SAP Financial Services Network: An Introduction
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SAP Financial Services Network: An Introduction

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SAP Financial Services Network: An Introduction SAP Financial Services Network: An Introduction Presentation Transcript

  • SAP Financial Services Network Introduction April 2013
  • Treasury Challenges and the Banking Relationship Challenges  Multibank relationship implies bank specific content in SAP ERP Needs  Bank independent solution  Simplified connectivity  Long Implementation Projects  Improved visibility and centralization  Needs separate on-premise integration broker involving costs and special expertise to maintain  Better reconciliation  Bank specific payment status and statements, manually uploaded to SAP ERP  Non-intrusive as much as possible  Poor cash management due to lack of visibility  Efficient straight through processing  Evolving and growing technology to support innovative new services  Multi-channel across multiple devices  Lack of remittance information  Many payment rejections  with incr. customer support costs  Poor reconciliation .. Or issues etc.. © 2013 SAP AG. All rights reserved. SCN 2
  • Trends, Challenges & Pain Points Challenges – Technological Pain Points  Lack of transaction visibility and control  Lack of agility  Multiple failure points and/or complex infrastructures  Implementation, maintenance and “expertise” costs  Difficulties in managing working capital across multiple banking relationships Corporate Treasury, AP & AR Departments © 2013 SAP AG. All rights reserved. Banks SCN 3
  • Corporate Banking Supply Chain Partnership  A complete solution needs to have interoperability, scalability, standardization and process integration all together as part of the business’ core processes  Corporates demand enhanced services to facilitate treasury management interactions with their banks.  Banks demand simplified approach to electronic service development, deployment and delivery © 2013 SAP AG. All rights reserved. SCN 4
  • Key Features of an Effective Corporate Services Solution              Channel and device agnostic Multi-bank connectivity through one channel Easy ERP-integration Quick response to regulatory change Customer driven ease of adoption Flexibility to change without business disruption End-to-end process efficiency Lower TCO End-to-end compliance Process and access control On-the-fly analytics Flexible reporting on profitability, risk, growth Immediate access © 2013 SAP AG. All rights reserved. SCN 5
  • SAP FSN dramatically reduces costs and increases efficiency of financial processes for the corporate SAP Financial Services Network is a new innovative on-demand solution designed to simplify electronic interaction with financial institutions. The network supports multibank routing, multi-format documents, on-boarding, provisioning, management, and monitoring capabilities. Financial Services Network Deep integration into your business processes Reduced operational risk and better visibility Faster time to achieve results Low TCO Solution © 2013 SAP AG. All rights reserved. • No individual custom solution per bank • No multi-connection for multi-banks • No additional hardware or 3rd party software • No additional training needed • No manual updates of settlement, reports to ERP environment SCN 6
  • Why a Financial Services Network from SAP? Market Penetration 186,000 SAP Corporate Customers 730,000 SAP Ariba Buyers & Suppliers © 2013 SAP AG. All rights reserved. SCN 7
  • Value For Banks New business Win new clients and offer new services into a vast base of SAP corporates: • Faster corporate growth, faster time to revenue Lower cost • Lower cost of doing business via single integration point • “Pay-as-you-go” subscription model • Extension of SAP, higher win rates © 2013 SAP AG. All rights reserved. SCN 8
  • Value For Corporates Integrates AP, AR and Treasury processes seamlessly with financial provider services. • No new hardware or software footprint, extends existing SAP resources • Rapid Deployment Solution for ERP configuration • Efficient cash recognition and reconciliation • Multi-bank solution, delivering risk mitigation and business agility • “Pay-as-you-go” subscription model Cost © 2013 SAP AG. All rights reserved. SCN 9
  • SAP Financial Services Network Deliver benefits across all aspects of the relationship • Values Services developed by Banks and delivered to corporates • Enabling Standard industry messaging support • Leveraging Business Networks and Rapid services deployment SAP HANA Cloud Applications • Trusted and Secure in the SAP Cloud • Remotely monitored and managed at a Low TCO Financial Services Providers e.g. Banks, Credit Cards, Insurance © 2013 SAP AG. All rights reserved. sFTP SAP ERP Corporates SAP ERP SAP HANA Cloud Platform FSN Connector SAP HANA Cloud Integration Other Value Services Monitroing & Alerting Reconciliation Cash Management Remittance Direct Supply Chain Financing WSRM or sFTP Back Office Systems Financial Services Network SAP Cloud SCN 10
  • SAP Financial Services Network On boarding in three easy steps 1 On-board Agree to join Define services On-board to network 2 Activate Operate 3 Run payment processes Monitor Services Administrate Services Identify FSN Member Activate connection Test E2E Connectivity Financial Services Providers e.g. Banks, Credit Cards, Insurance © 2013 SAP AG. All rights reserved. sFTP SAP ERP Corporates SAP ERP SAP HANA Cloud Platform FSN Connector SAP HANA Cloud Integration Other Value Services Monitroing & Alerting Reconciliation Cash Management Remittance Supply Chain Financing WSRM or sFTP Back Office Systems Financial Services Network SAP Cloud SCN 11
