With the increased demand for foreign currency services and nostro payments, and to grow its business and deliver the level of service needed in the marketplace, First National Bank (FNB)  sought to increase its breadth of offerings in its international business. FNB’ International Banking division selected Payments solution from TCS BaNCS to help it diversify its solutions portfolio, provide flexibility in product management and enable quick time-to-market.

The Customer

FNB is a leading provider of financial products and services and one of the oldest financial institutions in South Africa. The bank provides a full range of products and services in retail, commercial, corporate and public sector banking.

Business Scenario: Enhancing the offering on foreign currency accounts and payments

The demand for foreign currency services and nostro payments by the bank’s customers – both corporate and institutional – had increased. To grow its business and deliver the level of service needed in the marketplace, it decided to diversify its international banking  offerings. It needed to cater to the new requirements of the business units within the international banking division of the bank such as Foreign Currency Accounts and Nostro Agency Services.

The bank identified the need to re-engineer its processes and implement a solution that could interface with several external agencies and provide multi-channel support. It undertook an intensive evaluation exercise across multiple vendors and chose Payments solution from TCS BaNCS as its preferred solution.

Payments solution from TCS BaNCS: An integrated, centralized payments hub

The Payments solution from TCS BaNCS was implemented as a comprehensive and integrated payments solution covering the entire financial accounting and MIS requirements. It provided the bank with seamless integration to SWIFT, financial information providers like Reuters, RTGS systems, clearing houses and the bank’s existing systems.

Payments solution from TCS BaNCS is built on a component-based Service-Oriented-Architecture (SOA). The following key features of the product architecture helped FNB:

  • Comprehensive coverage of payment products (low- and high-value payments, direct debit, checks, among others) and a high level of Straight-Through-Processing (STP)
  • A proven and scalable technical architecture
  • Well-conceptualized, coarse-grained components, which implement specific business functionality
  • Strong multi-entity capabilities
  • Concept of defined payment products with well-designed workflows
  • In-built service integrator to enable rapid integration with new payment streams and corresponding messages through XML-based setups and file-based and / or standardized message exchanges
  • Cash management features such as sweeping and notional pooling

Key Benefits

FNB benefited from a modern architecture and the rich functional features of Payments solution from TCS BaNCS with the following:

  • Additional customer reporting capabilities with the introduction of SWIFT-based intra-day cash reporting
  • Excellent STP rates on payments processing
  • Improved quality of SWIFT-based account statements
  • High configurability of pricing rules; redefining of correspondent banking practices
  • Real-time interfaces, enhancing the liquidity view and reducing risks

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