Customer-Bank Communication
Settlements with business partners, as well as bank account management, are among the key processes within the SAPFI module. To date, the SAP system has supported the automation of payment and settlement processes; however, client-bank communication took place through the exchange of structured files. By default, the Elixir-0 format of the National Clearing House, which uses flat CSV (Comma Separated Values) files, is used for domestic transfers, while the MT100 or MT103 standards, provided by SWIFT (Society for Worldwide Interbank Financial Telecommunication).
Unfortunately, these formats vary from one banking institution to another, even for basic services such as making a payment or importing a bank statement. In bank-customer relationships, it is typically the financial institutions that dictate the standard for electronic communication, in line with their IT systems.
Using files as a medium for information can pose the following risks:
- the risk of a third party tampering with the contents of a given file before it is imported into the banking system —in the vast majority of cases, the files are not encrypted and can be freely modified using a text editor;
- The process of exchanging information is lengthy and unnecessarily complicated —due to the need to use several IT systems “along the way.”
New Trends
In line with trends in electronic banking, physical files as information carriers are increasingly being phased out of the market. This has been largely driven by the introduction of the ISO 20022 XML standard for the exchange of information between corporate clients and banks. Currently, this standard is already in use on the SWIFTNet interbank settlement network, and its ultimate goal is to completely replace the MT message family.
The European Commission and the European Central Bank have also approved this standard as a medium for transmitting information within the SEPA (Single Euro Payments Area) intra-Community settlement network.
SAP and Banks – Better Communication
The use of web services technology makes it possible to eliminate the intermediate layer—which until now consisted of files—and connect SAP directly to the banking system.
The standard mechanisms provided by SAP do not support bank accounts using web services and XML ISO 20022. In this situation, a proprietary solution developed by SNP Poland (currently All for One Poland) in collaboration with leading banks may prove useful— All for One EasyBanking. It fills a gap in the SAP system by providing the market with a universal and comprehensive tool for managing electronic banking using the latest technologies. ISO 20022 ensures universality and compatibility with other banks once they decide to deliver products in this format. Data is transmitted using a secure SSL protocol with mutual authentication directly from SAP to the bank’s internal systems. The security of the process is ensured through the use of digital certificates and a high level of data encryption using a 2048-bit key.
Securing the process of initiating outgoing payments was a key objective in the design of the tool. The All for One EasyBanking solution allows you to configure authorization levels so that payments must be approved by authorized users before they are processed.
Safety and Ease of Use
The All for One EasyBanking solution is perfectly suited to the needs of companies using SAP systems, as it optimizes the work of finance departments thanks to the application’s comprehensive nature and the time savings it provides (through automatic authorization of the connection between the internal system and the bank). It enables users to generate transfers within the integrated system, approve them, and send them immediately, without having to manage an intermediate layer outside the system. It is also easier to import bank statements and update account balances in SAP on an ongoing basis, which allows for a faster response to changes in cash flows.
The solution also significantly enhances the security of payroll processes, a fact that will certainly not go unnoticed by auditors. Double-checking payment orders will prevent erroneous cash outflows and reduce the risk of mistakes and operational errors. The online connection to the bank account changes existing intraday reporting standards. It is possible to track the status of a payment order, which is critical in the case of urgent transfers.
Functionality
The core features of All for One EasyBanking are:
- processing of domestic, international, SEPA, and internal transfers,
- Split Payment Services
- payment authorization using a qualified digital signature,
- bank statement processing,
- Inta-Day lift service,
- reporting bank account balances,
- tracking order status,
- Import a statement as a PDF.
The versatility and international nature of the ISO 20022 standard ensure a uniform format for data exchange among various financial institutions. Furthermore, it has been designed in such a way that it allows for the implementation of specialized services provided by individual entities.
Customer Benefits of All for One EasyBanking
It also significantly reduces the time required for operational tasks; streamlines data exchange between the company’s financial and accounting system and the bank’s system; eliminates operational mistakes and errors; and automates the data exchange process.
We ensure a high level of communication security through the use of SSL two-way authentication and public key infrastructure (PKI).
The system’s key features include security—advanced security technologies implemented not only within the system itself but also on the user side—and ease of use—simple navigation and the ability to define permission levels for individual users.
Our project experience shows that financial auditors place particular emphasis on the transparency of payment processes. The All for One EasyBanking solution provides easy access to transaction history, authorization trails, and even comprehensive cash flow reports for a given period.