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Axletree Solutions Our expertise, your advantage

The  Power  of  Automa/on  and  Standardiza/on  Case  of  Integra/ng  SWIFT  With  Treasury  and  Accoun/ng  

Ms.  Margaret  Albrecht,  Vice  President  Treasury  Opera:ons  First  Data  Corpora:on  

And  

Mr.  Mohan  Murali  President  Axletree  Solu:ons  Inc.  

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Agenda

•  First  Data  Treasury  Objec:ves  

•  Solu:on  to  meet  the  objec:ves  

•  Implemen:ng  the  Solu:on  •  Q  &  A  

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•  Over  6  Million  Merchants  •  Opera:ng  in  34  countries  •  Over  56  Billion  Transac:ons  •  Over  4000  financial  partners  

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First Data: Company Overview

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•  14+  Data  Sources  •  Manual  Processes  

–  Input  format  from  business  units:  paper,  fax,  email,  Excel  

–  Most  input  manually  transformed  by  keying  into  Excel  spread-­‐sheet  

–  Staff  used  each  bank  portal  to  input  data  from  Excel;  receive  response  from  bank  

•  40+  Banking  Rela:onships  •  1600+  Bank  Accounts  

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First Data: Treasury Overview

Systems  Integrated  with  

ORACLE

ORACLE EXCEL

Systems  NOT  Integrated  with  

ORACLE

Bank..Bank2

Bank1

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First Data: Treasury Overview •  Opportunity  Cost  

–  Higher  overdraY/bank  charges  due  to  data  unavailability  in  a  :mely  manner  –  High  IT  and  Opera:onal  labor  costs  –  Online  bank  setup  with  many  banks  –  Not  posi:oned  to  take  advantage  of  technology  transforma:ons  in  treasury  

•  Opera:onal  Challenges  –  Opera:onal  staff  spending  :me  on  mundane  tasks  –  Compliance  with  Audit  requirement  to  reduce  the  number  of  users  with  access  to  

on-­‐line  banking  portals  –  IT  Support  reduc:on  in  facilita:ng  bank  file  loads    –  Change  management  –  Bank  limita:ons  

•  What  should  be  the  ideal  solu:on  –  All  domes:c  banks  report  prior  day  BAI2  files  via  FileAct  over  SWIFT  –  All  interna:onal  banks  report  MT940’s  over  SWIFT  –  All  domes:c  banks  are  able  to  supply  on  demand  current  day  BAI2  files  via  FileAct  

over  SWIFT      –  TMS  can  facilitate  the  loads  of  BAI2  /MT940  files  and  deliver  decision  ready  

reports  to  users  

 

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First Data: Treasury Objectives

•  Primary:  Streamline  Bank  Access  –  Standardiza:on  -­‐  one  process  to  pull  in  and  manage  bank  data  

•  Secondary:  Enhance  Straight  Thru  Processing  –  Integra:on  -­‐  push  data  into  system  for  numerous  users  to  share  

data  globally  •  Third:  Reduce  Staff  Stress  

–  Automa:on  -­‐  data  presented  to  users  for  decision  making  :mely  and  simply  

•  Fourth:  Reduce  Service  Outage  –  Reliability  –  looking  for  system  redundancy  and  support    

•  FiYh:  Manage  Costs  –  Op:miza:on  –  keep  data  secure  and  costs  down  

 

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First Data: Solutions Evaluated

•  Stay  with  Point  to  Point  Pro’s    –  Users  comfortable  with  exis:ng  processes  Con’s    –  Expensive  way  to  access  bank  data,    -­‐    Same  data  being  accessed  numerous  :mes  by  same  group  -­‐    Mul:ple  portals  to  monitor,  audit  issues  regarding  staff  status  

•  Use  a  single  bank  Not  feasible  for  First  Data’s  business  model  

•  Direct  connect  to  SWIFT    Cost  of  entry  very  high.    Ongoing  hardware  support,  security  monitoring  and  maintaining  knowledgeable  staff  proved  prohibi:ve  

 

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First Data: Treasury Overview: Today

Bank..

Bank2

Bank1

FIRST  DATA  SYSTESMS

Access  Lite

FIRST  DATA  SYSTESMS

SWIFT

9,000  BANKS

FIRST  DATA  SYSTESMS

SWIFT

9,000  BANKS

SWIFT  SERVICE  BUREAU

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SWIFT? What, Why and How

•  How  many  have  heard  or  use  SWIFT?  

•  Trucking  Company:  – No      

•  Financial  Message  Transport    

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SWIFT? What

A  co-­‐opera:ve  organiza:on  serving  the  financial  industry  

A  provider  of  highly  secure  financial  messaging  services  

The  financial  

standardiza:on  body  

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SWIFT? Why

• 10,000  par/cipants  in  212  countries  

• Resilience,  reliability,  non-­‐repudia/on    (F.N.A.O.)  

