Sushant Bhasin Yes Bank

8/6/2019 Sushant Bhasin Yes Bank

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Financial & O erational efficienc throu hFinancial & O erational efficienc throu h

electronic Banking andelectronic Banking and

Sushant BhasinSushant Bhasin

EVP & Country HeadEVP & Country Head Product Sales,Product Sales,

Transaction Banking GroupTransaction Banking GroupYES Bank Ltd.YES Bank Ltd.

ASSOCHAM, New Delhi

November 25, 2009


2/21


3/21

"That's our accounts department


4/21

How we Pay today?

Pay by

Cheque

Electronic

Kind

and TODAY is CHANGING


5/21

Present Composition

CORPORATE 30%

GOVERNMENT 70%

- ns gn can


6/21

Fact Sheet

Constraints Im act

Scale / Geography Credit Delays

Varying Automation Uncertainty of

a ments

Ltd Linkages Reconciliation issues

Paper Based Models High fraud potential

High AdministrativeBurden


7/21

Key Business Challenges

Slow Cash compensations systems

processes and computerized clearing systems

Inability to determine schedule of inbound monies

Long and unpredictable clearing cycles for

receivables outside main cities

Pa er-based clearin multi le clearin houses

Clearing & settlement risk

Net-Sett ement-en o ay sett ement


8/21

Trends

Rapid improvements in the Clearing infrastructure

Computerization of Banks

move away rom paper ase ransac ona ows

Convergence of Wholesale and Retail Payment Networks

reasurers ro e n e company s wor ng cap a

management.

challenge

Gradual transition to real-time access / data on demand

Common reporting problems (lack of integrated systems,

neglect of A/R and A/P reporting, inconsistent reporting

by subsidiaries, lack of inter-company co-ordination.)

Sharing inventory data across the supply chain


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RBI Ushering the Change

VISIONTo Provide A Safe, Secure, Sound and Efficient paymentand settlement system for the countryIncrease Efficiency of the Payments systemsCustomer Facilitation for each of the payment systemproducts

Key InitiativesIntroduced RTGS in 2004

Introduced Cheque Truncation in 2008Introduced Speed Clearing in 2009

Phased out HV Clearing in 7 major locationsRegularly increased customer timings for RTGS and NEFT

Pa ments Vision 2009 - 2015NEFT 24 x 7India Card India based card system

New regulations in mobile payments


10/21

ePayments Landscape

RTGS NEFT NECS

Paperless/Inter-IntraBank, Inter/Intra city



/ T+1

Real-time, Continuous Multi settlements/day Batchatc 6 atc es

12000+ centres, 60000+

bank-branch locations

12000+ centres, 60000+

bank-branch locations

114 Banks, 28000

branches

Negative, Positive

Confirmation

Only Negative

Confirmation

Only Negative

Confirmation


11/21

Financial Supply Chain Solutions

WebEnablement SuperiorproductStructuring

RTGSTransfersFinished GoodsDemandDrafts

LettersofCreditFX Remittances

ExportFinanceDedicatedService

Manager CompetitiveRates

SalesIntegratedFinancialsupply

chainmanagementsolution

ImportFinancingLocalCheque

Collections

RTGSCollectFasterTurnaround

Time

EnrichedandCustomizedMIS

UpcountryCollections

Investment

Strictly Confidential Account ReceivablesCash & BankBalances

Management

Fasteraccesstoinformation


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SME Challenges

Economic Downturn

High Operational Cost

Ti ht Com etition

Low Automation

Key Success Parametersnnovat on

Speed of Execution


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Need of the hour

One Bank solution for AP/AR

Increase revenues by investing investments on higherreturns

Just in Time Payments Reduction / elimination of idlefunds

Reduce o erational costs b automatin AP AR rocesses.


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Case Study Havells India Limited

Key Highlights Migrated Havells to electronic payments (RTGS and NEFT) for

making payments to 7000 locations across the country Complete system integration with SAP ERP for payment, advice and

YES BANKs RoleYES Bank acting as the innovator in the E-

reconc a on e up oa s. xper se n n egra ng eapplication can be successfully replicated across most SAP systems.

