2. INTRODUCTION
• DEFINITION-
• Payment is the transfer of one form of good, service or financial
asset in exchange for another form of good, service or financial
asset in proportions that have been previously agreed upon by all
parties involved. Payment can be made in the form of funds,
assets or services.
• Settlement of securities is a business process whereby securities
or interests in securities are delivered, usually against ( in
simultaneous exchange for) payment of money, to fulfil
contractual obligations, such as those arising under securities
trades.
• Cash Settlement is a method of settling forward contracts or futures
contracts by cash rather than by physical delivery of the underlying
asset. The parties settle by paying/receiving the loss/gain related to
the contract in cash when the contract expires.
3. NATURE OF SETTLEMENT
• Settlement involves the delivery of securities from one party
to another
Traditional (Physical) Settlement
Electronic Settlement
• LEGAL SIGNIFICANCE
• IMMOBILIZATION & DECENTRALIZATION
• DIRECT & INDIRECT HOLDING SYSTEMS
5. Immediate Payment Service
• Immediate Payment Service (IMPS) is an initiative of
National Payments Corporation of India (NPCI).
• To avail the facility, both the sender and receiver of money
needs to be registered for mobile banking service of their
respective banks.
6. Comparison
• The key difference between RTGS and NEFT is that while
RTGS is on gross settlement basis, NEFT is on net settlement
basis.
• RTGS facilitates real-time ("push") transfer, while NEFT
involves twelve settlements from 8 am to 7 pm on week days
and six settlements from 8 am to 1 pm on Saturdays.
Customers can access the RTGS facility between 9 am to
4:30 pm on weekdays and 9 am to 1:30 pm on Saturday
7. FEDWIRE
• The Federal Reserve Banks, of the United States, provide the
Fedwire Funds Service, a real-time gross settlement
system(RTGS) that enables participants to initiate funds
transfer that are immediate, final, and irrevocable once
processed
• The Fedwire Funds Service business day begins at 9:00 p.m.
eastern time (ET) on the preceding calendar day and ends at
6:30 p.m. ET, Monday through Friday, excluding designated
holidays.
8.
9. LIFE CYCLE OF SETTLEMENT
PROCESS
• Clearing Corporation
• Clearing Members
• Custodians
• Clearing Banks
• Depositories
• Professional Clearing Member
11. Core processes involved in clearing
and settlement
• Trade Recording
• Trade Confirmation
• Determination of Obligation
• Pay-in of Funds and Securities
• Pay-out of Funds and Securities
12. DISJOINTED PAYMENT SYSTEMS
• CPSS (standard setting body):- It serves as a forum for central banks
to monitor and analyse developments in domestic payment, clearing
and settlement systems as well as in cross-border and multicurrency
settlement schemes.
14. CROSS-BORDER PAYMENT
CHALLENGES
• Based on local laws and practices
• Lack of a common global standard and variations between systems
• Government regulations are changing how payments are made
• Domestic infrastructures are not designed to handle cross-border
payments.
• Lack of common message standards.
• Impact of regulatory requirements
15. Working of Cross-Border Payments
• Often banks do not separate domestic and cross-border
payments, blurring the line of demarcation in payment flows.
maintain correspondent
banking relationships
with local banks in
important cities of
world
16. Current State – Functional View
Standard Bank – Personal and Business Banking – Payments Flow
Customer
1
Touch Point
Customer Insights and
3 Offerings - Strategy
Shared Services
6
Product Team
7
Fraud, Credit and Risk
ATM
Develop
Design Feature
Offerings
and Service
Offerings / Payment
Strategy
Specification
Strategy
Design
Offerings
Features
Branch
Manage
Agreements
(Industry)
Group Forensic
Investigate Internal
Staff fraud
Execute CRM
Activities
Perform Credit
Checks
(customer
account)
Channel
2
Credit System
4
IT Services
Identify
Customer
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Respond to/or
contact
Customer
Cash Services
accounting d
management
reporting rules
Perform Fraud
Checks
9
5
CIB
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Process
Payment Order
Authenticate
Initiate
Transaction
Channels
IT Services
Issue
Documents &
Notifications
Prepare for
Settlement
Exception Handling
Data Store
Initiate Time
Triggered
Perform
Transaction
Reconciliation
Reporting and
Analytics
Monitor and
Report on
Performance
Investigate
Irreconcilable
Transactions
Create
corrective
Payment
Instructions
Integrated Processing Centre
Centralized & Regional IPCs
SLA / OLA
Management
Receive
Transaction
Mobile Banking
Cash
Services
8
Centralized
Manage
Customer
Agreements
Payment Engine
Client Contact
Centre
Perform GL
Updates
(Risk : Suspense
Accounts)
Shared Services
Define
ProductSystem Credit Fraud & Risk Teams, Financeand
Team,
Team
maintain
Product
Product System
Channel
Net Banking
Touch
Points
Define Internal
Controls
IPS
IPS
Cheque Processing
and Reconciliation
Finance
Source transaction
data from Channels /
RT and Bulk
Regional
Post Payment
(customer
account)
Origination
Service
Maintenance
and Payments
16
17. Current State – Functional View
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design Feature
and Service
Specification
Execute CRM
Activities
Design
Offerings
Features
Manage
Agreements
(Industry)
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
IT Services
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Receive
Transaction
Mobile Banking
Respond to/or
contact
Customer
Settlements
Local + International
Integrated Operations
Support
Rejections
Vendor Management
(Cheques)
Data Store
Set-up Future
Dated
Payments
Association Compliance
Association Compliance
& Merchant Services
& Business Services
Reconciliations
Initiate Time
Triggered
Issue
Documents &
Notifications
Charge-backs +
Debit Card Liaisoning
Customer
Data Operations
Capturing
Regional
Reporting and
Analytics
Origination
Service
Maintenance
and Payments
17
18. Current State – Functional View
01 Customer Touch Points
Channel
Touch Point
ATM
Branch
Customer Touch Points : An access mechanism by means of
which a participant gains access to the use of channels in order
to effect, control, manage or monitor payments
The main components within the Customer Touch Points are
ATM
Branch
Net Banking
Client Contact Centre
Phone Banking
Mobile Banking
Net Banking
Client Contact
Centre
Phone Banking
Mobile Banking
18
19. Current State – Functional View
Channel : Definition of Channel here.
