Standards are a good thing for treasury departments bent on automation and efficiency, but a cascade of new standards and drawn-out migrations by various players has left treasuries in a Tower of Babel. A bank transmission to or from an ERP system or treasury workstation may no longer make sense. The more banks and internal systems involved, the worse the cacophony gets, requiring one emergency translation patch after another. Now the treasury at Toyota Financial Services (TFS) in Torrance, Calif., has solved this problem by building a solution around SWIFT Alliance Integrator for version 7 of SWIFT.
“We were constantly wrestling with managing multiple banking relationships, connections and messaging formats,” says Mario Delfin, national manager of enterprise cash management and treasury systems at TFS. “Our core business lines could not take advantage of the greater reliability, security and convenience of new banking products if the formats didn’t match.”
By centralizing all the bank interface communication in one treasury-managed solution, the company has reduced the time it takes to bring up new or existing banking products and can remain flexible as bank messaging standards continue to migrate to ISO XML standards. It also reduced demand for internal IT resources, Delfin says, and allowed individual business units to be bank-agnostic. Because of the Integrator solution, file message formats and standards don’t need to be updated frequently at the point of emission, but can be formatted and validated in one place, removing the burden of maintaining several interfaces and proprietary solutions.