Banks collaborate with SAP on cloud platform
By Anne Widjaja
SAP AG has announced plans to work with Citi and The Royal Bank of Scotland (RBS) to co-innovate a cloud-based services platform, designed to integrate banks with their corporate customers.
SAP will utilise its expertise in enterprise resource planning, treasury management software and cloud services, and leverage the industry expertise of Citi and RBS in order to create a new solution for corporate banking.
According to SAP, this new solution aims to overcome the isolation of each bank’s IT architecture model. Historically, the isolation of banking institutions has become entrenched as a result of differences in size, complexity and the non-standard use of legacy systems. Businesses and banks have therefore been burdened with high connectivity costs because of the need to develop multiple relationships with financial institutions.
“We are working toward a solution with SAP to remove integration barriers and facilitate greater connectivity to Citi’s global network of more than 90 countries and over 100 currencies,” said Naveed Sultan, global head, treasury and trade solutions, Citi. Sultan also commented that leveraging cloud technology was part of Citi’s goal to be the world’s ‘Digital Bank’.
“Through our pioneering work here, we hope to bring banks and businesses closer together and create a springboard to new innovations and value creation in the future,” Sultan said.
Kevin Brown, global head, transaction services product, international banking, RBS, agreed with Sultan’s comments about the importance of the cloud. “The cloud-based corporate-to-bank initiative is an important step for corporate customers toward simplifying the complexity of connecting with their banks,” he said, on the cloud collaboration.
SAP, Citi and RBS will aim to reduce the cost and time-to-value of these interactions by creating a new and flexible architectural model. SAP will take the lead by creating close links between banks’ transaction systems and the ERP and treasury systems at corporate businesses. This will help streamline financial transactions, such as payments, while enabling new, on-demand banking services to be delivered via the cloud.
Sanjay Poonen, president, global solutions, SAP AG, said that SAP plans to create innovations in banking that will increase the velocity of information flow between banks and their corporate customers. He also commented that the solution would further SAP’s cloud strategy.
“Integrating banks with corporate ERP and treasury systems has always been an expensive proposition for banks and corporations alike. This will allow corporate customers to seamlessly extend their ERP and treasury systems and interface with multiple banks,” Poonen said.
Read the source article at Inside SAP