Tieto Cash ManagementState-of-the-art cash management in a Global Economy

Ever more stringent legislation for the financial services industry in Europe and the U.S., historically low interest rates, the advent of the euro/SEPA and the implementation of BASEL II, have focused attention on the value of cash management. Financial institutions from regional banks to top tier players are under pressure to provide their corporate customers with increasingly sophisticated and complex cash management solutions. Daily liquidity is underused. It is estimated some €600bn is trapped in inefficient cash-flow management.

Corporate customers are looking for cash management services that will allow them to manage the daily liquidity of their businesses in a consolidated way, directly on the internet. They want to visualise and control their corporate structures, so that they can decide how to run their liquidity management strategies. And they want to do it on a global scale, across borders and in currencies with which they operate.

To cope with these challenges, Tieto has developed a system for global cash management, providing:

Single tool for moving, managing •and investing balances

On-line self-service banking•

Full cross border functionality•

A range of cash management services•

Enhanced risk management•

Comprehensive support for reporting •and monitoring services

Integration layer based on standard SWIFT •messages and proprietary formats

Increasing sophistication for corporations

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Suitable for all corporate customer segmentsSmall to medium enterprises can make use of the sophisticated liquidity management functionality. Multi-national corporate customers will appreciate the ability to tailor products according to their business needs, link all corporate hierarchy structures together and build national holdings into a central overview to pool liquidity across the organisation.

When a customer hierarchy has been set up for a client, regardless of size, the system is able to handle structural and operational changes over time. Adding new accounts becomes a straightforward process. In company takeovers, for instance, the target company can be added as a new leg in the hierarchy structure. Accounts can easily be moved in and out of this hierarchy. All business segments will appreciate this merge & acquisition functionality, with new hierarchies seamlessly moving into an existing one.

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Tieto has spared no expense in developing the most effi cient and competitive online self-service banking system that enables the customer to control liquidity and optimise cash management. The unique feature of this system is that it gives complete control to the user through a single, dedicated interface.

Tieto Cash Management ensures that customers using the company’s cash manage-ment process experience a new freedom. Through its user-friendly web interface, these customers are able to control liquidity in multiple currencies and optimise cash management.

Multi-language functionality is used to make information available in the customer’s language of choice.

On-line, real-time self-service banking

Tieto Cash Management has cross-border facilities that takes the advantages of multi-currency account hierarchies beyond national borders. This makes it possible to operate in different countries from the same installation.

The solution allows corporate customers to consolidate their accounts by creating an overlying cross-border hierarchy in which cross-border sweeping and zero balancing can be performed.

The system also takes several local factors into account. These include different calendars for bank days and different end-of-day times. Separate pools can be created for each legal entity.

Full cross-border capabilities

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Tieto’s customers stand to benefit from a system that comprises a full range of cash management services. Depending on the prevailing legislative framework and business practices of each country, clients are able to choose from a variety of functions.

The system allows funds to be swept out of the hierarchy and reversed the follow-ing day. It is also possible to specify period intervals, such as day, week or month, for sweeping and topping processes on an account. With regard to information transfer via SWIFT, the system enables various customer statements to be transferred. The basis for transfers can be the balance on the currency top or on a cash concentration account.

Security is managed by limiting new authorisations for the individual user, as well as sophisticated functionality to restrict account activities by setting balance control and credit limits at all levels in the hierarchy. This brings a reduction of risk exposure through cross-border, cross-currency credit limit facilities and a simplified global cash manage-ment system and control.

