One of the biggest challenges treasury departments worldwide are facing today is the efficient and secure management of banks and bank account related information and processes. Visibility and control over the bank accounts globally, the ability to effectively store bank account related information and documentation (including signature mandates), as well as centrally managing the processes on the lifecycle of this information is fundamental for CFOs and treasurers to minimise risks and adopt automated processes.
In order to achieve these goals, many corporates decide on a comprehensive solution for the management of their bank accounts. Effective and structured bank account management can be easily realised by implementing a solution, which is one of the main steps treasury departments take to fulfil governance and compliance regulations. In addition, the adoption of a central bank account repository, for collecting both data and bank documentation, ensures that processes are optimised and performance is measured and monitored.
In my previous role as Head of Global Treasury at SAP, I faced a similar challenge and can recommend that the management of signature mandates should be provided by external experts as a service. This allows treasury departments to focus on strategic topics which help to deliver better business results.
The key advantages and acknowledged benefits in adopting a Bank Account Management solution, provided as a service, are gaining complete control and effective management of all bank relationships – including bank master data, legally binding documents as well as signatory mandates.
Through automated approval workflows for requests to changes in bank mandates, secure and audit proof processes, such a solution provides full corporate compliance. In addition, complete integration with existing back office infrastructures improves efficiency and cost reduction, through automating manual processes and monitoring their performance. All departments involved benefit from easy access to real-time information for strategically managing signature mandates.
Furthermore, the recognition that the banks are using electronic exchange of Bank Account Management (eBAM) information, including the electronic opening, closing and maintenance of bank accounts as well as generation of audit reports, is picking up pace in the market, especially within large corporations. The business case is now becoming fundamental as a growing number of companies, across all sectors, aim to resolve governance and compliance issues as well as minimising risk.
We have provided our customers with a best practice service model to globally manage signature mandates within all bank relationships and providing efficient, low-risk business workflows which embeds governance processes as corporate regulatory requirements.
My final recommendation is to approach this challenge by establishing a model which captures all of the bank details into a central ‘source of truth’, which is the fundamental milestone in achieving a global overview of signature mandates.