A recent study conducted by SunGard confirms a pressing need for simplified connectivity between corporations and banks: 30% of the corporations surveyed grossing $5 billion or greater rely on more than 20 cash management banks. This complexity is driving the demand for a single point of connectivity for bank communications.
The AvantGard EcoSystem Communication Service offers a single point of connectivity to help facilitate communications for bank account statements, wire transfers, treasury payments, accounts payable payment execution (including a variety of formats such as SWIFT, ACH, check to ACH converted) and check printing via a global payments network contained within the service. The service also manages deal confirmations and matching (ACCORD), electronic bank account management (eBAM), bank fee reporting (TWIST), and mutual fund reporting.
For corporations, the AvantGard EcoSystem Communication Service helps deliver lower total cost of ownership, increased transparency and ease of operations. It provides banks with more streamlined access to their corporate clients helping banks provide them with faster delivery of value-added services. Banks can also broaden their access points to corporate clients by leveraging the AvantGard solution footprint, which spans the spectrum of connectivity across the receivables, treasury and payments functions. The service contemplates a formal program for service-driven labels for financial institutions.
The launch of the AvantGard EcoSystem Communication Service is part of SunGardâs broader strategy to bring together the various entities within the corporate commercial ecosystem. Participants include suppliers, buyers, banks and other trading partners. As part of this strategy, SunGard is operating as a community leader across the ecosystem by forming relationships with banks, FX platforms, credit data providers, collection agencies, money market funds, and SWIFT, as examples.
âThe corporate commercial ecosystem has often been described as the most inefficient market in the world,â said Ken Dummitt, president of SunGardâs corporations business. âAn inefficient market is typically characterized by lack of data and transparency and a high degree of transactional friction cost. It is clear that no one entity can provide all of the elements necessary to affect the fundamental shift required to bring efficiency to cash management. What the corporate commercial ecosystem needs, like any ecosystem, is a community leader. With the launch of the AvantGard EcoSystem Communication Service, SunGard is strongly positioned to provide that leadership by bringing together the network of participants for improved transparency, efficiency and connectivity.â
The AvantGard EcoSystem Communication Service offers the framework for corporate-to-bank and corporate-to-corporate connectivity, helping corporations to leverage generic communication protocols inherent in the service to deliver bank and non-bank messaging and communications. The service will create the infrastructure for the delivery of invoice and remittance advice and the ability to facilitate alternative financing via a bank or other exchange.