Have you ever just paid a household bill without validating it first? It happens all the time, right.
However, for financial institutions paying out multi-million sums of money every month for services rendered by a whole raft of providers, validation is critical.
In many cases, ‘validation’ only extends to month-on-month eyeball comparison of invoices to assess accuracy, and the subsequent application of an internally agreed tolerance to determine if the invoice is good to pay. For Network Managers faced with multiple different fee types for their monthly clearing and settlement activities from numerous agent banks, the ability to digitally validate invoice integrity at source and accurately identify and pass back related costs to the underlying client is of paramount importance.
Those organizations that fully embrace digital transformation of their agent bank fees and billing process can realize significant benefits. As well as improved efficiency and cost reduction through the early identification of overcharges, they can also utilize the power of data analytics and AI to make informed business decisions relating to spend analysis, cost allocation and counterparty risk analysis. These are powerful tools for Network Managers in this age of squeezed margins and increasingly stringent risk and compliance requirements.