Volante Technologies has highlighted the importance of a streamlined and harmonised payments processing system in a whitepaper.
The whitepaper, entitled Best Practices in Implementing Payments Factories, explores the benefits of implementing an enterprise-wide payments system, as well as the possible consequences of not doing so.
Vijay Oddiraju, CEO of Volante Technologies, said: “Every CEO and CFO is today challenged by how best to integrate legacy and existing systems efficiently and quickly in order to take advantage of new technologies and payments processing approaches.”
Volante has been working with corporate treasury departments, correspondent banks and other financial institutions, and pointed out the importance of making payments easier while reducing risk and improving accuracy.
The whitepaper specified the need for custom solutions for different institutions, tailored to particular sizes, regions, departments and preferences.
“Our recommended adoption of a payments factory is founded upon a best practice data integration methodology that enables federation of a firms’ financial supply chain,” said Ganesh Srinivasan, director of financial services solutions at Volante.
“Lowering the cost of banking in multiple markets and managing liquidity are challenges facing every financial organisation; adopting an electronic payments factory process enables any institution to react quickly, reduce implementation costs and delivers the flexibility to respond to change.”
Focusing on adaptability was a key point of the whitepaper. It stressed that institutions should implement a strong data integration strategy and apply a common data model to all lines of business, meaning less changes and re-testing as standards and regulations change.
It recommended the use of sharing technologies such as services-orientated architecture, which allows common functions like data validation and compliance checks to be implemented only once.
Dan Connell, managing director of Greenwich Associates, generally expressed support for payments factories. He said: “The critical challenge faced today is how to build a payment factory model that meets the unique requirements of any individual organisation.”
“Applying a best practice approach to payments factory implementation enables any financial institution to proactively demonstrate that they are responding to ever-increasing compliance requirements and illustrate that they are driving operational efficiencies, controlling risk and delivering greater visibility across their entire organisation.”
Oddiraju added: “Helping our customers extract insight and value and ultimately gain a competitive edge is at the core of our corporate strategy.”
