1Bank Connectivity: Perfecting the ChoicesJune 20, 2013
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 2Simone BernardelliManager, Global Bank Connect...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 31) Bank connectivity: sorting out the vocabula...
“I just want to give my list of banks to my serviceprovider and let them take care of the rest”- Almost every treasurer in...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 5Domestic BanksVendor manages formatsand connec...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6Connectivity definedConnectivity is…Connectivi...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 71) FTP• Host-to-host connections• Directly to/...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 82) SWIFT• Confusing because both a network and...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 93) EBICS (and regional protocols)• Certain cou...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10Connectivity definedConnectivity is…Connectiv...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 11Connectivity definedFile FormatsPrimary File ...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 12Connectivity definedConnectivity is…Connectiv...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 131) Authentication/Authorization• Bank knows p...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 14Who can offer bank connectivity?1) Treasury M...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 15Is one provider better than another?Key quest...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 16Most popular connectivity choices (in US/Cana...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 17What about my situation affects the choice?Va...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 18What’s best for me?Connectivity Method Ideal ...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 19Scenario Recommendation: FTP$5 Billion Revenu...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 20Scenario Recommendation: FTP + SWIFT$5 Billio...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 21Scenario Recommendation: FTP + SWIFTNet$10 Bi...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 22SummaryScope of Bank ConnectivityBank Reporti...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 23Questions?Kyriba offers:• Choice – more conne...
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Perfecting Bank Connectivity: Understanding the Choices

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Global cash visibility remains a hot topic and critical objective of many corporate treasuries. However, there remains much confusion over the best methods to optimize connectivity for both bank reporting and payments. In this presentation, the speaker panel reviewed the different choices a corporation has as well as the specific advantages and disadvantages of different solutions for all sorts of different scenarios (e.g. global, domestic, high volume, low activity).

Key topics included:
• cost/benefit of different connectivity solutions
• when SWIFT connectivity does and doesn't makes sense
• different options for SWIFT access
• questions you need to ask during the process

Featured Speakers:
Simone Bernardelli, Manager, Global Bank Connectivity – Kyriba Corporation
As Kyriba's head of bank connectivity, Simone manages the global team responsible for managing and implementing global bank reporting and payment projects, including direct host to host connections and a variety of SWIFT deployment choices. He previously held a number of technical roles at Kyriba, product management, technical implementations, and product support. Prior to joining Kyriba in 2005, Simone spent eight years at XRT, splitting time between the company’s European and U.S. offices, where he was an electronic banking, IT, programming and ERP integration consultant. Simone has a degree in statistics from the Università Cattolica del Sacro Cuore in Milan. He is based in Kyriba’s Rio de Janeiro office.

Ken Ketchum, Director, Account Management - Kyriba Corporation
As Director of Account Management, Ken oversees Kyriba’s North American Accounts team responsible for customer relationship management and monitoring client satisfaction. In this role, Ken works with clients to optimize the usage and value they get from the Kyriba solution. Ken has over 25 years of experience working with treasury software. He joined Kyriba in 2003 and has worked with key clientsand Kyriba stakeholders to expand Kyriba’s offering and presence in North America.Prior to Kyriba, Ken worked in business development with then startup ByAllAccounts, a financial data aggregator. While at ByAllAccounts, Ken helped establish many of the firms early stage clients. Other experience includes sales and implementation roles with Thomson Financial’s treasury software group and managing the FX and Money Markets backoffice operations for a high volume trading operation at State Street in Boston.

Bob Stark, VP Product Strategy - Kyriba Corporation
Bob Stark is responsible for global product strategy and market development at Kyriba. Bob is a 15 year veteran in the treasury technology industry having served in multiple roles at Wall Street Systems, Thomson Reuters, and Selkirk Financial Technologies including product management and strategy. Bob is a regular guest speaker at treasury conferences and an active member of the Association for Financial Professionals.

