nibm -corporate payments & ecommerce - nov06

8/2/2019 NIBM -Corporate Payments & Ecommerce - Nov06

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Corporate Payments &E-commerce An Overview

National Institute Of BankManagement

Sanjay Joglekar November 7, 2006


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@Sanjay Joglekar

Agenda Corporate Payments Landscape

Banks & Corporate Payments

Technology & Corporate Payments

Emerging Trends


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@Sanjay Joglekar

Changing role of Corporate Treasurer

/ CFO Evolved from tracking cash balances

and managing receivables/payments

Todays corporations require Treasurersto

manage short term liquidity and risk

Operational cash mangement


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@Sanjay Joglekar

Key Elements For Todays CFO Transaction Management

Managing disbursements and collections

Information ManagementAccount balances from banks

Preventing fraudAutomating transaction posting to ERPs

Reconciling all payment activities


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@Sanjay Joglekar

Corporate Payments Landscape Demand side Dealers; Retail

customersAutomobile co. having dealers

Mobile company having individual users

Demand side generates receivables

Receivable management is key to cashflow


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@Sanjay Joglekar

Corporate Payments Landscape..2 Improving collections

Integration of ERP & A/R systems

Automated escalations of aging

Dispute resolution tools

Integration with accounting, shipping etc.

Ability to track promises to pay


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Corporate Payments Landscape..3 Supply Side spares suppliers; service

providersAuto ancillary multilple tiers

Housekeeping; Infrastructure providers

Timely disbursements result in

Efficient supply chain Contented internal customers



Banks & Corporate Payments Banks defined themselves as providers of

financial needs of corporates /institutions

Products & Services offered by banks Cash management

Collection products

Outstation cheque collections

Direct debits

Disbursement products Salary credits

Paper payments

ACH/ECS/RTGS



Banks & Corporate Payments..2 But ended up creating silos for corporate

payment requirements

Salary disbursements Trade Finance

Cash management

Silos also resulted in technology silos

giving rise to integration challengesAny new product offering today becomes a

challenge for operations



Banks & Corporate Payments..3 Today banks view corporate payments as

main revenue earner

Greater dependence on fee based income thaninterest based income

Key challenges to overcome are

Decline in trade finance requirements

Bigger corporates are not revenue contributors Narrow window for first mover than ever before

Service differentiation becoming difficult



Technology & Corporate Payments Major technology adoption at corporate end

ERP (covers all aspects of corporate)

Supply chain integration

Banks also automating almost all their functions Core banking

Lending

Trade finance

Forex External payment networks



Technology & Corporate Payments..2 Technology has become pervasive

Transaction Management File exchanges from ERPs to banking systems

Payment initiation from net banking

Account to account transfers

Direct links to payment gateways ECS; RTGS;

Information Management Collection reporting

Positive pay

Disbursements summary


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@Sanjay Joglekar

Core functionality of Electronic Invoicing &Payment


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@Sanjay Joglekar

Emerging Trends Need for convergence

Moving from product orientation to customizedsolutions

What it takes Overcoming banking products silos

Integrating business & IT strategy

Deeper than providing single point access to allbanking products

Deeper than combining multiple business unitsinto single business unit


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@Sanjay Joglekar

Courtesy -


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@Sanjay Joglekar

Courtesy -


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@Sanjay Joglekar

Some thoughts Why arent banks changing the model

Strategy requires careful planning and could

have huge downsides Rewards are great revenues beyond

transaction processing by providing forecasting,managing risk and strategy cosulting formaximizing revenues

BPO for corporates ?


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Any questions, comments and

observations are welcome

nibm -corporate payments & ecommerce - nov06

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