Revolutionizing Financial Services & ERP Integration: NetSuite SuiteBanking Unveils its Magic
What is the buzz around accounts payable automation? It’s the astounding prospect of tapping into an anticipated $7 trillion of embedded banking flows by 2026. Businesses still reliant on labor-intensive, fraud-prone processes such as manual entry and payment of vendor bills are likely to lag behind competitors leveraging automated AP systems for bill processing and integrated banking payments.
NetSuite does more than just streamline the invoice-to-pay process, from data capture to reconciliation. It offers businesses the opportunity to utilize embedded banking services powered by HSBC, allowing them to directly pay bills from NetSuite. Additionally, businesses making payments to suppliers using HSBC’s virtual credit cards can earn attractive cash-back rewards.
At the recent SuiteWorld event, NetSuite showcased its latest AP automation features. Insights on the enhanced benefits stemming from the NetSuite/HSBC collaboration were shared by Scott Derksen, Senior Director of Business Development at NetSuite, and Brian McKenney, Chief Business Officer at HSBC Platforms.
Breaking the Phishing Chain with NetSuite AP Automation
NetSuite’s AP Automation streamlines the daily import of bank and card data into NetSuite, enhancing the reconciliation process and improving visibility.
“Reducing fraud and minimizing human error is our key objective,” stated McKenney. “Approximately 5% of an organization’s annual revenue is lost to fraud, with around 80% of businesses experiencing a fraudulent attack every year. Payments are one of the primary channels.”
Indeed, AP contributes to 18% of business fraud, resulting in an average monthly loss of $300 for nearly 10 months before detection. The fraudulent payment often recurs until the legitimate vendor finally questions, “Why haven’t I been paid for the past 10 months?”
Fraudsters frequently use phishing techniques, impersonating a supplier or sometimes even the CEO or CFO.
“They send a deceitful email to someone in the accounts payable or treasury department, urging, ‘You have a pressing overdue payment. Could you please process this now?’” explained McKenney.
In contrast to past practices where an employee would receive such a request and promptly process the payment, AP Automation introduces an essential safety measure. Any minor discrepancy, such as a change in the supplier’s bank account information, would raise a flag necessitating further approval.
The procedure follows these steps: In the bill capture phase, finance personnel drag and drop digital invoices into NetSuite, or vendors direct them to a specified email inbox. The bills are scanned, and critical details are converted to digital text. NetSuite leverages machine learning to compare the bill with previous invoices, including bank routing information. The invoice is then automatically matched with related purchase orders and receiving documents, verifying details like unit pricing, quantity, and totals. Subsequently, it is directed to the relevant personnel for review and approval.
Realizing Tangible Savings through the HSBC Partnership
During SuiteWorld, NetSuite Group Vice President of Product Management, Craig Sullivan, unveiled how NetSuite AP Automation has evolved beyond just scanning and matching bills. It now offers savings in manpower, enhances business agility, and improves cash flow management.
“This is the type of innovation that drives growth,” Derksen emphasized. The incorporation of banking services within NetSuite will ultimately revolutionize how businesses access capital.
Sullivan demonstrated how customers can now monitor their HSBC virtual card balances and make payments efficiently and seamlessly directly from the SuiteBanking dashboard.
Additionally, a newly introduced account reconciliation tool can automatically match thousands of transactions across all journals and general ledger accounts. This includes transactions from third-party point-of-sale systems and corporate credit cards.
“It’s just the commencement,” remarked McKenney. “Our ongoing focus will be to continually enhance the product, introduce additional payment options, and broaden opportunities for customers globally.”
Operating with banking licenses in over 60 markets, HSBC’s global reach is now embedded within NetSuite. This integration enables finance teams to conveniently manage international vendor payments, currencies, and foreign exchange across multiple jurisdictions.
From vendor billing to three-way matching, approvals, and seamless, automated payments via HSBC, AP Automation and the integration of financial services within the suite eliminates the need for finance teams to switch between NetSuite and a separate banking portal – a substantial time-saver.
AP Automation has consistently provided enhanced security, reduced fraud, and minimized human errors. Now, it even offers the advantage of cash back.