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8/6/2019 Sushant Bhasin Yes Bank
1/21
Financial & O erational efficienc throu hFinancial & O erational efficienc throu h
electronic Banking andelectronic Banking and
Sushant BhasinSushant Bhasin
EVP & Country HeadEVP & Country Head Product Sales,Product Sales,
Transaction Banking GroupTransaction Banking GroupYES Bank Ltd.YES Bank Ltd.
ASSOCHAM, New Delhi
November 25, 2009
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"That's our accounts department
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How we Pay today?
Pay by
Cheque
Electronic
Kind
and TODAY is CHANGING
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Present Composition
CORPORATE 30%
GOVERNMENT 70%
- ns gn can
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Fact Sheet
Constraints Im act
Scale / Geography Credit Delays
Varying Automation Uncertainty of
a ments
Ltd Linkages Reconciliation issues
Paper Based Models High fraud potential
High AdministrativeBurden
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Key Business Challenges
Slow Cash compensations systems
processes and computerized clearing systems
Inability to determine schedule of inbound monies
Long and unpredictable clearing cycles for
receivables outside main cities
Pa er-based clearin multi le clearin houses
Clearing & settlement risk
Net-Sett ement-en o ay sett ement
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Trends
Rapid improvements in the Clearing infrastructure
Computerization of Banks
move away rom paper ase ransac ona ows
Convergence of Wholesale and Retail Payment Networks
reasurers ro e n e company s wor ng cap a
management.
challenge
Gradual transition to real-time access / data on demand
Common reporting problems (lack of integrated systems,
neglect of A/R and A/P reporting, inconsistent reporting
by subsidiaries, lack of inter-company co-ordination.)
Sharing inventory data across the supply chain
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RBI Ushering the Change
VISIONTo Provide A Safe, Secure, Sound and Efficient paymentand settlement system for the countryIncrease Efficiency of the Payments systemsCustomer Facilitation for each of the payment systemproducts
Key InitiativesIntroduced RTGS in 2004
Introduced Cheque Truncation in 2008Introduced Speed Clearing in 2009
Phased out HV Clearing in 7 major locationsRegularly increased customer timings for RTGS and NEFT
Pa ments Vision 2009 - 2015NEFT 24 x 7India Card India based card system
New regulations in mobile payments
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ePayments Landscape
RTGS NEFT NECS
Paperless/Inter-IntraBank, Inter/Intra city
Paperless/Inter-IntraBank, Inter/Intra city
Paperless/Inter-IntraBank, Inter/Intra city
/ T+1
Real-time, Continuous Multi settlements/day Batchatc 6 atc es
12000+ centres, 60000+
bank-branch locations
12000+ centres, 60000+
bank-branch locations
114 Banks, 28000
branches
Negative, Positive
Confirmation
Only Negative
Confirmation
Only Negative
Confirmation
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Financial Supply Chain Solutions
WebEnablement SuperiorproductStructuring
RTGSTransfersFinished GoodsDemandDrafts
LettersofCreditFX Remittances
ExportFinanceDedicatedService
Manager CompetitiveRates
SalesIntegratedFinancialsupply
chainmanagementsolution
ImportFinancingLocalCheque
Collections
RTGSCollectFasterTurnaround
Time
EnrichedandCustomizedMIS
UpcountryCollections
Investment
Strictly Confidential Account ReceivablesCash & BankBalances
Management
Fasteraccesstoinformation
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SME Challenges
Economic Downturn
High Operational Cost
Ti ht Com etition
Low Automation
Key Success Parametersnnovat on
Speed of Execution
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Need of the hour
One Bank solution for AP/AR
Increase revenues by investing investments on higherreturns
Just in Time Payments Reduction / elimination of idlefunds
Reduce o erational costs b automatin AP AR rocesses.
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Case Study Havells India Limited
Key Highlights Migrated Havells to electronic payments (RTGS and NEFT) for
making payments to 7000 locations across the country Complete system integration with SAP ERP for payment, advice and
YES BANKs RoleYES Bank acting as the innovator in the E-
reconc a on e up oa s. xper se n n egra ng eapplication can be successfully replicated across most SAP systems.
