In recognition of excellence in the quality of its payment processes, Fexco Corporate Payments (FCP) recently received Deutsche Bank’s 2015 Straight-Through Processing (STP) Excellence Award.
The Award recognises FCP’s success in achieving an STP rate of 99% for its US Dollar transfers in 2015. The industry norm for STP amongst banks and financial institutions is around 90%.
Benefits of Straight Through Processing
An electronic fund transfer is ‘straight through processed’ if it is transferred from the sender to the payee without the need for any manual intervention. STP is desirable because it:
- Removes paper based activity from the financial system
- Eliminates potential human error in the payments process
- Reduces operational risk
- Ensures speedy transfers, bringing participants closer to real time cash positions
- Enhances the customer experience
- Improves data availability and accuracy
While there are high levels of Straight Through Processing with domestic payments, international transfers tend to have lower levels of Straight Through Processing. Fexco Corporate Payments is dedicated to providing a quality payment service to its customers, ensuring seamless transfers worldwide.
FCP and STP
Fexco Corporate Payments specialises in serving customers with complex payment requirements. Every day our clients use FCP to transfer to new suppliers who are based in countries around the world. Many of these countries have unique information requirements and unusual payment formats: this makes FCP’s 99% Straight Through Processing achievement all the more impressive.
At Fexco Corporate Payments we work closely with international banking partners to identify what the payment requirements of the various jurisdictions and clearing banks are. We use best-in-class validation tools to ensure that payment information is correct before payments are sent. Moreover our payments team use their expertise to monitor payment files; the payments team repairs payments for customers and the team can nominate appropriate intermediary banks where necessary, ensuring that even the most complex payments are correctly routed to their destination.
FCP takes a collaborative approach to understanding the payment needs of businesses and private clients and we provide a tailored solution to make sure that payment runs are problem-free.
Speaking on the award Barry Slattery, Operations Manager for FCP commented; ‘Achieving this excellent STP rate is further affirmation of the quality of our online validation tools as well as the expert knowledge of our payments team. This ensures the most efficient payment experience for our customers every time’.
5 tips on achieving STP for your business
Wondering how to improve straight through processing in your accounts payable function? Here are our top five tips:
Reduce manual data entry in your accounts payable team
Manual error is the most common cause of straight through processing. Review the processes you use for supplier registration, invoice processing, supplier payment and reconciliations. Is there scope to simplify or automate these processes?
Validate supplier banking details before you make the transfer
Online banking systems generally validate IBANs but they may not validate bank account details that are outside the norm – if in doubt, double-check the information with your supplier.
Watch out for intermediary bank data
It is not uncommon for international transfers to go via an intermediary bank, particularly if the supplier is using a small regional bank or they are based outside Europe. If your supplier needs the money to be transferred via an intermediary bank, this needs to be clearly flagged on the transfer.
Get to know common bank account formats
BIC and IBAN are becoming standard worldwide, but it’s important to be aware that many countries continue to use their own national formats for identifying bank accounts: for instance the UK still uses bank account and sort code, Australia continues to use BSBs and America uses ABA numbers. We provide a brief guide to these terms in the FAQ section of our website.
Talk to Fexco
Fexco Corporate Payments has proven expertise in delivering automated accounts payable solutions, validating payment data, managing complex payments and providing bank-beating rates for our customers. Contact us today to find out more.
Fexco Corporate Payments has been providing global payment solutions to business and personal clients for over 25 years. If you need a payment solution for your business, register online today or contact us (Ireland: 1800 246 801 UK: 0800 840 2887) to discuss your payment needs.