Trésorier/Treasurer magazine - N°93 - Apr/May/Jun 2016 - (Page 20)

"BANK SINGLE GATEWAY" THE PLUMBING OF BANK CONNECTIVITY Connecting yourself up to SWIFT means putting in place the plumbing needed to improve bank connectivity. The goal is to streamline the transmission of information between banks and their corporate customers. This is the crucial step in achieving the ultimate goal in centralisation for treasurers: Payment On Behalf Of third parties (POBO) and Collection On Behalf Of the same third parties (COBO). This is also the precursor to future eBAM messages, with the market not seeming to be quite ready for that yet. At the end of the day, SEPA was no more than a pretext, an expedient and an excuse for revisiting the full plumbing system of the "treasury" house, to improve productivity and make it more efficient. Will treasurers become the famous Polish plumbers of finance? LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°93 - APR / MAY / JUNE 2016 Bank Single Gateway (BSG), the treasury Nirvana? 20 The standardisation of ERP and of TMS (Treasury Management Systems) has laid the foundations for a fundamental overhaul of connectivity with the banks. The special focus on security, the risks of fraud associated with payments and the essential strengthening of internal controls have been the justification and grounds for the "payment factory" and "re-engineering" projects of e-connectivity with bank partners. Before that, we had the rather inefficient situation of one bank - one payment system, even within a single country. We had to standardise tems. How can you open up an account An opportunity to revisit to become more efficient at a time when via eBAM if you don't have a standardised our payment procedures § An opportunity to revisit our payment procedures people were always talking about Shared account opening format? Treasurers are Service Centres (SSCs). Technology has moving faster than the music. Treasurers A project like this lets us carry out a root moved on and SEPA may unintentioA project like tand his branch lets us review carry of out root and branch will review of our "bank payment processes, also become agnostics", get- to ourapayment pronally have acted as an excusestandardise or catalyst them rid of any bank by a simple adjustcesses, to standardise andPmechaand mechanise them them. aper and mting anual payments will no longer be allowed for change. Why stop at EUR payments ment to the plumbing system. A slight nise them. Paper and manual payments or acceptable. Setting up interfaces with ERP systems and control centres for inflows and and the SEPA area? The ideal would be twist of the adjustment key and Bob's will no longer be allowed or acceptable. outflows mprove the lives of accounting and treasury staff, but also improve these to plan something that is wider ranging will iSetting your uncle! up interfaces with ERP systems and more global. This is the opportunity procedures from t he i nternal c ontrol p oint o f v iew. I n t ime, the ultimate goal will be Payment The pressure and control centres for inflows and outthat many MNCs have grabbed with both Of tflows be onOf third improve the lives ofCaccounting On Behalf hird pwill arties (POBO), and ollection On will Behalf (COBO), long with At paarties stroke, we areamoving hands. the banks to and treasury staff, but also improve these the eBAM messages that are currently so keenly awaited and heralded, ut which are from abhouse with annot much serve their procedures from the internal control practice. Paradoxically, MNCs have been quicker than banks IT service open fire ainnd each room tosellers SEPA, a project as wonderful in as e itvidence is am- in point clients proof view. In time, the ultimate bitious, has certainly draggedin itspheels on themselves reparing - t he b anks a nd I T s ervice s ellers a re c ertainly n ot r eady. I n p lumbing, a centrally heated house, perly, or risk goal will be Payment On Behalf Of third the implementation front. Recently, the standard tosstick with thecplumber you need onnectors nd identical sections losing to connect ystems. How an you open them. up partiesc(POBO), and a Collection On Behalf final implementation date has been put The brakes third parties along with up an account Ofvia eBAM if y(COBO), ou don't have a sthe tandardised account ometaphor. pening format? Treasurers back, with a 6-month grace period. applied by eBAM messages that are currently so are moving faster than the music. Treasurers will also become "bank agnostics", getting rid of IT will thus keenly awaited and heralded, but which any abhouse ank by a are simple adjustment to in the plumbing system. slight twist of tboth he ainternal djustment key At a stroke, we are moving from tend to A disappear. Audits, not much in evidence practice. with an open fire in each room to aBob's your and uncle! The MNCs pressure ill bquice on the banks to serve will their clients properly, and external, become easier. A good or risk Paradoxically, have w been centrally heated house, to stick with the factory" system, provided it and banks and IT b service in tend t"payment losing them. Tker he than brakes applied y IT wsellers ill thus o disappear. Audits, both internal plumber metaphor. is upgradeable, will adapt painlessly to preparing themselves - the banks and IT external, will become easier. A good "payment factory" system, provided it is upgradeable, will legislative and regulatory changes. Afterservice sellers are certainly not ready. In adapt painlessly to legislative and regulatory changes. After--‐sales service is important in sales service is important in matters of plumbing, you need standard connectors matters of heating a nd p lumbing, i sn't i t? O nce i t i s s et up, and your expansion rocess s ready to heating plumbing, isn'tpit? Once iit and identical sections to connect up sysgo, and any new entity that may be acquired can be hooked up to the central pipework effortlessly. With SWIFT products and services, you can even check all the bank references of your counterparties, even outside the SEPA and IBAN areas. Here again, there is additional security for the accounting process, and many mistakes will be prevented. Some of the benefits

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°93 - Apr/May/Jun 2016

Cover
Table of contents
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW David Blair - How should we set up an efficient KYC Process?
FOCUS
IFRS 9: Hedging - Treasurers will love it
From 17 to 16 reLEASE of the new LEASE accounting standard
Block chain - Is this buzz word turning into a reality?
Bank Single Gateway, the Plumbing of Bank Connectivity
FORUM
Geopolitical threats for the year ahead
Treasurers proceed with caution
Des difficultés en série pour les nouveaux entrants
Easing the Burden - Is a global KYC standard needed?
European trade repository of the year
La dette senior Européenne, un regard nouveau sur l'obligataire
CORPORATE FINANCE
Stay connected with cloud treasury technology
From stone age to straight through processing
Differentiators for treasury management systems
Complete securities financing solutions for corporates
A full and balanced "meal" for your retirement?
15 MINUTES WITH FinMetrics
THE FINANCIAL RISK OBSERVATORY
NEWS
LIFE BEYOND NUMBERS

Trésorier/Treasurer magazine - N°93 - Apr/May/Jun 2016