gain complete control over your bank account management

June 23, 2015

Gain Complete Control Over Your Bank Account Management

© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2

Michael VaseyTreasury Analyst, BBC

Bob StarkVice President of Strategy, Kyriba

Today’s speakers


What is Bank Account Management?– Bank Account Management– Signatory Management– eBAM– Bank Fee Analysis

Why Bank Account Management?– Control and Visibility– Regulation (e.g. FBAR)– Fraud Prevention– Cost Savings

BBC case study

Agenda

What is Bank Account Management?


Listing bank accounts Tracking account details – internal /

external data Managing signatories and approvers Segregation of duties / approval

workflow

Bank account management


Sending authenticated messages to instigate bank account: opening / closing / updates

Receiving acknowledgement messages Replaces some / all of paper

documentation Status: evolving

eBAM – “electronic” bank account management


1)Visibility into bank fees– Utilizing AFP service codes

Bank fee analysis

Format Region

EDI 822 US

TWIST BSB UK/Europe

ISO 20022 CAMT .086 (XML) Global (aspiring to be)


1)Visibility into bank fees– Utilizing AFP service codes

2)Analyzing monthly fees– Price accuracy – vs. pricing schedule “benchmark”– Correct volumes – vs. accumulated daily bank

reporting– Across banks – analyze cost of bank services

Bank fee analysis

Format Region

EDI 822 US

TWIST BSB UK/Europe

ISO 20022 CAMT .086 (XML) Global (aspiring to be)

Why Bank Account Management?


Difficulty to support audits and regulatory requirements (FBAR)

Risk Management: Limited risk and fraud mitigation

controls

Managing accounts is inefficient and error

prone

Inconsistent bank account procedures throughout global

organization

Common challenges that effective BAM can solve


As organizations expand/decentralize, easy to lose control of accounts, signatories…and management of funds

Need to establish:– Visibility into global accounts (centralized repository)– Systematic tracking of authorized signers in a central database

(documentation of all account-employee relationships)– Structured workflows that require all bank account activity to be

tracked and approved in a single system

Key: visibility and control of bank accounts


eBAM is more than ‘electronic’ BAM Drives enforcement of BAM best practice– Centralizes control of bank account actions: opening/closing/

maintenance of accounts–No bank account action can happen if not initiated from the

eBAM solution– Simplifies ‘sunset procedures’: reconciliation of internal signatory

data with bank records

eBAM will take bank account control to the next level


Internal approval workflow

Audit and reporting

Legal document management

BAMBAM vs eBAM

Internal approval workflow

Audit and reporting

Legal document management

eBAM

eBAM XML (15) connectivity


eBAM - checklist to be prepared

Proper BAM workflow for all bank accounts Bank account management module has data needed to

populate eBAM messages SWIFT connectivity to / from banks Support for digital signatures

(e.g. SWIFT 3SKey)


In the U.S., FBAR helps encourage BAM practice: Requires:– List of accounts (outside US)– List of signers on those accounts–Maximum value in those accounts

How it helps:– Visibility into signers (tip: who is that?)–Maximum value (e.g. are we using these accounts?)– See patterns over time (reporting 2010 – present)

Regulatory compliance


Bank fee analysis provides information to drive cost reductions: Bank fee accuracy– Pricing– Volumes

Understanding bank fees Analyzing: – Costs across banks: optimizing bank usage– Account usage vs. costs: do we need this account?

Cost savings

Case study: the BBC


British Broadcasting Corporation (BBC) is the world’s largest public service broadcaster

Global reach: 40+ channels in 30+ languages around the world

Worldwide audience of more than 300m £5bn+ ($8bn) global revenues

Introduction to the BBC


BBC initiated treasury centralization and process improvement project in 2013

Two separate treasury teams (Public Service and Commercial) combined into one entity

A key objective was to optimize BAM globally

Treasury overview


BAM process goals Enhance control of bank account data Robust management of opening and amendment operations Provision of strong audit visibility Reduce operational risk Error reduction Improve data integrity and quality

BAM project goals


Security goals Effective disaster recovery processes Storage of all key documentation Provide effective security over data access rights Protection of very sensitive user information– Specimen signatures– Signatories’ ID validation documents, such as passport copies

BAM project goals


Approx. 1,000 unique legal signatories across the BBC

80-100 Banks 550 bank accounts Accounts held in 54 currencies

BAM project: scope


The account creation process involves three steps:

1) Initial data entry by the Front Office team– e.g. company, currency, bank

2) Back Office enriches data– e.g. account number, sort code, SWIFT identifier, IBAN

3) Back Office approves account to make “live”

BAM implementation: new workflow


Processes for modification of data are similar: Segregation of duties between front and back office Modification of data includes:– Adding /removing signatories–Updating signatories or related information–Documentation amendments–Mandates

BAM implementation: new workflow


Overall process: improved visibility, control, and efficiency Segregation of duties: centralized front and back office

functions for account open/close/update More reliable data: improves compliance with internal audit Regulatory compliance (e.g. FBAR for US entity) Complete lists of authorized account signatories can be

created on-demand

BAM implementation: realized benefits


1) Simplify workflows to remove need for front office input

2) Adoption of eBAM for additional efficiency and control benefits

3) Integrate third party solution into Kyriba and develop workflow to cover end-to-end BAM process

BAM implementation: next steps


Thoroughly validate and cleanse BAM data before integrating into new system

Define and test end-to-end BAM workflow before implementation Don’t over-engineer the process. Keep it as simple as possible

whilst ensuring segregation of duties where necessary Build catch points into the process to ensure treasury is always

across bank account administration, to avoid losing sight of data changes

Conclusions from BBC


Increase visibility and control of bank accounts

Reduce expose to fraud Ensure regulatory compliance Streamline processes and improve

efficiency Lower banking costs

Summary: why bank account management?


Additional ResourcesTreasury & Risk Special Report: Slow Start For eBAM contains a number of features and essays from the industry thought leaders on topics ranging from the true value that eBAM will deliver to corporates, to innovations in payments and how this could impact businesses.Download the report at http://kyri.ba/eBAMReport

Find out how Kyriba can help you increase visibility and gain control over your banking relationships. Download the fact sheet at http://kyri.ba/1Goe6xZ

http://kyri.ba/eBAMReport



http://kyri.ba/1Goe6xZ

http://kyri.ba/1Goe6xZ


Additional Resources

• Learn how Kyriba enabled the world's largest public service broadcaster to seamlessly manage the administration of about 550 bank accounts using 54 currencies, held by almost 100 banks globally.

Read the success story at http://kyri.ba/1RuIM5Q

http://kyri.ba/1RuIM5Q

http://kyri.ba/1RuIM5Q


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gain complete control over your bank account management

Economy & Finance

bank account control

bank fees

bank account activity

control of bank accounts

bank records ebam

listing bank accounts

control of accounts

ebam solution