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Perfecting Bank Connectivity: Understanding the Choices

  1. 1. 1Bank Connectivity: Perfecting the ChoicesJune 20, 2013
  2. 2. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 2Simone BernardelliManager, Global Bank ConnectivityKyribasbernardelli@kyriba.comKen KetchumDirector, Account ManagementKyribaken.ketchum@kyriba.comBob StarkVice President, StrategyKyribabob.stark@kyriba.comToday’s presenters• Manages global bank connectivityimplementation team• Host to Host, SWIFT, EBICS etc.connectivity choices• Manages team for all US, CanadaKyriba clients• Extensive work with bankconnectivity, including SWIFTNet• Product and business strategy,including bank connectivitystrategy and alliances
  3. 3. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 31) Bank connectivity: sorting out the vocabulary2) Choices for bank connectivity3) What is best for me? Perfecting the choices…4) Detailed Q&AAgenda
  4. 4. “I just want to give my list of banks to my serviceprovider and let them take care of the rest”- Almost every treasurer in the world
  5. 5. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 5Domestic BanksVendor manages formatsand connections for youInternational BanksCorporate ClientService providers manage domestic and internalconnectivity for bank reporting, payments, and (onceavailable) electronic bank account managementService ProviderConnectivity defined
  6. 6. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6Connectivity definedConnectivity is…Connectivity Element Examples1) Network protocol Network IP, VPN, MQ, AS22) Connectivity method FTP, SWIFT, EBICS, internet-based3) File format BAI, EDI820, MT940, XML 200224) Security Encryption via PGP or PKCS7, S/MIME,3SKey
  7. 7. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 71) FTP• Host-to-host connections• Directly to/from the bank using a custom scriptdeveloped and maintained by vendor• Access and security dictated by the bank• Used frequently around the worldConnectivity definedConnectivity Methods
  8. 8. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 82) SWIFT• Confusing because both a network and an authorof formats/standards• The ‘network’ requires membership and allowscommunication of messages between membersSWIFT (or BIC) addresses• Different membership types -> different services(e.g. Member-Concentrator vs. SWIFTNet)Connectivity definedConnectivity Methods
  9. 9. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 93) EBICS (and regional protocols)• Certain countries have protocols to connectdirectly to banks in that country (e.g. France,Germany, Austria)• Simplifies connectivity for the vendor, althoughlikely require a vendor to get connected4) “Creative methods”• Typically Internet-based methodsConnectivity definedConnectivity Methods
  10. 10. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10Connectivity definedConnectivity is…Connectivity Element Examples1) Network protocol Network IP, VPN, MQ, AS22) Connectivity method FTP, SWIFT, EBICS, internet-based3) File format BAI, EDI820, MT940, XML 200224) Security Encryption via PGP or PKCS7, S/MIME,3SKey
  11. 11. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 11Connectivity definedFile FormatsPrimary File Formats DescriptionBAI2 Bank balance and transaction reporting (NorthAmerica)EDI 820 High and low value payments (North America)SWIFT MT.xxx Primarily for non-US reporting and payments• MT940 = prior day• MT942 = current day• MT101/103 = high value paymentsXML 20022 XML CAMT = bank reportinge.g. <camt.053.001.03)XML PAIN = payments message formatse.g. <pain.001.001.03>
  12. 12. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 12Connectivity definedConnectivity is…Connectivity Element Examples1) Network protocol Network IP, VPN, MQ, AS22) Connectivity method FTP, SWIFT, EBICS, internet-based3) File format BAI, EDI820, MT940, XML 200224) Security Encryption via PGP or PKCS7, S/MIME,3SKey
  13. 13. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 131) Authentication/Authorization• Bank knows payment originated from my companyand was authorized to be sent (e.g. digital signature)2) Confidentiality• Payment file is encrypted and only the bank can read the data3) Integrity• Payment has been sealed (bank can tell if ‘seal’ was tampered with)4) Non-repudiation• (for certain protocols) Bank cannot deny receiving payment messagethat organization can prove was sentConnectivity definedSecurity
