Host-to-Host Banking Integrations give corporates the opportunity to connect directly to banks, allowing for high volume data transfer – and hence more automated processes – between banks and their corporates clients.
Sophisticated Host-to-Host banking solutions give corporates the flexibility to exchange information in their preferred file formats, network protocols, and security standards.
Why should corporates connect directly to banks?
The answer lies in efficiency, security, scalability and effective resource management. Otherwise known as digital transformation.
Successful digital transformation requires staff to spend less time doing finance processes and more time working closely with business functions to provide financial insight.
But there are multiple priorities to juggle: from maintaining liquidity & optimizing cash, to consolidating payments, controlling risk and managing banking relationships.
To manage these priorities effectively requires access to complete, timely and accurate financial data.
Payment instructions, intraday transaction files, fx trades and security confirmations are all essential to monitor and manage any organization’s financial health.
But many businesses still struggle with automating and integrating the financial data they need on cash positions, interest rates, payables, receivables and fx rates.
Logging in to banking portals to upload files and download statements is still common practice, and leaves many organisations susceptible to the risks that come with manually handling confidential data, not to mention the excessive cost in time and resource.
As a FinTech company, we build these types of direct banking connections to help our clients achieve a number of goals which are central to their digital transformation strategies. These include:
- Corporate Banking Consolidation reduces the number of direct, one-to-one connections to allow finance teams to aggregate data quickly, frequently and above all – accurately
- Realising straight-through-processing by eliminating manual interaction with online banking portals
- Reducing cost and complexity. Fewer banking relationships simplifies fee structures, eliminates redundant services and reduces complexity. The rationalization of bank accounts also improves reconciliation and enables standardised payment initiation processes
- Improving working capital management via streamlined payments and collections processes
- Monitoring global liquidity through increased cash visibility for corporates with a presence in multiple countries or subsidiaries
- Enhancing regulatory compliance with significantly reduced manual reconciliation and automated data aggregation
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Do you really know how much time your team is spending manually consolidating bank statements and payment files?
Learn why direct banking connections should be the focal point of any digital transformation project happening in finance and treasury:
This article was about: payments