Payments to 1000 + vendors across the country are credited on thesame day

Email advice containing invoice level information sent to

from their physical cheque writing process toa completely automated electronic paymentmode.

Single file upload irrespective of payment type RTGS / NEFT

1000 + Vendors across the countryCurrent Process Manual cheque writing,signing and delivery to vendorsIssues with current process Time taken for crediting vendor 5 days

Benefits to Havells

Optimized Treasury Management due to Just-in-time paymentmodel.

minimumManual ReconciliationManual errors in writing cheques, signing,signature mismatch issues, managinglogistics of cheques (100+ cheques per day)

Zero float loss

Cycle time reduced from 5 days to 1 day

Cheque couriering costs saved

saved huge time

Email advising to beneficiaries eliminate client servicing issues

Reduced work load.


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Process Flow @ Havells

Havells ERPYES Bank RBI Suppliers Bank

Activity Duration Before E-Payments Duration After E-Payments

Chq Preparation & Dist 2 days 0 (Integrated with ERP)

Chq Clearing 2 day 2 hours (e-payment)

Reconciliation 1 day 0 (Integrated with ERP)

Total Duration 6 days 2 hours

Supplier


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Testimonial.


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One Bank Model

Payments

State-of-the-art RTGS, NEFT platform to make payments across 58000+ bank branches.

Standard ERP /Accounting System Connectivity for automated payments cycle

Collections

User initiated MIS available for fund flow predictability by region, branches.

Customized MIS with the facilit to do auto reconciliation with Invoice matchin

Salary Payments

Single File Uploads for payments to any bank

Enhanced Security

Secure uploads with coded employee data ensuring data privacy and accurate transfers

Data Encryption

Administrative Efficiency

Online Beneficiary validation for assured and secure transfers

Email and SMS advices to beneficiaries with Invoice level information

24 x 7 payments.


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Unique Technology Proposition

New Entrant Advantage

No Legacy Systems

Latest technology

Customer Focus High Degree of Automation

Straight through processing(STP) enabling improved

Outsourcing Approach

Strategic tie up with Wipro

IT infrastructure and networkUni ue process accuracy an

efficiency

First Mover RTGS via

Internet

management outsource

Variable cost model scalablebased on branch rollout

YBL retains IP and know-how

Scalable

Business Model

certifiedHardware

Efficient procurement

Most of the IT infrastructure

Software

Partnership arrangements withvendors, lowering cost andenablin access to latest, more

remains off balance sheet Infrastructure on demand

from IBM

National Award for Data

efficient software Agreement with I-flex for core

banking solution, CashTechfor CMS and Murex for

Centretreasury

NASSCOM Award in April 2006 for IT Innovations in Emerging India


19/21

Value Pyramid

eFinancial Supply Chain

Deliver Channels

Supply Chain Solutions

Internet bankingPhone banking | Mobile banking

Dealer Financing

Bill Discounting / Invoice FinancingIncreased sales and inventory reduction

Payment Reconciliation

Vendor FinancingSuppliers receivable financing

Order Management Services

n ance anne nance o ut ons

Receivable Management SolutionsInvoice Management and A/C receivable matching

Payable Management Solutions

Customised Cash Management Solutions

o ections t roug un trans ersLocal and Outstation collections at more than 900 locations

Cheque/ Documents Pick up and delivery

Enriched MIS

Onsite and remote printing models

Payable at Par issuance


20/21

Way forward

Eradicate inefficiencies in the financial supply chain.

Automated processes along the chain and integrating

disparate systems (e.g., accounting and cash management).

Adopt partneringapproach | Third party tie-ups.

The gradual rise of e-payments

Cheque truncation and cheque image exchange spell the

end of float and therefore the end of one of the reasons

businesses use paper.

Enhanced e-payments from initiation to reconciliation.

The eventual automation of the financial supply chain


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THANK YOU

Contact details:Contact details:

Sushant BhasinSushant Bhasin

EVP & Country HeadEVP & Country Head Product Sales,Product Sales,

Transaction Banking GroupTransaction Banking Group

an .an .

011011--6656900066569000

[email protected]@yesbank.in

Sushant Bhasin Yes Bank

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