Corporate Data Management

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.

The Challenge

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.

The Solution

VolPay Channel tackles this challenge head on, by taking all the diverse data formats into a central canonical format for the central treasury to process and then apply business rules to distribute the payments to banks with which they have a business relationship. This enables the central corporate treasury to on-board the subsidiaries’ formats by configuration, which means that the data integration issue is resolved without initiating and undergoing a full scale IT project. The business rules within VolPay Channel provides the central corporate treasury with the flexibility to route the payments to its respective destination banks based on the attributes of a specific payment, for example, attributes of: originator, currency, value and so on. Moreover, the outward formats, from central corporate treasury to bank, are also configurable, which means that the treasury is no longer restricted when it comes to relationships with banking entities.

VolPay Channel Corporate Enterprise

Essentially, VolPay Channel mitigates the complexity of data integration by providing straight through processing (STP) of payments by:

  • Enabling the central corporate treasury to on-board subsidiary formats through configuration
  • Defining business rules for routing
  • Allowing central corporate treasury to consolidate its banking relationships by adhering to the banks’ formats via configuration