02 Channel
Channel
Manage
Customer
Agreements
Identify
Customer
Authenticate
Initiate
Transaction
Initiate Time
Triggered
Issue
Documents &
Notifications
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
The main components within Channels are
Manage Customer Agreements Identify Customer
Authenticate
Initiate Transaction
Switch Account Payment Orders
Setup Future Dated Payments
Initiate Time Triggered Payments
Issue Documents and Notifications
Receive transaction
Respond to / or Contact Customer
Receive
Transaction
Respond to/or
contact
Customer
19
20. Current State – Functional View
03 Offerings / Payment Strategy
Offerings/Payment
Strategy
Develop
Offerings
Strategy
Design Feature
and Service
Specification
Design
Offerings
Features
Customer Insights and Offerings : Perform Strategic planning,
policy and methodology development, relationship
management, performance management, and design, build
and run enablement for customer offerings
The main components within Customer Insights and Offerings
are
Develop Offerings Strategy
Manage Customer Agreements for Industry
Design Offerings Feature
Design Feature and Service Specification
Manage
Agreements
(Industry)
20
21. Current State – Functional View
04 IT Services
IT Services : Definition of IT Services here.
The main components within Payment Services Hub are
1.
Process Payment Order IT Services
Process
Payment Order
1.
2.
3.
Data Store
Reporting and Analytics
Post Payment into Customer Accounts
Payment Engine
Data Store
Reporting and
Analytics
21
22. Current State – Functional View
05 Integrated Processing Centre
Association Compliance &
Business Services
The main components within Centralized IPCs with payment
focus are:
Perform Transaction Reconciliation
Prepare for Settlement
Monitor and Report on Performance
Investigate Irreconcilable Transactions
Create Corrective Payment Instructions
SLA / OLA Management
Source Transaction Data
Regional
Origination
Service
Integrated Processing Centre : The standard bank Integrated
Processing Centre is based on a structure of three strategic
areas, specifically:
1. Production processing or the IPC’s ( CPC + RPC)
2. Service management – responsible for facilitating the
relationship between the IPC’s & the SBSA business units
3. Continuous improvement and implementation focusing
on improving IPC processes and implementing
organizational initiatives
Maintenance
and Payments
The main components within Regional IPCs with payment
focus are:
Origination
Service
Maintenance and Payments
22
23. Current State – Functional View
06 Shared Services
Product Team
Execute CRM
Activities
Product System
(customer
account)
Product System
Fraud, Credit and Risk
Group Forensic
Investigate Internal
Staff fraud
Define Internal
Controls
Perform Credit
Checks
Perform Fraud
Checks
(Risk : Suspense
Accounts)
Fraud System
Credit System
Shared Services : Definition of Shared Services here.
The main components within Product Team with payment
focus are:
Execute CRM Activities
Product Systems
The main components within Fraud, Credit, Risk and the Group
Forensic Team are
Investigate internal staff fraud
Defining Internal Controls
Perform Credit Checks
Perform Fraud Checks
The main components within Finance Team are
Perform GL Updates
Define and Maintain Accounting and Management Rules
Finance
Perform GL
Updates
Define and
maintain
accounting and
management
reporting rules
23
24. Current State – Functional View
07 IPS
IPS
Cheque Processing
and Reconciliation
Other Entities – This involves entities external to PBB:
The main components within this Group are
IPS – Cheque Processing and Reconciliation
Cash Services
CIB – Perform Inter-bank Settlement
08 Cash Services
Cash Services
09 CIB
CIB
Perform Inter-bank
Settlement
24
25. Payment Processing Flow
Payments Strategy
Development
Industry Strategy &
Relationship
Management
Activate service
functionality
Fulfil Transaction
Provide Business
Intelligence Data to
Business Performance
Management
Process Framework
Bring
Offerings to
Market
Sell
Offerings
Service
Offerings
Manage Business
Performance
Plan the Business
Design and Build
the Business
Design Offering
Features (payment
capabilities)
Maintain the
Business
End-of-Period Processing
Reconciliation
Exception Handling
25
26. Payment Processing Flow
Payments Strategy
Development
- Plan the Business
Industry Strategy &
Relationship
Management
Activate service
functionality
Fulfil Transaction
Provide Business
Intelligence Data to
Business Performance
Management
Process Framework
Bring
Offerings to
Market
Sell
Offerings
Service
Offerings
Manage Business
Performance
Plan the Business
Design and Build
the Business
Design Offering
Features (payment
capabilities)
Develop Long-Term
PBB Strategy
Define the business
objectives of P&BB,
Customer and Product and
translate them into
measurable elements of
strategy execution
Maintain the
Business
End-of-Period Processing
Reconciliation
Exception Handling
Perform
Planning and
Budgeting
Develop budgets for P&BB
business areas and roll up into a
consolidated budget. Develop
plans to achieve targets and
objectives and allocate P&BB
resources accordingly
26
27. Payment Processing Flow
Payments Strategy
Development
- Bring Offerings to Market
Industry Strategy &
Relationship
Management
Activate service
functionality
Fulfil Transaction
Provide Business
Intelligence Data to
Business Performance
Management
Process Framework
Bring
Offerings to
Market
Sell
Offerings
Service
Offerings
Manage Business
Performance
Plan the Business
Design and Build
the Business
Maintain the
Business
Payment
Component
Design Offering
Features (payment
capabilities)
Create
offerings
End-of-Period Processing
Reconciliation
Exception Handling
Promote
offerings
This process involves conducting a
segmentation study to understand
This process involves creating
customer needs and wants, in order to demand in the market for new and
develop offerings supported by an
existing financial solutions.
appropriate marketing mix strategy.
27
28. Payment Processing Flow
- Bring Offerings to Market
Create Offerings Definition: involves conducting a segmentation study to
understand customer needs and wants, in order to develop offerings supported
by an appropriate marketing mix strategy.
