eBAM: Fact or Fiction - TMANYnyce.tmany.org/2013/wp-content/uploads/2013/01/eBAM... · 2013-10-27 · Fiction: eBAM Traffic is Blowing Up the Internet Operational issues hamper adoption

© G Treasury SS, LLC 2008-2013

eBAM: Fact or Fiction

With

New York Cash Exchange Wednesday, May 29, 2013

Cheryl Kavka, Prudential Financial Warren Davey, GTreasury

© G Treasury SS, LLC 2008 -2013

Agenda

What is BAM?

The Infamous “e”

BAM Solutions

4 Pillars of “e”

Fact or Fiction

The Future of “e”

1

2

3

4

5

6

© G Treasury SS, LLC 2008 -2013 © G Treasury SS, LLC 2008 -2013

What is BAM?

Bank Account Management

• Opening/Closing Accounts

• Account Change requests

• Managing Signers

• Maintaining signature specimens

• Documented workflow approvals


Evolving BAM Issues

Regulatory Reporting

• SOX

• FBAR

• Dodd-Frank - Systemically Important Financial Institution (SIFI)

Audit

• Checks, balances, controls

• Access, approvals, accuracy

Internal Reporting


Solution # 1 - Spreadsheets

• Manual, labor intensive repetitive processes

• Outdated, version conflicts, error prone

• Unsecured/uncontrolled access to bank accounts

• Country, legal, and language issues

• Decentralized processing


Solution # 2 - Databases Improvements

• Centralization

• Documentation

• Controls

Issues

• Usability

• Access

• Antiquated

• Reporting

• Technology Support


Solution # 3 – Third Party Provider Improvements

• Centralization

• Documentation

• Controls

• Reporting

• Signers/Account groupings

Issues

• Limited options available

• Multi-bank platforms


POLL: What current BAM solution do you utilize?


The Infamous “e”

• Eventually

• Elusive

• Enigmatic

• Evasive

• Extinct

• Embalmed

• Escaping

• Eternity


“e” Volution

Paper

Fax

Email

SWIFT

User Uploads


Enabling “e”

4 Pillars to Electronic Bank Account Management

1. User accessible BAM systems

2. Formats/messages

3. Communication platform(s)

4. Interoperability


User Accessible BAM Systems

BAM Systems

• Bank proprietary

• In-house development

• 3rd party vendors

BAM Systems Help:

• Incorporate workflow

• Centralization

• Controls & authority

• Access

• Automation


Formats/Messaging

Bank Based

• Letters

• Documents

• Forms

Industry Based

• SWIFT messages

• ISO 20022 XML

• FileAct


Communication Platforms

Bank Based

• Upload

• FTP

• https

• Etc

SWIFT

• BIC requirement


Interoperability • BAM system needs to create a readable message

• Message must be transmitted for review

• Message has to be trusted upon receipt

• Information must be complete

• Missing or incomplete information needs to be noted

• Communication back to sender regarding missing information

• Information needs to be processed and logged at the bank

• Action must be taken based upon valid information

All the above must be auditable and ultra secure


Fact: BAM solutions exist

BAM systems have been around for many years from a select number of sources, but the functionality continues to mature & grow:

• Track accounts

• Grouping accounts

• Organize signers

• Facilitate regions

• Accommodate regulations

• Simplify changes


Fiction: BAM Systems Are Readily Available

• Despite their abundance there is not a proportionately high adoption rate

• Industry based perception that spreadsheets are the only answer

or at least the acceptable one


Fact: Message Form Are Standardized

15 core SWIFT messages

• 18 determined business functions

• ISO 20022 standards

• XML formats

• FileAct delivery

Banks have:

• Standardized forms

• Letters

• Data • Fields


Fiction: Messages Are Standardized

Banks have their own proprietary documents & formats

ISO based XML is a means & FileAct is a method:

• You can attach any document

• Aforementioned documents are not standardized

• Requires security wrapping that the bank can read and route


Fact: eBAM Communication is Here Now

If you can:

• Use a BAM system that can track and approve all your accounts

• Have that system send proper files to the bank(s)…

• …over an acceptable platform…

• …where the bank can read and rely on the information…

• …you will have full fledged eBAM


Fiction: eBAM Traffic is Blowing Up the Internet

Operational issues hamper adoption

• My bank doesn’t have a system

• I have more than one bank

• My banks don’t agree to the same standards

• I’m not a member of SWIFT

• My bank can’t process certain items

• I don’t have a BAM system


Fact: Interoperability is Fiction

Currently too many variables

• Source data comes from anywhere

• How can you trust it

• Information is missing or incorrect

• Communications are not available

• Banks have their own specific needs

• Etc

• Etc

• Etc

• Etc


Fiction: Interoperability Can Never Be Fact

• Banks are beginning to work together

• Corporates are piloting

• SWIFT and bank networks are moving traffic

• Systems and being created and tested

• Some portions are even live


The Future of eBAM

How/why will we get to eBAM

• Increased bank focus

• Corporate governance

• Audit

• User demand


The Future of “e”

1. The systems are ready now

2. The messages have kinks, but will be fixed

• Early adopters will figure these out

3. The communication platform will become ubiquitous

• SWIFT goes downstream

• Banks accommodate demand

4. Interoperability is a by-product of 1-3


Questions?


Contact Us

Cheryl Kavka Project Manager Prudential Financial [email protected] Phone: 973.802.4928

Warren Davey Executive Vice President GTreasury [email protected] Phone: 403.269.3262

mailto:[email protected]

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