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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
Margaret Albrecht First Data Corp