Navigating the Payments Landscape:

Transcription

1 Navigating the Payments Landscape: Reducing Payment Fraud and Leveraging Real-time Payments with Open APIs Jay Hesse Director, Corporate Treasury Emerson

2 Payment Fraud Continues. The university learned it was the victim of an attack last Wednesday, Aug. 23 after a series of fraudulent s convinced university staff to change electronic banking information for one of the university s major vendors.

3 Emerson employs multiple defenses Payment Factory Technology Awareness/ Policies Dual Control Escalating Authority Reviews & Reconciliati ons Preventive/Detective Procedures

4 Awareness Be suspicious of requests that: Are classified as urgent Require a free-form wire transfer Are to a different country than where previous payments have been sent Contain typos and/or poor grammar Different account s from personal accounts (i.e., Google, Hotmail, Yahoo!) What to do if you receive a suspicious request: Immediately report it to your supervisor and senior management in finance DO NOT provide any information (A/P aging, bank accounts, etc.) DO NOT bypass internal controls/processes ALWAYS CONFIRM REQUEST FOR PAYMENT OR CHANGES TO BANK ACCOUNT DETAILS!

5 Payment Factory Business Unit systems Relationship Banks AP System & Processes Payment File Emerson Data Services Cloud Base? Software SSB Vendor Master Data & Processes FTP over VPN How are payments sent? Is the process secure? What are the controls on the bank side?

6 Best Practice - Straight Through Processing Bulk Payments Emerson Data Services Relationship Banks AP System & Processes Payment File Software SSB Vendor Master Data & Processes FTP over VPN Status Feedback ERP systems stay in place End to end Connectivity is secured Eliminate reliance on bank software controls

7 Best Practice Daily Reconciliation MT 940 Statements Relationship Banks Emerson Data Services Software SSB Reconciliation System FTP over VPN MT 940 MT 940 provides visibility to balances in Trax Reconciliation is automated in ERP system Reconciliation is accelerated from monthly to daily

8 Navigating the Payments Landscape: Reducing Payment Fraud and Leveraging Real-time Payments with Open APIs Ken Shuyama VP, International Treasury FIS

9 FIS Global Financial Technology Provider $9B+ REVENUE 20K+ CLIENTS 55K+ EMPLOYEES 130+ COUNTRIES $9T+ MONEY MOVED GLOBALLY 848M+ CARDS PROCESSED 36M+ MOBILE BANKING USERS 27B+ TRANSACTIONS PROCESSED 420B+ SHARES PER YEAR TRADED THROUGH NETWORK $28T+ UNDERLYING FUND ACCOUNTING 10B+ FINANCIAL TRADE RECORDS PROCESSED PER HOUR $800B+ HEDGE FUND ASSETS PROCESSED All numbers are approximate as of 2016 from internal company data

10 Strategic acquisitions

11 Payments at FIS Starting point Semi-centralized execution Corporate treasury Accounts payable Business units Lack of standards High automation on bulk payments in US and Canada Standard process through SSC for some business units H2H achieved many times with use of bank proprietary format Outsourced activities in some countries Reliance on e-banking portals for treasury payments Some straight-through processing AP has high degree of automated execution and reconciliation in select locations Manual intervention for wires and FX transactions High percentage of balances reported to Quantum MT940 & BAI2 Limited automated reporting to Oracle Controls based on segregation of duties Environment with strong emphasis on controls & fraud prevention Reliance on Oracle controls (AP) and bank portals (Treasury, AP)

12 Objectives of payments initiative Automation of processes via the usage of electronic payment processing Centralization of global payment processing with high visibility and flexible approval rules. Implementation of secure SWIFT interfaces going to banks via ECHOS Compliance with internal controls, as well as auditing and reporting. Standardization of payment and statement processing with the help of ISO

13 Initial results Implementation Live with Trax in July: - ISO XML files - 39 countries / 2 banks / 258 entities - Oracle integration On-going efforts: - Treasury payments - Payroll - Addt l banks & countries Payments File validation / low rejection levels by bank AP files from Oracle - 1,200+ payment files* - 4,100+ accepted payments* Knowledge transfer to users Optimization of payment type (future initiative) Statements 3 banks / BAI2 18,600+ bank statements received* Feed Oracle s CE module Use of visual tools / balances by country / currency Security Encrypted files / secure channels No file manipulation limited data enrichment Workflow and entitlements Reduction of access to bank portals * From July 10 to September 15

14 Future enhancements - APIs API Application Programming Interface is a method of simply and seamlessly integrating software systems over the Internet Growth of open access APIs has been driven by regulatory initiatives and a demand for realtime transaction processing at corporates API Pilot Citi a key cash management bank for FIS Alternative banking channel simpler & cheaper implementation Real-time payments Extend (internal) cut-off Successfully tested: Payments instructions to payment status in less than 1 min Statements 14

15 Any Questions? Thank you