1 / 21

Multibanking

Multibanking. Multibanking. What is Multibanking? Using many banks for cash management Use one bank as lead cash management bank Use only lead bank’s electronic banking All banks report balance and transactions into lead bank (using MT940s)

sen
Télécharger la présentation

Multibanking

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Multibanking

  2. Multibanking What is Multibanking? • Using many banks for cash management • Use one bank as lead cash management bank • Use only lead bank’s electronic banking • All banks report balance and transactions into lead bank (using MT940s) • Lead bank passes on information in standard format • Use lead bank’s EB system to initiate payment instructions to all banks (MT101,198 or 103)

  3. Multibanking Advantages of Multibanking • Able to use the best bank in each country for local cash management needs • Only one EB system to manage all bank accounts • Lower systems/software costs • May use best EB system or use third party system

  4. Multibanking Problems with multibanking - Reporting • MT940 is an end of day message • Normally only one transmission available per day • Intra-day reporting can be difficult or impossible on a multibank basis • Most banks are able to do intra-day updates internally (MT941 942) but cannot send to other banks

  5. Multibanking Reporting (cont) • Bank delivering service not responsible for • Non-delivery • Late delivery • Quality of information • Lack of privacy?

  6. Multibanking Problems with multibanking - reporting • Some banks will not cooperate • Extra cost – paying two banks for information • Some banks cannot report via MT940s • At all (a few) • Automatically • To a good standard • May be better off buying independent software • Poll parser • May get intra-day or real-time information

  7. Multibanking Problems with multibanking – payments • Paying two banks to make a payment • Need bilateral agreements in place • Liability issues. There may be a lack of clarity as to whom is responsible • Logically • Morally • legally

  8. Multibanking Problems with multibanking - payments • Standard bank to bank message (MT103) • Auto processing? • Designed to debit sending bank’s nostro account • MT198 message • Old standard few banks can auto process • MT 101 • Newer standard – not all banks can handle fully automated • Automated triggering of MT 101s based on MT940 series

  9. Multibanking Problems with multibanking – Payments • In some banks means all payments received • Fall into repair queue • Processed with manual intervention • Subject to delays- missed cut-offs • Subject to input errors? • Cost more to process than an auto payment

  10. Multibanking • Multibanking – payments • Not suitable for treasury settlements with manual intervention • Is it good enough for third party payments • No end to end authentication • No confirmation of execution • Often no ‘non-urgent’ option

  11. Multibanking Problems with multibanking – payments • Who do we call when it goes wrong? • Who sorts it out? • Who pays the compensation • What is covered in the service level agreement with lead bank? • What documentation will need to be signed • Who is legally liable for what?

  12. Multibanking Swift Involvement • Caveat – not all banks are members of SWIFT • Not all banks can send and receive all message types (e.g. MT942) • Message standards not always applied in a consistent manner

  13. Multibanking Swift Involvement • SWIFTNet – SWIFT’S Internet Protocol based platform. Secure and interactive • Messaging consists of • SWIFTNet Fin, store and forward • SWIFTNet Fin Copy, clearing and settlement • SWIFTNet InterACT, real time message exchange • SWIFTNet FileACT, bulk messages • SWIFTNet Browse, e.g. correspondent banks may look at their Nostro a/cs

  14. Multibanking Swift Involvement • MT101’s Credit Beneficiary a/c MT101 Debit Customer a/c Customer CM Bank Beneficiary Bank SWIFT Local clearing Receiving Bank

  15. Multibanking Swift InvolvementMultibank reporting Customer Corporate Electronic banking system Multibank reporting MT940/1/2 MT940/1/2 MT940 MT940/1/2 Lead bank’s own customer A/cs at other banks A/cs at own a/cs In country In country and o/s branches o/s SWIFT Network Lead CM Bank

  16. Multibanking Swift Involvement Corporate Access to SWIFT • MA-CUG Bank 1 Co A MACUG Sponsor Bank SWIFTNet Co B Bank 2 SWIFTNet Bank 3 Co C

  17. Multibanking Swift Involvement • But a company may need to join multiple MA-CUGs to cover all its banking needs • Have been criticised as being • High cost • Administratively cumbersome • Preserves a restrictive, proprietary relationship

  18. Multibanking Swift Involvement • So SCORE, Standardised Corporate Environment Bank A Bank B SWIFTNet Company A Bank C

  19. Multibanking Swift Involvement SCORE • Company must be listed • Countries must support FATF • Companies must comply with corporate governance and reporting requirements

  20. Multibanking Swift Involvement • Benefits for Corporates • Co can use SWIFT secure network • MA-CUG membership improves STP • Rationalised infrastructure • 24/7 availability • SWIFTNet may be used as standard for bank communications • Browsing for intra-day leads to better global liquidity management

  21. Multibanking Swift Involvement • So what are cash management benefits? • Enhanced cash reporting • Bulk payments processing • Online payments initiation

More Related