How Artificial Intelligence is unlocking hidden lockbox fees
A recent study by the Association of Finance Professionals found that the high cost of processing checks was the number one reason organizations wanted their customers to move away from checks to electronic payments.
While we can encourage electronic payments, many customers still choose to pay with checks and it’s difficult to change their behavior without damaging customer satisfaction. By using artificial Intelligence and cash application automation finance professionals can reduce check processing costs without changing their customers payment habits. To maximize savings and gain the most productivity you need to start at the beginning and evaluate your lockbox situation. This means looking at what you're paying your bank for image storage and retrieval, advanced keying services, and custom data output for your ERP.
Lockbox fees can add up to a significant amount. And because they typically fall into treasury department budgets instead of accounts receivable, lockbox fees can weigh down profits when not given a top-of-mind priority. Most accounts receivable solutions utilize robotics to automate the basic manual tasks of the cash application. While this can provide healthy efficiency improvements on its own, your lockbox process remains as it is, meaning you’re still left paying for all those services.
The real difference comes when you implement Artificial Intelligence driven solutions. An Artificial Intelligence powered solution, like Rimilia's Alloc8 Cash, can eliminate these unnecessary costs including keying service, image storage, and retrieval fees. Using Artificial Intelligence coupled with self-learning OCR, Rimilia is able to apply complex payments down to the invoice level with only MICR data and remit images.
Additionally, we make all images, transaction data, and application details easily accessible to an unlimited number of authorized users and auditors. This means no more expensive bank image storage fees while still having instant access to the information you need. Auditors will have intuitive and secure access without having to bother your busy cash team with data requests.
For more information on how you can revolutionize your lockbox processes through intelligent cash application solutions, download our free guide ‘The Biggest Problems with Lockbox and How to Fix Them.’