Payment component: The Involvement of Payments strategic team to
understand the impact of the New product launch and its subsequent servicing
at the Payment processing centre based on the rules defined by the Offerings
( Draft version)
28
29. Payment Processing Flow - Bring Offerings to Market
- A. Create Offerings
Customer Offerings Strategy and Planning: Define the strategy for the performance of the capabilities within the
functional area incl. Pricing, targets, volumes, features & services inclusive of Payment functionalities
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Integrated Operations
Support
Vendor Management
(Cheques)
Initiate Time
Triggered
Issue
Documents &
Notifications
Receive
Transaction
Mobile Banking
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Customer offerings Strategy &
Planning
Customer
Data Operations
Regional
Reporting and
Analytics
Origination
Customer offerings
policies and
Methodologies
Customer
offerings
Relationships and
Management
Inputs:
Key objectives
Business Model
Offering Strategy
Features and Services
Strategy including
Payment mechanisms
Outputs:
Offering Strategy
Charge-backs +
Debit Card Liaisoning
Capturing
Respond to/or
contact
Customer
Customer Offerings
Strategy & Planning
Service
Maintenance
and Payments
Customer offerings
Performance
management
Customer Offerings
people Management
Customer Offerings
design, build and run
enablement
29
30. Payment Processing Flow - Bring Offerings to Market
- A. Create Offerings
Customer Offerings design, build and run enablement: Participate in end to end solution design, build and
implementation by providing requirements, determining viability of outputs, conducting user acceptance testing,
providing post implementation specialist expertise and sustaining change in the customer offerings
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Integrated Operations
Support
Vendor Management
(Cheques)
Initiate Time
Triggered
Issue
Documents &
Notifications
Receive
Transaction
Mobile Banking
Settlements
Local + International
Rejections
Data Store
Set-up Future
Dated
Payments
Association Compliance
& Merchant Services
Reconciliations
Regional
Reporting and
Analytics
Origination
Customer offerings
policies and
Methodologies
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Customer offerings Strategy &
Planning
Charge-backs +
Debit Card Liaisoning
Customer
offerings
Relationships and
Management
Service
Maintenance
and Payments
Customer offerings
Performance
management
Customer Offerings
Strategy & Planning
Inputs:
Customer offerings plan
Customer offering build and
run time ideas
Functional area solution
requirements
Newly built solution
Outputs:
Customer offerings solution
requirements
Articulated business case for
customer offerings
Assessed feasibility of design
Sign-offs on Customer
offering solution
Customer offerings system
advisory support
Customer Offerings
people Management
Customer Offerings
design, build and run
enablement
30
31. Payment Processing Flow
Payments Strategy
Development
- Sell Offerings
Industry Strategy &
Relationship
Management
Activate service
functionality
Fulfil Transaction
Provide Business
Intelligence Data to
Business Performance
Management
Process Framework
Bring
Offerings to
Market
Sell
Offerings
Service
Offerings
Manage Business
Performance
Plan the Business
Design and Build
the Business
Originate
Customers
Setting up of a verified
customer record that will
allow the customer to apply
for any of the Bank's
offerings
End-of-Period Processing
Reconciliation
Exception Handling
Originate
Offerings
Initiation and completion of
the offering application with
the customer and induction of
the customer into the bank
and its processes
Activate
Offerings
Payment
Component
Design Offering
Features (payment
capabilities)
Maintain the
Business
Providing the customer with
enablers and enabling the
account. Excludes onboarding as
this is a service process
31
32. Payment Processing Flow
- Sell Offerings
Activate Offerings Definition : Providing the customer with enablers and
enabling the account. Excludes on-boarding as this is a service process
Payment Component: This section involves activation of new accounts for
1. Transactional products
2. VAF accounts – includes Payouts
3. Home loan accounts - includes payouts
4. CARDS – Issue of Credit
( Draft version)
32
33. Payment Processing Flow - Sell Offerings
- A. Activate Offerings
Enable Account : Once approved, co-ordination of account enablement and provision of enablers to the customer
to make the account transactable. Setting up of initial customer authentication and provision of account access
enablers to the customer
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Receive
Transaction
Mobile Banking
Integrated Operations
Support
Vendor Management
(Cheques)
Initiate Time
Triggered
Issue
Documents &
Notifications
Charge-backs +
Debit Card Liaisoning
Customer
Data Operations
Capturing
Regional
Reporting and
Analytics
Origination
Respond to/or
contact
Customer
Sell
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Create the customer
Service
Maintenance
and Payments
Complete offering application
Access Channel
Inputs:
Customer acceptance of
product / service
Customer authentication
details
Customer acceptance of
product / service
Outputs:
Customer authentication
records
Account enablers in
possession
In case of VAF and HL, Payouts
are effected into the
customer’s account and dealer
settlements are carried out
Enable Account
33
34. Payment Processing Flow
Payments Strategy
Development
- Service Offerings
Industry Strategy &
Relationship
Management
Activate service
functionality
Fulfil Transaction
Provide Business
Intelligence Data to
Business Performance
Management
Process Framework
Bring
Offerings to
Market
Sell
Offerings
Service
Offerings
Manage Business
Performance
Plan the Business
Design and Build
the Business
Payment
Component
Design Offering
Features (payment
capabilities)
Maintain the
Business
End-of-Period Processing
Reconciliation
Exception Handling
Fulfill Transaction
Resolve
Complaints
Manage
Accounts
Fulfill Service
Fulfil Transaction: Execution of all customer and
bank initiated value transactions (e.g., deposit,
transfers, withdrawal, standing orders etc)
Fulfil Service: Completion of all customer initiated
service activities (e.g. query, general assistance etc)
Completion of all activities
required to resolve one
and done and escalated
complaints
Management of bank initiated
account maintenance activities
(e.g. collateral maintenance,
collateral valuation etc)
34
35. Payment Processing Flow
- Service Offerings
Fulfil Transaction Definition : Execution of all customer and bank initiated value transactions (e.g., deposit,
transfers, withdrawal, standing orders etc)
Payment Component: All transactions processed through the Payment engine ( Real time and Bulk),
reconciled through the reconciliation engine and prepared for settlement and Posting. ( Draft version)
Fulfil Service Definition : Completion of all customer initiated service activities (e.g. query, general assistance etc)
Payment component: All escalated queries from channel relating to (Saswitch) transactions and
escalated queries from IPC ( especially refunds) would be handled at the Payment processing centre. ( Draft version)
Resolve Complaints Definition : Completion of all activities required to resolve one and done and escalated
complaints
Manage Accounts Definition : Management of bank initiated account maintenance activities (e.g. collateral
maintenance, collateral valuation etc)
35
36. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Access Channel / Identify Customer : Identification of an SBSA customer or prospect via identification mechanisms.
