E-invoicing Platform » e-banking

Corporates demand e-invoicing from banks

Fundtech (formerly Accountis Europe Ltd) — Tue, 05 Apr 2011 09:18:22 +0000

At our recent European client conference, our polls demonstrated that an overwhelming majority of corporates are now demanding e-invoicing services from their banks.

When asked: “If you could easily send an e-invoice as a request for payment to any of your customers through your bank network, would you be more likely to use e-invoicing?” 85% of corporates replied: “yes”, confirming that they would be more likely to adopt e-invoicing if their bank supported it. In addition, 33% of our customers thought that the main barrier to e-invoicing uptake was ‘limited infrastructure and reach’ whilst 38% felt that confusion on compliance and standards also played a part. The provision of e-invoicing services by banks can go a long way to break down this barrier.

Banks are notoriously good at providing reliable, scalable, efficient global transactional services so why should they limit these services to payment transactions? 73% of banks asked do not yet provide e-invoicing services to their corporate customers. Corporates are far more likely to entrust core services like e-invoicing to recognised bank brands than unrecognised, small third party suppliers. Providing e-invoicing capitalises on brand recognition and the increased utility of bank services further cements customer loyalty.

The message for banks is abundantly clear: providing corporate customers with e-invoicing services will result in a satisfied and loyal customer base empowered with the multiple benefits of e-invoicing.

This article is from E-invoicing Platform. Read the original post at: Corporates demand e-invoicing from banks.

EBICS – The Standard for Corporate-to-Bank Communication?

coauthor — Mon, 07 Mar 2011 14:21:26 +0000

By Steve Keifer

2010 is an exciting time in the world of B2B integration standards for the European banking sector. In this case, I am not referring to the continued rollout of SEPA in the EuroZone, but rather the extended reach of EBICS. EBICS is a highly secure file transfer protocol being used in the French and German banking communities for exchange of cash management related transactions.

The name EBICS stands for Electronic Banking Internet Communications Standard (EBICS). EBICs is the successor to an earlier standard named BCS that was used in the German banking sector from the mid-1980s until the end of 2007. BCS refers to the Banking Communication Standard which was developed by the German Credit Committee, which is known as Zentraler Kreditausschuss Association (ZKA) in German (longer, but no doubt easier to say than Eyjafjallajokull).

BCS was originally designed to offer a standardized approach for corporate-to-bank communication. In the early days of electronic banking many of the technology vendors were developing their own proprietary protocols in lieu of a widely adopted standard. BCS was based upon the ISO 8571 standard commonly known as FTAM (File Transfer Access and Management). German banks were mandated to offer BCS as a communication adoption starting in the 1990s. The mandate along with the publicly available distribution of the specifications led to widespread adoption of BCS across German industry. Challenges began to emerge shortly after 2000 with the popularity of the Internet as a network for business transactions. As with all transaction types, the industry began to seek alternative IP-based protocols for electronic banking. The ZKA responded by evolving the BCS standard into a more fully-functional, Internet based standard called EBICS.

EBICS is a transport protocol that offers secure transmission of files independent of the payload. As a result, EBICS can be utilized to exchange a variety of banking information such as account statements; securities holdings; debit and credit payment orders. EBICS supports the traditional SWIFT FIN/MT message classes such as the MT 103 and MT 940. Furthermore, EBICS can be easily extended to support the new ISO 20022 XML (SWIFT MX) messages. The EBICS protocol is based upon HTTP, but with network encryption using TLS. Due to the nature of the financial transactions EBICS supports, high levels of security are incorporated. EBICS also offers checkpoint/restart capability which enables the file transmission process to gracefully resume in the event of interruption (rather than having to start over).

EBICS has been offered in Germany since January 2008. Adoption has been much quicker than other B2B messaging standards. The success is due in part to the fact that the traditional alternative, the legacy BCS standard, will no longer be supported at the end of this year. All of the major German banks – Deutsche, Commerzbank, Dresdner (Allianz) and HypoVereinsbank support the protocol along with the smaller, regional institutions.

The big news in 2010, however, is not just the decommissioning of BCS, but rather the adoption of EBICS within the French market. A new version of EBICS (2.4) has been developed to meet the needs of the local French payments and banking sector. Much like in Germany, EBICS will be replacing a legacy communications protocol called ETEBAC (Echange TElematique BAnque Clients) in France. ETEBAC is scheduled for end-of-life in 2011, which is driving a sense of urgency for French corporate and financial institutions to migrate to new connectivity options. EBICS is not the only option for French corporate. Treasurers can choose to connect to their financial institutions via SWIFTNet or alternatively via a web-based portal provided by the bank itself.

ETEBAC, the French communications protocol being replaced, has a rich history much like BCS. The original versions of ETEBAC (v1 and v2) were unidirectional in nature. ETEBAC1 enabled corporate clients to upload a file (e.g. payment instruction) to a bank using a secure transmission over the phone network. Conversely, ETEBAC2 offered the ability to download a file (e.g. account statement) from a bank. The most popular version of ETEBAC was version 3, which supported bidirectional exchange of files via the TRANSPAC network. A fourth and fifth version of the ETEBAC standards were developed but never reached the popularity of ETEBAC3.

