23rd Mar 2023

ERP Bank Integration: 5 ways to simplify Business Banking

Managing finances is a crucial aspect of any business, and it can be challenging to keep track of incoming and outgoing payments.  
With the advancement of technology, businesses are now able to integrate their Enterprise Resource Planning (ERP) systems with their banks in order to streamline their financial operations. 
ERP bank integration allows businesses to automate their payment processes; increasing overall efficiency for the finance team and more crucially, reducing the risk associated with manual intervention and human-error.  
So what benefits can ERP bank integration bring to your business?

1. Faster Payment Processing

Manual payment processing can be time-consuming and resource heavy. In fact CFO Research from Business Wire has identified that organisations can spend as much as 520 hours per year just on manual processes.  
Manual payment processing involves multiple steps such as data entry, verification, and authorization which of course means there is more chance of error, fraudulent activity (more on this later) and potential delays in payments being processed.  
By integrating your ERP system with your banks, you can automate these manual steps which will reduce processing time significantly; payments are processed faster and the risk of late fees and missed payments is reduced.  
For example, let’s say a business has 100 invoices to process per day. With manual processing, it may take several hours to input all the necessary information into their ERP system and send out payments. However, with an integrated system in place, this process could be completed automatically in a matter of minutes or even seconds. 
A great example of this is the advantages it can bring in the financial services industry. We work with Admiral Group who have embedded AccessPay seamlessly between their back-office systems enabling them to take full control of their payment processes, supplier payments, and customer direct debits.  

“AccessPay has helped create a much more positive experience for our customers too because we can process claims payments to the bank the same day via faster payments, rather than the standard three-day turnaround time. The service we can provide our customers has improved as a result.” 

Read their full story here 


 2. Reduced Errors & Fraud

Traditional finance processes rely heavily on manual data entry, which is prone to errors that can lead to incorrect payments or even delayed transactions. These errors can result from simple typographical mistakes, or even misunderstandings between employees who are manually entering data into different systems. 
In fact the ACCA cited that ‘90% of spreadsheets contain serious errors, while more that 90% of spreadsheet users are convinced their model is error free’ which is startling given that most finance teams will be using spreadsheets to manage their financial information.  

An integrated ERP bank integration helps minimize the risk of errors by ensuring that all data is accurate and up-to-date across both systems; any changes made in one system will automatically update in the other system too. 
Additionally, ERP bank integration provides a high level of transparency throughout the entire payment process – from the moment an invoice is received until it’s paid which helps identify any discrepancies early on before they become bigger problems down the line. 
For instance, let’s say a business receives an invoice for $10K but accidentally enters $1K into their ERP system. Without ERP bank integration, this mistake could go unnoticed until it results in late fees or even legal action being taken against them for non-payment. ERP bank integration cross-checks information between both systems before making a payment request, and payments controls can automatically catch such discrepancies before they escalate.  


3. Improved Cash Visibility

Cash visibility is critical for any business as it affects everything from short-term operations like payroll to long-term investments like capital expenditures or expansion plans. 
Automated payment processing also allows for more efficient cash flow management. By removing the manual process of retrieving your bank statements businesses have real-time access to their financial information which enables them to have near to real-time visibility of their cash position as soon as it’s available within their bank accounts.  
By integrating your ERP with your bank’s systems you gain real-time access to financial information enabling you to make informed decisions about investments expenditures and overall financial planning much more effectively than if you were relying solely on manual processes, which are prone to human error and delays caused by manual entry requirements.  
This improved visibility  also enables businesses to forecast future cash needs based on historical trends – allowing them greater flexibility when making strategic decisions regarding investment opportunities or operational expenses related goals like expanding product lines or opening new markets without risking overextending themselves financially due to lack clarity around what funds are available at any given time.
Our customer ITV, have seen the benefits.  
Rather than relying on time-consuming processes, ITV now has automatic visibility of their cash position across the group, with access to both daily and intraday balances, as well as automated bank statement feeds to support onward reconciliation. 

Read their full story here 

4. Enhanced Security & Reduced Risk

Financial transactions require high levels of security due the obvious sensitivity involved when handling a business’s finances.  Additional layers of protection are crucial for safeguarding confidential information and preventing potential fraudulent activity.  
Integrating your ERP with your banks’ systems ensures secure transfers encrypted end-to-end preventing unauthorized access while maintaining compliance standards set forth by regulatory bodies like the FCA.  
In addition security enhanced through automatic alerts notifications sent out whenever suspicious activity detected within either platform allowing administrators to quickly respond and mitigate threats before they cause widespread damage.  
A great example of this is when we worked with Darlington Building Society to improve their payment controls.  
They needed a solution that could speak to their banks, what they described as a translation mechanism between their back-office system and their banks.  
Previously, the process between the back -office and their banks was heavily manual and they needed a more risk-averse way of making payments, whilst controlling the validation and approval of payment files. AccessPay enables them to make these payments in a controlled environment and is therefore easily auditable, at any time. 

“We needed something that reflected our controlled environment, with an additional layer to flag that there is no risk of fraud. Previously this was a manual process and meant there was nothing stopping someone from logging in and adding miscellaneous bank account details, for example. The payment approval process controls in AccessPay helped reduce this risk.”

 As a result they now see  “AccessPay as a key partner to our overall Operational Resilience.” Head of Change & Procurement  

5. Better Customer Service

ERP bank integration can also have a positive effect for businesses who deal with a large amount of customer payments. With faster turnaround times, customer satisfaction levels increase, resulting in increased customer loyalty.  
Payment automation means there is seamless communication  between finance and customer service departments as approval workflows are quicker and simplified. 
Once again, Admiral Group has a good example of this as their team ended up saving around 1-2 hours per day processing statements.  

“AccessPay has helped create a much more positive experience for our customers too because we can process claims payments to the bank the same day via faster payments, rather than the standard three-day turnaround time. The service we can provide our customers has improved as a result.” 

Read the full story here  


ERP Bank Integration represents a win-win situation for businesses looking to streamline and optimize their finance operations.
Leveraging the benefits of automation will lead to enhanced security, reduced errors and increased efficiency. With better visibility, there can be better decision-making which can ultimately drive growth and help businesses achieve their long-term financial objectives.  
Explore more on how we can connect to your banks, as well as the true power of payments automation.