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A necessary path forward
BANK CONNECTIVITY
2023 GUIDE TO STREAMLINING
2023 GUIDE TO STREAMLINING BANK CONNECTIVITY
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Take the next step
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Overcoming bank connectivity challenges
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Challenges faced by financial institutions
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Challenges faced by corporations
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Summary
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SUMMARY
Did you know?
Jonathan Silverman Director of insurance solutions, Microsoft
Insurers are recognizing the value of having access to unlimited compute capacity for risk modeling and . . . making substantial cost savings with infrastructure related to the risk modeling workload.
In YTD November 2022, SWIFT recorded an average of 44.8 million FIN messages per day. Traffic grew by +7.1% versus same period of previous year.
Source: SWIFT FIN Traffic & Figures, www.swift.com
Economic uncertainty and market volatility have corporations and financial institutions evaluating all their costs and processes. At the same time, messaging traffic continues to increase. Facing complex banking processes – including multiple banking relationships, high costs and operational inefficiencies – these organizations are looking to streamline their bank connectivity processes and cut costs.
Insurance companies are more aware than ever of the wealth of information at their disposal. Their ability to extract value from data using advanced analytics has become critical to competitive advantage.
For actuaries, the pressure is on to gain greater insights from big data and rapidly transform modeling results into business intelligence.
Corporations are seeking to securely connect to their global banking partners through direct or indirect connectivity, without the need for IT or administration resources. They require visibility into cash and messages and need to drive automation and standardization across their bank connectivity processes. They need to: • Improve operational efficiency across SWIFT services • Simplify connectivity while gaining visibility • Exceed current compliance and security requirements • Integrate with core deposits, payments and back-office systems leveraging real-time integration
What do corporates need?
CHALLENGES FACED BY CORPORATIONS
You could perhaps justify these costs if the servers were active throughout the year. But most risk and regulatory calculations happen at peak times, such as quarter and year ends, when systems may need five times more computing power than in quieter periods.
Manual processes • Can’t automate receipt of bank balance reporting information from multiple banks • Lack of straight through processing • Too much dependency on banking portals Lack visibility and standardized controls • Not secure or reliable • Lack cash visibility • Lack controls and visibility of messages High costs • Increasing internal costs • Increasing external costs Disparate connectivity channels • Can't connect to financial institutions via a global and standard channel
CHALLENGES FACED BY FINANCIAL INSTITUTIONS
Lack of features in current portfolio • Gaps in information reporting and data exchange • Poor support of SWIFT MT formats • No ISO 20022 XML formats • Inconsistent capabilities for intraday and prior day reporting Operational challenges • Lack funding to maintain and expand industry-standard message and file formats • No self-service for maintenance requests Too many customized reports • Numerous customized reports created due to system limitations • Same report generated for different customers, with different formats and different cuts of the same data set • High costs and lead times to create, test and maintain customized reports Lack of information reporting • Lack of visibility to status of information reporting • Inability to easily maintain and leverage account preferences for information reporting
Financial institutions are seeking a fully functional solution that meets their technical, security and legal requirements for SWIFT connectivity. They need to: • Improve operational efficiency across SWIFT services • Simplify connectivity while gaining visibility • Excel in current compliance and security requirements • Integrate with core deposits, payments and back-office systems leveraging real-time integration • Offer SWIFT-related services to corporations to remain competitive
What do financial institutions need?
OVERCOMING BANK CONNECTIVITY CHALLENGES
Corporations and financial institutions should look for a partner that can offer a SaaS-based connectivity solution and comprehensive bank communications channel that securely connects you with your global banking partners through direct or indirect connectivity, including SWIFT and other exchanges or networks. The partner should be able to manage the entire relationship for any SWIFT member bank, from administration to onboarding. They should also be a SWIFT Service Bureau and be able to facilitate connectivity with them.
Streamline bank connectivity today
TAKE THE NEXT STEP
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Corporations and financial institutions should be evaluating their banking relationships and where they can streamline. If you can streamline your bank connectivity processes, you can simplify your operations, easily access domestic and international banking services, and quickly respond to customers' demand for new services.
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FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our more than 55,000 people are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500® company and is a member of Standard & Poor’s 500® Index.
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