How Banks Streamline Invoice Process Management & Expense Management Process with Third-Party Expertise

Published on April 3, 2025 by Mayukha Perera and Avishek Suman

Executive summary

In today’s fast-paced financial landscape, banks are under constant pressure to optimise operations, reduce costs and enhance efficiency. One area where financial institutions are increasingly turning to external expertise is invoice process management and expense management process,  as this is a process-driven activity that is easier to outsource than other banking activities.  By partnering with specialised third-party firms, banks can streamline invoice process management and expense management process so they can focus on their core business activities while improving accuracy, compliance and scalability.

The Complexity Behind Invoice and Expense Management in Banking

Key Challenges in Invoice Process Management and Expense Management Process for Banks

High volume of transactions to be processed:

Banks process thousands of invoices and expense claims daily (research publication, travel expenses, roadshow expenses, third-party data provider invoices, etc.); Without a structured invoice process management system retaining this task inhouse is not only inefficient but also ineffective use of bankers’ valuable time that can be otherwise spent on more revenue-generating tasks.

Delayed settlements and payments leading to additional costs:

Bankers having to manage invoice process management on their own in addition to performing other day-to-day tasks, settlements and payments could be delayed, leading to interest payments, late-payment fees, data provider contract terminations, etc., which would in turn impact profitability margins.

Multiple approval processes in place, taking up more time:

Obtaining approval for settlements and payments to be recovered entails processes that include the finance, contract and compliance departments, and require constant follow-up and reconciliation, adding to the administrative time spent by bankers, inefficacies and delayed payments unless this process is handled by a centralised invoice process management team whose core responsibility is to manage this process.

Data inaccuracies due to lack of bandwidth to handle reconciliations:

The invoice and expense process management requires tedious reconciliation of contracts, such as research publication contracts, travel policies and data provider contracts, and not having a central department to carry out such reconciliations prior to obtaining approval would result in data inaccuracies and, in turn, settling overcharged invoices.

Lack of tech know-how:

Some banks may not have the necessary tech know-how (such as SQL, Python and PowerBI) nor the expertise required to handle certain specialised platforms such as DUCO, Oracle, Qlikview and Workday. This skill gap makes it difficult to manage the invoice process management and expense management process efficiently—areas where specialised third-party providers can bring immediate value.

How Acuity Knowledge Partners can help

We offer a centralised approach to invoice process management and expense management process. We have the required tech know-how and platform expertise and offer the following services to help streamline the process:

Central PoC for the entire process:

We will be the PoC for all bankers and users, liaising with them on all activities related to the process, from the beginning to the end of a transaction (travel, expenses, research publication, third-party data provider, etc.).

• Creating invoices, expense-management reports, etc.: We will undertake the creation of all invoices and expense reports on the platforms agreed on.

• Coordinating with users, clients, third-party vendors and other stakeholders: We will coordinate with the different stakeholders with respect to obtaining approval, making changes, follow-up, etc. until closure of the transaction.

• Reconciling contracts and invoices and expense reports: Prior to authorising payment or settlement, we will reconcile all invoices and expense reports with their respective contracts to ensure data accuracy and correct settlement.

• Ensuring non-delayed payments and settlements: We will ensure that all settlements and payments are completed prior to the due date, saving interest payments and late-payment fees.

• Periodic reports and master database updates: We will maintain a master database of all records – a central reference database for all invoices and expense reports, used as the main source of any report to be used in senior management decisions.

• Overall responsibility of the entire process: We will take responsibility for streamlining the process and ensuring error-free execution.

• Leveraging tech know-how to expedite the process and improve data quality: We will deploy resources with expertise in SQL, Python, advanced Excel, etc. and the required experience in specialised platforms (such as Qlikview, Oracle, Duco and Workday) that banks use, helping enhance process efficiencies.

• Process documentation: We will document all processes adopted, for business-continuity purposes.

With the efficiencies we have introduced for invoice process management and the overall expense management process, a number of banks have achieved significant wins.

• A US bank partnered with us so we could manage the travel expense-management process; we saved the client USD1m previously spent on interest payments and late-payment fees due to delays in processing.

• A leading European bank partnered with us so we could centralise invoice processing; we reduced processing time by 70% and cut costs by 30%.

• A leading Japanese bank increased onshore time by 50% by partnering with us to centralise this function.

Conclusion

Outsourcing invoice process management and expense management process is no longer just a cost-saving measure; it is a strategic move that enables banks to improve efficiency, ensure compliance and focus on their core business. By partnering with a specialised third-party firm, banks can transform their back-office operations, drive innovation and stay competitive in an increasingly digital world.

References:

• Why Businesses Should Outsource to an Invoice Management Company

• Accounts Payable Outsourcing: What Is It and Pros and Cons: PLANERGY Software

• Accounts Payable Outsourcing: An Essential Guide for 2025

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