Connecting to banks and the group’s business units is one of the most complex problems in the global corporate treasury department today. Keeping up with the constantly changing data connectivity and payment standards, the new links between banks and corporates, and between corporate treasury departments and their business units can be a nightmare. Nevertheless, it is vital to the overall efficiency of the corporate treasury department.

VolPay Channel, launched today by Volante Technologies, is a Host to Host (H2H) pre-processing engine that manages data imports and exports between banks, corporates and treasury departments, see figure below, which can be used by banks and corporates to ease the complexity and time taken for Host to Host on-boarding.

VolPay Channel architecture

Source & Copyright©2015 - Volante Technologies

Designed to remove much of the complexity, time and cost associated with the user on-boarding process, VolPay Channel integrates, validates and pre-processes payment transactions to ensure minimal hassle and time to connect. Whilst Banks face the challenge of on-boarding corporates quickly and efficiently, a similar challenge can exist within the corporate environment. 

No need to wait for single ERP platform

Global corporates often grow through acquisitions and as a result inherit multiple subsidiary ERP systems and banking relationships. In large corporate groups, there can be many versions of ERP platforms, each with payment preferences and formats tailored and geared to its regional and banking preferences which are different from the rest of the group’s ERPs. 

Ideally, a single platform would be the most efficient solution. But rather than waiting to replace all ERPs with a single platform, Volante see the problem as a data integration issue for central treasury rather than a data migration issue requiring replacement of ERP systems. 

VolPay Channel takes all the diverse data formats into a central canonical format for the central treasury to process and then apply business rules to distribute the payments to banks with which they have a business relationship, see figure.

VolPay Channel on-boarding of any ERP format

Source & Copyright©2015 - Volante Technologies

This enables the central corporate treasury to on-board the subsidiaries’ formats by configuration, which means that the data integration issue is resolved without initiating and undergoing a full scale IT project. The business rules within VolPay Channel provide the central corporate treasury with the flexibility to route the payments to its respective destination banks based on the attributes of a specific payment, for example, attributes of: originator, currency, value and so on. 

VolPay impact - faster and cheaper connectivity

Essentially, VolPay Channel provides straight-through-processing of payments and electronic banking messages by:

1. enabling the central corporate treasury to on-board subsidiary formats through configuration
2. defining business rules for routing
3. allowing central corporate treasury to consolidate its banking relationships by adhering to the banks’ formats.

Nadish Lad, Director, Head of Payment Product, Volante Technologies commented that, “In addition to improved corporate to bank on-boarding, VolPay Channel offers corporate enterprises a much faster and less costly solution for the consolidation of data between corporate subsidiaries and central treasury.”

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CTMfile take: Corporate treasury department connectivity is vital. It is now no longer necessary to wait for all business units to adopt a single ERP platform before having fully integrated group wide corporate treasury department processes and systems.