Login Subscribe

Banks’ online channel features: Bridging towards treasury management systems (TMS)
As payments are becoming increasingly commoditized and margins are slinking, banks are looking to find novel products to capture additional revenues and to provide intriguing value propositions in order to lock down their corporate customers

April 02, 2019 | Kjeld Herreman

As payments are becoming increasingly commoditized and margins are slinking, banks are looking to find novel products to capture additional revenues and to provide intriguing value propositions in order to lock down their corporate customers. These value propositions are often geared to be of exceptional interest to mid-cap corporates. Whereas most Fortune 100 companies already have highly customised and efficient Enterprise Resource Planning (ERP) and Treasury Management Systems (TMS), and retail customers do not necessarily have the complex needs that such solutions address, mid-cap corporates are in that Goldilocks zone that banks can leverage to create deep and lasting relationships by providing unique functionalities in their online channels.

One of the first challenges that a corporate treasurer must address is the centralisation of payment initiation and reporting for multiple banks. This is a functionality that many of the larger cash management banks are starting to integrate in their online banking channels and is enabling corporates with global coverage and multibank requirements. DBS, who prominently showcase this functionality on their IDEAL 3.0 website, understand that it is key for corporate customers to have a single touchpoint and authentication method for all their banking needs. If we look under the hood of this type of functionality, it often relies on the generation and reception of MT101 and MT940/MT942 messages on behalf of the customer, and as such a trilateral agreement between the corporate, the bank at which the account is held, and the bank providing the online banking channel. It stands to reason that the proliferation of open banking will not only make the setup of such constructs easier and (significantly) cheaper but will enable the account balances of external accounts to be even more up to date.

Besides executing payments, one of the important operational tasks of a treasurer is to reconcile payments against invoi...

Please login to read the complete article. If you already have an account, you can login now or subscribe/register.

Categories:
Keywords: Treasury Management Systems, Fortune 100 Companies, Enterprise Resource Planning, Fintech, Bank Liquidity, Technology, Bank Revenues, Mobile Banking