Certify that the mechanism used to initiate the transaction is a valid mechanism
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Initiate Time
Triggered
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Set-up Future
Dated
Payments
Initiate
Scenario 1 : Cheque Deposit at an ATM
Access Channel
IPS
Cheque Processing
and Reconciliation
Service
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Input :
Identification mechanism
like name; card number etc
Contacted customer /
prospect
Output :
Identified customer /
Prospect
Validated identification
mechanism
Maintenance
and Payments
Process Payment
Order
Issue Official Docs
Post Payment
36
37. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Authenticate : Mechanism to accurately confirm the identity of the SBSA customer / prospect. Authentication
mechanisms are channel specific. Examples include Identity document; passport; signature; security question etc
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Initiate
Scenario 1 : Cheque Deposit at an ATM
Authenticate
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Process Payment
Order
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Authenticate:
Pin / Password
Card
Input :
Identified customer /
prospect
Authentication mechanism
e.g. password; PIN
Output :
Authenticated customer /
prospect
Unauthenticated customer /
Prospect
Issue Official Docs
Post Payment
37
38. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Initiate : Initiation and channel fulfilment of a value transaction by a customer or prospect. Customer initiated
value transactions include deposits ( Cash or Cheque), Withdrawals ( Cash or Cheque), transfers ( Inter and Intra
bank) and change transactions
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Initiate
Scenario 1 : Cheque Deposit at an ATM
Initiate
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Process Payment
Order
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Authenticate:
Pin / Password
Card
Input :
Identified customer /
prospect
Authenticated customer or
prospect
Transaction request
Output :
Initiated transaction
Transaction record
Request for transaction
authorization
Issue Official Docs
Post Payment
38
39. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Process Payment Order:
Validate : Fulfill activities required to ensure that the content of the value transaction is “ technically” in order and
complies to the SLA’s and customer agreements. Confirming the existence and validity of the destination account
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Origination
Initiate
Scenario 1 : Cheque Deposit at an ATM
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Authenticate :
Pin / Password
Card
Validate : SBSA Customer
Authorize : SBSA Customer
Input :
Authorized transaction
Output :
Validated Transaction
Regional
Reporting and
Analytics
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Process Payment order
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Process Payment
order
Issue Official Docs
Post Payment
39
40. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Process Payment Order:
Enrich : Provide Payment services / information added to a transaction in response to customer / prospect / bank
requirements as a service or as a basic processing requirement
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Initiate
Scenario 1 : Cheque Deposit at an ATM
Process Payment order
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Process Payment
order
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Authenticate :
Pin / Password
Card
Validate : SBSA Customer
Authorize : SBSA Customer
Input :
Authorized transaction
Validated Transaction
Customer agreement
Output :
Enriched Transaction ( as per
customer / prospect / bank
requirements)
Issue Official Docs
Post Payment
40
41. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Issue Official Docs : Issue physical documents ( e.g. ATM Slips ) and notifications ( e.g. Sms confirmations)
associated with value transactions and service activities
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Customer
Data Operations
Capturing
Regional
Reporting and
Analytics
Origination
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Set-up Future
Dated
Payments
Issue official docs
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Authenticate :
Pin / Password
Card
Validate : SBSA Customer
Authorize : SBSA Customer
Input :
Identified customer / prospect
Authenticated customer /
prospect
Authorized transaction
Request for official docs
Output :
Issued official documents
Issued notifications
Authenticate
Initiate
Scenario 1 : Cheque Deposit at an ATM
Process Payment
Order
Issue Official Docs
Post Payment
41
42. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Post Payment: Post the transaction at a customer account level (i.e. Sub-ledger). Apply financial conditions
associated with the package i.e. Calculate fees and commission, increment transaction counter etc
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Set-up Future
Dated
Payments
Initiate
Scenario 1 : Cheque Deposit at an ATM
Post payment
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Process Payment
Order
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Authenticate :
Pin / Password
Card
Validate : SBSA Customer
Authorize : SBSA Customer
Post : Account
Input :
Accounting rules
Calculated fees
Calculated commission
Output :
Account(s) updated
Issue Official Docs
Post Payment
42
43. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Access Channel / Identify Customer : Identification of an SBSA customer or prospect via identification mechanisms.
Certify that the mechanism used to initiate the transaction is a valid mechanism
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Initiate
Access Channel
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Process Payment
Order
Channel : Cash centre /
Branch
Instruction Flow : Us on Us
Enabler : paper
Input :
Identification mechanism
like name; username, card etc
Contacted customer /
prospect
Output :
Identified customer /
Prospect
Validated identification
mechanism
Issue Official Docs
Scenario 2 : Cheque encashment at Branch – SBSA ( Local currency cheque)
Post Payment
43
44. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Authenticate : Mechanism to accurately confirm the identity of the SBSA customer / prospect. Authentication
mechanisms are channel specific. Examples include Identity document; passport; signature; security question etc
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design Feature
and Service
Specification
Execute CRM
Activities
Design
Offerings
Features
Manage
Agreements
(Industry)
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
Branch
Perform GL
Updates
(Risk : Suspense
Accounts)
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Integrated Operations
Support
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Initiate
Service
Authenticate
Channel : Cash Centre /
Maintenance
and Payments
Process Payment
Order
Instruction Flow : Us on Us
Enabler : Paper
Authenticate:
Identity doc
Signature
Input :
Identified customer /
prospect
Authentication mechanism
e.g. Identity document;
password; PIN; Signature
Output :
Authenticated customer /
prospect
Unauthenticated customer /
Prospect
Issue Official Docs
Scenario 2 : Cheque encashment at Branch – SBSA ( Local currency cheque)
Post Payment
44
45. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Initiate : Initiation and channel fulfilment of a value transaction by a customer or prospect. Customer initiated
value transactions include deposits ( Cash or Cheque), Withdrawals ( Cash or Cheque), transfers ( Inter and Intra
bank) and change transactions
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
CV
Z
Branch
Design Feature
and Service
Specification
Execute CRM
Activities
Design
Offerings
Features
Manage
Agreements
(Industry)
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Client Contact
Centre
Identify
Customer
Authenticate
Switch Account
Payment
Orders
CV
Z
Initiate
Transaction
Process
Payment Order
Payment Engine
Set-up Future
Dated
Payments
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Integrated Operations
Support
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Initiate
Service
Channel : Cash centre /
Branch
Perform GL
Updates
(Risk : Suspense
Accounts)
Credit System
Initiate
IPS
Cheque Processing
and Reconciliation
Maintenance
and Payments
Process Payment
Order
Instruction Flow : Us on Us
Enabler : Paper
Authenticate:
Identity doc
Signature
Input :
Identified customer /
prospect
Authenticated customer or
prospect
Transaction request
Output :
Initiated transaction
Transaction record
Request for transaction
authorization
Issue Official Docs
Scenario 2 : Cheque encashment at Branch – SBSA ( Local currency cheque)
Post Payment
45
46. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Process Payment Order:
Validate : Fulfill activities required to ensure that the content of the value transaction is “ technically” in order and
complies to the SLA’s and customer agreements. Confirming the existence and validity of the destination account
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
CV
Z
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Origination
Initiate
Instruction Flow : Us on Us
Enabler : Paper
Authenticate :
Identity doc
Signature
Validate : SBSA Customer
Authorize : SBSA Customer
Input :
Authorized transaction
Output :
Validated Transaction
Regional
Reporting and
Analytics
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Integrated Operations
Support
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Channel : Cash Centre /
Branch
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
Process Payment order
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Process Payment
order
Issue Official Docs
Scenario 2 : Cheque encashment at Branch – SBSA ( Local currency cheque)
Post Payment
46
47. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Process Payment Order:
Enrich : Provide Payment services / information added to a transaction in response to customer / prospect / bank
requirements as a service or as a basic processing requirement
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Integrated Operations
Support
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Initiate
Service
Maintenance
and Payments
Process Payment
order
Channel : Cash centre /
Branch
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
Process Payment order
IPS
Cheque Processing
and Reconciliation
Instruction Flow : Us on Us
Enabler : Paper
Authenticate :
Identify doc
Signature
Validate : SBSA Customer
Authorize : SBSA Customer
Input :
Authorized transaction
Validated Transaction
Customer agreement
Output :
Enriched Transaction ( as per
customer / prospect / bank
requirements)
Issue Official Docs
Scenario 2 : Cheque encashment at Branch – SBSA ( Local currency cheque)
Post Payment
47
48. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Issue Official Docs : Issue physical documents ( e.g. ATM Slips ) and notifications ( e.g. Sms confirmations)
associated with value transactions and service activities
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Customer
Data Operations
Capturing
Regional
Reporting and
Analytics
Origination
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Set-up Future
Dated
Payments
Issue official docs
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Channel : Cash centre / Branch
Instruction Flow : Us on Us
Enabler : Paper
Authenticate :
Identity document
Signature
Validate : SBSA Customer
Authorize : SBSA Customer
Input :
Identified customer / prospect
Authenticated customer /
prospect
Authorized transaction
Request for official docs
Output :
Issued official documents
Issued notifications
Authenticate
Initiate
Process Payment
Order
Issue Official Docs
Scenario 2 : Cheque encashment at Branch – SBSA ( Local currency cheque)
Post Payment
48
49. Payment Processing Flow – Service Offerings
- A. Fulfil Transactions
Post Payment: Post the transaction at a customer account level (i.e. Sub-ledger). Apply financial conditions
associated with the package i.e. Calculate fees and commission, increment transaction counter etc
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
Credit System
IT Services
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Initiate Time
Triggered
Issue
Documents &
Notifications
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Set-up Future
Dated
Payments
Initiate
Post payment
IPS
Cheque Processing
and Reconciliation
Service
Maintenance
and Payments
Process Payment
Order
Channel : Cash centre / Branch
Instruction Flow : Us on Us
Enabler : Paper
Authenticate :
Identity document
Signature
Validate : SBSA Customer
Authorize : SBSA Customer
Post : Account
Input :
Accounting rules
Calculated fees
Calculated commission
Output :
Account(s) updated
Issue Official Docs
Scenario 2 : Cheque encashment at Branch – SBSA ( Local currency cheque)
Post Payment
49
50. Payment Processing Flow – Service Offerings
- B. Fulfil Service
Identify Customer : Identification of SBSA customer or prospect via identification mechanisms. Identification
mechanisms include customer / prospect name, username, card etc.
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Initiate Time
Triggered
Issue
Documents &
Notifications
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Manage Queries
Identify Customer
IPS
Cheque Processing
and Reconciliation
Service
Qualify complaint
Channel : CCC, CRC,
Branch, Electronic mail
Input :
Identification mechanism
like name; username, card etc
Contacted customer /
prospect
Output :
Identified customer /
Prospect
Validated identification
mechanism
Maintenance
and Payments
Resolve complaint
Resolve escalated
complaint
50
51. Payment Processing Flow – Service Offerings
- B. Fulfil Service
Authenticate : Mechanism to accurately confirm the identity of the SBSA customer / prospect. Authentication
mechanisms are channel specific. Examples include Identity document; passport; signature; security question etc
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Initiate Time
Triggered
Issue
Documents &
Notifications
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Manage Queries
Authenticate
IPS
Cheque Processing
and Reconciliation
Service
Qualify complaint
Channel : CCC, CRC,
Branch, Electronic mail
Authenticate:
Pin / Password/ I.D
Card
Input :
Identified customer /
prospect
Authentication mechanism
e.g. Identity document;
password; PIN; Signature
Output :
Authenticated customer
Unauthenticated customer
Maintenance
and Payments
Resolve complaint
Resolve escalated
complaint
51
52. Payment Processing Flow – Service Offerings
- B. Fulfil Service
Manage Queries : Receipt of Queries and handling. Where necessary, query redirected to the appropriate
resolution parties and complex queries escalated.
