HSBC, SAP and SWIFT combine to link big companies with their banks

Electronic transaction software integrates ERP systems to multiple banks using lower-cost standards

HSBC, SAP and banking communications service SWIFT have joined forces to extend a system which enables HSBC's corporate customers using SAP's ERP software to link directly to multiple banks.

Companies use many interfaces to conduct electronic transactions between their own ERP systems, their banks' systems, and those of other business partners in their supply chain.

Often these interfaces have been added one by one and thus use a variety of protocols, including proprietary ones. Maintaining these point-to-point interfaces can be costly.

The intention of this latest iteration of HSBC Connect to SAP is to use SWIFT's open communications standards to lower what have been the prohibitively high costs associated with maintaining multiple interfaces.

"The ability to connect seamlessly with not just one bank, but several banking partners, is quickly becoming a priority in the corporate space," said Marcus Treacher, head of e-commerce at HSBC.

"Our collaborative approach sets [our HSBC Connect to SAP solution] apart from others and allows us to continue to meet the connectivity needs of our corporate customers."

This latest HSBC Connect to SAP solution comprises SAP's Bank Communication Management application and NetWeaver platform, plus a preconfigured component for access to the SWIFT network.

The trio foresees using the software to streamline and automate communication among HSBC, its corporate customers and the SWIFT network for the delivery of corporate banking services. This will be particularly handy for customers that maintain relationships with multiple financial institutions in more than one region.

As well as reduced cost, the parties say the system will offer greater flexibility, richer information, reduced operational risk, streamlined provisioning and easier implementation of future services.

HSBC and SAP have signed a collaboration agreement providing customers with a one-stop shop for the system. It will be rolled out in the third quarter of 2011.