The Company was working with multiple banks and bank accounts resulting in inefficiencies and sub-optimal fund utilisation. The Company decided to re-engineer the banking operations with a view to enhancing efficiency, cost saving and digitise the banking operations. In the very high profitable company, an MNC, operating in India for several years, AAA rated, huge brand value, fast growing company, substantial cash surplus, in a very matured systems, processes and controls, it was daunting task of saving further cost and improve efficiency.

The project titled “Business process improvement through innovative banking solutions” was launched to derive more values from banking services availed by the company, streamline processes, digitize operations, improve efficiencies and controls.

Highlights of the project are:

• Comprehensive banking solutions for payments, cheque presentment and debtor management.
• Tendering of banking services - RFQ and RFP processes done first time by any Corporates in India.Automated, web based and secured payment processing cutting down all manual work.
• Web based bill presentment, collection and online dispute resolution
• Post invoicing activities – matching, open items, reporting, etc. outsourced to Bank.

Working within the constraints of an manual and inefficient banking system, the Company and Bank joined hands to pioneer a path breaking, web-based solution for payments, cheque presentment, Debtor management and collection. The Company was the first Company in India to pioneer such an efficient and innovative solution. The solution in the area of Debtor Management and collection, though was built around Bank's existing web-based technology but IT and Treasury experts worked together to bring about a unique customised solution exclusive for the Company. The solution aimed at better monitoring of dealer limit and credit period, reducing risk of default and improved 'Days Sales Outstanding'.

An interface between the Company's IT platform and the Bank's electronic banking applications had been set up for secure and seamless transmission of payment instructions to the bank with scalability for electronic payments. The bank's Internet based electronic bill presentment and payment product was used as the communication channel to re-engineer the bill presentment process and improve customer service levels for dispute resolutions and greater visibility for financial monitoring.

INNOVATIVE:

Working within the constraints of manual and inefficient banking system, the Company and Bank had joined hands to pioneer a path breaking solution in Debtor management and collection. The earlier system resulted into inconsistent adherence to the credit policy resulting into delayed funds realisation and higher cost, while the risk continued. With the whole process automated and controls in-built, the company was able to achieve the twin objective of standardisation and outsourcing, while eliminating the risk.

PROGRESSIVE:

For years, the Company and its customers had been working within the constraints of an antiquated banking system. With the introduction of this new system, Company's customers got on-line access to the status of their outstanding payables, bills/CN/DN raised by the company, via a secured website. The site also offered facility of dispute resolution. This had resulted in enhanced customer services.

PERFORMANCE:

• Reduction in Finance Cost around 35%
• Improved customer service levels
• Enhancement in back office efficiencies. Better utilization of ERP system.
• Built better controls and processes to make company more secured.
• Greater visibility and monitoring of customers’ financials.
• O2C cycle crashed by 4 days (From 29 days to 25 days)
• Reduction of 13.4% of working capital
• Reduction in number of banks operated by the Company.
• Elimination of additional free credit to distributor.

GREEN :

All banking transactions got automated and were made available in electronic form and made paper less. The re-engineering done on the receivables and payment have been path-breaking an innovative with some of the solutions implemented first ever by any bank in India. Based on favourable result, similar solutions was being implemented by other group companies world-wide and bank started offering this solution to their other customer.

This project Innovative Banking Solutions won Global FC&A award and Global Helios award.