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How SAP helps organisation connect with their banking partner seamlessly?

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2023 has been a challenge in several ways for businesses, just like 2022. Every industry faced its share of mishaps.

The recession caused due to the pandemic has been a huge blow to many companies, especially the finance department. They need help keeping track of the regular payments. What’s happening with the SAP Multi-Bank Connectivity Implementation? Let’s take a deep look.

Enterprises have to look into the stats and graphs, advise the finance team, understand what’s happening, keep track of the finances, ensure security on the transaction activities and make future-proof finance decisions through an SAP Multi-Bank Connectivity Implementation Partner.

SAP BCM MBC

Exhausting number of payments

The payment happening across the company can be of three general types: customer, supplier and employee. It will not be 1 or 2, but hundreds of payments are happening across MNCs daily. From receiving payments from the customer to sending payments to suppliers and sending employee salaries, the CFO has to be aware of the payment activity status.

When there is a delay in the payment, it wouldn’t be easy for his team members to call the bank’s customer care executive and ask, “What happened to the payment?”. If this is going to be the case, there are plenty of chances for manual errors. It is also a known case that MNCs work with several banks. It is extremely challenging to keep track of all the bank activities under a single, manual roof.

Uncertain times

This year has posed a great challenge for businesses trying to handle their short-term and long-term goals. Every business has to keep all its operations under review To make things work smoothly. They need to make proper changes to mould themselves with the current times under plans and development.

Let’s say that an invoice has been to XYZ company on August 12, 2023. The expected payment date could be on August 20, 2023. The payment can get delayed for several reasons, making George wait and receive the payment on August 21, 2023.

Maybe the transaction hasn’t been processed from the client’s end. The banks might be responsible owing to maintenance and other technical issues. We are all reliant on the internet these days.

Hence we cannot take the risk of manually visiting the banks to check the status. The bank’s customer service operations might be packed up, leaving us to wait. Knowing how an enterprise keeps track of payment delays and unpaid customers will take a lot of time. That’s a question we need to find an answer to.

New Regulations in Banking

There are going to be new regulations in the upcoming days. With an overhaul in processes with the Wirecard scandal, regulators would certainly look for steps to avoid such scandals in the future. Hence regulators can go on and put across tough regulations for the safety of their customers. Every business has to be aware of these regulations.

Understanding it might take some time and additional resources for the company. When it is dependent on manual processes, it will take more time than usual.

Fradulent payments

An organisation’s worst nightmare is becoming a victim of cybercrime. Protecting sensitive information such as payment card protection and customers’ data would take away the credibility of their business and incur heavy losses. Hence the company would be responsible for maintaining the secrecy of the payment processes happening across the company.

Brexit in UK

Due to Brexit, the UK has lost its access to the European Economic Area (EEA) “passport”. The current situation has created a tense atmosphere where businesses must manage huge industry costs and effort. UK-regulated businesses have to find ways to adopt new processes to work with European customers and partners.

It will bring new changes in how transactions are carried out. If the company isn’t aware of the challenges it can face due to Brexit, it might backfire on its business plans in the upcoming days.

Lost time and resources

Let’s make a small calculation. 

Without a finance management system, the finance team spends 5 hours daily tracking the unreceived payments and all the transaction activities. 

  • Every week, it’s going to be 5×7 = 35 hours. 
  • Monthly, it’s going to be 35×4 = 140 
  • Every year, it’s going to be 35×52 = 1,820 hours 

 

The number of resources spent could easily cost between $65,000 – $100,000, and even more, depending on the size of the company. 

They have all the liberty to spend that time and resources on other productive activities. But they would be held on to the liability of managing transaction activities manually. 

What is the solution to all these payment-related Banking hurdles? SAP BCM/MBC

Payment Bank automation: That’s the word you have to remember! 

SAP BCM/MBC (Bank Communication Module) can be a saviour for businesses wanting to expand beyond the horizons of manual payment tracking and automating their payment.  

With SAP Multi-Bank Connectivity, you can directly communicate with the bank and get information on what’s happening within a few seconds.  

You would get constant updates and reminders, so there is no way to hassle the team. No more intermediaries. The Advantage of SAP Multi-Bank Connectivity is that You can simplify all the processes by connecting with European messaging networks like EBICS (exclusively applicable in Germany, France, Austria and Switzerland) and facilitating integration with SWIFT’s Autoclient software (Alliance Lite2). Previously, SAP involved SAP FSN (Financial Service Network) solution.  

Third-party connections 

Even then, SAP depended on third parties around the SWIFT framework. To avoid this, SAP has developed a Multi-Bank Connectivity tool with ERP integration to automate the entire end-to-end process. Based on the agreement SWIFT reached on March 21, 2018, SAP and SWIFT have joined hands to take the customer experience to the next level. 

The financial data is extremely safe with SAP Cloud Platform Integration. You can natively predefine all the deployment models in SAP S/4HANA through an SAP Partner. 

There should be proper communication through configurable and predefined tools. 

The advantages of SAP BCM/MBC: 

• Get end-to-end visibility on the payment status 

• Automate all your process with file and message exchange processes with SAP BCM integration 

• You can add new banks to the large banking “collective” on the go 

• Get technical support from the SAP team with partners specialised in connectivity processes such as CONVISTA 

• Reduce the overall cost 

• Simplify the technical architecture while you integrate your data into the SAP system 

• Adapt and interpret various banking schemes 

Connect with your local bank with SAP BCM/MBC

The good news is that SAP has integrated a global banking platform with 60 integrated banks. You can expect the bank connection process to occur within 1-2 days. The deployment time can be between 4-8 days, even if the bank you are working with is not connected by default. That sounds like a plan.

To conclude

Do you need an SAP Implementation Partner to support you with SAP BCM/MBC?

iQuantM, an SAP Implementation Partner in the UK, is here. Contact us for more details.

TAKE A LOOK INTO OUR SAP BCM/MBC WEBCAST

FAQs

SAP Multi Bank connectivity is a popular cloud-oriented solution offering a multi-bank digital channel between banks and SAP. The MBC solution also consists of several security features such as SWIFT connectivity.

We use SAP Bank Communication Management to manage multiple bank communication interfaces. This allows you to connect to different banks, track your transaction’s payment cycle, and get an upper hand over internal compliance and processing rates.

By using SAP Treasury and Risk Management application, integrate your transactions, cash flows, market data, commodity positions, and fully optimise and get real-time analysis, compliance reporting and audit trails.

SAP FSCM can offer Treasury and risk management module that integrates with Financial, Banking, Accounting to manage financial transactions, Information System, and financial risk in your business. Also, SAP FSCM offers Biller Direct module to facilitate payments and web-based invoicing.

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