with SAP’s 2012 acquisition of Ariba, the provider network which links 730,000 buyers and providers, the FSN becomes a really powerful storyline, said Russ Wainwright, worldwide head of financial services for SAP during a presentation at Sibos last month
Now connecting customers and corporations needs time consuming custom integration, said SAPs general manager of FSN, senior vice president and Sanjay Chikarmane during the SIbos discussion. Onboarding new corporate customers is extremely expensive and time consuming and each time you add a brand new service it requires more custom work, he described.
“The corporate side has a similar issue,” he included. “The bigger ones deal with several banks.
With FSN, transaction files are sent by the corporate’s SAP ERP Software to the network, which routes them to the bank, and vice versa and transforms them into any bank format. The protected network is possessed and handled by SAP as an on demand offering.
Corporates do not need to update their ERP systems to join the network. It’s a quick deployment option, taking just a couple weeks to configure, based on SAP that has developed a bundle onboarding service. SAP will use a scalable pricing model, according to how many trades, to ensure corporates of sizes can take advantage of the remedy.
Noritoshi Murakami, chief supervisor, corporate advisory section, eBusiness and IT initiatives at Bank of Tokyo-Mitsubishi said that what was only a theory a year ago at SIbos Osaka is currently operating nicely.
We examined transformation from XML message format to BTM (the bank’s) format and it reveals SAP FSN functions nicely, it’s actual. We’re working with SAP Japan and SAP Singapore and asking SAP users to connect.”
“Our customers are constantly researching integration options that help reduce operating cost and time to execute,” said Andrew Gelb, head of Citi North America treasury and commerce Remedies. “SAP Financial Services Network addresses customers’ needs via one, complete service offering that simplifies integration between corporates and banks.
The FSN is a massive plus for corporate customers, said Hubert JP Jolly, managing director and worldwide head of business and station services at Citi.
“In the past for them link ERP to our platform would require a lot of attempt to start a trade and get info back.”
Other bankers said more abundant info accessible to banks and corporations would be made by the direct connectivity and allow it to be simpler to incorporate services like payments and foreign exchange in supply chain.
Citi made its statement at the AFP yearly convention being held in Vegas this week.