Technology

The Rabo Financial Logistics Portal

Published: Sep 2007

The Rabo Financial Logistics Portal (RFLP) was launched by Rabobank at the end of 2006 as a means of enabling treasury and administrative staff to access a collection of cash, liquidity and risk management products via a single web portal. Since then, a number of updates have increased the portal’s range of functions, and the product continues to develop in response to demand from the market. In this Product Profile, we look at the portal’s current functionalities and talk to Rabobank about the expected future developments.

Financial Logistics – the concept

The concept of Financial Logistics has been developed by Rabobank as a way of looking holistically at the areas of cash, liquidity and risk management, as well as trade. The Financial Logistics offering consists of two main elements: an advisory service, through which Rabobank’s FL consultants work closely with clients to come up with tailored risk mitigation solutions, and the RFLP, which allows corporates to manage cash, trade and risk via a single point of access. The two elements of the Financial Logistics offering are designed to be used in conjunction with each other.

As the portal is entirely web-based, users do not need to install any software from the bank and the updates are carried out automatically without any effort from the end user.

The RFLP

The RFLP is aimed at mid-sized to very large enterprises. A separate platform has been developed for smaller businesses. Since the RFLP’s launch at the end of 2006, more than 100 corporate clients have started using this service. In the longer term, Rabobank is expecting up to 8,000 corporates to join worldwide, resulting in around 35,000 individual end users.

While the most important features of the portal are already fully operational, the RFLP continues to evolve, with updates issued every quarter. As the portal is entirely web-based, users do not need to install any software from the bank and the updates are carried out automatically without any effort from the end user.

Rabo Cash Management

The Cash Management area is currently focused on payments and receipts. However, additional functionalities, such as cash flow forecasting tools, will be available in due course. The following functionalities are now available to customers:

  • Payments.

    Customers can initiate and receive detailed information on domestic and cross-border payments, credit transfers and collections.

  • Reporting tools.

    Customers are able to use reporting tools; MT940s and MT942s (bank balance and statement information) can be integrated into customers’ ERP systems.

  • File upload.

    One function that has been added recently is the portal’s file upload capability. Customers that have a payment hub are able to upload huge payment files – 600,000 or more items if necessary – via a host-to-host connection or an upload applet that are both supplied via the portal.

  • Multi-bank functionality.

    Also recently added to the portal, the multi-bank function allows customers to use the portal to access information about accounts held with other banks elsewhere in the world. This is based on information feeds from these banks and payments can also be made from these accounts, via the portal, using MT101s.

Rabo Trade Access

Brand new and added to the portal’s functionalities just this year is the Rabo Trade Access application which allows clients to manage import and export letters of credit (LCs) and documentary collections. The application allows for authorisation and amendments to LCs as well as tracking and tracing. The application supports multiple signatures and authorisations. Two more releases are scheduled for late 2007 in order to expand the range of functionality.

Future developments

XML

One of the key future developments lined up for the RFLP is a response to the growing demand for XML. SWIFT has already developed XML standards relating to MT940s. Rabobank has used these standards to develop a format enabling clients to upload and download payment files from the portal in XML format. The portal includes a generic payment factory which is able to process both Dutch domestic and SEPA credit transfers. Clients will also be offered conversion tools in order to process different formats.

Mobile access

Rabobank reports a growing interest from corporates in mobile access to the RFLP. Accordingly, they are working on enabling customers to access the portal from mobile phones and PDAs. The first step towards this has already been taken.

In July 2007, Rabobank announced that customers would be able to view account information from the RFLP via their PDAs. Patrick Straten discusses this in more detail opposite.

Liquidity and cash forecasting

Within the RFLP Rabobank is planning to offer an online liquidity and cash flow forecasting tool. This functionality can not only be used for cash management information that is stored in Rabobank’s databases but also enables users to upload business events that can influence their liquidity and cash flow forecasting.

Screenshot 1: RaboTradeAccess Create Collection website page

Profiles

With so much information available on the portal, it is important to ensure that customers are not overwhelmed with data. In order to keep the portal as relevant as possible for all the end users, Rabobank has therefore developed three different user profiles. These are:

  • Treasurer
  • Cash manager
  • Administrator

The data which are available to these different profiles varies. For example, treasurers have access to rates and detailed market information which is not available to administrative users. These profiles can be customised when required to ensure that users only receive information that fits their needs. They can also be used to enforce segregation of duties, for example by preventing deal initiators from also authorising deals.

Security

The RFLP uses PKI technology to ensure security and is accessed using a combination of smart card and PIN. One of the advantages of the system is that a single login is used to access the whole range of tools.

PKI (Public Key Infrastructure)

PKI technology is used to authenticate users across a public network, such as the internet, ensuring the security of relevant applications. This is achieved through the use of pairs of public and private cryptographic keys. Users’ identities are saved in the form of digital certificates, which are created by Certificate Authorities (CAs). The PKI itself is the framework used to manage the certificates and keys.

Case study

Rabobank

Portrait of Patrick Straten

Patrick Straten

Product Specialist

Portrait of Martin Beekelaar

Martin Beekelaar

Sales Consultant

What differentiates the RFLP from other banks’ products?

MB: First of all, the portal is an integrated solution – it is accessed in one window, using one security token. Clients can obtain real-time access to current financial positions, carry out FX deals and manage import and export letters of credit using one portal. Only a few competitors in the world offer a completely integrated portal. More often, you see separate cash management, treasury and trade applications, which need to be accessed individually.

