This document discusses eBAM (Electronic Bank Account Management), a web-based system used in corporate banking to automate and standardize bank account management processes. Historically, multinational corporations managed hundreds of bank accounts using manual paper processes that varied by bank and location. eBAM aims to remove paper from the process and allow corporations to access and manage account records quickly online. It enables corporations to standardize activities like opening, closing, and managing accounts and signatories. eBAM provides benefits like reduced costs, improved client satisfaction, and a centralized view of bank account structures.

1. Technology<br />The technology that we will be discussing is a web based system call eBAM (Electronic Bank Account Management). This technology will be specifically used in the Financial Services Industry in the Corporate Banking Space.<br />Background<br />Historically, multinational corporations managing tens if not hundreds of bank accounts did so using manual, paper-based, time-consuming processes which varied between banks and geographies. As for keeping track of all these processes, with treasury workstations often lacking the necessary functionality, for most corporations the use of Access databases and Excel<br />spreadsheets were as sophisticated as bank account management got. In fact, records going back more than a couple of years may have been physically stored in a range of off-site warehouses in a variety of different countries — all very well until someone needed to retrieve them.<br />For most multinational corporations, this is still the reality today. In Asia, where for the past 30 years many companies have tended to expand into international markets without fully integrating their acquisitions, the legacy accounts and processes in place can be unwieldy. While technology has evolved at a steady pace over the last few years in other areas of corporate banking, the basic processes surrounding bank account management have remained in the dark ages, with tasks like opening an account taking over a week to complete for the majority of corporations. But with the arrival of eBAM, all that is about to change. At first glance, the premise of eBAM is disarmingly simple. It is the automation and standardization of the processes relating to bank account management and legal entity management: from the basic actions of opening, closing and maintaining accounts to workflow management. The objective of eBAM is to remove the paper from the processes and enable corporates to access and manage their records quickly and efficiently via an online interface. At the same time, eBAM solutions can act as a repository of authorized signatories. (source: Age of eBAM, Bank of America)<br />Need<br />When the financial crisis hit, some companies that had attached less priority to the whereabouts of their account details focused squarely on this issue and often found that the information available was less than complete. Transparency became a priority and treasurers were tasked with reporting their cash position to the CFO more comprehensively than before, which in turn exposed areas where the information available was less than complete. Tracking that information down might involve phone calls to bank contacts in a number of different countries. Even when treasurers had a good handle on where their bank accounts were, other unexpected obstacles could arise. It might transpire, for example, that individuals named as signatories on an account had left the company some time ago. These are not words the CFO wants to hear, particularly given that under Sarbanes-Oxley, the CFOs and treasurers are required to attest to the validity of the financial statements, including bank account information. At the same time, the crisis prompted treasurers to focus more closely than ever before on bank counterparty risk — a focus which continues today. Without having a clear picture of the company’s bank account structure, treasurers cannot accurately understand their counterparty exposures. Furthermore, for corporates looking for the flexibility to alter their banking infrastructure, should the need arise, a solution which streamlines the nuts-and-bolts processes like account opening and closing should be taken more seriously. Meanwhile, as treasurers continue to streamline their processes they may well be looking to carry out a review of the levels of authority given to different signatories across the company in order to ensure that these are appropriate and standardized. This is particularly the case when companies are in the<br />process of integrating recently acquired businesses, but also in the case where companies may aim to achieve synergies across different business lines. In Asia, it appears that a number of multinational corporations are looking to become more centralized across the region, therefore the need to remove paper processes and standardize processes is particularly pertinent.<br />At a high level, eBAM enables corporations to standardize the following bank account management activities:<br />Opening, closing and managing accounts and legal entities

2. Adding, removing and changing signatories on accounts

3. Detailed and bespoke reporting

4. Digitally executing documents using e-signature technologyeBAM also acts as a data repository, enabling treasurers to access up-to-date account information quickly and easily:<br />Full details of the company’s bank accounts

5. Individuals who have access to those accounts

6. Levels of authority held by signatoriesCorporates want to reduce carbon footprint and eBAM would be a great tool for them.<br />Impacts<br />This technology will have impacts at all levels- Operational, Tactical and Strategic. <br />Operational- It will impact the day to day operations of bank account managers as their work load will be drastically reduced.<br />Strategic & Tactical- This system will provide the banks a major cost leadership advantage and at the same time leading to enhanced client satisfaction resulting in increased market share.<br />Key Stakeholders<br />SWIFT (Society for Worldwide Interbank Financial Telecommunication) <br />Banks- Bank of New York Mellon, JP Morgan, Bank of America<br />Vendors- IT2 Treasury Solutions, Pegasystems inc., Weiland/open solutions, Sunguard, Wall Street Systems<br />The cost of the system was not available online.<br />Web based technology is not a mature technology. It is very innovative and can be customized to a particular industry/business. eBAM will be a revolution and will change the way the corporate banking business works forever. <br />Application of eBAM (Benefits and Challenges)<br />If Firm X is a large corporation, holding multiple accounts with multiple banks across multiple countries, then it is a very strong business case for the firm to use eBAM. For smaller firms, eBAM might not be that impactful.

7. eBAM must be a global product offering since banks operate in multiple countries. Therefore, it has to be implemented worldwide.

8. Linked to the above point of global offering is the acceptance of digital signatures in the countries where eBAM would be accepted. Many Asian countries still require physical documentation in various stages of the account opening and management process. Therefore early adopters are focusing on workflow and access to data.Specific Steps to be taken<br />Collaboration is the Key: In order for eBAM to become more widely adopted, the spirit of collaboration needs to continue, with banks and corporates working together to overcome the obstacles and shape the development of this technology. By engaging with their banks, corporates can ensure that eBAM solutions continue to meet their requirements and preferences in areas such as security protocols and digital signatures.

9. Interoperability: Solutions need to offer virtually a full view of corporations’ accounts across a number of different banks. In recognition of this, while individual banks have developed their own eBAM solutions, the evolution of eBAM over the past few years has been characterized by appropriate collaboration across the industry between corporations, banks, technology vendors and standards organizations.

10. Hire Consultants for IT strategy and implementation needs: IT consultants in the Financial Services Industry space that understand corporate banking business would be a great asset for the bank and eBAM because it would require customization with respect to the banks process.

11. Buy/build through vendors