Treasury News Network

Learn & Share the latest News & Analysis in Corporate Treasury

  1. Home
  2. Connectivity
  3. Electronic Banking Connectivity

How SAP‘s Financial Services Network could be be integrated into the corporate treasury department’s

SAP are developing a new cloud-based corporate-to-bank platform, the SAP Financial Services Network (FSN), which aims to make it easier for corporates to manage their relationships with banks. FSN is in testing with banks and is due to be released in the first quarter of next year. The idea is to replace, with a single link, the thousands of bilateral connections that exist between banks and corporates. The SAP network is being built in partnership with Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, Citi, Deutsche Bank, Nordea, RBS and Standard Chartered Bank.

Companies will be able to use the network to access all of their banks through a single connection. Likewise, banks will be able to use a single connection to access their corporate clients – potentially leading to savings in both cost and time. Theoretically the cost disappears in a massive way by having a single point of connection and will help improve the flow of data from corporates's ERPs to banks.

To maximise security the FSN works on a private cloud model. Private cloud solutions, such as Amazon Web Services, are not open to the general public and typically encrypt the data to ensure it remains secure. This is an arrangement that is increasingly becoming accepted, even by the larger financial services providers.

Possible combinations
The FSN could be used on its own for connection to all banks, but it is more likely that it will be used beside and additionally to existing connections like SWIFT; it will not consequently substitute it, suggested Damian Preisner, Treasury Operations and Processes, Global Treasury, SAP in his talk at the BNP Paribas's Cash Management University; and it could offer more services to corporates in a next step:

Source & Copyright©2012 - SAP

If SAP can make FSN connect to most banks world-wide, it will be a major new option in bank connectivity for corporate treasury departments.

Like this item? Get our Weekly Update newsletter. Subscribe today

Add a comment

New comment submissions are moderated.