Payments to 1000 + vendors across the country are credited on thesame day
Email advice containing invoice level information sent to
from their physical cheque writing process toa completely automated electronic paymentmode.
Single file upload irrespective of payment type RTGS / NEFT
1000 + Vendors across the countryCurrent Process Manual cheque writing,signing and delivery to vendorsIssues with current process Time taken for crediting vendor 5 days
Benefits to Havells
Optimized Treasury Management due to Just-in-time paymentmodel.
minimumManual ReconciliationManual errors in writing cheques, signing,signature mismatch issues, managinglogistics of cheques (100+ cheques per day)
Zero float loss
Cycle time reduced from 5 days to 1 day
Cheque couriering costs saved
saved huge time
Email advising to beneficiaries eliminate client servicing issues
Reduced work load.
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Process Flow @ Havells
Havells ERPYES Bank RBI Suppliers Bank
Activity Duration Before E-Payments Duration After E-Payments
Chq Preparation & Dist 2 days 0 (Integrated with ERP)
Chq Clearing 2 day 2 hours (e-payment)
Reconciliation 1 day 0 (Integrated with ERP)
Total Duration 6 days 2 hours
Supplier
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Testimonial.
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One Bank Model
Payments
State-of-the-art RTGS, NEFT platform to make payments across 58000+ bank branches.
Standard ERP /Accounting System Connectivity for automated payments cycle
Collections
User initiated MIS available for fund flow predictability by region, branches.
Customized MIS with the facilit to do auto reconciliation with Invoice matchin
Salary Payments
Single File Uploads for payments to any bank
Enhanced Security
Secure uploads with coded employee data ensuring data privacy and accurate transfers
Data Encryption
Administrative Efficiency
Online Beneficiary validation for assured and secure transfers
Email and SMS advices to beneficiaries with Invoice level information
24 x 7 payments.
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Unique Technology Proposition
New Entrant Advantage
No Legacy Systems
Latest technology
Customer Focus High Degree of Automation
Straight through processing(STP) enabling improved
Outsourcing Approach
Strategic tie up with Wipro
IT infrastructure and networkUni ue process accuracy an
efficiency
First Mover RTGS via
Internet
management outsource
Variable cost model scalablebased on branch rollout
YBL retains IP and know-how
Scalable
Business Model
certifiedHardware
Efficient procurement
Most of the IT infrastructure
Software
Partnership arrangements withvendors, lowering cost andenablin access to latest, more
remains off balance sheet Infrastructure on demand
from IBM
National Award for Data
efficient software Agreement with I-flex for core
banking solution, CashTechfor CMS and Murex for
Centretreasury
NASSCOM Award in April 2006 for IT Innovations in Emerging India
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Value Pyramid
eFinancial Supply Chain
Deliver Channels
Supply Chain Solutions
Internet bankingPhone banking | Mobile banking
Dealer Financing
Bill Discounting / Invoice FinancingIncreased sales and inventory reduction
Payment Reconciliation
Vendor FinancingSuppliers receivable financing
Order Management Services
n ance anne nance o ut ons
Receivable Management SolutionsInvoice Management and A/C receivable matching
Payable Management Solutions
Customised Cash Management Solutions
o ections t roug un trans ersLocal and Outstation collections at more than 900 locations
Cheque/ Documents Pick up and delivery
Enriched MIS
Onsite and remote printing models
Payable at Par issuance
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Way forward
Eradicate inefficiencies in the financial supply chain.
Automated processes along the chain and integrating
disparate systems (e.g., accounting and cash management).
Adopt partneringapproach | Third party tie-ups.
The gradual rise of e-payments
Cheque truncation and cheque image exchange spell the
end of float and therefore the end of one of the reasons
businesses use paper.
Enhanced e-payments from initiation to reconciliation.
The eventual automation of the financial supply chain
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THANK YOU
Contact details:Contact details:
Sushant BhasinSushant Bhasin
EVP & Country HeadEVP & Country Head Product Sales,Product Sales,
Transaction Banking GroupTransaction Banking Group
an .an .
011011--6656900066569000
[email protected]@yesbank.in