BNP Paribas for Zanders EBAM Seminar, November 13th, 2012

EBAM

Overcoming key challenges

Marie-Laurence FAURE Head of Marketing Channel Products

| 2012 | EBAM : Overcoming key challenges 2

Agenda

• Needs expressed by large corporates

• Main advantages of EBAM for both banks and corporates

• Feedback on EBAM Project

• Last main challenges to overcome for a successful adoption


Corporates’ needs : the voice of our client’s panel

Homogenization and simplification of banking documents within the different countries

Easiest access to the banking forms and information on the procedures to follow to open and manage accounts

Which process to manage accounts ?

Improve documentation

Electronic and secure bank account management requests

Real-time update of the change requests (eg. deletion of a signatory)

Solution fully integrated into Cash Management Solution : automatic and STP updating of signatories and proxies directly from their software

Compliance with SWIFT standards

How to manage accounts efficiently ?

EBAM and self administration

On demand detailed report on the characteristics of an account, including mandates (audit purpose for instance)

Access to a consolidated view of all accounts, signatories and proxies within all the legal entities, at a given moment for a better control

High level of traceability on all exchanges and alerts (eg. Id card’ expiration)

What else ?

Value-added services

| 10/02/2012 | EBAM : Overcoming key challenges 4

Corporates’ needs : mandate management is the top priority!

Key points impacting account management :

Number of accounts

Number of legal entities

Number of banks

Most frequent changes :

Mandate maintenance

Open new accounts

Reporting on account structure :

Mandatory for nearly all corporates

Most often once a year

Treasurers are usually in charge of mandate management.

EBAM Key services

25%28%

41%44%

22%

44%

59%

34%

0%

20%

40%

60%

80%

100%

Open

new

acc

ounts

Clo

se a

ccounts

Manage

mandate

info

rmati

on

Rep

ort

on

acc

ount/

mandate

stru

cture

s

Top priority High priority

Cash Management University - Dec2012

52 answers, corporate average profile : 1 to 5 billions € turnover, 100 to 500 legal

entities, activity mostly in Europe


Agenda





6 6

1. The corporate prepares an EBAM request for instance to

update the list of authorized signatories on bank accounts from its

software (similar principle to payment remittance), attaching

compulsory supporting documents (ex : signatory ID paper).

2. The duly EBAM authorized signatory visualise the message

content, electronically signs the EBAM file (XML message and

attachments) with its certificate (ex : 3SKey), which is transmitted

to BNP Paribas via SWIFTNet File Act. The dematerialization

process is complete.

5. The status of the power change request is updated in the

EBAM software.

8. The status of the power change request is updated. An alert

may be addressed to the banking power manager (ex :

confirmation of power update).

3. BNP Paribas receives and controls the EBAM file

with the updated list of signatories and powers for an

account, the attached supporting documents and the

signatories delegations.

4. An acknowledgement of receipt is immediately

generated by BNP Paribas.

6. The request is executed by BNP Paribas (update of

powers and signatories referential).

7. An EBAM account report is sent to the corporate with

the list of signatories and powers taken into account.

eBAM XML ISO20022 message exchanges

with attachments via SWIFTNet File Act Corporate

Software for bank account management Global Connectivity Hub

EBAM : a similar exchange logic to payments

Bank

| 2012 | EBAM : Overcoming key challenges

7

EBAM advantages

Facilitation of the procedures linked to account management with standard XML messages

Improvement of internal control / audit

Harmonization of internal process

Archival of all exchanges

Standard communication process with all banks

Value added to existing SWIFTNet secured communication channel

Improvement of service quality and client satisfaction

Optimization of back-office process

Encouraging centralization

A common objective

Common benefits

Benefits for corporate

clients

Improvement of STP, security and rapidity of account management exchanges

Improved request visibility and tracking

Paper reduction and data capture improvement

Cost savings…

Benefits for banks



Agenda






Feedback on EBAM project

BNP Paribas actively takes part in EBAM development :

Participation in working groups driven by SWIFT

Testing of account opening EBAM XML messages with two pilots

Testing of the digital signature with 3SKey certificate.

EBAM offer currently under development

A panel of clients to design and test the solution.

The mandate management messages are the top priority EBAM messages expected by our customers.

What EBAM achieved so far…

A big step towards dematerialization.

Better traceability on the exchanges between banks and corporates.



and features to be improved…

A complex legal and technical set up

Management of attachements and digital signature requirements

ISO20022 XML messages to be completed with new data / messages.

EBAM is a new standard : needs time to be mature (2/3 releases)

There’s still a lot of work to do together!

Achieve standards Favor usage

Needs Standards

Work together

11


An investment from all actors is now necessary to facilitate the standard implementation and usage.

Innovation

Design

Improvement

Usage

SWIFT initiative

Strong implication from a few banks

Pilot with two major corporate clients

V1 V2

General

Roll-out

V3

Real usage by pioneer users

Standard improvement to take into account pilots’requirements, design of our target eBAM offer (corporate panel)

Wider acceptance

Development of eBAM offers

Standard maturity

Nov. 2012



Agenda






Last main challenges to overcome for a successful adoption

Legal and compliance considerations, different from one country to another

Develop EBAM standards : XML messages, security, transport…

Adapt their IT systems

Change management in back-office organization

Offer various channels for EBAM to fit all types of corporations

To take into account new needs in the next EBAM standards releases

To facilitate EBAM operational implementation

Integrate EBAM standards in their solution : softwares for authorization and sign management, bank communication, SSB, treasury management system…

Offer a solution fully integrated in Cash Management suites (shared database : accounts, signatories, powers…)

Banks

SWIFT

Corporations

Adapt their internal organization if necessary

Manage EBAM standards (internal development or dedicated software, SWIFTNet adaptations…)

Adopt the digital signature at a personal level to sign EBAM instructions

Launch EBAM pilots/projects with their banks

Software vendors


Our ambition : make account management easier for all our clients

Harmonization of

documentation

EBAM standards

adoption

A multi-channel

strategy

A panel of customers

to design and test our

solution


Conclusion

Corporations

Banks

SWIFT

EBAM

Standards

Software

vendors Adoptio

n

Adoption is now essential to make EBAM a reality!


Disclaimer

This document has been prepared by BNP PARIBAS for informational purposes only. Although the information in this document has been obtained from sources which BNP PARIBAS believes to be reliable, we do not represent or warrant its accuracy, and such information may be incomplete or condensed. This document does not constitute a prospectus or solicitation.

All estimates and opinions included in this document constitute our judgement as of the date of the document and may be subject to change without notice. Changes to assumptions may have a material impact on any recommendations made herein.

This document is confidential and is being submitted to selected recipients only. It may not be reproduced (in whole or in part) to any other person without the prior written permission of BNP PARIBAS.

© 2011 BNP PARIBAS. All rights reserved.


Thanks!

BNP Paribas for Zanders EBAM Seminar, November 13th, 2012

Economy & Finance

Transcript of BNP Paribas for Zanders EBAM Seminar, November 13th, 2012