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Payment Automation Package
Vendor payments, bulk transfers, automatic payment runs and bank file format management. Faster payment processes with fewer errors.
At the overseas subsidiaries of one of Turkey's leading industrial groups, payment instructions are now created in SAP, passed to SWIFTNet through SAP Multi-Bank Connectivity and delivered to the banks as MT101 messages. Live in four months.
The client name is withheld at the client’s request.
The overseas subsidiaries of one of Turkey's leading industrial groups needed a secure, central and scalable bank communication foundation for their payment operations. Rather than building independent connections and integrations with each bank, the goal was a central bank communication model on SAP Multi-Bank Connectivity and SWIFTNet.
In the project Montag delivered, SAP Multi-Bank Connectivity went live; the overseas subsidiaries' payment instructions are created in SAP and sent to the relevant banks over the SWIFT network. The MT101 – Request for Transfer message type was used for payment messaging. After a four-month project, the central payment and bank communication foundation went live.
In large companies with international operations, managing bank connections grows more complex as the number of banks and countries increases. A separate integration model for every bank brings the following burdens:
The core need was to manage the overseas subsidiaries' payments from SAP while standardising bank communication on a single, central foundation.
SAP Multi-Bank Connectivity and SWIFTNet sit at the centre of the solution. Once the SWIFTNet connectivity was in place, SAP Multi-Bank Connectivity went live as the central communication layer between the SAP systems and the banking network:
The project's core use case was running the overseas subsidiaries' payments centrally from SAP. Payment instructions are created in SAP; the messages are passed to SWIFTNet through SAP Multi-Bank Connectivity and routed from there to the relevant banks. The subsidiaries' payment operations are thus managed in a single SAP-centred process instead of across bank portals and independent communication methods.
MT101 is one of the standard SWIFT message types used to transmit payment and funds transfer instructions electronically to financial institutions. In international payments, it is critical not only that the connection exists but that messages reach the banks securely in a standard format; using SAP Multi-Bank Connectivity together with SWIFTNet delivered exactly that.
Only MT101 was used in this project, but SAP Multi-Bank Connectivity is not a payments-only solution. The same foundation can carry financial communication between SAP Treasury & Risk Management and the banks. The message types below were out of scope; the architecture built is a ready foundation for them:
| MT101 | Request for Transfer — payment instructions (used in the project) |
|---|---|
| MT300 | FX deals and FX confirmations (out of scope, foundation ready) |
| MT320 | Money market deals, loan and deposit confirmations (out of scope, foundation ready) |
Instead of fully independent integration architectures per bank, a common communication layer on SAP Multi-Bank Connectivity and SWIFTNet was used. It provides a strong foundation for:
For large companies operating in several countries with different global banks, this simplifies the management of bank integrations; payments, treasury operations, FX and money market transactions can in future be managed on the same bank connectivity foundation.
| Business problem | Making the payment communication that overseas subsidiaries run with different banks central and standard. |
|---|---|
| Solution | SAP Multi-Bank Connectivity. |
| Connectivity | SWIFTNet. |
| Message type | MT101 – Request for Transfer. |
| Approach | A central financial communication layer instead of different integration models per bank. |
| Payment process | Payment instructions created in SAP and delivered to the banks via SAP Multi-Bank Connectivity and SWIFTNet. |
| Treasury capability | The same platform can support treasury messaging scenarios such as MT300 and MT320 (out of project scope). |
| Duration | 4 months |
| Outcome | Global payment operations run on a central, standard and scalable SAP and SWIFT architecture. |
Overseas subsidiaries' payment instructions are now managed from SAP.
MT101 payment messages are created in SAP and sent to the SWIFT network; instructions reach the banks electronically via SWIFTNet.
Different bank connections are handled under a common communication architecture.
Operational dependency on bank portals and bank-specific communication methods was reduced.
SAP Multi-Bank Connectivity was positioned as the common communication layer between the company and its banks.
A scalable structure was built that can carry other treasury and banking scenarios on the same platform in future.
Vendor payments, bulk transfers, automatic payment runs and bank file format management. Faster payment processes with fewer errors.
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