Internal Banking

With an Internal Bank, corporations can create centres of excellence and enable shared services for the cash management processes.

Implementing an Internal Bank solution enables corporations to eliminate manual netting solutions, including external settling of ICO transactions.

An Internal Bank provides transparent, highly automated handling of ICO balances. Furthermore, it provides improvement opportunities within ICO invoice handling and reconciliation of internal accounts payable and accounts receivable.

• Cash Concentration

  Cash concentration allows corporations to record transactions from external bank accounts and convert them into intercompany balances. For cash pool members, this means that all liquidity is efficiently centralized with the cash pool owner.

  An Internal Bank extends this concept by transforming external bank balances into internal general ledger balances in a transparent and automated way.

  It can also manage internal cash pool structures, enabling smooth movement of funds between different entities within the organization.

• Payment Factory

  A fully-fledged Payment Factory is often the crown jewel of the Internal Bank. It enables straight-through processing, fits perfectly into a shared service set-up, increases transparency, and dramatically reduces the need for resources for payment processing. At the same time, it is often based on a centralized payments-on-behalf (PoB) set-up, thereby reducing transaction costs.

• Payment-on-behalf

  The payments-on-behalf concept is unique in the way that it enables any corporation to convert all payments within the group into domestic payments by using local bank accounts owned by a single central unit. The PoB set-up is an enabler for a substantial reduction in your bank transaction costs.

  We support in choosing the right set-up based on our knowledge of banks and country-specific legal requirements, which will impact the way you can set up an Internal Bank and a Payment Factory.

  The Payment Factory is mainly based on cash pool accounts in order to ensure sufficient funds in the central disbursement accounts.

• Shared Service Set-Up

  A Payment Factory fits perfectly into a Shared Service Centre or regional hub, offering flexibility and reducing dependence on local resources.

  In addition to supporting the hub, the Payment Factory team builds expertise to become a true centre of excellence. We help by providing training, developing user guidelines, designing processes, defining interaction points, and advising on authorizations, internal controls, and competence mapping.

• Organizational Redesign

  We support customers in setting up the right organization to accommodate the requirements and strategies of the company, while also ensuring implementation of the optimal organization based on the new processes and technology platform.

  When establishing a Payment Factory, you often see dramatic staff reductions within the area of payment processing; not necessarily as 100% full-time equivalents, but more evenly spread out throughout the finance organization. The idea is to utilize these freed-up resources on more value-adding activities in the organization.

• Banking Landscape

  In order to reap the full benefits of a Payment Factory, it is recommended linking such an implementation to an analysis of the corporation’s current banking landscape with the purpose of reducing the number of core cash management banks, thereby decreasing the technical complexity, obtaining better prices and cutting bank costs.

  This often requires a bank tender, an area in which we also provide consulting.

• Collection Factory

  For corporations with a structured flow of incoming payments and in need of immediate central control of cash, a Collection Factory makes sense. Based on a set of central bank accounts and an Internal Bank, the Collection Factory enables fast straight-through processing and reconciliation. The result is extensive central control of incoming payments and a reduced number of external bank accounts.

• System Implementation

  The implementation of an Internal Bank is often based on specific software solutions or add-on modules from the large ERP providers. However, the system is one thing; the necessary changes to the surrounding processes are another thing altogether. In order to have a successful implementation, the whole P2P and O2C process needs to be analyzed and modified accordingly.

  With vast experience of many clients, we can assist you with setting up the right processes to support the system that is implemented and reap the full benefits. While designing the processes, we ensure that the entire inbound flow (O2C) and outbound flow (P2P) are also updated. 

  We also covers the change aspect of implementing an Internal Bank, making sure process and organizational changes are handled thoroughly and with care.

• Communication & Security

  Safeguarding your Finances

  We understand the importance of establishing a secure platform for communication between your financial system and the banks.

  This awareness has evolved into quantifiable knowledge in the areas of encryption (message-level security) and security protocols (transport-level). We excel in establishing communication with a wide variety of encryption software.

  This knowledge is complemented with excellent consulting skills when it comes to co-ordinating with your IT team and quickly adapting to your IT strategy, thereby adhering to your business-2-business working procedure.

  Our knowledge of encryption covers:

  PGP
  AUTACK
  RSA

  Along with many other proven encryption algorithms, in addition to seamless integration with the software (SAFEX, etc.), which guarantees application of those encryptions to the payment messages.

  We have extensive knowledge of implementing interfaces using different kinds of business-2-business secured transport protocols:

  VPN/FTP
  SFTP
  HTTP(s)
  MQSeries
  Web Service