In addition, some of our big corporate customers are able to link the portal directly to their ERP systems without using any bank software, making it simple to switch between Rabobank and other banks. This is another unique selling point for our portal.

Rabobank is introducing a functionality called MT940 extended. Customised MT940s are commonly used, meaning that clients would ordinarily need to make significant adjustments to their ERP systems when going from one bank to another. However, the MT940 extended functionality is a unique tool which reformats other banks’ MT940s, allowing customers to open an account at Rabobank without the need to make changes to their ERP systems.

“Rabobank is introducing a functionality called MT940 extended… which reformats other banks’ MT940s, allowing customers to open an account at Rabobank without the need to make changes to their ERP systems.”

PS: The portal also includes an integrated fulfilment process. Customers can make changes to client data or apply for corporate credit cards online, which is common in the retail market, but unique in the corporate market. In the context of payments, online investigations can also be sent via the same window.

How have customers responded to the RFLP?

MB: Customers have been really enthusiastic about the portal. They like the concept – Anytime, Anywhere – and the fact that there are no restrictions on volumes and no need for physical software. There is just one portal and one PIN code for all treasury needs. They have also responded well to features such as authorisation profiles which can be set up with between one and four signatures.

How are you planning to develop the portal in the next year?

PS: At the end of 2007 and the beginning of 2008, we will be focusing on providing access to the cash management application using PDAs and mobile phones. Initially, this will enable clients to access transaction and balance information. However, at the beginning of next year, the functionality will also enable clients to authorise and release payments.

Demand for this is growing. A few years ago, mobile phones were too slow for this type of access to be feasible, but now we have PDAs and faster internet connections, providing new opportunities to look at balance information anywhere, even in aeroplanes. Obviously we are talking about huge sums of money, so it’s important to ensure that the PDA is just as secure as a desktop. To secure this we have integrated our PKI solution for mobile access.

“A few years ago, mobile phones were too slow for this type of access to be feasible, but now we have PDAs and faster internet connections, providing new opportunities to look at balance information anywhere, even in aeroplanes.”

Meanwhile, we are planning to introduce a few more features in the trade area. We will be developing further integration with our clients’ ERP systems, for document preparation, status download for LCs, etc. We will also continue to upgrade our existing host-to-host solutions. In Europe, there is a lot of integration through payment hubs.

Large corporates are creating payment hubs which enable them to send payment files without the need for bank software. They send huge files and the bank has to process them. We’re one of the few banks that can offer this functionality and we are intending to build on it further by finding a banking partner to offer this functionality in the global market. Of course, we recognise that a host-to-host connection is just one of the solutions enabling corporates to connect to a bank without the bank’s software. For this reason, we also support SWIFT Corporate Access.

Making connections

As part of Rabobank’s Financial Logistics offering, the RFLP is designed to complement the other branch of Financial Logistics, which is the advisory area. While the portal focuses on cash management, treasury and trade services it also links to the risk management services provided by the FL consultants.

For example, the portal includes a Quickscan application, which enables customers to fill out a questionnaire relating to their risk exposures in order to create a customised risk profile. However, for more detailed risk management advice, customers are directed to Rabobank’s team of Financial Logistics consultants.

The consultants take an enterprise risk management approach to their clients’ risk exposures and spend a couple of days talking to customers in order to come up with appropriate risk mitigation solutions.

Screenshot 2: ERM Quickscan

As the role of the treasurer continues to evolve beyond the traditional transactional activities, there is a clear need for technology to enable treasurers to perform a wider range of activities… Rabobank’s portal, by offering treasurers the ability to carry out all of these activities from one web-based location, is in line with this evolution.

Conclusion

As the role of the treasurer continues to evolve beyond the traditional transactional activities, there is a clear need for technology to enable treasurers to perform a wider range of activities. On the whole, treasurers are still using several different applications in order to carry out these different activities. Rabobank’s portal, by offering treasurers the ability to carry out all of these activities from one web-based location, is in line with this evolution.

The trend in recent years has been for treasury activities to be centralised, with more and more corporates now looking at treasury operations as a whole and in relation to each other rather than individually. By allowing treasurers to access these activities in one place, Rabobank’s portal is very much in support of this approach.

Meanwhile, the question of mobile access to treasury applications is an area where we expect to see much innovation in the future. By harnessing this technology into the portal, Rabobank is showing the RFPL will be keeping up with the market and continuing to offer clients an innovative solution.

About Rabobank

The Netherlands-based cooperative Rabobank Group is the largest financial service provider in the Dutch market. With offices in 42 countries worldwide the Rabobank Group gives excellent global access. Rabobank has the highest qualification of credit status (Triple-A) from prominent international rating agencies Standard & Poor’s, Moody’s and Dominion Bond Rating Service.

Specialising in the food and agribusiness, the bank is measured by its core capital and is one of the top twenty world’s largest financial institutions. The Rabobank Group also includes specialised subsidiaries in insurance, leasing, vendor finance, trade finance, asset management, investment funds, private banking & trust and venture capital. In the treasury arena, Rabobank specialises, amongst others, in financial logistics, liquidity funds and tailor-made solutions.

As a co-operative institution, the primary aim of Rabobank is to work with and for customers on mutually beneficial financial solutions.

For more information, please visit www.rabobank.com

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