  14. 14. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 14Who can offer bank connectivity?1) Treasury Management Systems (TMS)2) ERP3) Banks4) Service bureaus5) SWIFTBank connectivity options
  15. 15. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 15Is one provider better than another?Key questions you want to ask:• Cost• Experience “Inventory” of connectivity Expertise with onboarding banks• Ease (cost) of integration• Ability to support multiple methods/protocolsBank connectivity options
  16. 16. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 16Most popular connectivity choices (in US/Canada)1) Direct connectivity• Host-to-host connection (e.g. FTP)2) SWIFT Member-Concentrator• Shared BIC address• Priced per account/transaction3) SWIFTNet• Your own SWIFT/BIC addressBank connectivity options
  17. 17. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 17What about my situation affects the choice?Variables: # of banks Who/where they are # of accounts # of transactions Types of transactions (e.g. payments)Bank connectivity options
  18. 18. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 18What’s best for me?Connectivity Method Ideal ScenarioFTP High volume of activity at domestic banksRegional Protocol Connecting with banks in those regions (e.g.France, Germany for EBICS)SWIFT Member-ConcentratorOutside North AmericaLarge number of banks; small volume of activitySWIFTNet Lots of everythingBank connectivity options● Often a combination of methods may be best ●
  19. 19. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 19Scenario Recommendation: FTP$5 Billion RevenueDomestic treasuryFTP most common in North America3 Large US Banks Most US Banks offer BAI reporting via FTPBalance Reporting andPaymentsFTP will deliver BAI files for bank reportingFTP will transmit EDI and similar files forpayments110 Bank Accounts No ‘traffic’ charges for number of accounts ortransactionsBank connectivity optionsWhat’s best for me?
  20. 20. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 20Scenario Recommendation: FTP + SWIFT$5 Billion RevenueInternational TreasuryInternational activity means FTP alone won’t besufficient1 Large US Bank1 Large CDN Bank8 International BanksUS and CDN banks can be served with FTPconnections and domestic formatsInternational banks likely require SWIFTBalance Reporting andPaymentsFTP & SWIFT can serve both activitiesSWIFT Member-Concentrator = high valuepayments50 Accounts (US)10 Accounts (Canada)50 Accounts (INTL)60 Accounts can be served with FTP anddomestic formats it supports50 Accounts likely isn’t enough to pursuededicated BIC/SWIFT AddressBank connectivity optionsWhat’s best for me?
  21. 21. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 21Scenario Recommendation: FTP + SWIFTNet$10 Billion RevenueInternational TreasuryDedicated BIC will be useful for expanse ofbanks, accounts, and transactions5 Large US Banks1 Large CDN Bank50 International BanksUS and CDN banks may still be served with FTPconnections, despite SWIFT abilitiesMany banks (and accounts) lead to SWIFTNetBalance Reporting andPaymentsFTP & SWIFT can serve both activitiesSWIFTNet allows high and low value payments(FIN and FileACT messages)100 Accounts (US)10 Accounts (Canada)400 Accounts (INTL)110 Accounts can be served with FTP anddomestic formats it supports400 Accounts is easily enough to pursuededicated BIC/SWIFT AddressBank connectivity optionsWhat’s best for me?
  22. 22. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 22SummaryScope of Bank ConnectivityBank ReportingPayments(hopefully) eBAMConnectivity MethodsFTPSWIFTRegional ProtocolsFile Transfer FormatsBAISWIFT MTxxxXML ISO20022 (Pain/CMT)Best solution depends on:BanksType of ActivityVolumesEvaluating Service ProvidersCostExperienceFlexibility
  23. 23. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 23Questions?Kyriba offers:• Choice – more connectivity options than any other provider• Experience –Kyriba processes 1,000,000 transactions per day• Expertise - Kyriba onboarded more SWIFTNet customers than any third partyprovider• Monitoring – Kyriba’s dashboards allow proactive monitoring of all bankconnectivity, including SWIFT traffictreasury@kyriba.comtwitter.com/kyribacorpkyriba.comlinkedin.com/company/kyriba-corporationkyriba.com/blog
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