance data from multiple customer sources with 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) 9 AI Driven Cash Application auto posts cash receipts to right invoices • Integrate with bank lockboxes and your own ERP AR and Collection modules • Contains its own auto-cash engine (applies based on invoice, PO or sales order) Auto-Cash engine can yield 85 – 90% hit rate • Enables pre-set tolerance levels for matching payments to open invoices • Outperforms RPA when dealing with multiple unknown document formats AI Enabled Cash Application
- 10. AI Enabled Analytics produce valuable monitoring and insights: • Custom Dashboards to monitor throughput, backlogs, error rates, etc. • Analyses to identify root cause of unapplied & misapplied cash, bottlenecks, high unapplied cash customers, etc. • Predictive Analytics to forecast errors • Cash Forecasting 10 AI Enabled Cash Application: Analytics
- 11. 11 Increased Productivity: Fewer FTE’s required Reduced Bank Fees Faster application of cash – more accurate customer account balances Greater Cash Application Accuracy Enhanced Customer Experience Benefits of the Digital Cash Application Greatly Improved Productivity Lower Bank Fees Accurate Customer Accounts Fewer Erroneous Order Holds
- 12. 12 Company: Global Information Technology Company with $3B revenue Customer Success Story Exponential Impact: Digital O2C Solution: Emagia AI-powered Digital Receivables Platform – Collections, Deductions, Cash Application and Analytics • Oracle R12 ERP supporting 58 business units • Deployed in 44 countries across Europe, Americas and Asia Pacific • Cash Application auto match improved from 45% to 85-90% in Europe. • Multi language capability - English, German, Spanish, Portuguese, French, Italian • 170 Banks including JPMC, Citi, Bank of America, Post Finance THE EMAGIA EXPONENTIAL IMPACT $3B Receivables 300K Digital Transactions 85% Current AR 100% Customer Touch 90% Automated Cash Application Rate 100% Risk Assessment
- 13. 13 • There is a large opportunity for most companies to substantially improve the cost efficiency, timeliness, and accuracy of their European Cash Application function • It is achievable using Artificial Intelligence (AI) and IDP Automation and Analytics • AI Automation can perform 70 – 90% of manual operations in Cash Application Conclusion
- 14. Questions
- 15. If you have any questions or comments about this session, please let us know in the chat box or write to us at info@emagia.com Next Emagia Master Class Session: Topic: Accelerate Cash Flow and Reduce Costs with Digital Payments Orders Credit Cash Application Collections Deductions Payments Invoicing u