  • Multiple Layers of Security • SAP Cloud. The network is based on a cloud owned and operated by SAP. Separation of data and processing by each bank or corporate participant, digital signing and encryption of data ensure integrity, security and authentication are complete. Membership and connectivity is not open to public. • Separation of processing and data. Each FSN participant has their own virtual machine or “tenant” in the Financial Services Network for processing and their own partition (with unique encryption) for data storage. • Multiple layer of encryption and signing are possible. • Layer One: Transport encryption such as in SSL or SSH • Layer Two: Content signature and encryption using PKCS#7 or (in future) PGP • Layer Three: Data element level using corporate or bank keys as appropriate © 2013 SAP AG. All rights reserved. SAP Financial Services Network COPORATE Corporate Tenant Bank Tenant SCN BANK 12
  • FSN Payment Run Scenario Customer Installation SAP FSN Bank SAP ERP Accounting  Statement Reconciliation SAP ERP FSN Connector Payment Status #87 $1,000 processed Payment Status #88 $1,500 processed Statement #87 $1,000 processed #88 $1,500 processed Generic FSN Connector Payments Payment Engine Corp Banking System Payment Accounting Entries Payment Process Status Update Account Processing
  • Scenario 1: End-to-End AP payments flow out-of-the-box Customer Installation • 3 SAP ERP Payment Request Accounting 1. Payment 87 $1,00 1. Invoice 28347 2. Invoice 29830 $300 4. Invoice 73684 4 $200 3. Invoice 930029 2 1 $400 $100 5 Payment Payment Run 7 Payment Status #87 $1,000 Finished 9 Status Update © 2013 SAP AG. All rights reserved. 8 Card Payment methods execute the cycle in 2 steps: 1. Pay vendor using payment card 2. Pay card statement (bank payment) 0 AP All SAP ERP standard or custom payment mediums are supported • SAP FSN All SAP ERP payment methods supported • Bank 6 Payment Process Status Update* Request Status 1.Creation 6.Status Update 2.Forward to FSN 7.FSN Processing 3.FSN Processing 1. Document Validations 1. Document Validations 2. Format & Values Conversion 2. Document Format and Field Level Translation 3. Payment Correlation & Status Update 4.Forward to Bank 8.Forward to 5.Execution Customer (Optional) 9.SAP ERP Processing SCN 14
  • Scenario 2: Banks Statements Integration Bank SAP ERP SAP ERP Electronic bank statement functionality is used to update bank accounting, expenses and payments. SAP FSN generates statements in SAP ERP. • SAP FSN • • Customer Installation No impact in SAP ERP usage. • Positive impact in Cash Management and Account Payable Accounting Electronic Statements 2 3 Posting Rules Bank Account s Cash Managem ent Reconciliati on Accounts Expense s Liquidity Managem ent FI-CO reportin g Financial Supply Chain © 2013 SAP AG. All rights reserved. 1 Bank Statemen t Payments Cancellati on Statement Processing Genera l Ledger Vendor Account Balance Accou nt Payabl e 1. Banks forward statements to FSN 2. FSN Processing 1. Document Validations 2. Format & Values Conversion 3. Forward to SAP ERP SCN 15
  • On-boarding & Service Activation Phases Overview On-boarding Phase Connectivi ty Test Message Flow Test User Acceptance Test Service Activation Phase Tenant Connectivity Test Message Flow Test User Acceptance Test Production Test On-boarding is the process of bringing any customer, whether bank or corporate, onto FSN. This is independent of any corporate to bank relationship Service Activation is the process of connecting a corporate to a bank once on-boarded to FSN. © 2013 SAP AG. All rights reserved. SCN 16
  • Scenario 3: How to On-board to FSN Technical SAP ERP Integration SAP FSN Onboarding • Service Agreement • Customer Specific Environment Generation and Setup • SAP FSN Connector Installation and Configuration • Technical Connectivity • Integration Security Implementation Scenario Specific Analysis and Configuration • Bank & Card Payments to bank • Payment Status to SAP ERP • Statements to SAP ERP Mapping & Data Transformation • Payments Normalization to Canonical Model • SAP ERP Electronic Statements Generation End-to-End Routing • From SAP ERP to Bank • From Bank to SAP ERP Core On-boarding Team:  Project Manager – Manages project with the customer  Business Consultant – Identifies process flows and service types  Integration Consultant – Identifies required mapping and data transformation  Security Consultant – Identifies security requirements  FSN Operations – Provisions tenant in SAP Cloud  FSN Cloud – Manage and monitor running of the tenants © 2013 SAP AG. All rights reserved. SCN 17
  • SAP HANA Cloud Integration Lowers cost, increases speed, and enhances simplicity for our customers Legend: OD = on-demand / op = on-premise / EC = Employee Central / ByD = Business By Design / PI = Process Integration © 2013 SAP AG. All rights reserved. SCN 18
  • Summary SAP‘s cloud-based bank-company-integration solution offers  Simplified connectivity between banks and corporates – Non-intrusive to IT due to cloud-based integration – Fast integration within days instead of weeks – Central monitoring and management  Increased scalability and reach – Low acquisition, implementation and operating costs for banks and corporates – Achieving scale for multi-bank and multi-corporate connectivity – Increased visibility into transactions between banks and corporates  Additional Service Offerings (future) – New value-added banking applications – Development by SAP, customer and partner eco-system © 2013 SAP AG. All rights reserved. SCN 19
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