Shift Operational Focus to Strategic Management of Payables

Today’s environment, corporates are able to process various types of payment transactions and submit them to the Bank for processing of Cash Management transactions.

An Integrated Payments platform with a User Interface is offered to corporates where the customer can process an Integrated Payment File with multiple payment types such as  Electronic Transfers ( EFT, High Value and Low Value Payments) and Physical Payments ( Customer Cheque , Demand Draft and Cashier’s Order). Banks are able to process a Payroll file, Vendor Payment file etc using multiple payment types.

The Integrated Payments platform can provide various channels for the corporate to process the integrated payments file. Corporates are able to send files to Bank for processing either using Host-to-host file transfer solution, transferring files over email or copying the transaction files on CD and sending to the Bank for manual File Upload. For processing an integrated payables file, Banks are extending support on a wide range of standard file structures with advanced file-mapping ensuring that the system recognizes file formats, and also maps, sorts, validates, and routes the data properly.

• Ø Integrated Payment File 

An Integrated Payments Platform allows the corporate to process payments which will provide customers with an efficient way to send electronic instructions for bulk issuance of paper instruments through/by bank. Both domestic and international electronic and paper instruments can be locally cleared or foreign currencies are supported via the various payment types available. 

Corporates can also set up an automated workflow processing where an Integrated Payment File is being processed as a straight through processing and supporting various authorization matrix such as Bulk approval, automatic approval mechanism, manual authorization etc.

From a security perspective, an Integrated Payments file can be processed end to end with advanced security plug-ins such as file encryption, authentication and digital signature technology being offered for files being sent by customer to Bank.

While processing an Integrated Payments File, Instructions can also contain information pertaining to dispatch instructions for the physical instrument as well as enriched payment details for sending beneficiaries as part of the payment advice, plus advice to appropriate recipients of your choice via the advising engine.An Integrated payables enable your business to improve productivity, reduce cycle time, lower error rates and improve cash forecasting.

Post processing of an Integrated Payment File, a status download file can be sent back to the customer to be uploaded in the customer ERP System for reconciliation.

 Ø Benefits to corporate 

As a corporate, processing an Integrated Payment File can help improve the operational and technical efficiency by centralizing the treasury operations. A single integrated, consolidated file in one format, such as XML or SWIFT, for multiple payment types in multiple currencies for multiple countries can be sent to Bank for processing using flexible connectivity options.

Banks are able to provide high level of integration with customer ERP systems which facilitates straight-through processing of your payment, cash management and treasury operations. Customer can receive a consolidated status download file which can be uploaded in ERP System which will help in easy reconciliation of payments.

 Risk Management

From a file processing perspective, a corporate able to transfer files from ERP systems and process the integrated file in the Cash Management system. Files can be transferred with STP Processing and workflow rules such as Automatic authorization. User’s access, entry and approval limits to accounts and types of payments with encryption helps protect transaction information.

As a part of the file upload, the Corporates can leverage on standard industry algorithms for file level encryption, hashing tools for duplicate checking of records in the file. As a part of the file upload process, the file to be uploaded can go through file format validations and for data level validations the file handling rules can enable processing of file which can be rejected outright, sent to reject repair, partial records sent uploaded and remaining sent to reject repair etc. Corporates can repair the files in Reject repair before submitting these transactions to the verifier who will verify the transactions before sending them for approval.

 Ø Benefits to Banks 

As a Bank, processing an Integrated Payments File helps gain consistency in payment processing which enabling automation, higher straight-through processing (STP) rates, less manual activity and resultant cost reduction. It also helps the Bank to create more control for Banks working with one file for multiple payment types/channels.

Atypical example for processing an Integrated Payments File can be uploading a common file for Payroll and Vendor payments with multiple payment types. The file will be spilt by Payroll data and Vendor payment data. Within the Payroll and Vendor payment, as per the payment type the transaction will follow its own workflow processing rules and support designing and printing of instruments and advices and capturing additional information as enrichments. An integration will be built in to handoff the payments data to the Clearing systems and receive an acknowledgment from the clearing systems for successful credit to beneficiary.

A status acknowledgment can also be sent to the corporate who can transfer this file to the ERP systems for status update reconciliation, instrument no details in case of physical payments.

 Summary

• Processing Electronic and paper based payments which allow the corporates to process all these payments in a single file format thus simplify and improve workflow.
• An Integrated Payment File can increase RoI for corporate leveraging their ERP.
• Enables direct integration and translation from corporate systems.
• Provides robust security to both corporate & bank
• Unified handling of payment across multiple payment systems will be another strong point of integrated payments file.