American Campus Communities finds AP stability through uncertain times with KeyBank automation solutions
When the COVID-19 pandemic disrupted business operations across the country, many companies were left scrambling to revamp treasury management processes so that they could be handled by remote employees safely and securely. Companies that had already implemented digital payments were ahead of the curve.
American Campus Communities (ACC), the nation’s largest developer, owner, and manager of high-quality student housing apartment communities, implemented payment automation through KeyBank in 2018. Through the bank’s payment partnership with AvidXChange, a leader in accounts payable (AP) automation solutions, ACC received the latest financial technology (fintech) to make its business more efficient, while benefiting from trusted advisors who understood the business and made implementation and support seamless.
Amid major disruption in 2020, ACC was able to keep its AP functioning continuously, as well as benefit from the financial rebates associated with KeyBank’s solution to bolster cash flow. “We’ve had a lot of feedback from ACC and other companies saying ‘We were glad to have automated our payments process before the pandemic, because we didn’t have to send our people into the office or bring check printers home,’” said VP Zachary Roach, senior payments advisor, KeyBank.
Why American Campus Communities selected KeyBank’s AP platform
With several touchpoints across the KeyBank network, we helped support ACC’s growth for more than 15 years. According to John Scott, SVP, KeyBank Real Estate Capital, Key participated in ACC’s inaugural corporate credit facility and its initial public offering (IPO) in 2004 and the relationship grew from there.
Understanding both ACC’s business goals and the complex operating needs of REITs, we demonstrated to its senior leaders how automation could provide meaningful cost reductions and modernize AP processes, all in line with the size and speed of ACC’s growth.
“Our specialized niche in the REIT space was a huge factor, but our client has also appreciated the collaboration and integration across the bank for a single, holistic, and well-coordinated relationship,” adds Scott.
Another critical benefit was the turnkey nature of the AP solution, which integrated directly into ACC’s accounting systems. ACC could turn over its vendor list, and the KeyBank payments team did the work of converting it to electronic payments.
The benefits of AP automation
During implementation, relationship managers worked together with the ACC finance and AP teams to audit current processes and see where payment automation could improve functionality. Once in place, the benefits of automation were clear:
- Transaction time and cost was reduced significantly compared to manual payments.
- Payments automation is scalable and creates efficiencies, so ACC can better deploy its working capital and staffing to focus on growth.
- Accounting staff now doesn’t have to sign every check or approve every ACH individually, but they retain the same transparency into the status of invoices and approval safeguards.
- The KeyBank platform integrates with existing enterprise resource planning (ERP) software and financial accounts.
- Digitizing AP is a business continuity boon because manual processing often needs to happen in person. Automation allows companies of all sizes to quickly pivot during sudden, serious events.
On top of these benefits, ACC also receives an annual rebate from the substantial percentage of vendor payments transacted via virtual credit card. “They appreciated the resiliency of the revenue provided by the rebate,” said Roach. “It supported their financials at a time when other sources of revenue were under pressure.”
Pictured: ACC’s The James, Madison, WI.
- ◦Financing