Insights into the benefits of payments modernization.
Findings from a new case study detail how a professional service provider is fast-tracking its payments capabilities through an Enterprise Resource Planning (ERP) system implementation across its global operations. This large-scale implementation helps prepare the organization for payments modernization, including ISO 20022.
The findings speak to how the successful implementation of an ERP system in Canada, and other markets, has resulted in significant gains in this organization’s payments processing capabilities. These gains were especially seen through enhancements to its back office processes, such as invoicing, payment runs and reconciliation.
This case study focuses on understanding the types of modifications needed to payments processes so an ERP is prepared to accept changes prompted by payments modernization. It also explores the types of governance and execution models global companies could implement in order to execute the changes.
From a Canadian perspective, the case study reveals the potential of ISO 20022 to significantly reduce the amount of work involved in matching payments to invoices, and enhance the overall level of payments processing automation. The study also explores business applications for real-time payments, including addressing time sensitive payment needs that can occur with payroll. The potential business benefits of a third-exchange window and two-hour funds availability -- two recent deliverables of payments Modernization -- in relation to paying more vendors through AFT are also analyzed.
This is the second out of a series of case studies, in collaboration between Payments Canada and EY, that focus on identifying how Canadian businesses, governments and other organizations can benefit from modernized payments.
Payments Modernization and ISO 20022
To learn more about Payments Canada’s Modernization initiative, visit modernization.payments.ca
ISO 20022 is the foundation for payment messaging across all modernized payments systems.The transition to ISO 20022 will support interoperability with global payment ecosystems, and will also enable new opportunities for financial products and services, and bring new levels of efficiency to the Canadian economy. Financial Institutions looking for resources or services to support their adoption of the standard should visit the Payments Canada ISO 20022 Resource Centre.
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