11th Nov 2020

The Business Case for Corporate-to-Bank Integration: Security across Finance Operations

This is the second in a series of posts to explore the use cases for Corporate-to-Bank Integration Platforms across corporate Treasury & Finance. Download the full business case to view part 1: 

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To prevent monetary loss and reputation damage, finance and treasury professionals need to become proactive when it comes to reducing fraud and error. Particularly when it comes to the processing of international and domestic payments.

With different systems, banks and an over-reliance on people, it’s a responsibility than can feel overwhelming.

The answer lies in prevention, detection and response to security threats. As well as centralized control over the security of users, systems, and applications.

With numerous data sources, as well as multiple banking portals and back-office systems, an ability to review user data is vital, as is the ability to centrally control management of access across these systems.

The role of corporate-to-bank integration in managing security & risk

Corporate-to-Bank Integration promotes the idea of straight-through-processing of payments and statements from your bank to your back-office.

In turn, this makes the actual process of exchanging payment files and statements a lot less manual, resulting in:

  • Segregation between different entities and work-streams to ensure a walls-up approach to payment approvals
  • Rationalization of bank accounts improves reconciliation, increases control of bank relationships and enables standardized payment initiation processes
  • Enhanced regulatory compliance as the automated flow of payments & statement files between bank and back-office significantly reduces manual reconciliation and data aggregation. Furthermore, the flow of data is recorded in detailed audit trails and transaction reports for additional peace of mind.

These banking operations platforms give finance operations professionals the ability to manage user access, create workflow rules and user profiles for walls-up approval and submission of payments.

With one single point of entry and the capability to track user behaviour, and exception management; auditing and investigation times are reduced from hours to minutes.

What’s more; a single, centralised platform can be used for all payment types, statement retrievals and bank connections. One login, one password, no tokens, no paper.

By consolidating all bank access and transaction management into one system, treasurers can limit the requirement for individual bank portal access and reduce any security risk associated with logging into multiple banking portals.

For those in the professional services industry, where the organisation’s money must be segregated from the client’s and held in separate bank accounts, the ability to view these bank accounts and transactions side-by-side and across one platform is a formidable feature, especially when reporting and reconciling external client money.

Leading-edge Corporate-to-Bank Integration platforms boast bank-grade security and secure encryption of payments files ensure treasurers have confidence in the ability to shut out third party breaches.

Going further, proactive and pre-emptive flags highlight potentially fraudulent activity and erroneous transactions, meaning treasurers receive alerts automated and sent in real-time thus allowing an action to be taken immediately, or prevention of an event completely

Read the eBook: 7 Reasons for Change in Finance & Treasury to start building your internal business case for a Corporate-to-Bank Integration Platform.

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