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Integrated Processing Centre
Centralized
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Initiate Time
Triggered
Issue
Documents &
Notifications
Charge-backs +
Debit Card Liaisoning
Origination
Authenticate
Customer
Data Operations
Regional
Reporting and
Analytics
Manage Queries
Input :
Authenticated customer
Account information request
Query ( Including information,
assistance or status request)
Output :
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Integrated Operations
Support
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Settlements
Local + International
Rejections
Data Store
Set-up Future
Dated
Payments
Association Compliance
& Merchant Services
Reconciliations
Pin / Password / I.D
Card
Perform Inter-bank
Settlement
Net Banking
Process
Payment Order
Electronic mail
CIB
Fraud System
Manage
Customer
Agreements
Channel : CCC, CRC, Branch,
Authenticate:
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
IT Services
Manage Queries
IPS
Cheque Processing
and Reconciliation
Service
Qualify complaint
Maintenance
and Payments
Communicated account
information
Resolved customer query
Customer complaint
Recorded (and escalated query)
General information , assistance
or status provided
Resolve complaint
Resolve escalated
complaint
52
53. Payment Processing Flow – Service Offerings
- B. Fulfil Service
Qualify complaint : Receive and qualify complaints logged by customers. Gather all details pertaining to the
complaint. Direct complaints to the specialist area in instances where channel does not have the capability to
resolve the complaint
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Initiate Time
Triggered
Issue
Documents &
Notifications
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Manage Queries
Qualify complaint
IPS
Cheque Processing
and Reconciliation
Service
Qualify complaint
Maintenance
and Payments
Channel : CCC, CRC
Branch, Electronic mail
Authenticate:
Pin / Password/ I.D
Card
Input :
Authenticated customer or
prospect
Customer complaint
Complaint management
guidelines
Output :
Complaint record
Qualified complaint
Directed complaint
Resolve complaint
Resolve escalated
complaint
53
54. Payment Processing Flow – Service Offerings
- B. Fulfil Service
Resolve complaint : Analysis of customer complaint that have been identified as channel specific. Investigate and
resolution of channel specific complaint
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Initiate Time
Triggered
Issue
Documents &
Notifications
Integrated Operations
Support
Origination
Manage Queries
Card
Input :
unresolved complaint
Complaint management
guidelines
Output :
Resolved complaint
Customer
Data Operations
Regional
Reporting and
Analytics
Authenticate
Channel : CCC, CRC,
Branch, Electronic mail
Authenticate:
Pin / Password / I.D
Charge-backs +
Debit Card Liaisoning
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Resolve Complaint
IPS
Cheque Processing
and Reconciliation
Service
Qualify complaint
Maintenance
and Payments
Resolve complaint
Resolve escalated
complaint
54
55. Payment Processing Flow – Service Offerings
- B. Fulfil Service
Resolve escalated queries : Complaints escalated via the banking channels ( complaints are escalated when
channel does not have the capability to resolve the complaint or when customers are dissatisfied with the
resolution of the complaint
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Set-up Future
Dated
Payments
Initiate Time
Triggered
Issue
Documents &
Notifications
Integrated Operations
Support
Charge-backs +
Debit Card Liaisoning
Regional
Reporting and
Analytics
Origination
Authenticate
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Access Channel/
Identify Customer
Settlements
Local + International
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Manage Queries
Resolve escalated complaint
IPS
Cheque Processing
and Reconciliation
Service
Qualify complaint
Channel : CCC, CRC,
Branch, Electronic mail
Authenticate:
Pin / Password/ I.D
Card
Input :
Directed complaint
Escalated complaint
Complaint management
guidelines
Output :
Resolved escalated complaint
Unresolved escalated
complaint
Maintenance
and Payments
Resolve complaint
Resolve escalated
complaint
55
56. Payment Processing Flow – Service Offerings
- C. Manage Accounts
Initiate: Identify all the periodic triggers on an account and initiate( specific to an operational environment);
examples include payment instruments requiring renewal, fees and interest accruals to be posted, future dated
payments to be executed
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
IT Services
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Process
Payment Order
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Receive
Transaction
Mobile Banking
Settlements
Local + International
Integrated Operations
Support
Vendor Management
(Cheques)
Initiate Time
Triggered
Issue
Documents &
Notifications
Input :
Customer account
information
Customer
Data Operations
Regional
Reporting and
Analytics
Origination
Document management
Output :
Event triggers actioned
in the customers account
Charge-backs +
Debit Card Liaisoning
Capturing
Respond to/or
contact
Customer
Initiate
Association Compliance
& Merchant Services
Reconciliations
Rejections
Data Store
Phone Banking
Channel : Customer / Bank
initiated
Centralized
Manage
Customer
Agreements
Client Contact
Centre
Initiate
Service
Maintenance
and Payments
Collateral Management
Debt review and collections
56
57. Payment Processing Flow – Service Offerings
- C. Manage Accounts
Document Management: Prepare, generate and supply paper correspondence including account statements for all
accounts. This includes conformance to specifications and SLA’s as agreed
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
IT Services
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Receive
Transaction
Mobile Banking
Initiate Time
Triggered
Issue
Documents &
Notifications
Charge-backs +
Debit Card Liaisoning
Customer
Data Operations
Capturing
Input :
Specification for
documents
Information required on
documents
Output :
Documents produced /
Not produced
Regional
Reporting and
Analytics
Origination
Document management
Channel : Customer / Bank
initiated
Integrated Operations
Support
Vendor Management
(Cheques)
Respond to/or
contact
Customer
Initiate
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Document Management
Service
Maintenance
and Payments
Collateral Management
Debt review and Collections
57
58. Payment Processing Flow – Service Offerings
- C. Manage Accounts
Collateral Management: This process refers to obtaining suretyships and collateral items pledged, ceded or bonded
to the bank as security to the loan, valuation and re-evaluation of collateral market values, realization and release of
surety ships and supporting collateral
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
IT Services
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Receive
Transaction
Mobile Banking
Integrated Operations
Support
Vendor Management
(Cheques)
Initiate Time
Triggered
Issue
Documents &
Notifications
Charge-backs +
Debit Card Liaisoning
Customer
Data Operations
Capturing
Regional
Reporting and
Analytics
Origination
Respond to/or
contact
Customer
Initiate
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Document management
Service
Maintenance
and Payments
Collateral Management
Collateral Management
Channel : Customer/ Bank
initiated
Input :
Credit policy, Credit
procedure
Trigger for periodic reevaluation
Output :
Obtained collateral
Valued and Re-valued
collateral
Released collateral
Realized collateral
Debt review and Collections
58
59. Payment Processing Flow – Service Offerings
- C. Manage Accounts
Debt review and collections : Involves contacting customer in response to a collection prompt, voluntary reviewing
and respreading of customer and ensuring the collateral types defined by Basel II are used and weighted
accordingly. Also, involves the activities required to manage accounts in collections that are post write - off
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
IPS
Fraud, Credit and Risk
Cheque Processing
and Reconciliation
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
IT Services
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Receive
Transaction
Mobile Banking
Integrated Operations
Support
Vendor Management
(Cheques)
Initiate Time
Triggered
Issue
Documents &
Notifications
Charge-backs +
Debit Card Liaisoning
Customer
Data Operations
Capturing
Regional
Reporting and
Analytics
Origination
Respond to/or
contact
Customer
Initiate
Settlements
Local + International
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Document management
Service
Maintenance
and Payments
Collateral Management
Respond to customer
Channel : Customer/ Bank
initiated
Input :
Credit collection prompt
Customer interaction and
collection strategy
Account ageing
Written off accounts
Output :
Collection feedback
Re-structured accounts
Outstanding payments
collected
Maximized recoveries
Minimized losses
Optimized costs
Debt review and collections
59
60. Payment Processing Flow
Payments Strategy
Development
- Design and Build Business
Industry Strategy &
Relationship
Management
Activate service
functionality
Fulfil Transaction
Provide Business
Intelligence Data to
Business Performance
Management
Process Framework
Bring
Offerings to
Market
Sell
Offerings
Service
Offerings
Manage Business
Performance
Plan the Business
Design and Build
the Business
Design Offering
Features (payment
capabilities)
Design the Business
Build the Business
Perform Strategic Sourcing
Maintain the
Business
Prepare for Settlement
Reconciliation
Exception Handling
Design the P&BB business environment (i.e.
