Organizations use Application Programming Interfaces (APIs) for simple tasks such as status reporting and validating account balances or complex processes where two applications communicate. For instance, bank APIs simplify the process of payment information exchange between the bank and various organizations.
To apply cash daily, cash application teams need to aggregate payment information from several banks.
Traditionally, banks used to send the payment information through standard file formats such as BAI2, MT940 using Secure File Transfer Protocols (SFTPs). As a result of this, your cash application teams received the payment information only once a day.
Moreover, the high initial setup cost for SFTPs and the time-consuming implementation process made cash application slow and expensive. However, as we step into the new decade of digital transformation, A/R teams try to shift towards implementing API technology to solve their existing challenge of receiving data from the banks.
With innovative concepts such as open banking, banks can now interact with multiple organizations via APIs. This way, your A/R teams can quickly request bank statements or payment information via APIs without any significant hassle.
Here’s a brief overview of open banking through APIs and how HighRadius is implementing it for your A/R teams:
HighRadius has simplified the process of bank data transfer by leveraging Application Programming Interfaces (APIs). With API integrations with banks such as Bank of America, the bank data transfer has almost turned out to be a real-time exercise.
By leveraging bank APIs, organizations can achieve the following benefits:
HighRadius Cash Application Cloud enables your A/R teams with bank APIs to have better control and visibility over your customers’ payment information and account-related data such as bank statements and account balances. This considerably reduces the time involved in the cash application process and ensures a secure and seamless workflow.
Integration with any Bank API for receiving client data includes the following three steps:
APIs and open banking are rapidly transforming the FinTech space by encouraging A/R teams to explore new business models. The incorporation of these technologies by HighRadius is pushing finance & A/R processes into a new era of speed and accessibility- saving hours of manual work. Moreover, with API services from leading banks like BofA, PNC, and JPMorgan Chase – HighRadius clients’ can optimize their cash application workflow to achieve better efficiency.
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HighRadius Cash Application Software enables the end-to-end automation of the cash application process that covers major benefits such as AI-enabled data capture for remittances, auto-linking of payments with open invoices, cost-cutting on lockbox fees and easy compatibility with any system due to its ERP-agnostic Saas infrastructure. Apart from the major benefits that it has, there are some key features which can not be missed out, some of them are Email Remittance capture, Discounts and Deductions Handling, Check Remittance Capture, Web Remittance Capture, Invoice Matching, and RDC & Mobile Payments.