On-boarding and Electronic Bank Account Management for Corporate Treasuries

Practices for account opening and management, at both corporates and banks, are still very manual and paper-based, creating an inefficient, error-prone environment. SWIFT and a small group of leading banks, corporates and IT vendors have been working to help address the problem through the development of electronic bank account management (EBAM) standards.

In July and August 2009, Finextra and Pegasystems surveyed corporate treasuries and banks worldwide to establish what the current pain points are around account management, what awareness there is of EBAM, what hurdles there are to greater standardisation and improvement, and what benefits are up for grabs. We received 43 survey responses from 39 banks, and 53 responses from 51 corporates, for a total of 96 respondents.

Among the corporates, 60% of respondents have an annual turnover higher than US$500m. 41% currently maintain more than 500 bank accounts and 44% deal with 11 different banks or more. Among the banks, 40% of banks operated in 11 countries or more, 63% had more than 1,000 corporate customers, and 51% managed more than 800,000 corporate customer accounts.