High-quality Factoring Software - Reasons To Own

Title/name of presentation/conferenceHTTP://FACTORING.COMARCH.COM

Vienna, Optimising Factoring Products and Services14-15th of May 2009

Vienna, Optimising Factoring Products and Services14-15th of May 2009

REASONS TO OWN HIGH-QUALITY FACTORING SOFTWAREREASONS TO OWN HIGH-QUALITY FACTORING SOFTWARE

Title/name of presentation/conference

SUMMARY

• Corporate profile

ELEMENTS AFFECTING YOUR COMPETITIVENESS

• Automation of business processes• Cutting opeational costs• E-invoives• Instant money funding• Reacting to market changes• Internet

Products PricesMarketing

Automationof businessprocesses

Reacting tomarket

changesInternet

E-invoicesInstantmoneyfunding

Cuttingoperational

costs

HTTP://FACTORING.COMARCH.COM


WHAT ARE REASONS TO OWN HIGH-QUALITY FACTORING SOFTWARE?WHAT ARE REASONS TO OWN HIGH-QUALITY FACTORING SOFTWARE?


TO SPARE TIME & STREAMLINE FLOWS

EFFICIENT COMMUNICATION MODULE STREAMLINING FLOW OF INFORMATION AND THE DAY-TO-DAY WORK

– Infomation sent to factor employees, clients and their customers

– Different communications channels (FAX, SMS, EMAIL, INBOX)

– Communication module affecting every aspect of the daily work:

• Financing• Repayment settling• A/R Monitoring• Risk management• Insurances/Claims• others

WWW.COMARCH.EU | WWW.COMARCH.DE | WWW.COMARCH.RU | WWW.COMARCH.PL

ComarchFactoring

COMMUNICATION CHANNELS

COMMUNICATION

Risk management

A/R Monitoring

AccountingCollections

Invoicemanagement

Requestprocessing



TO MAKE YOU FLEXIBLE

Customization of business processes for each client and their customers– Such approach helps treat your clients individually – Reduction of operational costs thanks to the automation of

business processes of clients that we trust and have not had problems with

– Ability to change your approach anytime against any client


Fundingrequest

processing

Repaymentsettling

A/RMonitoring

Collections

Individualsettings

Individualflows



TO BE HIGHLY COMPETITIVE

CUSTOMIZABLE PRODUCT WIZARDS allowing you to create any factoring product and modify it in many ways


• 2-stage product definition• Handy wizards used on

both stages• Hundreds of parametrs

and possibilities

Individual approach to each client

Producttemplate

Riskallocation

Factoringproduct

type

Caluculationformulas Product

definitionfor

individualclient

...

Pricingmodel

Limits

Individualconditions

Financingterms

...



TO BE UNIVERSAL


• Modularity of the platform ensures quick & easy deployment of new functionalities and modules

• Software provider should constantly monitor the market and adapt its software to new conditions

IN AN ENVIRONMENT OF FIERCE COMPETITION CHANGES AND NEW TRENDS ON THE MARKET NEED TO BE QUICKLY REFLECTED IN YOUR FACTORING SOFTWARE



TO KEEP UP WITH THE TIMES

The system designed using the latest available web based technologies – it is your prestige and client satisfaction


• Access to the platform any time from any place

• Fully web based• Modern look&feel• Usefull functionalities made

available for your clients• State-of-the-art protection

mechanisms to make your client feel more comfortable



TO SPEED MONEY TRANSFER (1)

Invoicesubmission

Sendingfundingrequest

CLIENT FACTORING COMPANY

VerificationFundingrequestapproval

Moneytransfer

• Time-consuming (depending on the factoring company it usually takes one or more days to transfer funds)

• Emploees’ interferece required in order to make payment to client’s current account

• Good approach for new clients, or clients whose verfication is showing first signs of inferior financial condition

• Loss of money & time when applying this approach to clients we cooperate with for years without any problems and frauds

Factoring software

Bank wires(SWIFT, others)

Requestvalidation

Facto

ring

com

pan

y

Inte

rfac

e

Clien

tB

ank em

plo

yeeRequest

processingby BankemploeeIn

terf

ace Making

payment

Central Banking system

Invoicesubmission

Sending fundingrequest

Requestanalysis

Manual requestapproval

Generalledger

Paymentsystem

Subsidiaryledger

Transactionalmodule

……...

……...

USUAL APPROACH (Manual request processing)

WWW.COMARCH.EU | WWW.COMARCH.DE | WWW.COMARCH.RU | WWW.COMARCH.PLHTTP://FACTORING.COMARCH.COM


ANOTHER APPROACH (Automation of request procesing)

Factoring software

Bank wires(SWIFT, others)

Requestvalidation

Fa

cto

ring

co

mp

an

y

Inte

rfa

ce

Clie

nt

Clientidentyfication

Adoptingautomation

formula

Central Banking system

Invoicesubmission

Sending fundingrequest

Generalledger

Paymentsystem

Subsidiaryledger

Transactionalmodule

……...

……...

User-definedautomation

formulas

Automaticrequest

processing

Makingpayment

• Full automation of this process and the ability to assign individual funding conditions to each client.