people, process and technology)
Build the P&BB business environment (i.e. people,
process and technology)
Establish mutually beneficial agreements with
suppliers to enable demand fulfilment and
continuously reduce the Total Cost of Ownership
(TCO)
60
61. Payment Processing Flow
- Maintain the Business
Payments Strategy
Development
Industry Strategy &
Relationship
Management
Activate service
functionality
Provide Business
Intelligence Data to
Business Performance
Management
Fulfil Transaction
Process Framework
Bring
Offerings to
Market
Sell
Offerings
Service
Offerings
Manage Business
Performance
Plan the Business
Design Offering
Features (payment
capabilities)
Perform Procurement
Maintain Physical Infrastructure
Fulfil repetitive purchases of consumables, assets and
services at the best total cost of ownership for P&BB
Maintain physical infrastructure to ensure P&BB’s
continued business capability (i.e. buildings, facilities
etc)
Maintain the
Business
Prepare for Settlement
Reconciliation
Exception Handling
Manage Workforce
Reconciliation
Maintain IT Infrastructure
Maintain IT infrastructure to ensure P&BB’s
continued business capability (i.e. systems etc)
Exception Handling
Manage Data
Manage enterprise data strategy, data quality and
data governance for P&BB
Settlement
Ensure P&BB has the correct staff, with the
correct skills and knowledge, who are
continually aligned with the P&BB strategy
Payment Component
Design and Build
the Business
To Be Defined
Manage errors during and after the
execution and processing of a payment
Systematic matching of Settlement obligation
instructions from merchants; agent banks,
clearing houses , reserve bank and Card
associations 61
62. Payment Processing Flow
- Maintain the Business
Prepare for Settlement : Systematic matching of settlement obligation instructions from Merchants; Agent banks;
Reserve bank; Clearing house and Card associations
Exception Handling Definition : Manage errors during and after the execution and processing of a payment
In process exception
Post process exception
62
63. Payment Processing Flow - Maintain the Business
- A. Reconciliation
Reconciliation :
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Group Forensic
Investigate Internal
Staff fraud
Execute CRM
Activities
Product System
(customer
account)
Perform Credit
Checks
Product System
Channel
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Settlements
Local + International
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Vendor Management
(Cheques)
Initiate Time
Triggered
Receive
Transaction
Mobile Banking
Issue
Documents &
Notifications
Origination
Maintain IT
Infrastructure
Processed transaction
Files sent from clearing
house and internal systems
Output :
Reconciled / un reconciled
transaction
Customer
Data Operations
Regional
Reporting and
Analytics
Maintain
Physical
Infrastructure
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Input :
Charge-backs +
Debit Card Liaisoning
Capturing
Respond to/or
contact
Customer
Perform Procurement
Integrated Operations
Support
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Process
Payment Order
Client Contact
Centre
Reconciliation
IPS
Cheque Processing
and Reconciliation
Manage Data
Service
Manage
Workforce
Maintenance
and Payments
Reconciliation
Exception
handling
Prepare for
Settlement
63
64. Payment Processing Flow - Maintain the Business
- B. Exception Handling
• Exception Handling : The process to manage to manage errors during and after the execution and processing of a payment.