The rollout of EBICS in France and Germany offers an interesting case study in the evolution of B2B communications standards. In my next post I will highlight what we can learn from the new EBICS protocol.

By Steve Keifer

This article is from E-invoicing Platform. Read the original post at: EBICS – The Standard for Corporate-to-Bank Communication?.

Case Study: Internet Banking with ISIS Papyrus

ISIS Papyrus — Wed, 15 Dec 2010 08:34:56 +0000

This solution from ISIS Papyrus was implemented in one of the biggest banks with branch offices in Germany, employing more than 4,000 people. The main business focus is investment and internet banking. Its activities also include property financing and services for institutions and businesses as well as securities trading.

The bank implemented a banking portal as a virtual customer service branch office. Outstanding customer service by providing 24/7 access for personalized statements and reports were set as requirements. Depending on the client profile, the same document must also be printable in high quality, automatically be enveloped and mailed. Leveraging existing business data directly from the business application on the mainframe for electronic document presentment and optional printing was a prerequisite.

Read more about the ISIS Papyrus case here

This article is from E-invoicing Platform. Read the original post at: Case Study: Internet Banking with ISIS Papyrus.

Bank of Ireland cuts back on use of paper bills

Editor — Wed, 20 Oct 2010 08:11:49 +0000

All customers who receive monthly statements are being moved to quarterly statements unless they opt out of the change. The move to paperless billing by some firms has been criticised by consumer groups and those protecting the vulnerable in society.

Mobile phone company O2 led the move to e-billing, with Vodafone following suit. Lobby groups said customers should have to agree to move to online billing, rather than automatically be switched over.

Bank of Ireland said that 300,000 customers – or 30 per cent of current account holders – had monthly statements. The majority (70 per cent) were already receiving biannual or quarterly bills. A spokeswoman said that the change in statement frequency was a move toward efficient and environmentally friendly policies, rather than a push to get people online.

Unlike the phone companies, she said there would be no additional charge for remaining the recipient of a monthly statement. However, the Money Advice and Budgeting Service (Mabs), which advises people in financial difficulty, is concerned about the number of utility providers reducing documentation sent to customers.

‘‘This is falling into a trend now,” said Michael Culloty, of Mabs. ‘‘People on a reduced income like to see billing and accounts as frequently as possible. Anything which moves that to bi-monthly or a less frequent scenario just makes managing money on a low income more difficult. It’s a savings mechanism for the banks but, for many consumers on a low incomes, it may not be suitable.

‘‘For people who are computer savvy and on the internet every day, it’s second nature, but vulnerable consumers and the elderly will find these changes the most difficult. Rather than the bottom line becoming the most important thing, I think banks and other service providers need to put the consumer first.”

So far, 50,000 notices have gone to Bank of Ireland customers saying that, from November 1,the frequency of personal account statements will be reduced to every quarter. A form must be submitted if customers want to receive the monthly documents. A spokeswoman said a prepaid envelope would be provided with future notes going out to other customers.

Souce: The Post (Ireland)

This article is from E-invoicing Platform. Read the original post at: Bank of Ireland cuts back on use of paper bills.

Norwegian finance portal launches new bank switching function

Editor — Wed, 25 Feb 2009 15:15:22 +0000

A new solution was launched by the Norwegian Minister of Finance Kristin Halvorsen, the Minister of Children and Equality Anniken Huitfeldt and the Director of the Norwegian Consumer Council Randi Flesland through the financial portal finansportalen.no, aiming at facilitating the process of switching banks or even starting negotiations within a bank in order to achieve better terms.

Based on the initiative of the Government and industry, new procedures were launched, in 2008, for information exchange between banks and also their customers. “finansportalen.no” is Norway’s most complete marketplace for banking services; it provides pertinent financial and banking information enabling the customers to compare various financial products and services in an efficient manner.

After merely a year of operation, this portal has largely been accepted by customers and the majority of banks. The new switch bank solution constitutes a modern tool that facilitates potential bank switching, enables customers to initiate negotiations with banks while providing the possibility to compare other bank offers online and favours competition among banks selling similar financial products and services. Possible switching is directly implemented by the bank while this new tool facilitates the initiation of the entire process. This modern solution provides its consumers with substantial negotiating power protecting them from extra charges on the services offered, and in addition, stimulates the competition between banks inducing them to offer deals with better terms on their services and products.

www.epractice.eu

This article is from E-invoicing Platform. Read the original post at: Norwegian finance portal launches new bank switching function.

ING connects to the Digitale Nota via Billington

ING Invoice Services — Fri, 23 Jan 2009 09:56:56 +0000

As of this week, senders of Digitale Nota who are serviced by Billington, can also reach their customers who are using the Postbank internet banking environment (mijnPostbank.nl). By connecting ING with the 3 main Biller Service Providers, the Digitale Nota is now fully operational and there is no reason anymore not to realize a full scale roll-out of the Digitale Nota. The number of senders is now expected to grow rapidly.

