Treasury teams expect challenges with regards to bank connectivity and transaction communications – but the payments landscape today is very different from that of five years ago. As the need for real-time transactions and much faster reconciliation processes increases, corporate treasuries are searching for solutions that can deliver these results.

Today, forty-two percent of corporates originate payments using six or more banks, according to results from Strategic Treasurer’s 2017 B2B Payments & Working Capital Management Survey.  Twenty-three percent of corporates originate payments with 11 or more banks, 13% with 21 or more banks, and at least 24% of respondents are operating within each of the major world regions. That’s a lot of transactions across a lot of different banks and geographies.

It can take a very long time to establish bank connectivity. Ease of connectivity and time-to-market are the first two barriers to entry that corporates face when they are trying to set up multi-bank communication, and the challenges only become more complex from there.

Fides’ CEO, Andreas Lutz, was recently interviewed by LeFonti’s World Excellence magazine on the issues and opportunities within the multi-banking payments sector.  This post summarizes some of the key points contained within the article.

Multi-Banking Challenges

Corporate treasury challenges revolve around visibility, scalability, risk, and operational efficiency.

Banking communications: many banks have proprietary formatting requirements and/or communication protocols that require conversion of data, particularly those in emerging countries

Regulatory requirements: compliance with ever-changing regulations is challenging even if you are solely working within a single country, and becomes even more so for globally transactions

Fraud detection & prevention: transaction fraud is an increasing issue for corporate treasury, and putting policies and controls in place plus maintaining vigilance often means a greater amount of time and effort for treasurers

Geographic reach: all the different communication formats, multiple currencies, timezones, and more complex regulatory requirements make scalability extremely difficult

Challenges Solved

That’s where Fides comes in. We are the recognized leader in multi-bank connectivity as a service. We partner with the leading TMS and ERP providers to make integration easy. Basically, our solutions remove the legacy expectations and challenges.  By reducing the number of touchpoints between the corporation and the bank, Fides makes it easier and more secure for clients to execute transactions safely regardless of how many banks and accounts they have, anywhere in the world.  Our core solution includes advanced sanction filtering, allowing treasurers to identify and comply with any global sanction filter policy – reducing risk and proactively removing any time lost from sanction blocking. Having a standard process and controls in place, like those provided through our solutions, gives users the data they need to better predict and prevent fraud.

Customer-First Mentality

We have over a century of history helping customers overcome their multi-banking issues. Customer satisfaction is extremely important to us: our clients are central to our product design process. We strive to develop and deliver innovative solutions and services that help our customers succeed – and we are proud of our 98% client retention rate.

Planning for the Future

The world is getting smaller, even as it gets larger. The convergence of technology and consumer expectations is putting pressure on companies to provide real-time, frictionless user customer experiences, regardless of whether their sales model is B2C or B2B. Fides’ solutions and services are designed to provide that experience, eliminating the friction from the bank connectivity and payment process. And we are continuing to innovate, focusing on solving the combined challenge of real-time and secure transaction workflows with real-time data transparency and high-speed performance.

Read the full interview here.


Download our eBook, With Greater Payments Complexity Comes the Need for Efficiency, to find out more about the state of the global payments landscape.