Corporate-to-Bank Integration in the Cloud

Transcription

1 Corporate-to-Bank Integration in the Cloud John Coon, CTP Global Cash Manager, Treasury Department Dow Corning Corporation Patricia Hines, CTP Director, Financial Services Industry Marketing, GXS

2 Today s Speakers John Coon CTP - Global Cash Manager, Treasury Department, Dow Corning Corporation John is the Global Cash Manager at Dow Corning Corporation where he is responsible for global cash operations including cash and liquidity management, bank relationship management, payment management, multilateral netting and treasury systems management. He joined the Dow Corning Treasury Group in He was previously employed at Whirlpool Corporation where he was the Treasury Manager for North America. He has over 20 years of corporate treasury and finance experience. He has a Finance degree from Central Michigan University and his MBA, with an International Business Concentration, from Western Michigan University. John holds the Certified Treasury Professional (CTP) certification. Patricia Hines CTP - Director, Financial Services Industry Marketing, GXS Patty is the Director of Financial Services Industry Marketing at GXS, where she develops the financial services sector strategy and executes business development and marketing activities to support that strategy. Prior to GXS, Patty was a Research Director in Wholesale Banking at Tower Group. Patty has over 20 years of experience with financial services firms and technology providers. She has a MBA from the Yale School of Management and holds the Certified Treasury Professional (CTP) certification. Slide GXS, Inc.

3 Corporate-to-Bank Connectivity Overview Slide GXS, Inc.

4 Your Partner Ecosystem Powering Your Information Supply Chain Slide GXS, Inc.

5 How do Corporates Connect to their Banks? File Formats Connectivity Options Multiple Banking Relationships Multiple ERP Systems Web Portal Leased Line Treasury Management Work Stations (TWS/TMS) Payments Internet FTP B2B Gateway Corporate-to-Bank Connectivity (C2B) Slide GXS, Inc.

6 Integration Based on Standardization Multiple Connections & Formats Company Financial Systems Standard Connections & Formats Company Financial Systems Treasury A/P Treasury A/P Other A/R Other A/R Bank Mandates Signature Cards ACH Payments Wire Payments Prior / Current Day Statements Prior Day Balances FX Confirmations Investment Trade Confirmations Bank Mandates Signature Cards ACH Payments Wire Payments Prior / Current Day Statements Prior Day Balances FX Confirmations Investment Trade Confirmations Post Internet FTP Web Portal Fax Slide GXS, Inc.

7 What is SWIFT? Secure Financial Messaging Market Infrastructures Central Banks Settlement Systems Customer Solutions TRCO MA-CUG SCORE Source: SWIFT Standards Overview Global Financial Standards SWIFTNet 10,000+ Correspondents 212 Countries SWIFT Solutions FileAct Accord Trade Services Utility and more Society for Worldwide Interbank Financial Telecommunications Consortium of member financial institutions Started in 1973 to automate the telex Premier financial messaging standards body Powers real-time gross settlement systems globally called market infrastructures >2.5B messages exchanged between 10,000+ financial institutions and corporates in over 210 countries largest financial messaging network and community in the world SWIFT develops and defines messaging and standards for the financial services industry Slide GXS, Inc.

8 GXS Corporate-to-Bank Connectivity Leveraging the GXS Trading Grid and Managed Services Back Office Payment Systems Direct Connectivity Check Images Statements and Transactions Client Environment SWIFT Interface SWIFT Connectivity Slide GXS, Inc.

9 Benefits of Cloud-Based Corporate-to- Bank Integration Offers Scalability & Flexibility Simplifies Connectivity Provides End-to- End Visibility Improves Collaboration Simplifies Integration Increases Security Slide GXS, Inc.

10 Dow Corning Corporate Treasury Slide GXS, Inc.

11 Dow Corning Dow Corning Corporation (DCC) provides performanceenhancing solutions to serve the diverse needs of more than 25,000 customers worldwide A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services via the company s Dow Corning and XIAMETER brands Dow Corning is equally owned by The Dow Chemical Company and Corning Incorporated Slide GXS, Inc.

