What is your Digital Strategy? - Electronic banking, cash management update and trends

What is your Digital Strategy?
                                Electronic banking, cash
                                management update and trends

Peter Grech
Treasury Solutions Specialist
RBC Royal Bank
peter.grech@rbc.com

What is your digital strategy?

What is digital?
A definition from the web:
• “A digital business is an organization that incorporates
  digital technology to create revenue and results via
  innovative strategies, products, processes and
  experiences. They use digital resources to create new
  customer value, revenue and business results.”
Digital means something different to everyone. However we all agree:

•   It’s about technology

•   A new way of engaging with customers

•   A new way of doing business                                        Source : McKinsey

Research at a glance

The change that’s happening…
Newspaper Articles over the last month….
1) Can Blockchain Revolutionalize Online Payments
2) You can now send your friends money inside iMessage
3) Amazon could ship packages via parachute drones
4) Google’s Android pay comes to Canada
5) Apple in talks to launch money-transfer business
6) Less than half of Canadians expected to use cash by 2020

Prevalence and impact of cheque fraud in Canada
• Typical loss due to cheque fraud in the tens of thousands, however
  some frauds are over $1 million

• In Canada, cheque fraud attempts annually totalling over $300MM

• One client had 10 incidents totalling >$2 million in 6 months

• Business cheques are a favourite target – acceptability

• As senior clients implement protective procedures, fraudsters move
  down market

How can companies protect themselves?
• Each step of the A/P process from goods or services received to invoice approval should be
  done by different employees.

• Separate the cheque issuance and account reconciliation functions.

• Secure cheque print stocks.

• Use the banks verification tools (i.e. Payee Match)

• Reconcile your account daily.

• Operate separate accounts for higher-value cheque’s.

• Verbally confirm with your vendors before changing their bank account details if you are
  currently processing EFT payments.

RBC Express Overview
• RBC Express is an Internet based transaction and information platform that
  provides business clients with secure and convenient online access to a
  suite of advanced cash management services.

• All of the RBC Express services are supported by common security,
  administrative and control features. There is no software to load and no need
  for the client’s users to log-on and off as they switch between services.

• RBC Express provides your client with state-of-the-art security that protects
  the integrity of your clients’ banking information ensuring the highest
  standards of security. Security features include industry standard encryption
  (SSL 128 bit), digital certificates and RSA SecurID tokens.

RBC Express Overview
• RSA SecurID tokens are mandatory for services such as Wire
  Payments and ACH Payments and are optional, for other services
  such as Account Transfers and Bill Payments.

• RBC Express has a comprehensive yet flexible administration and
  approval model that allows clients to tailor the services to match
  their standard operating procedures.

Overview of Cash Management Solutions                                             Money Flows Out
         Money Flows In

                                                                                   Supplier Payments
       Customer payments                              Company                            Payroll

               Collections Solutions
                                                                           Payments Solutions
     Provide businesses with certainty around the
                                                              Enables businesses to more efficiently manage
   timing of deposits and allows them to accelerate
                                                              corporate payments and increases control over
     cash inflows through increased efficiencies &
                                                                         the timing of payments
               alternate payment options

                                      Information & Control Solutions

              Enables businesses to assign varying levels of online permissions and authorities to
               individual users and allows them to monitor and manage financial transactions in
               their current account, helping them to operate their business more efficiently and
                                                maximize returns

What solutions are available today?
Collections:                Information and Control
ACH Direct Payments (PAP)   Payee Match
Cheque Pro                  Incoming Wires
Wholesale lockbox           Account Images
Corporate Creditor          Balance & Transaction Reporting

Payments:
ACH Direct Deposits (EFT)
A/P Link
Bulk e-Transfers
Online Tax Filing
Wire Payments

What’s new… and what’s coming
Auto Deposit e-Transfers
• Allows clients to register an e-mail address to accept an e-transfer instantly without answering a
   security question.
• Available in regular Online Banking, coming to RBC Express in mid-2018
Request to Pay
• Enables payees to send payment requests to payers while including enhanced data/information (i.e. e-
  invoices).
• Available in regular Online Banking, coming to RBC Express in mid-2018
International ACH
• ACH payments can be sent to foreign destinations.
• Coming in 2018
Versa Pay
• Present invoices in an online portal & attach supporting documents. Provides customers with
   convenient 24/7 access to login and view outstanding invoices. Gain visibility into when / where and
   how many times a customer has opened an invoice.

Questions?