banking trends from SIBOS

Banking Trends from SIBOS: Technology Solutions to Tame Rampaging Workflows

Editor’s Note: Gerry Gibney, Senior Industry Strategist at OpenText and resident expert on the financial services industry, was recently interviewed on the banking trends and technical needs he discovered at SIBOS (the annual trade show hosted by SWIFT, provider of global secure financial messaging services). 

I always come back from SIBOS having learned new things, it’s one of the largest banking events in the world and this year, one of the big topics was domestic payments.

Many people aren’t aware that for large banks, corporate internet banking payments represent around 24% of their revenue. They benefit from payment money while it is in their hands and they can charge fees for the payment services. It’s a big market because payments have to be made, whether regular payments such as rent and utilities on buildings or one-time money transfers. And they add up. For bigger banks, we’re talking several hundred million dollars each. Of course, they would prefer to keep that balance in their bank or extract it over time.

I see a big role for OpenText here. Our BPM solution can be deployed to help with business networks, so banks can manage the workflow, the processes, and the controls. Managing the controls is important because with the SWIFT processes (payments and messaging), issues include: Who is authorized to send the money? Who else can do it? Who else can approve it? What if that person leaves? How do we add them into the system or remove them?

Automating Banking Workflow

Our own experience at OpenText is typical. Every year, our company  goes through the payment permissions updating process. What do we need to know? What do we need to get? How do we get it? Where do we apply it? How many accounts are responsive?

Doing business in, say, Hong Kong, Shanghai, or Japan, we may have 10 or 20 people with different signatory levels, each needing to sign an eight page statement. Eight pages times 10 people, every year, for every account – that’s 80 pages per account every year, and that’s typical of many companies.

A company might well have several hundred accounts with just one bank, and this has to be managed every year, with ever changing rules, like regulators now requiring the CFO’s home address for example.

Another workflow example is client onboarding, which has to be done every time. Even if the customer has 200 accounts and they want to add number 201, you still have to go through the onboarding process.

So all the information is out there in different places, who knows how well protected it all is? OpenText’s security capabilities, our ability to add workflow, control workflow, minimize, and automate it, adds a lot of value. OpenText is also a SWIFT service bureau. We help with payments reporting, via EDI and our Business Network, to enhance what banks do.

We help banking in many areas, across all our solutions – for example, with analytics, on the content side for unstructured data, or helping with records management, which is strong on compliance. With embeddable analytics we can gather all sorts of information, whether it’s for bank employees internally or their clients and customers.

This information can be transformed into reports, perform sophisticated analysis, and help companies find new ways to get revenue from it. It can also help to track things more efficiently, comply with government regulations more easily, and improve bottom line without increasing operating costs. In summary, it can be a tremendously powerful component of a bank’s overall offering.

The second half of this interview will be published next week.

About Gerry Gibney

Gerry Gibney
Gerry is Senior Industry Strategist for the financial services industry, with over 25 years' experience in banking and investment management. Before OpenText, he worked at Fiserv Investment Services Group and Microsoft. He is a Certified Financial Planner (CFP).