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Prelude's Insights on Outbound Payments Blog

How did AAA NCNU use payment processing to be more efficient?

 

501px AAA logo.svg resized 600AAA NCNU has the nimbleness, features and functionality to be cost effective and efficient.

Dan Ellecamp, CTP, AAP
Treasury Analyst,
AAA NCNU

As an Insurance Exchange, AAA NCNU is a property and casualty insurance company providing products to the more than 24 million members of the 10 AAA clubs who form the ACP Holding Company. AAA NCNU is keenly focused on increasing efficiencies in all aspects of its day to day operations to meet the needs of our clients, our member clubs and our company objectives.

AAA NCNU issues about 2 million payments to insured & trading partners primarily via checks, ACH, wire transfers, ghost cards, disaster cards, payroll cards, purchasing cards & T&E cards. Most of our B2B payments are paid with checks and ACH.

Like most companies, the big IT systems purchased years ago and in existing production environments are still very viable at what they were designed to do originally. However, these systems most likely have severe gaps in the processing capabilities that are necessary to stay competitive today. Also, like most companies, AAA NCNU is appropriately prudent in allocating additional budget to replace these existing systems when seemingly the costs are dramatically higher yet the anticipated shelf life of new systems are discouragingly shorter. Technology is changing so rapidly and foreseeable needs are so dynamic that scalability and flexibility are a must.

Fortunately for AAA NCNU, we found a remedy that allows us to extend the lifecycle of our existing systems, fully satisfies our immediate functionality requirements and allows the ability to add-on components as our business needs evolve. Equally important, it has allowed us to recognize a cost savings over $100k per month. Prelude Software’s PayPilot solution is our enterprise-wide disbursement hub that fills the functional gaps our existing infrastructure could not accomplish. Simple requirements like issuing payments via ACH were incapable with our core claims system. However, PayPilot not only enabled the ability to issue payments electronically, but the remittance data is also transmitted as an electronic file so our vendors can import them as usable data quickly without having to rekey anything. PayPilot also maintains the integrity of all the payment data, provides transparency and continuity as we make backend source system changes. Specifically, as we swap out older systems, like our claims system, thanks to PayPilot, our existing business rules and workflows can be maintained so our business users can be unencumbered by the changes.

Some of the additional key benefits of PayPilot for AAA NCNU is the significant self-service capabilities of the solution. As an example, PayPilot, by design, is bank agnostic, meaning it can interface with any bank. Most importantly, PayPilot allows clients like AAA NCNU to add or change bank accounts with a few key strokes rather than via an IT initiative to re-program hard coded formats in the base system. It allows AAA NCNU to have the flexibility we may need if it’s necessary to modify our banking relationships. Similarly, PayPilot also allows AAA NCNU the nimbleness necessary to stay compliant with regulations including the U.S. Patriot Act.

PayPilot’s seamless interface with our source systems enables straight through processing for issuing electronic payments, for transacting with the bank for positive pay.

In summary, PayPilot allows AAA NCNU the nimbleness we need to enable the features and functionality we need as we need them cost effectively and efficiently. PayPilot increases our productivity and overall satisfaction levels. PayPilot has helped make dramatic improvements in our current disbursement workflow while maintaining our business rules and existing infrastructure.

Tags: AAA Insurance Exchange, AAA NCNU, payment processing, ACH, issue payments electronically, remittance data, integrity of payment data, provides transparency, self-service capabilities, bank agnostic, disbursement workflow, nimbleness straight through processing, cost savings, lifecycle of existing systems, add-on components

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