DadeSystems: Integrated Receivables Can Enhance Treasury Offerings For Banks

Payments are the livelihood of any business, but the payments landscape has evolved from simpler times. Ten, even 15 years ago, businesses were paid predominantly by check, though that has since changed.

“Corporations are being faced with a plethora of payments types that they’re having to handle coming in from their end consumers,” DadeSystems President and CEO Bill Zayas said in an interview with PYMNTS. “Their end customers want to be able to make payments in any fashion that works for them, and they want to do it through different channels that [work] for them.”

As electronic payments become more important, it would seem they may be more efficient. However, that is not actually the case.

“It actually is causing more hardship for the corporation to deal with those payments,” Zayas said.

The reason is that companies may have received a deposit through automated clearing house (ACH), but the description about how companies should process the payment is typically sent via email. This situation runs counter to a business’ desire to handle payments in a straight-through process, with as little operator or people intervention as possible. And “that push from the corporation finds its way to the bank because the bank, in many cases, handles payments for the company,” Zayas said.

DadeSystems comes in by providing an automated machine learning solution to the problem. The company offers a Software-as-a-Service (SaaS) in the cloud because many businesses have limited information technology (IT) resources. As a result, trying to implement new technology in its environment on the premises becomes very difficult. DadeSystems, by contrast, is a light-touch implementation and is done all by browser to lead to a smoother integration.

Through this service, DadeSystems receives a file from the business, listing all of the open invoices that are due from its customers. At the same time, DadeSystems receives a payment file from the bank. With these two sources of information, DadeSystems is able to match the payments and invoices using machine learning. It then provides a company with an integrated file, regardless of paper or electronic payments, which it can use in its enterprise resource planning (ERP) or accounting system for posting. The whole idea is to get payments processed with as little manual intervention as possible.

For the banks, DadeSystems’ offering enhances their treasury offerings. And, with the solution, banks can be seen more as a business partner solving real business problems — and earn non-interest income along the way.