• Published on 19 August 2021
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Hang Seng Bank (China) integrates virtual account and H2H/APIs to optimise liquidity and improve operational efficiency

Hang Seng Bank (China) implemented an end-to-end solution that eliminates the need for customers to use multiple service providers and improves fragmented system connectivity and visibility on sales collections.

• The bank improved liquidity management and visibility of cash position for its client, Mulsanne Group
• The bankimplemented a solution integrating host-to-host/application programming interfaces, virtual accounts and enhanced cash management system
• The solution brought significant business impact to Mulsanne Group

Beijing, 22 July 2021– Hang Seng Bank (China) was recognised for Best ERP Integration Solution, Initiative, Application or Programme at The Asian Banker Transaction Finance and Bankers’ Choice Awards Virtual Ceremony 2021.

The Best ERP Integration Solution, Initiative, Application or Programme category received submissions from Hang Seng Bank (China), YES Bank (India) and China Merchants Bank (CMB). Hang Seng Bank (China) stood out based on the submissions received this year.

CMB implemented an integrated service solution for internet technology company

Bytedance, which involves a direct connection between Bytedance’s own enterprise resource planning (ERP) and the bank’s enterprise connectivity service. YES Bank’s ERP initiative, Master Integration has integrated banking channels with technology solutions such as ERPs, accounting systems and treasury management systems. It enabled customers to initiate transactions, update and aggregate customer accounts across multiple banks directly on the technology platform without any manual intervention.

Business Mandate: The bank improved liquidity management and visibility of cash position for Mulsanne Group

Hang Seng Bank (China) provided an end-to-end solution to investment holding company Mulsanne Group to improve liquidity management across the company. Mulsanne Group has more than 1,400 direct sales stores and franchise outlets.

In the past, Mulsanne Group’s pre-existing processes were managed by multiple service providers across its entire cash management functions which resulted in fragmented system connectivity, poor insights from data consolidation and substandard visibility of cash. Since these service providers do not communicate with each other, Mulsanne Group made numerous efforts to mine data manually for reconciliation purposes.

Mulsanne Group targets to upgrade its business resiliency by optimising the management of liquidity across the stores and improve operational efficiency, as the pandemic battered the sales and business flows.

Product, Service and Channel Capabilities: The bank integrated H2H/APIs, virtual accounts and enhanced CMS

To address Mulsanne Group’s key pain points, Hang Seng Bank (China) has proposed a bespoke solution that integrates virtual account service, host-to-host/application programming interfaces (H2H/APIs) and enhanced cash management system (CMS). The implementation of virtual accounts eliminates the need for each retail store to open its own account. As each store is assigned a virtual account number, the group can identify deposited remittances from each point of sale (POS) machine of the respective retail store. It can simply identify the individual virtual account number, leading to greater visibility on sales collections and lower account management cost.

The implementation of H2H/API feeds the receivables information into Mulsanne Group’s ERP system automatically instead of signing into each banking service provider’s account separately. Payments can be made directly from the ERP system as well.

The enhancement of CMS serves as a one-stop model. Data from different channels are easily consolidated under one platform and unified in one format for automated reconciliation.

Customer Experience: The solution brought significant business impact toMulsanne Group

Hang Seng Bank (China)’s solution allowed Mulsanne Group to manage liquidity more systematically and made its business scalable for future expansion.

Prior to its implementation, Mulsanne Group had working relationships with several banks. The five service providers involved in pre-existing processes include three payment institutions that provide POS/barcode scanner service. It also had one vendor that provided an order management system and another that provided an ERP system.

With the bank’s solution, Mulsanne Group’s virtual accounts reduced the number of physical bank accounts opened for each retail store from over 300 to one. With the secured e-banking system, Mulsanne Group can now submit the payment instructions backed by authorised controls and generate e-statement which can be easily downloaded in PDF/Excel format anytime, in line with sustainability.

About Frictionless Transaction Awards

The Frictionless Transaction Awards recognises both traditional and non-traditional players providing outstanding customer-centric solutions, connections and access channels to users of transaction services that were creatively designed to give better user experience, efficiency, speed, flexibility and cost effectiveness. The winners of this award underwent a stringent evaluation at the regional level to emerge as the most ‘frictionless’ initiative, application or programme. For specific details relating to description of the awards, evaluation criteria and process, kindly visit http://www.asianbankerawards.com/transactionawards/index.php.

About The Asian Banker

The Asian Banker is the region’s most authoritative provider of strategic business intelligence to the financial services community. The global research company is headquartered in Singapore, with offices in Manila, Malaysia, Hong Kong, Beijing, and Dubai, as well as representatives in London, New York, and San Francisco. It has a business model that revolves around three core business lines: publications, research services, and forums. The company’s website is www.theasianbanker.com.

For more information, please contact:

Sue Kim

Marketing Executive

Tel: +971 55 8587 992

skim@theasianbanker.com