Deutsche Bank AG is prepping a new tool for its corporate customers that aims to streamline international business-to-business payments for companies using SAP’s enterprise business software.
The move is part of a slow, but steady march by many organizations and countries toward adopting common messaging frameworks for international payments, such as the ISO 20022 standard.
Hanse Orga, a technology company with offices in Hamburg, Germany, Asia and the U.S., worked closely with Deutsche Bank to co-develop the HO Global Format Integrator. The goal was to make it easier for corporations to set up cross-border, B2B payments within their existing SAP systems. The tool will be available to the bank’s customers at the end of June, according to Hanse Orga.
The new tool provides corporate customers with pre-tested templates for payments using ISO 20022 XML, reducing the effort for integrating the transaction services into core systems, the companies said.
The templates include specific format packages for sending different payment types to different countries, and each includes maintenance, phone support and specific remittance documentation. Users may add additional country formats at any time, according to Hanse Orga.
“With our new ‘plug & play’ solution, corporate clients can significantly reduce their efforts concerning the implementation in SAP, as proprietary configuration is no longer needed,” said Stephan Benkendorf, an executive board member at Hanse Orga.
The collaboration supports the worldwide movement toward simpler, more efficient methods for conducting cross-border payments, said Leif Simon, Deutsche Bank’s European regional head of component products, product development and global transaction banking.
The Society for Worldwide Interbank Financial Telecommunications (Swift), advocates ISO 20022 as the most promising path for streamlined, secure international payments, and the standard is a hot topic with NACHA and the U.S. Federal Reserve.
European banks currently are taking a leading role in creating corporate payments solutions with global reach, and many are leveraging the ISO 20022 standard, said Nancy Atkinson, a wholesale banking expert and senior analyst with Aite Group.
The focus of ISO 20022 is on developing a common messaging system for cross-border financial transactions and related communications between financial institutions, their clients and the various domestic and international infrastructures that process payments, Atkinson said.
“ISO 20022’s focus makes it particularly suited to large, international banks, and a number of those banks are European,” Atkinson explained, adding she believes the collaboration between Hansa Orga and Deutsche Bank collaboration underscores growing momentum around ISO 20022 solutions developing to solve corporations’ various payment challenges.