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Best in Class In-Country Treasury Solution Highly Commended: Fortum India

Published: Feb 2023

 

Photo of Rajani Modi, Fortum India.

Rajani Modi

Head of Project Finance & Treasury

Fortum Oyj is a leading clean-energy company developing and offering solutions in electricity, heating, cooling, as well as solutions to improve resource efficiency. The company’s activities cover the generation, distribution, and sale of electricity and combined heat and power, as well as the operation of power plants and energy-related services. It is the third largest CO2 free operator (14.6 GW) and power generator in Europe.

in partnership with

Prepaid card solution for electric vehicle charging stations in India

The challenge

In India, Fortum Group has been awarded various projects by SECI/NTPC/GUVNL for generation of solar power on build own operate (BOO) basis. The group is also setting up electric vehicles (EV) charging stations across India. The company needed an attractive prepaid model instead of the existing post-paid model to minimise credit risk and extend end-client adoption of digital collection for charging of electric vehicles at Fortum’s unmanned EV charging stations.

The company also required a standardised payment solution across multiple legal entities of Fortum Group for vendor-related payments (both domestic and international) and statutory tax payments. The company also required a customised solution for payroll related payment file generation which Fortum’s existing ERP was not able to facilitate.

The solution

Fortum opted for a single platform for all payments.

For Fortum’s unmanned EV charging stations
  • Co-create an online payments solution embedded in Fortum’s mobile app for end-customers of Fortum Charge & Drive India to charge electric vehicles.
  • Pre-authorisation process on cards to ensure that the exact amount is charged, and credit risk is eliminated. A semi-closed card which can be held both in virtual and physical form and acceptable at outlets outside Fortum and has wider customer acceptability.
  • The combination of Fortum RFID and a virtual card providing enhanced customer satisfaction as using just the RFID, the end-customer can make payments at Fortum charging stations.
  • A co-branded card (with Fortum branding) for end-customers who wish to have both a physical prepaid card as well as a prepaid wallet. This resulted in customer visibility and marketing benefits for Fortum Charge & Drive India.

Best practice and innovation

The co-branded prepaid card solution unified with Fortum RFID and Fortum Mobile App via API integration is a first in industry solution for EV charging stations in India.

BNP Paribas was instrumental in the successful implementation of the critical solutions required. This involved close collaboration with numerous teams within the bank and a recommendation of the most suitable fintech partner, Pinelabs, to Fortum with support ranging from advisory, project management, reporting and execution to client servicing. Throughout the entire process, the bank took on the critical role and accountability to ensure that the execution delivered efficiency, ensuring minimal interruptions to Fortum’s daily business operations and was easy to implement at the company’s end. The outcome has been revolutionary for the company as it has fundamentally reshaped the treasury function.

Key benefits

  • Costs savings.
  • Process efficiencies.
  • Increased automation.
  • Risk mitigated.
  • Improved visibility.
  • Errors reduced.
  • Manual intervention reduced.
  • Increased system connectivity.
  • Future proof solution.
  • Exceptional implementation (budget/time).

“The solution has delivered increased automation and integration to better manage the overall process with a single window framework for payables management across Fortum Group companies in India. We now also benefit from flexibility of customisation and ease of integration. We have an omni-channel for collections, have created better brand recognition and improved control, visibility and reconciliation. Finally, the solution provides robust MIS to control and track account receivables and payables with a seamless integration of reverse information to our ERP without any manual intervention for accurate and secured data capture,” says Rajani Modi, Head of Project Finance & Treasury.

The Adam Smith Awards Asia is the industry benchmark for best practice and innovation in corporate treasury. The 2022 awards attracted a record-breaking 416 nominations. To find out more please visit treasurytoday.com/adam-smith-awards-asia

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