CTMfile’s 24th May’s post on ‘Bank connectivity - which is most cost-effective: Host-2-Host or SWIFT?’ generated considerable interest and several comments.
Philip Wielanga, Director, Wieltec treasury services wrote that he believes that “SWIFT is expensive but allows you to reach all banks around the world. (Set up costs and cost per payment/statements)”. His assessment of the alternatives is:
EBICS is a free channel (fast growing). It already is the standard in Germany, France and very popular in Swiss. (100% free of charge). Also in NL more banks are offering EBICS to their corporate customers, e.g. ING already, ABN in the summer
MCFT: (MultiCash File Transfer). similar to EBICS, offered by banks who use a MultiCash bank server (over 100 banks around the world)
H2H is also expensive (costs differ per bank)
He then asked., “What if eight out of ten of your banks offer EBICS or MCFT?” The effective solution is, he believes, “Connect these eight via EBICS/MCFT and the remaining two via a H2H.”
Covering all channels
There are connectivity service suppliers who cover all channels. One is Omikron, the supplier of the Multicash Transfer service, who cover all these channels as well as providing a SWIFT connection, as the figure below shows:
Source & Copyright©2016 - Omikron
CTMfile take: There are alternatives to a single SWIFT connection. The key has to be able to use the effective combination of channels that are appropriate for your electronic banking volumes and the banks used.
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