Jack Eapen Cjack@jackeapen.comhttp://www.jackeapen.com/

Problem Statement

In Search of a Solution

TWIST BSB Standard

Technical Details

• Lack of transparency and consistency in bank charges• Analysis of bank fees is labour intensive• Even the electronic statements are not machine readable• ANSI X12 822 standard was in use in the US; but no European

equivalent• Gaps in ANSI X12 822

Players involved:• International Bank Compensation Group (IBC) lead by GE• TWIST (Transaction Workflow Innovation Standards Team)

The Solution:•Receive bank services charges in a standardized electronic file•Use software to process bank service charges•Process and analyze the bank service charges•Work with your banks to receive better value

The BSB standard defines •an electronic statement •includes volumes and associated charges for all billable services•that can be sent by a Financial Institution to its wholesale customers (e.g., corporations, governments, institutions)•detailing their usage of financial services and their related charges

Released in 2006

Using a compatible s/w, FIs can generate XML messages in compliance with BSB standard

These messages are passed to the corporate customers through a mutually agreed channel. This is outside the scope of BSB standard

At the receiving end, corporate can process the XML files using appropriate s/w

A BSB message is composed by the “header” section and multiple “electronicStatement” sections

A statement is structured in two sections: “statementHeader” and “statement”

•Check all bank calculations (find errors)

•Examine each and every line item charge

•Check expected balances, volumes and service prices

•Allocate bank charges automatically

•Perform modeling and “what if”

•Compare divisions, departments, regions, etc...

•Import/export data to general ledger and budget systems

•Perform bank-to-bank comparisons

•Perform trend analysis over time

•Satisfy Sarbanes-Oxley requirements

•Identify unused services

•Archive statements electronically