Treasury Transformation For A Large Regional Bank

Overview

A leading super regional bank that is aggressively growing their corporate banking business shifted their strategic focus towards the onboarding efficiency of corporate customer payment files. This would allow them to leverage their payment hub investment and streamline all treasury payments. The bank piloted Tech Mahindra’s Transform Hub solution as it had the simplest integration hooks to the payments hub and an out-of-the-box integration to many corporate ERP systems and their file formats. A two-week pilot resulted in 40% improvement in files onboarding time and operational accuracy. A bonus was establishing a real-time configurable dashboards for operations control.

Client Background

The client is one of the largest banks in the US with nearly 70,000 employees and with a reported revenue of over $20 billion
The client had acquired multinational banks and other subsidiaries. This increased the spectrum of complexity of multiple ERP for each acquisition. The bank wanted to achieve efficiencies even while these heterogenous systems existed.

Business Challenges

• Corporate client onboarding: A process that used to take anywhere between few weeks to months hence clients were reluctant to sign up.
• Unable to provide a seamless and frictionless payment solution: Corporates were hesitant to deploy tech resources to manage multiple file formats of different banks.
• Absence of user interface to track and manage payment information: Corporates were stuck with a black box approach by banks in terms of managing the payment process post submission
• Multiple back end corporate ERP systems: Large corporate clients have grown with multiple back-end ERP system with disparate versions and lack of standardized files leading to incompatible payment files.

Our Approach and Solution

Transform Hub is our plug and play corporate payment file transformation solution that is leveraged by banks for their corporate clients. The corporate payment files regardless of their format (NACHA, Csv, ISO20022, Fixed Length, Custom, Txt, Xls, Xml, any ERP file format) undergoes a proprietary transformation process that validates-enriches-routes the information into the bank’s preferred payment system file format.

With Transform Hub, our client could

• Establish an intuitive user interface and dashboard for operations metrics
• Establish an interface with multiple file formats from various ERP systems, and create new / edit existing mappers
• Manage corporate client specific file transformations
• Achieve straight through processing.
• Tracking and managing queue status in real time

Business and Community Impact

• Average corporate client onboarding time reduced to under a week for setting up payments time taken to complete an E2E application reduced to 30 minutes from 30 days earlier
• A unified solution that reduced complexity and enhanced productivity for client engagement teams—95% customers that would use the mortgage application and recommend to a friend/family member
• A single instance solution with in-built redundancies and scalability to manage high volumes