Covers regional & globalliquidity management

Sweeping / topping (overnight investment)•

Zero and target balancing•

Inter-company lending•

Balance netting and notional pooling•

Multi-currency interest compensation•

Internal transfers•

Credit limits including intra-day credit facilities•

Various methods for interest apportionment•

Management of accounts in other banks•

It is critical for banks to be able to respond quickly to customer and market requirements and capitalise on new product opportunities. Tieto Cash Management includes a strategic tool (Product Composer) that allows banks’ key business personnel to design, maintain and adapt financial products efficiently and move product development back to the business. The Product Composer is an advanced, dynamic, generic and configurable product composer containing basic elements of data, messages and

methods that deal with enabling and carrying out basic business processes. The system is fully para-meterised, with a comprehensive set of predefined service objects that can be bundled together into products, and configured to accomplish requested product characteristics. A more flexible new product development process means shortening the amount of time spent on developing new products. Template products can be used as a starting point (using copy functions) for product definition.

Time to market

Tieto Cash Management is designed to co-exist with existing systems. This is facilitated by an architecture that can be integrated as a master solution providing accounting information directly to general ledger, or as a copy solution interfacing general ledger throughout existing accounting systems.

The architecture enables the customer to reduce dependency on changing legacy systems to provide world-class cash management services. Thanks to large-scale investment over an extended period in building a comprehensive, generic and stable data model, as well as sound architecture, Tieto Cash Management is able to cope with functionality enhancements without the need for system re-writes. The system is based on extensive use of reusable software components, and is scalable, with powerful performance.

Flexibility is key

On-line real-time, self-service banking•A true cross-border solution•Suitable for all corporate customer segments•Meeting your corporate customers’ expectations•Enhanced risk management•Flexible implementation•Allows creation of fl exible product propositions to multiple market •segments including Wealth Management

Internet-based, total self-service control•Provides cost effectiveness and reduced total cost of ownership•Advanced solutions based upon Nordic banking heritage•Enhanced risk management•Lower risk of implementation through proven solutions and partnership•

Benefi ts for the bank

Benefi ts for the corporate customer

Tieto Cash Management has well defined interfaces to the corporate customers, in a SWIFT format.

Recognises new messages delivered from the bank’s •SWIFT gateway; interprets the message and processes itDelivers populated messages, ready to be processed by •either the bank’s payment systems or directly through the bank’s SWIFT gateway

Messages will be stored and kept in a SWIFT message log, and can be presented to the user for future reference. The system has the ability to store customer information such as SWIFT BIC and IBAN, overriding the default uniqueness rule as appropriate.

Banks do not necessarily need to use the SWIFT network as such, but can set up an internal communication where SWIFT messages are standard for internal communication.

Integration based on standard SWIFT messages

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Open service-oriented architectureTieto Cash Management is based on an open, service-oriented architecture in which re-useable components are accessible as self-contained services according to SOA-based design principles. The large number of interface points (API) makes Tieto Cash Management extremely suited for seamless integration with other systems without the necessity of code changes in the standard product.

For integration between the interface points (API) in Tieto Cash Management and the other systems, you

can utilise integration (EAI) tools according to your own preferences. This approach does not only allow you to have maximum leverage of your existing integration infrastructure, but also gives you the freedom to have the integration activities executed by a party of your choice, whether this is Tieto, your own IT department or a 3rd party solution integrator.

Tieto has broad implementation experience and a proven record of bringing projects to completion.

Why Tieto?Benefi t from our leading and proven Cash Management system •to reduce operational costs and improve your services

Profi t from our extensive expertise and experience in liquidity •management and integration of cash management solutions in complex international bank environments

Work together with a well-established and leading solution •integrator in Europe

Reduce risk by choosing a trusted partner with a long-standing •track record within Corporate Banking and a Nordic best-practice heritage

Get to know our unique and proven co-operation models. By •choosing Tieto you get a complete set of support functions in the life cycle of the product. We bring banking expertise with local presence within a large-scale and resourceful organisation that are here to stay.

Credibility based on advanced home market in Nordic countries; •payments automation and real-time execution, e-invoicing and e-banking.

Trust Tieto as a well-established and large enough company to •provide its customers with services that are business critical

Please contactTerje Aas, Product Manager, Tieto Cash ManagementPhone: +47 21707969Mobile: +47 91344808E-mail: terje.aas@tieto.com

www.tieto.com