BELLIN has implemented an innovation in tm5 that is currently unique for treasury management systems: electronic guarantee issuance as part of the system's workflow. With this new feature, the software and consulting company takes a big step towards paperless treasury. Guarantees, which companies frequently need for hedging counterparty risk, can be entered in tm5, where they are processed and transmitted electronically to the corresponding banks.
Electronic Communication with Banks
Direct payment exchange with banks on an international level has long been standard practice for BELLIN. Until now, however, guarantees were not processed automatically. “Helping our customers streamline their work is extremely important to us,” says Martin Bellin, founder and Managing Director of BELLIN GmbH. “We have a channel for direct communication with banks. Why should we not use it to process guarantees?”
So far, guarantee management required many documents in paper form for requesting, issuing, commissioning and confirming guarantees. Since the recent tm5 update in June 2013, companies can transmit guarantees to banks electronically using EBICS. Likewise, guarantees can be confirmed by this method, replacing traditional paper-based communication.
Successful Pilot Project
There is just one requirement – banks must be willing to issue guarantees electronically. “Much to my regret,” Martin Bellin explains, “not all financial institutions support electronic guarantees yet, despite using standardized formats and communication channels. However, since our pilot project implementation with customer Deichmann and Deutsche Bank was successful, we know that other banks are ready to get on board in the near future.”
BELLIN has added this new and exclusive feature to the already extensive functionality of tm5 module TTGUARANTEE. Electronic guarantee issuance is now an integral part of tm5 and therefore available to all BELLIN customers.