“Because of this milestone, we expect that organizations will make the step towards implementing the Digitale Nota and offer it to their customers very soon. The market will grow exponentially and competition will be fierce. But Billington, being a 100% subsidiary of ING, is ready for this”, says Job van Luyken, Managing Director of Billington.

For more information: www.billington.nl

This article is from E-invoicing Platform. Read the original post at: ING connects to the Digitale Nota via Billington.

ACBI changes business name into CBI Consortium

Editor — Wed, 21 Jan 2009 10:04:42 +0000

The creation of the CBI Consortium – Customer to Business Interaction, which replaces the Interbank Corporate Banking Association created by ABI in 2001, was approved on 20th of May 2008 during the ACBI annual meeting. The new CBI Consortium, established in Rome, was created to ensure an even more efficient management of Interbank Corporate Banking; this service allows companies to connect easily, swiftly, and safely with the banks where they hold current accounts, through a single electronic connection. The goal of the Consortium is to plan and develop standards, guaranteeing that they are certified, and to define a reference regulatory framework; this would allow banks to carry out an online connection and dialogue with the clientele, with a view to interoperability both at national and international level.

Read the document about this transformation below:

Source: www.cbi-org.eu

This article is from E-invoicing Platform. Read the original post at: ACBI changes business name into CBI Consortium.

Weblog: 2009 – the e-invoicing year

Tieto — Fri, 09 Jan 2009 13:18:41 +0000

This article is published in the weblog of Bo Harald (Head of Executive Advisors at Tieto).

This announcement will hopefully be issued in many countries – the many reasons for doing it are so very obvious – for anyone wanting to look at the good-for-society-at-large aspects.

But even when the simple and cheap tools are there we will need resolute action to get to the tipping point. Change resistance is massive in this particular area and nobody should expect a breakthrough in less than two years. But if we start now we will have made good progress 2010 and by 2012 invoices will stay digital throughout the processes in many – if not most EU countries. This is a competition where everybody will win..

Resolute actions start by the service providers linking up to each others and providing so simple and cheap tools that no SME using internet can refuse to use. We have the right to expect that banks take their part of the responsibility – collectively to get the network effect.

Resolute action continues by invoice receivers using their natural right – e-invoice as a precondition for a trading relation. We have done so for our part and it has been even astonishing to hear from SME subsuppliers how easy it has been for them to migrate. Only a little pushing needed…

It so reminds me of e-banking in the 80s and early 90s – change resistance all over the place – now 1% of customers use branches for bill payment. But e-banking is not really ready before the whole practise of making a bill payment can be automated – approval with one click – also producing standing order (defacto direct debit). Massive savings – consumers always winning as this produces space for more price competition and service investments. I am sure we can see also consumer organizations to strongly support the efforts (they do know that customers pay every cent of costs).

So 2009 – the e-invoicing year – let us make it happen – on all fronts.

by Bo Harald

This article is from E-invoicing Platform. Read the original post at: Weblog: 2009 – the e-invoicing year.

Energy firm Ecotricity introduces bill payments with OneVu

Editor — Thu, 16 Oct 2008 10:09:00 +0000

Renewable energy supplier Ecotricity has signed up with OneVu to offer its customers a greener billing alternative which will help to reduce the number of paper invoices and statements being produced and sent across the postal system.

Under the agreement, Ecotricity’s domestic customers can now use OneVu’s unique service to view and pay their bills through the secure environment of their online bank, whilst contributing to an initiative that reduces carbon dioxide emissions and lessens the pressure on natural resources.

Ecotricity’s main focus is building new green energy sources, and in 2007 alone, the company invested £25 million in wind energy. This figure, equating to over £550 per customer, is more than 100 times the national average when compared to other UK electricity suppliers. To achieve and increase such levels of investment, the company is committed to streamlining business process and reducing overheads by identifying and using cost-effective and responsible solutions such as the OneVu service.

The OneVu service is free for consumers to use and offers a convenient and secure access to a large and growing number of biller websites, saving the consumer time and providing a greater control of personal finances. For billers there are significant savings to be gained through the reduction in processing and postage of paper bills, a decrease in call centre costs and reduced debtor days.

Ecotricity founder Dale Vince commented: “OneVu provides an ideal service for us – a big step on the way to a fully online retail offering. Our customers are already fighting climate change with their electricity bills … taking their actual bills online will reduce the environmental impact of our supply operations and help us on our way to becoming a Carbon Zero business”.

Miles Quitmann, CEO of OneVu, said: “Ecotricity joins over 30 other major billing organisations who have already signed up to our service, particularly in the utilities sector where more than 75 per cent of companies in the UK now use the system.”

Source: Sibos Online

This article is from E-invoicing Platform. Read the original post at: Energy firm Ecotricity introduces bill payments with OneVu.