ebam: Fact or Fiction

Transcription

1 ebam: Fact or Fiction With Cheryl Kavka, Prudential Financial Warren Davey, GTreasury New York Cash Exchange Wednesday, May 29, 2013 G Treasury SS, LLC

2 Agenda 1 What is BAM? 2 BAM Solutions 3 The Infamous e 4 4 Pillars of e 5 6 Fact or Fiction The Future of e

3 What is BAM? Bank Account Management Opening/Closing Accounts Account Change requests Managing Signers Maintaining signature specimens Documented workflow approvals

4 Evolving BAM Issues Regulatory Reporting Audit SOX FBAR Dodd-Frank - Systemically Important Financial Institution (SIFI) Checks, balances, controls Access, approvals, accuracy Internal Reporting

5 Solution # 1 - Spreadsheets Manual, labor intensive repetitive processes Outdated, version conflicts, error prone Unsecured/uncontrolled access to bank accounts Country, legal, and language issues Decentralized processing

6 Solution # 2 - Databases Improvements Centralization Documentation Controls Issues Usability Access Antiquated Reporting Technology Support

7 Solution # 3 Third Party Provider Improvements Centralization Documentation Controls Reporting Signers/Account groupings Issues Limited options available Multi-bank platforms

8 POLL: What current BAM solution do you utilize?

9 The Infamous e Eventually Elusive Enigmatic Evasive Extinct Embalmed Escaping Eternity

10 e Volution SWIFT User Uploads Fax Paper

11 Enabling e 4 Pillars to Electronic Bank Account Management 1. User accessible BAM systems 2. Formats/messages 3. Communication platform(s) 4. Interoperability

12 User Accessible BAM Systems BAM Systems Bank proprietary In-house development 3 rd party vendors BAM Systems Help: Incorporate workflow Centralization Controls & authority Access Automation

13 Formats/Messaging Bank Based Letters Documents Forms Industry Based SWIFT messages ISO XML FileAct

14 Communication Platforms Bank Based Upload FTP https Etc SWIFT BIC requirement

15 Interoperability BAM system needs to create a readable message Message must be transmitted for review Message has to be trusted upon receipt Information must be complete Missing or incomplete information needs to be noted Communication back to sender regarding missing information Information needs to be processed and logged at the bank Action must be taken based upon valid information All the above must be auditable and ultra secure

16 Fact: BAM solutions exist BAM systems have been around for many years from a select number of sources, but the functionality continues to mature & grow: Track accounts Grouping accounts Organize signers Facilitate regions Accommodate regulations Simplify changes

17 Fiction: BAM Systems Are Readily Available Despite their abundance there is not a proportionately high adoption rate Industry based perception that spreadsheets are the only answer or at least the acceptable one

18 Fact: Message Form Are Standardized 15 core SWIFT messages 18 determined business functions ISO standards XML formats FileAct delivery Banks have: Standardized forms Letters Data Fields

19 Fiction: Messages Are Standardized Banks have their own proprietary documents & formats ISO based XML is a means & FileAct is a method: You can attach any document Aforementioned documents are not standardized Requires security wrapping that the bank can read and route

20 Fact: ebam Communication is Here Now If you can: Use a BAM system that can track and approve all your accounts Have that system send proper files to the bank(s) over an acceptable platform where the bank can read and rely on the information you will have full fledged ebam

21 Fiction: ebam Traffic is Blowing Up the Internet Operational issues hamper adoption My bank doesn t have a system I have more than one bank My banks don t agree to the same standards I m not a member of SWIFT My bank can t process certain items I don t have a BAM system

22 Fact: Interoperability is Fiction Currently too many variables Source data comes from anywhere How can you trust it Information is missing or incorrect Communications are not available Banks have their own specific needs Etc Etc Etc Etc

23 Fiction: Interoperability Can Never Be Fact Banks are beginning to work together Corporates are piloting SWIFT and bank networks are moving traffic Systems and being created and tested Some portions are even live

24 The Future of ebam How/why will we get to ebam Increased bank focus Corporate governance Audit User demand

25 The Future of e 1. The systems are ready now 2. The messages have kinks, but will be fixed Early adopters will figure these out 3. The communication platform will become ubiquitous SWIFT goes downstream Banks accommodate demand 4. Interoperability is a by-product of 1-3

26 Questions?

27 Contact Us Cheryl Kavka Project Manager Prudential Financial Phone: Warren Davey Executive Vice President GTreasury Phone: