Cash flow management is one of the critical components of running a business. Cash flow management focuses on the direct incoming and outgoing ‘bank’ channels, and this process is influenced by the terms of payment for clients/suppliers and your staff that determine when bills and salaries are paid.
The electronic banking within Cash flow management assists Exact customers to achieve the required efficiency level in generating domestic and international payment orders and cash collections. This functionality supports appropriate and easy allocation as well as reconciliation of cash flow transactions based on the intraday electronic bank statements.
Exact Globe supports numerous electronic banking formats, including formats for domestic and international payments, domestic collection orders and bank statements for multiple banks in many countries. Basically, Exact Globe has one application per country that includes a built-in logic for every locally supported bank. With the current solution each named bank should be associated with its own electronic formats. This solution does not take into consideration “shared“ electronic banking formats from different banks (even in the same country). The number of the supported banks relative to the number of supported electronic formats is increasing with every product update of Exact Globe.
In order to deal more efficiently with this increasing amount of individual electronic banking formats, the European Commission and the European Central Bank have come up with the initiative of Single Euro Payment Area (SEPA) to create a single integrated payments environment for the Euro Region. SEPA is a single integrated payments environment for all countries within the European Union as well as Iceland, Liechtenstein, Norway and Switzerland, which covers the entire euro area from a single euro payment account. There will no longer be a difference between the banks regarding ease of use, speed, safety and costs, as well as whether a euro payment is domestic or international.
Until recently, the IBAN and BIC were used only for cross-border payments in euro. Under SEPA, they will be used for processing European credit transfers and European direct debits, whether domestic or international.
In 2008 the first phase of SEPA has been introduced. This phase includes the electronic bank payment files as a part of the SCT (SEPA Credit Transfer) implementation. Banks in the countries participants actively promote the new payment method.
Exact Globe electronic banking functionality supports this standard in all EU countries, as well as in Iceland, Liechtenstein, Norway and Switzerland.
The upcoming SEPA phases are:
• CAMT:- CAsh ManagemenT – The generic bank statements created by bank.
• SDD: SEPA Direct Debits – Companies may use this direct debit to collect payments from customers in nearly all of Europe having a single bank account only. The SEPA direct debit is identical to the current domestic direct debit where a customer issues a mandate to a business party for having their account debited.
• SCF: SEPA Cards Framework – Any SEPA compliant card (both debit and credit) can be used anywhere in the Eurozone (subject to brand acceptance by the merchant);
In the coming years these SEPA phases will significantly affect the handling of electronic banking formats by the European banks.
Please follow our further publications regarding Cash flow management developments and SEPA implementations on the Exact Product Blog