The document discusses using AI to improve cash application processes in Europe. It notes that cash application in Europe faces unique challenges compared to North America due to factors like multiple currencies and languages. The document proposes using AI-enhanced intelligent document processing and AI digital assistants to automate tasks like extracting remittance data from various sources and automatically applying payments to invoices. This could increase cash application hit rates from 45% to 85-90% while reducing costs. A customer success story is provided of a company that achieved these benefits through an AI-powered digital receivables platform.

1. Reducing Complexity of
Cash Application
In Europe with AI
Sep 23, 2021 | 10:00 AM PST

2. • Introduction
• Cash Application: Europe vs North America
• Challenges of Cash Application in Europe
• Solutions:
• AI Enhanced Intelligent Document Processing (IDP)
• AI Digital Assistants
• Benefits
• Customer Success Story
• Conclusion
• Your Questions
Agenda

3. Introduction
• Major Advancements in AI Digital Technologies have
presented an opportunity to realize large improvements
in the cost, speed, and accuracy of applying cash
TODAY!
• The European economy presents a number of unique
challenges to achieving world class performance in Cash
Application.
• Cash Application in Europe can benefit substantially from
AI Digital Technologies
3

4. • Multiple currencies in Europe vs two in NA (US & Canadian dollars)
• Multiple languages vs. one (two with French)
• More lockboxes & banks vs. fewer banks and lockboxes
Cash Application: Europe vs. North America
(excluding exports)

5. • Payments in multiple currencies – managing foreign exchange differences
• Remit Advice in multiple languages
• Utilization of multiple banks located in many countries with local banking regulations and
practices. Data transmission issues can be frequent.
• Accommodating newer Fintech Digital Payments (e.g., Square, PayPal, etc.)
• Evolving Payment Services Directive (PSD2) requirements
• Remit Advice received in a number of modes:
a. paper or scanned images
b. EDI
c. e-mail
d. downloads from customers’ vendor portals and your EIPP portal
e. bank files in various formats
• Remit Advice received in infinite number of formats (varies by every customer)
• Wide variance in how Remit information is displayed in customers’ Vendor Portals
• Substantial number of deductions
• Integration with multiple ERP’s for most companies
• Hackett World Class Auto-Cash Hit Rate is 75%
5
Challenges of Cash Application in Europe

6. 6
Increase in Use of FinTech Digital Payments
• Digital Payments, aka Real Time Payments (RTP), FinTech Payments,
and “Frictionless Digital Payments” are electronic payments that transfer
funds and remit advice together
• Digital Payments are made directly between buyer and seller through a
direct, secure, payment gateway using credit card, direct ACH debit or
credit, wire, direct transfer on an Account to Account (A2A) basis.
• Digital Payments provide ability to pay in multiple currencies globally
• More customers, especially Small & Medium Size Businesses (SMB’s) are
adopting Digital Payments

7. GiaDocs – Cognitive Data Capture/Intelligent Document
Processing
Eliminate manual extraction of remittance
data entry and document handling
Extract all required data from remittance
documents, files, vendor & customer portals,
EDI transmissions, e-mails, etc.
Eliminate manual keypunch of remittance
data into a file; data automatically entered
into data file
Machine Learning enables continuous
improvement of remittance data extraction
from wide variety of sources
Solutions: AI Enhanced IDP
90%
automatch

8. AI-driven Cash Application
Eliminate manual application of
payments to open invoices
AI Digital Assistants perform the
receipt-to-invoice matching and
clearing of open AR items
Automated Deductions Creation
Auto identify short pay (and over pay) with
reason codes, auto generate deduction and
route to designated Resolver thru workflow
Eliminate manual creation of deductions
Solutions: AI Digital Assistants
90%
automatch

9. AI Enabled Digital Data Capture Assistants extract remittance data
from multiple customer sources with multiple formats, such as:
• Customer Vendor Portals
• Your own EIPP Portal populated by your customers
• Excel/PDF files and statements from customers and lockboxes
• EDI 820 or BAI2 transmissions from customers
• New Digital Payment modes (Square, PayPal, etc)
9
AI Driven Cash Application auto posts cash receipts to right invoices
• Integrate with bank lockboxes and your own ERP AR and Collection modules
• Contains its own auto-cash engine (applies based on invoice, PO or sales order)
Auto-Cash engine can yield 85 – 90% hit rate
• Enables pre-set tolerance levels for matching payments to open invoices
• Outperforms RPA when dealing with multiple unknown document formats
AI Enabled Cash Application

10. AI Enabled Analytics produce valuable monitoring
and insights:
• Custom Dashboards to monitor throughput, backlogs, error
rates, etc.
• Analyses to identify root cause of unapplied & misapplied
cash, bottlenecks, high unapplied cash customers, etc.
• Predictive Analytics to forecast errors
• Cash Forecasting
10
AI Enabled Cash Application: Analytics

11. 11
Increased Productivity: Fewer FTE’s required
Reduced Bank Fees
Faster application of cash – more accurate
customer account balances
Greater Cash Application Accuracy
Enhanced
Customer Experience
Benefits of the Digital Cash Application
Greatly Improved
Productivity
Lower Bank Fees Accurate Customer
Accounts
Fewer Erroneous
Order Holds

12. 12
Company: Global Information Technology Company with $3B revenue
Customer Success Story
Exponential Impact:
Digital O2C Solution: Emagia AI-powered Digital Receivables
Platform –
Collections, Deductions, Cash Application and Analytics
• Oracle R12 ERP supporting 58 business units
• Deployed in 44 countries across Europe, Americas and Asia
Pacific
• Cash Application auto match improved from 45% to 85-90% in
Europe.
• Multi language capability - English, German, Spanish,
Portuguese, French, Italian
• 170 Banks including JPMC, Citi, Bank of America, Post Finance
THE EMAGIA
EXPONENTIAL IMPACT
$3B Receivables
300K Digital Transactions
85% Current AR
100% Customer Touch
90% Automated Cash
Application Rate
100% Risk Assessment

13. 13
• There is a large opportunity for most companies
to substantially improve the cost efficiency,
timeliness, and accuracy of their European Cash
Application function
• It is achievable using Artificial Intelligence (AI)
and IDP Automation and Analytics
• AI Automation can perform 70 – 90% of manual
operations in Cash Application
Conclusion

14. Questions

15. If you have any questions or comments
about this session, please let us know
in the chat box or write to us at
info@emagia.com
Next Emagia Master Class Session:
Topic: Accelerate Cash Flow and Reduce Costs
with Digital Payments
Orders
Credit
Cash
Application
Collections
Deductions
Payments
Invoicing
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