HighRadius Introduces API Integration to Facilitate Real-Time Transfer of Bank Statements

What you’ll learn


  • Get insights on API Integration and the benefits it provides while extracting payment information from the bank
  • How HighRadius is implementing Bank API Integration for A/R teams
  • Understand how Bank API Integration works and reduces the time required in the Cash Application process

What Exactly are APIs?

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.

The Power of API Integration in Extracting Payment Information from the Bank

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:

Bank API Integration by HighRadius

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.

What are the Benefits of Bank API Integration?

By leveraging bank APIs, organizations can achieve the following benefits:

  • One-Time Implementation: By leveraging APIs, HighRadius has to execute a one-time implementation process. After the initial setup, you can switch the APIs for any new customer in a few simple steps. Therefore, it reduces the overall implementation time required.
  • Lower Expenses: API integrations are cheaper than traditional file transfers in most cases when more frequent data transfers are required. As a result of this, you can potentially save a lot through this innovation.
  • Real-Time and Seamless Data Flow from the Bank

How does the Bank API Integration Work?

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.

What are the Various Types of Bank APIs HighRadius Integrates With?

  • Current Day API: With this API, your cash application teams can request intraday payment data. This API deals with transactions from the start of the day until the time of API call/request.
  • Previous day API: This is equivalent to end-of-the-day files where all transactions are from the previous day, consisting from the start of the day till the end of the day.
  • Account Balance APIs: Useful for treasury departments to get bank account-level information such as opening and closing balances, etc.

The 3-step process for receiving data using bank APIs: Authorization by the client, Integration at HighRadius, API request and response

The 3-Step Process for Receiving Data using
Bank APIs

Integration with any Bank API for receiving client data includes the following three steps:

  • Authorization by the Client: This step needs to be executed based on how frequently the bank requires the client to authorize. For example, for certain banks, the authorization process needs to happen every 6 months. The client needs to share their credentials (client ID, client secret, application name, and provider id) received from the bank with Highradius. Highradius will then use these credentials to authenticate API requests made in the future for fetching data from the bank.
  • Integration with HighRadius: The credentials received as part of authorization need to be configured by the user in the Highradius system.
  • API Request and Response: Once the integration is set-up, API call and response agents keep track of fetching the bank data from the banks based on the desired schedule or on an ad-hoc basis as required. It then showcases it to the user in the particular system-defined structure.

Conclusion

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.

To know more about HighRadius Cash Application Cloud – click here

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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.