12 DCC Global Cash Operations Responsible for: Cash and liquidity management Bank relationship management Payment management with Straight-Through-Processing (STP) Treasury systems management Multilateral netting Slide GXS, Inc.

13 300 Accounts in 35 Banks Worldwide Locations Approximate Slide GXS, Inc.

14 Bank Connectivity - Former State Bank Proprietary Software North America Payroll Bank Payroll checks & direct deposit & Accounts Payable checks Asia Banks Europe N. America S. America Treasury Payments Asia Banks Europe Banks Dow Corning Accounts Payable EFT Payments Asia & Europe A/R, Daily Bank Statements Bank as Consolidator North America Banks South America Banks A/R Collections and Treasury inter-bank funds transfers North America Collection Bank Slide GXS, Inc.

15 DCC Integration Challenges Implementing new Treasury Management System to aggregate data to and from banking partners Seeking flexibility and standardization to connect to banks via SWIFT or directly Intra-day and end-of-day account statements to obtain cash positions Electronic delivery of domestic and international accounts payable, payroll and treasury payments Approximately 300 accounts at 35 different banks worldwide Slide GXS, Inc.

16 Overview of Corporate-to-Bank Connectivity Solution Treasury Management System GXS SWIFT Service Bureau Managed Services Direct Connection ERP System Accounts Payable Accounts Receivable General Ledger 2 Direct connections to banks via GXS Managed Services Bulk payment processing between DCC SAP ERP and banks Connectivity from TMS to 11 banks via GXS SWIFT Service Bureau On-boarding of banks across North America, South America, Europe and Asia Mapping of data to/from SAP A/P, A/R and payroll applications Transaction testing with financial counterparties Centralized tracking of all files Slide GXS, Inc.

17 Current State of Bank and System Connectivity Slide GXS, Inc.

18 Treasury System Integration Deal Requests Completed Deal Requests FX Rates Interest Rates FX Volatility Outgoing Trade Confirmations Confirmations Matched Bank Reports Send Payments Cash Forecast Flows Journals Exported Slide GXS, Inc.

19 Banking Relationship Structure How does DCC choose its banking partners? Credit relationship banks get first priority for new opportunities For global bank accounts SWIFT: Evaluate MT940/942 and MT101 capabilities Availability of other services Location Price Centralized integration hub (GXS) enables flexibility in structure Plug and Play when changing banks Slide GXS, Inc.

20 Why GXS? Leveraged existing GXS Managed Services infrastructure Proven platform for DCC s B2B integration needs Reduced implementation timeline SWIFTReady Connectivity Best Practice Label The highest form of certification awarded by SWIFT Helps end-users identify best-in-class providers; recognized as having the highest operational standards in availability, security, access control and resiliency Common Global Implementation (CGI) Membership The group s mission is to define one common global implementation standard for ISO messages in the Corporate-to-Bank space Slide GXS, Inc.

21 Support for Variety of File Types & Formats Inbound Files SWIFT MT940 and 942 bank statement transactions in FIN or FileAct formats Lockbox file feed for accounts receivable EDI 824 for text for acknowledgements SWIFT acknowledgements Outbound Files Accounts Payable supplier payments (checks & electronic) in ACH and SEPA formats Payroll files SAP IDOC to EDI 820 translation for payments SWIFT MT101 and 102 for payments to international banks Slide GXS, Inc.

22 Benefits from GXS Managed Services and SWIFT Service Bureau Reduced the number of direct banking connections Avoided the need to invest in SWIFT infrastructure, maintenance and personnel Increased flexibility with support for various message standards and translation capabilities allowing DCC to work with their preferred file formats and communications protocols Standardized payments and reporting information to ensure transaction messages are processed, verified and delivered accurately Slide GXS, Inc.

23 Thank You and Q&A John Coon, CTP Dow Corning Corporation Global Cash Manager, Treasury Department Patty Hines, CTP GXS Director, Financial Services Industry Marketing For more information: Slide GXS, Inc.