There are two types of exception handling
• In-process
• Post-process
• Raise; Clear & Confirm / Monitor Exceptions
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Group Forensic
Investigate Internal
Staff fraud
Execute CRM
Activities
Product System
(customer
account)
Perform Credit
Checks
Product System
Channel
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
Centralized
Manage
Customer
Agreements
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Settlements
Local + International
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Vendor Management
(Cheques)
Initiate Time
Triggered
Receive
Transaction
Mobile Banking
Issue
Documents &
Notifications
Origination
Maintain IT
Infrastructure
Output :
Transaction identified / un
identified in the Rejections and
captured for processing
Customer
Data Operations
Regional
Reporting and
Analytics
Maintain
Physical
Infrastructure
Charge-backs +
Debit Card Liaisoning
Capturing
Respond to/or
contact
Customer
Perform Procurement
Integrated Operations
Support
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Process
Payment Order
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Input :
transaction for processing
Rejected transaction
Integrated Processing Centre
Net Banking
Client Contact
Centre
Exception Handling
IPS
Cheque Processing
and Reconciliation
Manage Data
Service
Manage
Workforce
Maintenance
and Payments
Reconciliation
Exception
handling
Prepare for
Settlement
64
65. Payment Processing Flow - Maintain the Business
- C. Prepare for Settlement
Prepare for Settlement : The process of sending and receiving settlement obligation instructions at a domestic and /
or international level and the matching of these to settlement obligation instructions
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Group Forensic
Investigate Internal
Staff fraud
Execute CRM
Activities
Product System
(customer
account)
Perform Credit
Checks
Product System
Channel
Credit System
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
IT Services
transaction for processing
Rejected transaction
Centralized
Manage
Customer
Agreements
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Settlements
Local + International
Switch Account
Payment
Orders
Set-up Future
Dated
Payments
Initiate Time
Triggered
Issue
Documents &
Notifications
Charge-backs +
Debit Card Liaisoning
Regional
Reporting and
Analytics
Origination
Maintain
Physical
Infrastructure
Customer
Data Operations
Capturing
Respond to/or
contact
Customer
Perform Procurement
Transaction captured for
settlement
Vendor Management
(Cheques)
Receive
Transaction
Mobile Banking
Integrated Operations
Support
Output :
Rejections
Data Store
Phone Banking
Association Compliance
& Merchant Services
Reconciliations
Process
Payment Order
Channel : ATM
Instruction Flow : Us on Us
Enabler : Card + Chip
Input :
Integrated Processing Centre
Net Banking
Client Contact
Centre
Prepare for Settlement
IPS
Cheque Processing
and Reconciliation
Maintain IT
Infrastructure
Manage Data
Service
Manage
Workforce
Maintenance
and Payments
Reconciliation
Exception
handling
Prepare for
Settlement
65
66. Payment Processing Flow
Payments Strategy
Development
- Manage Business Performance
Industry Strategy &
Relationship
Management
Activate service
functionality
Fulfil Transaction
Provide Business
Intelligence Data to
Business Performance
Management
Process Framework
Bring
Offerings to
Market
Sell
Offerings
Service
Offerings
Manage Business
Performance
Plan the Business
Design and Build
the Business
Payment
Component
Design Offering
Features (payment
capabilities)
Measure and Report Performance
Measure and Monitor Service
Providers
Maintain the
Business
End-of-Period Processing
Reconciliation
Exception Handling
Measure and report the performance of P&BB across multiple
dimensions (i.e. Offerings, Operations, Channel, IT, Credit, HR,
Finance, Risk & Compliance and Business Architecture)
Measure, monitor and review operational and
service level agreements with internal and
external partners
66
67. Payment Processing Flow
- Manage Business Performance
Measure and Report Performance Definition : Measure and report the performance of P&BB across multiple
dimensions (i.e. Offerings, Operations, Channel, IT, Credit, HR, Finance, Risk & Compliance and Business
Architecture)
Payments Component: Measurement and reporting of performance on the Payment Processing centre
No. of Exceptions ( Identified and cleared)
No. of Escalated queries handled within SLA
% of Un reconciled transactions ( Volume and Value)
Settlement obligations as per defined SLA
( Draft version)
67
68. Payment Processing Flow - Manage Business Performance
- A. Report Performance
Manage Business performance: Gather performance data related to service level agreement / OLA defined and
distribute to relevant stakeholders
Channel
Touch Point
Standard Bank – Personal and Business Banking – Payments Flow
Offerings/Payment
Strategy
[Blue Print As-Is 2010]
Shared Services
Product Team
Fraud, Credit and Risk
Finance
ATM
Develop
Offerings
Strategy
Branch
Design
Offerings
Features
Design Feature
and Service
Specification
Manage
Agreements
(Industry)
Execute CRM
Activities
Product System
(customer
account)
Product System
Channel
Group Forensic
Investigate Internal
Staff fraud
Perform Credit
Checks
Credit System
IT Services
Define Internal
Controls
Perform GL
Updates
(Risk : Suspense
Accounts)
Cash Services
Define and
maintain
accounting d
management
reporting rules
Perform Fraud
Checks
CIB
Perform Inter-bank
Settlement
Fraud System
Integrated Processing Centre
Net Banking
Centralized
Manage
Customer
Agreements
Process
Payment Order
Client Contact
Centre
Identify
Customer
Authenticate
Initiate
Transaction
Payment Engine
Switch Account
Payment
Orders
Phone Banking
Receive
Transaction
Mobile Banking
Respond to/or
contact
Customer
Association Compliance
& Merchant Services
Reconciliations
Settlements
Local + International
Integrated Operations
Support
Rejections
Vendor Management
(Cheques)
Data Store
Set-up Future
Dated
Payments
Initiate Time
Triggered
Issue
Documents &
Notifications
Report on Performance
IPS
Cheque Processing
and Reconciliation
Charge-backs +
Debit Card Liaisoning
Customer
Data Operations
Capturing
Regional
Reporting and
Analytics
Origination
Service
Maintenance
and Payments
Channel : All
Instruction Flow : Us on Us
Them on us
Us on them
Input :
Performance management
measures for functional
management of business
partners and suppliers
Output :
Performance reports
Performance problems and
areas of concern identified and
communicated to business
partners
68
69. VARIOUS REGULATIONS
• LEGAL FRAMEWORK FOR PAYMENT & SETTLEMENT SYSTEMS OF INDIA
• The Negotiable Instruments Act, 1881 (N.I. Act) :- legal base for all
cheque-based (instrument-based) payment systems in India
• Amendment to the Information Technology Act, 2000: make it applicable
to N.I. Acthas accorded legal status to the usage of electronic payment
systems in Indian banking.
• Under the PSS Act, 2007, two Regulations have been made by the
Reserve Bank of India,
• The Board for Regulation and Supervision of Payment and Settlement Systems
Regulation, 2008 :- deals with the constitution of the Board for Regulation and
Supervision of Payment and Settlement System (BPSS),The BPSS exercises the
powers on behalf of the Reserve Bank, for regulation and supervision of the
payment and settlement systems under the PSS Act, 2007.
• The Payment and Settlement Systems Regulations, 2008:- matters like form of
application for authorization for commencing/ carrying on a payment system and
grant of authorization, payment instructions and determination of standards of
payment systems, furnishing of returns/documents/other information,
furnishing of accounts and balance sheets by system provider etc
Notas del editor
Most of the world’s major banks maintain correspondent banking relationships with local banks in each of the important foreign cities of the world.
-> Amendment to the Information Technology Act, 2000: make it applicable to N.I. Acthas accorded legal status to the usage of electronic payment systems in Indian banking.the electronic payment systems like ECS, EFT, NDS, RTGS, etc. work on the basis of a series of bi-lateral agreements made specifically for each one of them which are of contractual nature between the participant and the manager of the systems.