For finance leaders at multi-entity banks, managing accounts payable (AP) can be a constant juggling act.
Each entity might operate under a different charter, serve a different customer segment, or use unique accounting structures. That can lead to inconsistent workflows, siloed data, and rising costs as teams work in parallel systems.
It’s no surprise that centralizing AP has become a strategic priority—especially for multi-bank holding companies. But there’s a common fear that comes with it: will greater control come at the cost of autonomy?
Why Centralizing AP Often Feels Like a Trade-Off
Traditional centralization strategies typically focus on top-down control. They aim to standardize systems, unify processes, and streamline approvals. For some business models, that’s a win.
But for banks operating under a multi-entity structure, this approach can introduce new complications. Let’s break down why:
- Each entity has different workflows: What works for a private banking branch may not fit a commercial lending unit. Imposing a one-size-fits-all system can disrupt established internal processes.
- Reporting needs vary: Each entity likely reports separately to regulators, auditors, or boards. Merging everything into a single AP system without customization can make it harder to isolate data and meet compliance obligations.
- Approval chains differ: Regional managers, department heads, or CFOs may all require visibility and sign-off authority—but at different stages and for different spend thresholds.
That’s why many banks hesitate. They want the benefits of centralization (efficiency, control, visibility) but not the rigidity that often comes with it.
Finance Leaders Want Structure, Not Strictures
Finance teams across multi-entity banks are aligned on what they want from AP:
- Visibility across entities to manage cash flow and monitor spend trends
- Standardized workflows that improve efficiency but still allow entity-specific nuances
- Audit-ready controls that help meet regulatory expectations
- Autonomy at the entity level so teams can move at their own pace
In other words, they usually want alignment, not uniformity.
They’re not asking for fewer tools. They’re asking for smarter tools that adapt to their structure and give them the freedom to work how they need to.
What Centralization Looks Like in a Multi-Entity Bank
The key is to reframe what centralization means. Some might say it means removing local control, when it actually means eliminating duplicate effort, tightening controls, and connecting the dots across your AP ecosystem.
With AvidXchange’s AI-enhanced AP solution built for financial institutions, here’s how that plays out.
Centralized Invoice Capture
Invoices—whether paper, email, or electronic data interchange (EDI)—are routed into a single intake system. No more digging through inboxes or stacks of paper. Once captured, invoices are automatically indexed and stored digitally for easy access across teams.
Entity-Specific Routing Rules
Each entity can configure its own routing logic. For example:
- In Entity A, a $5,000 invoice may require a department head’s approval.
- In Entity B, that same invoice might go straight to finance.
AvidXchange learns and automates these patterns while maintaining human oversight.
Customizable Workflows
Approval workflows can be tailored to mirror how each institution operates. That means different invoice types, departments, or vendor classes can all follow their own routing paths without burdening the central finance team.
Unified Dashboards and Reporting
Gain visibility into AP activity across all entities from a single platform. Finance leaders can drill into invoice status, approval timelines, exception rates, and spend by department or entity, all in real time.
This level of transparency helps CFOs spot inefficiencies, benchmark performance, and make faster, more informed decisions.
AI-Enhanced Automation: Speed with Oversight
AvidXchange’s automation doesn’t eliminate the people who make your institution run. Instead, it empowers them to be more efficient and opens the door for them to pursue strategic initiatives and not be bogged down by manual processes.
Here’s how AI plays a supporting role:
- Invoice coding suggestions: The system analyzes past behavior and suggests GL codes, reducing manual data entry.
- Duplicate detection: AI flags duplicate invoices before they reach approval.
- Workflow optimization: The system learns routing delays and bottlenecks, helping finance leaders fine-tune their processes.
- Audit trails: Every action is logged—who touched what, when, and why. That’s essential for internal controls and compliance reviews.
Since every action is configurable, finance teams stay in control. AI helps your team move faster, not work harder.
The Benefits Add Up
For multi-entity banks, the right AP automation solution offers both macro and micro-level gains:
Organizational Benefits
- One source of truth for AP data
- Reduced AP processing costs through automation
- Streamlined audit prep and compliance management
- Simplified vendor management and standard payment practices
Entity-Level Benefits
- Tailored approval workflows and user roles
- Faster processing without giving up oversight
- Entity-specific reporting and compliance views
- Secure access control based on roles and responsibilities
Modernization Without Disruption
One of the biggest concerns around adopting a new AP system is how much it will disrupt current operations. We understand. That’s why AvidXchange is built to integrate seamlessly with the tools you already use, supporting over 240 ERP, core, and accounting system integrations.
Whether you’re running multiple general ledgers or one shared platform, our implementation experts work with your team to map out a phased approach. We prioritize what matters to your financial institution today while building the flexibility you’ll need tomorrow.
Centralize on Your Terms Without Compromise
Multi-entity banking doesn’t have to mean multi-layered headaches. With the right approach to AP automation, you can centralize intelligently—standardizing where it adds value and customizing where it counts.
When you centralize, you won’t lose your autonomy. Instead, you’ll gain bandwidth, visibility, and strategic control across your finance function.