Automation and optimization of the whole financial processing chain - the key to success

Transaction banking is all about providing effective financial processing chains to link buyers and sellers. The automation and optimization of the financial processing chain – the processes, systems and services used to carry out financial transactions – is the key to success.

Tieto‘s Transaction Banking division’s systems and services support hundreds of banks and hundreds of thousands of their corporate and personal customers around the world. Its Transaction Banking services are based on advanced modular processes and systems developed with the experience of more than 20 years in the payment area. Tieto’s solutions improve bank customers’ operational efficiency at the same time as reducing banks’ compliance costs, enabling them to deliver attractive and competitive transaction banking systems and services.

Financial Processing Chain Implementation Tieto’s transaction banking systems and service provision is based on the six main functions that make up the financial processing chain described below.

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Integrating business messages and connectivity provides the operational framework to support a wide range of financial transaction automation systems and services. These include e-invoicing and e-ordering, making and collecting payments (including both buyer-to-supplier and interbank payments) and two functional areas for managing personal finances and corporate cash and liquidity. The final element in the financial processing chain is financing for both consumer and corporate clients.

Transaction banking is increasingly having to respond to the twin pressures of competition and cost. The sector is having to move fast to implement efficient and attractive replacements for outdated and expensive services. All too often these new services are not delivered on time and legacy systems have to operate alongside the new ones, sometimes for several years.

 

Highlights

  • Tieto replaced three old payment solutions with a new single payment solution for DnB NOR, linking 120 banks on the agreed date in just 18 months.
  • Tieto’s business message connectivity and integration service processes close to 1 billion transactions a year.
  • E-invoicing can reduce the cost of invoicing by up to 80 %.
  • Tieto Payment Suite supports connectivity to a variety of inter-bank settlement systems and methods to local/national clearing and settlement systems and to SEPA payment service providers such as Deutsche Bank.
  • DnB NOR already uses Tieto’s Payment Suite to provide white label services to hundreds of other banks.
  • Within three months a new simple service for personal financial management services exceeded 500.000 visits a month.

 

  

  

  

  

  

  

  

  

  

  

  

  

The future of transaction banking 

The primary focus of transaction banking will inevitably remain unchanged, enabling bank customers to carry on automating and optimizing their financial processing chains at the same time as minimizing the cost of compliance with the growing number of new regulations and standards. But over the next few years three trends are likely to transform the business.

  1. Transaction Banking Delivery will be transformed as customers demand and expect always-on services that fit their individual needs and are delivered via more channels than just the internet wherever they want to access them. Customized, any time, any way, any where solutions will be essential in both the personal and the corporate markets.
  2. The Development of Fully Integrated Financial Processing Chains, which may take several years to become well established, will require minimal data entry and the reuse of information whenever possible. For example, purchase order data can be used for invoices and invoice data can be put directly into the supply chain finance system, enabling the maximization of financing opportunities across the whole financial processing chain. But full integration can happen only if all the parties involved are connected electronically, so services such as Tieto’s Business Message & Connectivity Service, will be vital.
  3. New Input Devices such as smartphones and the iPad will open up new opportunities to improve the ease of use and cut the administration costs of transaction banking. Tieto is helping organizations across multiple industries automate different processes and procedures using the latest technologies. These latest applications may well be the starting point for many new transaction banking applications, such as adding payment services to new energy and healthcare applications.

Individually customized, any time, any way, any where solutions focusing on the automation and optimization of the whole of the financial processing chain delivered by innovative service providers such as Tieto’s Transaction Banking Division are the key to future success in the transaction banking business.