In an era of performing more tasks with fewer resources, one would imagine
that treasury technology alternatives, specifically bank connectivity, would
become easier. Instead, it seems that as staff dwindles, bank communication
options increase, and with it, a myriad of considerations. Just think, for a
corporate to communicate/interface with just one bank, a decision tree that
resembles the following ensues:

(1) Type of reports
a. Previous day
i. Balances only
ii. Balances and transactions
b. Current day
i. Incremental or aggregate
ii. Transactions only
iii. Balances and transactions

(2) Format of report
a. BAI2
b. CAMT
c. EDI
d. MT

(3) Encryption methodologies
a. PGP
b. SSL
c. 128 bit
d. AES 256 bit

(4) Communication protocol
a. FTPS
b. SFTP
c. VPN
d. Internet
e. SWIFT
i. FIN
ii. FileAct

(5) Cost
a. Bank cost
b. Vendor cost

(6) Security considerations
a. SAS 70 Type II
b. SSAE 16
c. Tier IV data centers
d. Firewalls
e. Ports

(7) Monitoring
a. Identified points of failure
b. Accountability for failed transmissions
c. Acknowledgements

Although the above represents only a sample of the considerations involved
when establishing bank connectivity, each component must be re-examined with
each banking partner. And unfortunately, the lack of standardization across
banks introduces an added layer of implementation complexity that further
supports the need for a managed connectivity service.

In today’s corporate treasury setting, the demand for outsourced managed
connectivity should not come as a surprise. As a former corporate treasury
practitioner, I am familiar with not only what it means to implement, configure,
test and support a bank communication hub, but I am also conscious of the strain
on in-house IT and business process owners; frequently, the corporate
connectivity environment quickly becomes unmanageable. Access to a managed
connectivity hub is advantageous for corporations – it facilitates a single
channel communication environment between the corporate and vendor and
essentially outsources all the complexities and tasks associated with bank
interfaces. The three key benefits to a best in class managed connectivity hub
are:

(1) Reliability, security and resiliency
(2) Flat-fee pricing
(3) Data transparency

In simplest terms, corporate Treasury has a need to send and receive
information, but they are disinterested in owning the process. Corporates only
want to own and analyze the data with near guaranteed delivery.

Are you and your corporate IT department challenged with the management of
in-house bank connectivity? If so, have you considered outsourcing it?