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A leading Dutch pension administrator with its roots in the healthcare and social work sector. Our client manages over € 109 billion of pension assets of more than 2.3 million people.
Typical transactions carried out by our client
- Premiums are collected from pension funds
- Premiums are collected from customers of pension funds, sometimes with direct debits
- Premiums are collected from institutions, sometimes with direct debits
- Pension funds benefits payments
- Customers of pension funds receive pension benefits
- Money transfers to Institutions, in their role as employer of customers of our client, with our client bank account
- Supplier payments
- Employees salary and expense payments
- Money transferred to other Pension funds and insurance companies
Number and type of transactions
- Over 350,000 transactions per day. This includes a mix of instructions in:
- ClieOp03 files (Dutch domestic EUR payment format)
- SWIT FIN messages (MT103, MT101, MT940, MT195 and others)
- BTL91 files (Dutch domestic non-EUR payments format)
- Our client gets 300,000 instructions in a single file once a month.
- The remaining are individual FIN instructions or other payment files.
Prior to installing PelicanPay™, the payment traffic was fragmented over the company.
Almost all payments were done via the payments department, but using different processes, systems and banks. It was hard to assess whether all payment processes were compliant and fully under control.
The existing treasury software package was originally going to be used as the “payment hub” for all payment processes. However the package did not fulfill all the requirements of our client. Therefore it was decided to adopt a new solution.
Our client’s requirement was for a payment hub (or payment factory) i.e. a solution that can send payments from different sources, to multiple banks for execution. The following key functions were sought:
- Connectivity to source systems
- Manual payments
- Transformation (to and from different payment formats)
- Connectivity to banks (among others SWIFT connectivity)
- Processing of rejected payments
- Audit trail
Our client also required that the solution should be able to process SEPA transactions at all time, without any dependency upon the banks’ implementation timeframe. This should be done by temporarily taking care of the conversion between the current formats (mainly CLIEOP, the Dutch € format) and SEPA and by taking care of direct debit mandates.
Finally, the following security concerns had to be addressed
- The communication between the source systems and the payment hub must be secure
- The user interface of the payment hub must be properly secured
- The database of the payment hub must be secure
- The communication between the payment hub and the banks must be secure
- The payment hub must have the facilities to completely separate the payment streams the (institutional) customers of our client and those of our client itself
- All actions within the payment hub must be logged (audit trail)
- The payment hub must be able to enforce segregation between authorization roles
In summary, our client wanted a centralized payment hub capable of
- Processing throughput requirement of 350,000+ messages per day
- Replacing a legacy system that was not scalable nor future ready
- Consolidating payments from different departments, systems and processes
- Withdrawing payment instructions from large pension payment files
- Providing true visibility, control with the highest level of security and compliance
Solution Overview: PelicanPay™ centralized payment hub
PelicanPay™: core functionalities implemented and benefits
- Payment Initiation: allows our client to create SWIFT FIN payments using the full fledged entry screens or simplified payment entry screens helping our client to overcome dependence on SWIFT Alliance Access. Templates make entry of recurring payments easy.
- Payment instructions and payment file validations: our client are able to detect validation errors and duplicates before sending instructions out for execution
- Payment Withdrawals (Stop Payments): our client are able to withdraw payment instructions that should not be executed from payment files, before they are released to the bank
- Authorizations – Authorize: allows them to authorize instructions within PelicanPay when authorization step is not available in the backend system that generated the payment instruction – Check and Release: allows the payments department to make the final check on the instructions being sent out for execution
- Balance reporting: gives corporate visibility of balances across all their accounts as reported in bank statements. This information is also available in the form of a dashboard
- Dashboards and global search: gives our client complete visibility over all their payments
- Database Views: allows our client to generate custom reports using the processing data within PelicanPay
- Workflow-based processing: the workflows within PelicanPay are accurately mapped to our client organizational processes
- Processing workflows map existing processes
- Data hiding and segregation across all the departments
- Multi level authorizations based on the type of payment
- Ability to remove transactions from large payment files and bulk the remaining transactions into a new file for onward processing
- Manual entry along with templates allows adhoc payment generation
Benefits for our client
- Much reduced pension payment cycle
- Payment entry screens with full validation support removes dependency upon SWIFT Alliance Access
- Complete visibility and control on all payments processed centrally
- Complete visibility of account balances allowing them to manage funds more efficiently
- Web based future ready system
- Scalable architecture to support volume growth
PelicanPay™ is an e-Payments and e-Collections processing STP service. It enables corporates that operate in a multi-bank, multi-ERP environment to make and manage payments securely through a single channel and benefit from reduced IT costs, lower bank charges, accurate liquidity management & forecasting and superior business analytics.