Sector: Banking & Payments

Product: Finaworx Scheme Invoice Management

 

1. The Context: The High Cost of Friction

For acquiring banks, the relationship with payment schemes (Visa, MasterCard, Amex) is the cost of doing business. However, the invoicing for these services is notoriously complex. Banks receive massive invoices covering license fees, service fees, processing fees, and compliance penalties.

The client, a major regional bank, was relying on manual reconciliation processes to verify these charges. This lack of automated oversight created a significant vulnerability: the bank was paying “Non-Compliance Fees” and “Excellence Fees” without fully understanding the root cause. They were effectively blind to the subtle data mismatches between their internal logs and the Scheme’s billing requirements.

2. The Intervention: The Veracity Engine

MTS deployed the Finaworx Scheme Invoice Management module to act as a forensic auditor for the bank’s scheme costs.

  • Automated Ingestion (ETL): We implemented a specialized ETL (Extract, Transform, Load) module capable of digesting both unstructured invoice files (PDFs) and structured data sets from the Schemes.
  • AI Validation Layer: The core of the solution is an AI-powered verification engine. It applies multi-layered verification models to detect anomalies, checking transaction counts, volume, and specific technical flags against the invoice line items.
  • Predictive Alerting: The system doesn’t just report errors; it predicts them. It triggers alerts for sign-off delays, invoice discrepancies, and potential penalty inclusions before they become finalized costs.

3. The Impact: The $67,000 Flag

  • The precision of the system yielded immediate financial returns. In one specific instance, the AI engine detected a recurring discrepancy in the “Final Authorization Flag” field.
  • The Discovery: The system identified that for a volume of 400,000 transactions per day, a specific authorization flag was not matching the Scheme’s requirements.
  • The Savings: This single mismatch was generating substantial non-compliance penalties. By identifying and rectifying it, the bank stopped a leakage of $67,000 USD in a single month.
  • Strategic Shift: The bank moved from manual sampling to 100% automated coverage, reducing dispute losses and enhancing compliance with global integrity requirements.