• Money on client’s current account within one hour from the invoice submission through client’s web portal ASSUMPTIONS:

– Client’s current account is held in the same bank which is factoring client’s invoices

– Payment processing is done efficiently by cooperating banking systems

• Payment made to accounts held in another banks done with delay due to the need to transfer money through Bank Wires (SWIFT, others)

• Great approach for clients we trust and have not had problems with so far.

• It leads to operational costs reduction and improving client satisfaction

• Required periodical client verification


TO SPEED MONEY TRANSFER (2)



TO GET A BETTER MARKET SHARE


LOOK FOR FACTORING SOFTWARE WITH EDI INTERFACES THAT SUPPORTS PROCESSING E-INVOICES

There are thousands of companies using paper-less form of invoicing

Invoice factoring software can be integrated with systems for Electronic Document Interchange

• Comarch ECOD platform serves as an EDI system, that has been integrated with Comarch FactoringTM

• ECOD is used by 7500 clients in Europe and the number is constantly increasing



EDI & FACTORING


SIMPLE PROCESS OF FINANCING E-INVOICES RECEIVED THROUGH EDI INTERFACE

Supplier Customer

FactoringCompany

EDIPlatform

1. Invoice generation2. Invoice sent to a Customer

through EDI platform

3. Invoice received through EDI platform

4. Copy of the invoice received through EDI interface

5. Receiving the invoice approval and financing it



EDI & REVERSE FACTORING


Supplier Customer

FactoringCompany

EDIPlatform

1. Invoice generation2. Invoice sent to a

Customer through EDI platform

6. Receiving the proposal of invoice financing date

7. Acceptance/ rejection of invoice financing date and sending it to a factor through EDI interface

3. Invoice received through EDI platform

4. Sending the proposal of invoice financing date

5. Copy of the invoice received through EDI interface

8. Receiving the invoice financing date approval and final financing

THE PROCESS OF FINANCING E-INVOICES RECEIVED THROUGH EDI INTERFACE (WITH ADDITIONAL NEED FOR A CUSTOMER TO APPROVE INVOICES)



TO MAKE YOUR LIFE SIMPLER by ADAPTATION of AUTOMATION MECHANISMS

• Invoice purchase, request approval, funds transfer

• Repayment processing (FIFO, custom)

• Monitoring of A/R, notification management

• Management of A/R, calculating fees, charges and interest

• Management of outstanding A/R, Collections

• Recourse

• Partial invoice purchase

• Operational start and end of each working day



TO HAVE YOUR BUSINESS UNDER FULL CONTROL

• Coverage of all business processes in your factoring organization

• Expanded reporting module

• Expanded notification module



TO ENSURE SAFETY

PROTECTION MECHANISMS

– HTTPS Protocol (SSL 2.0/3.0)

– Login & password

– Tokens

– Full support for PKI managament

– Site certificates

– Microprocessor cards with PKI for user authentication and authorisation of transactions

TO MAKE YOUR CLIENTS FEEL COMFORTABLE



Real-life example (DnB NORD)

DnB NORD factoring turnover (mln PLN)

0

100

200

300

400

500

600

700

2005 2006 2007 2008

Year

Tu

rno

ver

2006 – Comarch Factoring deployment in DnB NORD. The deployment resulted in the immediate turnover growth in the next two years.

2008 – DnB NORD along with BGZ Bank doubled its factoring turnover and has been currently considered one of the most quickly growing factoring companies in Poland

Year Turnover

2005 app. 80 000 000 PLN

2006 97 700 000 PLN

2007 303 000 000 PLN

2008 632 000 000 PLN

- Repayment processing automation- New sources of invoice submission- Web-based portals for clients- Money transfer within one hour for the invoice submission in the client portal- Automation of A/R Monitoring and collection remainders

BE

NE

FIT

S


Title/name of presentation/conferencewww.comarch.com

PART 7. COMARCH - CORPORATE PROFILEPART 7. COMARCH - CORPORATE PROFILE


COMARCH TODAY

• Leading software house in CEE

• Rich product portfolio for banking, insurance & capital markets

• 2000–2008 dynamic growth of:

– Revenues

– Profits

– Employment

• Present market capitalization reaches:160 mln EUR

• Invesments in R&D (15% of revenues)

REVENUE & NET PROFIT

R&D Investments



COMARCHas a GLOBAL PLAYER

• Software export:– Software & services to

international corporations – Customers on 4 continents in

more than 20 countries– Over 3000 successfully

completed projects

• European headquarters -

Dresden, Germany

• Middle East subsidiary

monitors activities in the

developing markets

• Activity in the Americas



COMARCH FOR FINANCIAL SECTOR – areas of focus

• Internet Banking (all financial products and services, mobile included)

• Customer Service (CRM, branches, agents, contact center, Points Of Sales, and other channels)

• Sales Process Management (business process modelling, customer scoring and rating, underwriting, document management, commission)

• Core Systems for:– Insurance (Life and Non Life)– Custody– Factoring and Trade Finance– Investment Management



OUR CLIENTS



Krystian Suchodolski, Business Solution Manager, COMARCH

[email protected]

Krystian Suchodolski, Business Solution Manager, COMARCH

[email protected]

www.comarch.com

Thank youThank you

Technology

High-quality Factoring Software - Reasons To Own