aplonCASH TMS Insurance Case Study

4

Click here to load reader

Transcript of aplonCASH TMS Insurance Case Study

Page 1: aplonCASH TMS Insurance Case Study

Empowering FinTech Innovation!

aplonCASH

The complete Digitization and Automation of Payments Authorization & Fulfillment creates 200.000€ in Annual Profits!

A leading Insurance Group implemented a complete FinTech Banking Transactions Platform (Treasury Management System - TMS), utilizing SEPA (Single European Payments Area). aplonCASH is now the only system used, for the management of Banking transactions

across all the companies of the group. As such it provides a completely digitized & automated interface towards all banks, for the Treasury Division.

YourTreasury

Transformedto a FinTechProfit Center

aplonCash

Receivables

Balances

Payments

Insights

Corporate Bank Accounts

Corporate ERP Other Corporate Core Systems

Page 2: aplonCASH TMS Insurance Case Study

The Need› The group handles over 200.000 payments transactions annually, with counterparties clients, partners

and suppliers, using bank accounts across the Eurozone.

› These transactions were, primarily, fulfilled through the issuance of bank cheques and to a lesser extent through the usage of multiple Web banking Sites manually.

› When using a bank cheque it has been calculated that the time from issuance & manual authorization, mailing, until the receipt by the counterparty was on average 15 days.

› Furthermore cheques of minor value (up to 30€), were usually not cashed due to the cost of facilitating the transaction (the payee had to physically visit a branch). This led to client frustration & friction, as well as increase in unclaimed cheques, which is classified as credit risk from the issuing bank!

As a direct result of the complexity & fragmented management of payments several issues affected the Insurance group, as well as it’s clients & partners:

› Significant operational cost for the management of bank cheques leading to poor Financial transactions experience for clients

› Inability to trace issued bank cheques, severely hindering the Working capital forecasting process

› Perceived “Financial Credit Risk” due to the large number of unclaimed bank cheques in circulation

› High Cost due to a large number of Inter-Banking Transactions, affecting both the Insurance group (approx. €75.000/annum), as well as the payee (approx. ~€2-4/transaction)

› Complex, Time Consuming & Error prone management of multiple Web Banking interfaces / systems

› Partial depiction of the group “Financial Cycle”, severely hindering the timely & accurate forecasting. This is directly affecting the ability to make Business Decisions, based on the available Working Capital.

ERP – Auto

ERP – Life

ERP – other

Web Banking

Web Banking

Web Banking

Cheques

Cheques

Cheques

Page 3: aplonCASH TMS Insurance Case Study

The solutionIt was evident, that the adoption of a modern FinTech solution, to automate & digitize the management of payments was necessary in order to streamline the process & become part of the ongoing Digital Transformation project of the group.

Payment Components provided the aplonCASH TMS solution & worked closely with the Treasury Department & the IT division to implement a smooth transition in the Treasury FinTech era!

The aplonCASH Treasury Management System (TMS) offers:› Consolidated management & monitoring of all payments across the 6 companies of the group, under a

unified FinTech platform.

› Same day payments

› Minimize number of Inter-Bank Transactions & relevant costs.

› Full Compliance with the SEPA directives

› Complete control of available funds per bank through the optimal Payments Routing mechanism & rules.

› Fully automated, two way, M2M communication for the transmission of payment orders & the receipt of bank responses

› Detailed & actionable Insights via BI dashboards, depicting the entire “Financial Cycle”

› Digital “4 eyes” authorization workflow process

› Accurate & complete audit trail

ERP – Auto

ERP – Life

ERP – other

aplonCASH UI

aplonCASH

Page 4: aplonCASH TMS Insurance Case Study

BenefitsSince the very first day the aplonCASH TMS became operation, significant benefits were immediate & measurable:

For the Insurance Group› Reduce cost of Inter-Banking transactions by at least €75.000 annually, through the use of Optimized

Payment Routing rules.

› Switch to digital transactions – almost eliminating the need for manual issuance of cheques. This is expected to reap cost savings of €125.000 in 2017.

› Eliminate the flow of unclaimed cheques & the perceived “Financial Credit Risk” it created.

› Speed up and Streamline the entire workflow to authorize & issue payments

› Complete & Accurate audit trail enabling full transparency of the payments process

› Significantly reduce time to detect & respond to potential issues (e.g. wrong IBAN payee number), leading to same day resolution

› Ability to create & update an accurate Working Capital forecasting model

For clients & partners› Eliminate Inter-Banking transactions costs

› Same day payments

› Digital transactions don’t require Branch presence to receive the payment

› Immediate detection of IBAN related issues & support from the Insurance company

Are you ready to bring your Treasury to the FinTech era?

Contact us to show you how aplonCASHtransforms the Treasury to a Profit Center!

64 Princes Court , 88 Brompton Road , Knightsbridge, London SW3 1ET, United Kingdom Tel. : +44 2071172538 | www.paymentcomponents.com | @paymentcomp