AI-Driven Accounts Payable Automation
Client Overview
The custodian involved is one of the world’s top ten, managing over $4 trillion in assets across more than 15 locations worldwide and serving over 140 customers in private banking, investment management, and investor services.
Challenges
- High Volume & Complexity: Generating over 30,000 invoices monthly across 790 billing classes created bottlenecks and long lead times.
- Process Inefficiencies: Tasks such as manual setup, data loading, invoice generation, and report packaging were siloed and labor‑intensive.
- Error & Dispute Risk: Manual reconciliation and lack of integrated validation heightened the risk of missing data, incorrect invoices, and subsequent client disputes leading to revenue leakage.
Solution
Outcome‑Driven Transformation Framework
Hexaware’s approach began with a holistic, design‑thinking‑driven transformation framework to align IT and operations, identify persona‑based change management challenges, and set clear STP and cost objectives.
Client Invoice Tracking System (CITS)
The CITS solution automated critical sub‑processes—account setup, fee schedule configuration, invoice generation, validation, packaging, dispatch, and reconciliation—while providing a unified dashboard for real‑time tracking. Additionally, AI‑powered validation was incorporated to identify missing invoice details and automate data checks, further reducing errors and disputes.
Implementation Roadmap
- 0–6 Months (Onboard & Stabilize): Transition operations with no business disruption; finalize requirements and rationalize existing systems.
- 6–12 Months (Build & Deploy Phase 1): Develop account/fee setup, invoice management, and data management modules; initiate unit‑based pricing.
- 12–18 Months (Expand & Integrate Phase 2): Implement smart data capture, API‑based handovers, and reconcile automation; launch unified dashboard for end‑to‑end visibility.
- 18+ Months (Optimize & Operate): Shift to pay‑per‑invoice model; continuously refine processes using Lean and Six Sigma principles.
Benefits & Results
- TCO Savings: $4 million in cost of ownership reduction over five years.
- Straight‑Through Processing: 30% improvement in STP rate, accelerating invoice throughput and reducing manual interventions.
- Per‑Invoice Processing Time: Small businesses like M2i3 saw time drop from 30 minutes to five minutes for one‑off invoices and to two minutes for recurring invoices using Zoho Invoice.
- Faster Payments: Integrating payment platforms such as Stripe with invoicing systems enabled payments to be received on average 14 days sooner.
- Error Reduction: AI‑driven validation caught missing details and automated reconciliation, dramatically cutting disputes and rework.
- Process Transparency & Analytics: A unified dashboard and analytics repository supported enhanced client categorization and cross‑selling opportunities.
Best Practices & Conclusion
- Standardize Templates & Workflows: Use consistent invoice templates and predefined workflows to minimize manual setup time and client confusion.
- Automate Key Sub‑Processes: Leverage tools that handle data loading, validation, and report generation to reduce human error and improve compliance.
- Integrate Payment Gateways: Embed multiple payment options directly into invoices to shorten cash‑conversion cycles.
- Employ AI & Analytics: Utilize machine learning for invoice quality checks and analytics dashboards for actionable insights.
By embracing an outcome‑driven, technology‑enabled approach, organizations can transform invoicing from a burdensome operation into a strategic lever for cash flow optimization, operational agility, and enhanced customer satisfaction.