Bank of America Merrill Lynch (BAML) has revealed that it is implementing enterprise software fintech HighRadius’ artificial intelligence (AI) solution to speed up receivables reconciliation for the bank’s large business clients. (Receivables refers to all debts and unsettled transactions owed to a company by its debtors and customers.)
Large companies with numerous customers often receive payments without accompanying contextual information, like which customer or debtor it’s come from, or precisely what the payment is for, which makes balancing a company’s books, i.e. reconciling, a lengthy and resource-intensive task.
HighRadius’ solution uses AI, machine learning, and optical character recognition to identify a payer, match them to an uncontextualized payment, and match that to an open receivable. Moreover, it gives companies the option of sending an automatic prompt to customers whose debts are outstanding. By leveraging this solution, BAML aims to reduce costs for its large business clients.
The bank’s move is the latest development in a growing trend of AI deployment by big banks. The world’s leading banks are applying AI across a diverse range of business areas, of which receivables is only the latest. Banks are taking advantage of improvements in the technology’s data-crunching abilities in spaces like credit scoring to improve their risk assessment methodologies, Nordnet is using the technology to boost its customer service, NatWest is deploying AI to improve its compliance procedures, and JPMorgan Chase announced it’s using AI for automated trading at its European business in early August.