Corporate expense management company Divvy is targeting expense fraud with its new platform, the company announced Wednesday (Dec. 13).
The firm, which launched last year, is rolling out a new solution that enhances transparency and control of company spend. In part, the platform aims to provide businesses with greater visibility over employee spend to prevent misuse of company cards or fraud. In its announcement, Divvy cited research from the Association of Certified Fraud Examiners, which found that businesses waste a median of $30,000 on “illegitimate expenses.”
Employee mismanagement of company money earned the top spot as the most common instance of fraud — 83 percent of cases involved employee misspend, analysts found.
“We created Divvy to give business owners a proactive way to manage their employees' spending habits, effectively helping them spend smarter while reducing the risks of fraud and wasteful spending,” said Divvy founder and CEO Blake Murray. “When given context and relevant data, we tend to make better decisions. Divvy puts this data front and center, which improves decision making, ensures budgets are adhered to and provides the real reward — automated expense reports.”
In addition to the new platform, Divvy also announced a collaboration with corporate payments company WEX. Together, the businesses are linking corporate clients to a spend management solution and a platform that provides spend data and analytics. The solution aims to help businesses provide employees with a company card product they can monitor. This means workers will not have to use their personal funds and seek reimbursement later.
“Employees are essentially giving their company a no-interest loan when they use their personal credit cards for corporate spending,” said WEX vice president of corporate payments Bob Sneed. “But at Divvy, they're taking that burden off of both the employee and the finance department.”
Divvy's platform is also targeting visibility over corporate spend via subscription services. The platform enables companies to create a burner or vendor-locked card number that is assigned to a particular vendor providing subscription services to the company. Divvy's solution allows managers to monitor spend on that card and quickly cancel subscriptions if necessary.
Further, the companies said, the platform enables managers to gain a single portal through which they can manage requests and approve or deny company transactions.