Plug-and-Play With Independent Bank Connectivity

The demand for real-time transactions, speedy reconciliation, and increased efficiencies is at an all-time high. Yet many corporate teams still don’t have dedicated treasury support software in place — and when budget is finally allocated, it can be tough to determine the best solution to meet these needs.

Bank data is at the heart of treasury operations. And to send and receive transactions and statements, secure connections and speedy messaging capabilities are an absolute requirement. Therefore, it should be obvious that bank connectivity is a core requirement for any corporation. But what not everyone realizes is that although bank connectivity may be one of the services included in a treasury management system, it isn’t a core competency of most TMS providers.

Bank Connectivity Challenges

Ease of connectivity and time-to-market are the first two barriers to entry that corporates face when trying to set up multibank communication, and the challenges only become more complex from there.

Establishing connections with many large, global banks is slowly getting easier with the advent of APIs — but that is still the exception rather than the norm. For organizations that need to onboard smaller banks, banks in emerging countries, or banks that have decentralized branches, it can take a lot of paperwork, specifications, and instructions exchanged. There’s also no guarantee that the message format for transactions and reconciliation will be compatible with the standard formatting set by the TMS provider.

Another challenge is choosing the type of connectivity that’s right for you. Want to stick with SWIFT? Would it be more cost-effective to use EBICS in Germany? Are there banks where you still need a host-to-host connection? What about APIs? Does your TMS offer these options?

While it would be great if you could just use a single connectivity channel or network, that is often not possible, or is cost- or resource-prohibitive.

Which Comes First, Bank Connectivity or TMS?

A TMS requires banking data to run, but you can have multibank connectivity without a TMS. For corporates with limited budget, a special focus on flexibility and/or a best in class provider, a third-party bank connectivity provider like Fides can be the right choice. Fides does away with many of the time-consuming manual processes while providing cash visibility and a way to collect data that could be passed through to a TMS in future — making the Fides Multibanking Suite a great entry-level corporate treasury solution.

Even for corporates that already have a TMS or ERP in place, engaging a third-party bank connectivity provider can be a smart move. By doing so, you expand your options for connection channels, messaging formats, conversions, sanction screening, and validation. These solutions also are scalable, enabling you to add more banks, accounts, and payment providers as needed. And, they can integrate directly with your TMS, giving you straight-through processing and real-time cash visibility, or close to it.

You also gain the benefits of flexibility and portability: if you choose to change TMS or ERP vendors in future, you will not lose any of your bank connections.

Independent Connectivity, the Fides Way

With Fides, it’s easy to send messages and payments of any format at any time, to any financial institution anywhere in the world.

Need to connect with a new bank? We’ll figure out the best way to make it happen and work together with you every step of the way.

Need to be able to process transactions and access your banking data and reports from multiple locations? With the Fides Multibanking Suite, you get web-based access to the Fides solutions, as well as the ability to  reap additional benefits from our extensive network of partners, such as access to complementary financial solutions through the Fides Multibanking Ecosystem.

Need to connect to a TMS or ERP? No problem — we’re used to it. Many of the most popular treasury management solutions on the market today incorporate Fides software directly into their platform, making integration a breeze. The Fides Multibanking Suite can even connect to multiple treasury management and enterprise resource planning systems at the same time —  which can be a great benefit for mergers, acquisitions, or centralization initiatives.

And with Fides, you avoid being locked in to any one bank network or type of connection. You have the opportunity to try new connectivity methods such as APIs, while keeping tried-and-true channels in place to avoid any disruption to your business.

Whether you choose to use Fides solutions independently or with a TMS or ERP, you get the efficiency, scalability, and flexibility you need to streamline treasury operations.

“Having a TMS doesn’t necessarily mean you have connectivity to all your banks. And even when you do have connectivity, the information contained in bank transmissions, and the language used for transmissions is not always the same. That is where a provider like Fides adds so much value.” — Christian Azzopardi, Group Treasurer and Commercial Finance Manager, Hästens