• 3.5  billion  messages/year  • 99.9995%  availability  • 24/7/365  “Follow  the  sun”  Support  

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SWIFT? Role

•  Standardizing    –  Bank  Communica:ons  –  Bank  Interfaces  –  Bank  Messaging  

•  Enabling  efficient  Treasury  Opera:ons  •  Lowering  Costs  

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SWIFT Messaging Solutions

•  Store & Forward •  High Value, Urgent Messages (Wires) •  Non Repudiation of Delivery and Content

SWIFTNet FIN

•  Real Time; Query & Response into bank accounts •  Non Repudiation •  Store & Forward; Non Repudiation

SWIFTNet InterAct

•  Browse Services hosted by banks over SWIFT SWIFTNet Browse

•  Real  Time;  Non  Repudia:on  •  Store  &  Forward;  Non  Repudia:on  •  Mostly  for  bulk  /  lower  value  /  less  urgent    message  (ACH  etc.)  

SWIFTNet FileAct

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SWIFT? How

ERP  

TMS   Banks  

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SWIFTNet  

SWIFTNet  interface  

Treasury  Management  System  

MT942  

MT942  

MT942  

MT942  

MT942  

MT942  

MT942  

MT942  

MT940  

MT940  

MT940  

MT940  

• No  need  to  consult  separate  websites  • No  need  to  transfer  files  manually  

Bemer  global  visibility  

Integrate directly into TMS

Axletree Solutions Our expertise, your advantage

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SWIFTNet  

SWIFTNet  interface  

Treasury  Management  System  

ERP     One  standardized  channel    One  security  scheme    Tight  integra:on  with  applica:ons  

An  essen:al  building  block  of  corporate  payment  factory  

MT940  

MT940  

MT940  

MT940  

Transfer payment files

Axletree Solutions Our expertise, your advantage

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SWIFT? How

  Lower  costs    Higher  STP    Improved  control,  

visibility  and  compliance    Reduced  risk  

SWIFTNet  

Customer  

Accounts  payable  

Accounts  receivable  

Treasury  

Other  

Single  gateway  

  Standard  planorm    Standard  

communica:on    Standard  security      Standard  messaging  

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SWIFT? How

Direct  connec/on  Large  volume  of  payments/year  Manage  your  own  SWIFT  connec:on  

VPN  

Network  partners  

VPN  

Alliance  Lite  Lite  #  of  transac:ons/day  Simple  solu:on/  Entry  level  

Internet  Web server Work flow

SWIFTAlliance

SWIFT  

Indirect  connec/on  Large  volume  of  payments/year  Outsource  SWIFT  connec:on  

Service  bureau  or    Member/Concentrator  

Internet  or  VPN  

VPN  

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SWIFT: What else?

•  Standard  Statements  – BAI2  or  FIN  940  

•  Standard  Payments  •  Bank  Account  Management  (e-­‐BAM)  •  Reference  Data  (SWIFTRef)  •  Electronic  Invoices  (e-­‐Invoicing)  •  User  Authen:ca:on  (3SKey)  •  FX  Matching  (Accord)  

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•  Started  with  Alliance  Lite  •  Moved  to  full  Service  Bureau  

– Selected  SWIFTReady  Connec:vity  Cer:fied  – Retained  SWIFT  Code    – Migrated  Bank  Rela:ons  

•  Ability  to  scale    •  Leverage  other  cloud-­‐apps  •  Total  Cost  Ownership  

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FDC Choice

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The SWIFT Solutions Marketplace

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•  Security  –  Type  of  clients  

•  Reliability  –  Volume  of  transac:ons  

•  Assurance  –  Cer:fied  for  Connec:vity  

•  Service  Quality  –  Reference  Checks  

•  Growth  Poten:al  –  Value-­‐added  services  

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FDC Considerations

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•  Standardiza:on  of  Data  – Single  Bank  Interface  – Single  Payment  Structure  

•  Cost  Reduc:ons  – Eliminate  direct  interfaces  with  banks  – Online  Bank  Fees  

•  Audit  Compliance  

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FDC Benefits

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SWIFT: What Else?

eBAM  

Electronic  Statements  

(3SKEY)  

• Compliance  • Control  • Cost  Savings  

Enriched  Data  (XML)  Concept  –  Posi/onal  vs.Tagged  Records  Posi/on:  8,400321,575,20111115,USD,50000000  Tagged:  Detail  Record-­‐8,  Account  Number  400321,  Transac:on  Type:  Inbound  Wire,  Date:  15Nov2011,  Amount:  +USD$500,000.00  

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Cash Reporting / TMS

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Cash Reporting / TMS

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Cash Reporting / TMS

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Cash Management – Bank Fee Analysis Dashboard

Cash Management: Bank Fee Analysis

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Questions; Answers; Next Steps

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Where to Reach Us

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Mohan  Murali  Axletree  Solu:ons  

mohan.murali@axletrees.com    

Margaret  Albrecht  First  Data  Corp  

margaret.albrecht@firstdata.com