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Instant Payments through FinTP

 

 

FinTP-Instant is a new functionality of FinTP which connects back-office applications of a bank to an Instant Payments service offered by a third party, such as the Romanian ACH, TransFonD. This functionality retrieves payment messages in the format provided by these applications (database tables, message queues etc), converts them to the ISO 20022 standard and routes them to the Instant Payments System (IPS).


One of the requirements of the IPS is for the bank application to have STP capabilities (straight through processing). FinTP successfully meets this requirement, interfacing with the ACH through web services.


In order to fall within the appropriate processing timeframe defined for the instant payments service, the timestamp is created by FinTP.

 

 

 

 

FinTP-Instant Characteristics

  • Message formatting exceptions from originator bank: cancelling and sending reject message
  • Automatic generation and routing of related messages: SCT Inst Recall, Negative answer, SCT Inst Transaction Status Investigation
  • Reports for received or sent instructions
  • Clients and accounts list for processing incoming payments (beneficiary IBAN check and validation etc.) and for generating the confirmation message to the IPS (additional message to the classic SCT scheme)

 

 

FinTP-Instant Functionalities

 

 

Instant Payments from a Corporate Treasury Perspective

 

 

It's a given that instant payments are no longer a fad, but a requirement, driven by consumers being anchored more and more in "real-time" everything. As such, it comes as no surprise that this trend will also shape corporate treasuries, steadily becoming the new norm in the very near future.

 

 

Where Allevo Stands

 

Last year, we started looking into new customer types, further extending our attention from banks to financial institutions and companies of various types and sizes.


We also started working on an EU-funded project which includes developing a software suite dedicated to SMEs and corporate treasuries, marketed as FinOps Suite – Making financial operations easy*.


As a bonus, we're stepping up the game with an Instant Payments solution for banks, FinTP-Instant, that you’ll definitely hear more and more about in the coming months.


These three magic ingredients make up the perfect recipe to now tackle the subject of instant payments from a corporate treasury perspective.



Instant Payments Benefits for Companies

 

In brief, businesses will benefit from:

  • Improved payment reconciliation process
  • Increased efficiency of e-invoicing
  • Optimized working capital and minimized external financing
  • Predictability
  • Fewer late payments
  • Fast invoice payments
  • Improved liquidity and cash management capabilities
  • Enhanced e-commerce
  • Reduced financial risk


Opportunity alert: benefiting from improved cash flow and immediate payment status update, companies can also achieve discounts for the early settlement of commitments.


Moreover, as instant payments are widely made available throughout Europe, they will become the #1 replacement for more expensive payment methods, such as credit cards, both online and at the point of sale.

 


Consumers want their orders processed un-intrusively and instantaneously, therefore merchants could implement an instant payments solution, passing the demand to suppliers immediately, extending the B2C real-time need towards B2B. Banks play the role of providing a relevant service to their corporate customers, gaining new business, while corporates address the current needs of modern people.

 

The sooner, the better, no doubt about that, so... keen to find out more about FinTP-Instant?

Book an appointment now with one of our consultants and get a head start over the competition! We are open to a quick conversation to help explore business opportunities in the light of options offered by this very interesting market initiative.

 

 


*FinOps Suite is the business name of the software solution being developed within our Treasure Open Source Software (TOSS) project. This project is co-financed by the European Regional Development Fund under the Competitiveness Operational Programme 2014-2020, Priority Axis 2 "Information and Communications Technology (ICT) for a competitive digital economy".

 

 


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