Data Challenges within Corporates
While banks face the challenge of on-boarding corporates quickly and efficiently, a similar challenge exists within the corporate environment as well. A global corporate grows through acquisitions and as a result inherits multiple subsidiary ERP systems and the banking relationships of those subsidiaries. Within these, each ERP’s payment preferences and format is tailored and geared to its regional and banking preference and therefore tends to run autonomously.
Ideally a corporate would have a central treasury function which manages the cash flow and payments, so that it can consolidate the number of banking relationships it has and leverage the advantages of volume when it deals with the bank. However, the diversity of the localized ERP systems’ payment formats within its corporate subsidiaries remains a big barrier in the implementation of such plans for consolidation. The business case for replacing all the subsidiaries' ERP systems with a single platform fails due to the high level of capital and migration costs. A better option would be to consider the problem as a data integration issue for central treasury rather than a data migration issue by replacing ERP systems. Volante's VolPay Channel is designed to directly tackle this challenge.