A number of sub-optimal interfaces between the internal ERP systems at Virgin Atlantic, external electronic banking systems and IT vendor applications were replaced by a single payment gateway which could send payment files to the banks and receive account balance and transactional information centrally. Key objectives were to:
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Standardise and ‘future-proof’ the payment processing platform.
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Automate payment files from the ERP systems through to the bank accounts.
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Optimise cash management and liquidity planning.
The solution was based around the Bellin Treasury Management System. To reduce costs, an ASP-hosted solution was selected with no limit on the number of users who could use the system, which was part of the standard licensing agreement.
Edward Collis, Group Treasurer, Virgin Atlantic, explains, “A phased implementation was agreed up front to encompass multiple banks, payment products and business units across several locations. This required existing payment systems to be maintained during the transition.”
The technical development was in three stages:
Stage 1.
Host-to-host connections between Bellin and the electronic banking systems to provide the single payment gateway.
Stage 2.
Deals and cash flows were interfaced from the existing TMS into Bellin to provide cash management reporting.
Stage 3.
SWIFTNet connectivity using FileAct and Swift Net Fin messages.
“Virgin Atlantic is thrilled to have received this prestigious Award in recognition of the hard work that has been carried out on this important project by the treasury team over the past couple of years.”
The XML ISO20022 file format and MT messaging was used as the de facto standard between Bellin and the banks. The electronic banking solutions were in many cases new developments and untested. A key challenge therefore was to understand the bank requirements and ensure that payment status messages could be automated.
As Collis says, “The benefits of this solution were to have timely and accurate cash flow information with higher visibility of liquidity, bank fees and the payments process.”
The single payments gateway solution was supplied by Bellin, who built the technical interfaces with the banks and SWIFT. They also provided the technical development resource as part of the implementation cost. Further expertise was provided by David Soan of Banking Alliance (Bellin’s UK partner) in collaboration with an internal team of specialists collectively managed by Vic Davis to deliver the internal interfaces, file transportation, SWIFT setup and the BELLIN tm5 system configuration.
“The solution was made possible by the expertise and professionalism shown by all parties involved. Any issues, risks or questions around requirements were quickly dealt with and workarounds put in place so that the overall solution could be implemented,” says Collis. The solution involved banks and vendors within the UK, USA, Canada and Germany. Collis concludes, “The fact that the solution was deployed across several countries, banks and vendors demonstrates innovation which can empower corporates to use payment platforms of their choice rather than have them imposed by the banks.”
In addition the use of XML IS020022 file format and plug and play technology has helped to ‘future-proof’ the solution.
Virgin Atlantic’s understanding is that the solution included the following ‘firsts’:
