H2H customer on-boarding
The Host-to-Host (H2H) integration space
For many decades, banks have offered their prized corporate customers a range of integration options to support the exchange of transaction requests from the corporate to the bank, as well as the dissemination of information in the opposite direction from the bank back to the corporate. Different options supported different levels of automation, and the size and importance of the customer tended to dictate the level of service on offer.
The bigger customers were in the Host-to-Host (H2H) club. A term coined in the era when only those with mainframes could automate their flows to their bank through secure file exchange. Everyone else had to deliver their payments or transaction requests by hand to the branch or have a disk or tape picked up by the daily courier.
Much has changed in the last 20 years with the emergence of mass on-line corporate banking portals and more sophisticated ERP and payment systems within the corporates. The H2H club is no longer the remit of an exclusive group of privileged customers. Hence, hundreds of thousands of corporates and SMEs around the world are now automatically sending and receiving transaction files to their banks on the basis of direct integration from their ERP system to the bank’s own internal systems.
These files can contain supplier payment requests, salary runs, loan or finance requests, account opening or amendment instructions, securities transactions, trade and supply chain finance data, etc. Banks reply with debit and credit advices, transaction confirmations, exchange rate quotes, account statements, collection requests, etc. It is a hugely diverse, dynamic, and vibrant space, and it is becoming more complicated, and more diverse, through the incessant march of transaction digitization and the increasing multiplicity of channels.
The Challenge You Face Today – efficient on-boarding of new H2H customers
As the number of customers seeking H2H automation increase, so do the levels of transaction diversity and the proliferation of sources. As banks struggle to support this diversity, delays take place throughout the customer on-boarding process and in the subsequent processing of their data.
Each time a new customer has to be added to the H2H channel it typically calls for a project approach, requiring a team composed of data and business analysts, IT architects, IT developers, and operations staff to generate designs, specifications, transformation coding, test packages, and documentation. This is a time consuming and costly approach and can force the bank or corporate enterprise to limit the rollout of the service to only the most profitable engagements as a result.
Banks need solutions that can address the inefficiencies and speed in on-boarding processes whilst ensuring the continued robustness and resilience of the channel in staying abreast with external changes in message standards and new sets of data from their customers.
The goalposts are in constant flux and banks need in–built agility in their systems and processes to insulate their internal processing engines from these external changes.
VolPay Channel delivers this much needed agility. It optimizes each aspect of the on-boarding process through the systematic management of the bank’s H2H channel implementation team’s activities.