The Italian CBI 2: New corporate banking services to optimise the financial value chain

Abstract

In recent times, the payments industry has been deeply affected by technological evolution, which has affected every industrial sector: security, integrity, authenticity of transactions, end-to-end, flexibility, integration with corporate systems and automatic reconciliation are words which have been in use for years, and now is the time to shift them into concrete solutions, as expected by the market. Moreover, the need for European Union harmonisation of payment methods, prices and standards has led to the creation of the single euro payments area (SEPA), which represents a major opportunity for multinational enterprises and banks who operate at a cross-border level. The Association for Interbank Corporate Banking (ACBI), thanks to its numbers (over 620,000 corporates connected and most of the Italian banking system), has ridden the wave and is now becoming a real benchmark for the corporate banking community thanks to the launch of a new Internet-based Virtual Private Network, the use of XML syntax, the integration between the financial cycle (payments) and the supply chain (trade relationships and documents, eg e-invoice). The new services cite the maximum alignment with ISO 20022 standards (UNIversal Financial Industry message scheme) providing bank customers with a set of specific Additional Optional Services built over the core scheme of existing services (eg credit transfer), offering new end-to-end functions, such as the trade documents exchange, and financing traditional solutions which have been now converted to electronic, such as the invoice financing request. But how does it work? And what value added do the new mentioned functions generate for companies? This paper explains in detail all these topics, by describing the experience of the ACBI, the critical factor of success, lessons learned and the value that the model could have in other countries and zones, given the widespread impact on the Italian market.