The document discusses the electronic bank account management (EBAM) standard. It notes that EBAM would help streamline account management processes for both corporations and banks by allowing electronic and standardized communication. However, it also identifies remaining challenges to adoption, including legal and technical integration issues, as well as the need for further development of EBAM standards and software support. Widespread adoption of EBAM is seen as important for realizing its full benefits.

1. EBAM
Overcoming key challenges
Marie-Laurence FAURE
Head of Marketing Channel Products

2. Agenda
• Needs expressed by large corporates
• Main advantages of EBAM for both banks and corporates
• Feedback on EBAM Project
• Last main challenges to overcome for a successful adoption
EBAM : Overcoming key challenges | 2012 | 2

3. Corporates’ needs : the voice of our client’s panel
Which process to
manage accounts ?  Homogenization and simplification of banking documents within the different
countries
Improve  Easiest access to the banking forms and information on the procedures to follow
documentation to open and manage accounts
How to manage
 Electronic and secure bank account management requests
accounts efficiently ?  Real-time update of the change requests (eg. deletion of a signatory)
 Solution fully integrated into Cash Management Solution : automatic and STP
EBAM and self updating of signatories and proxies directly from their software
administration
 Compliance with SWIFT standards
 On demand detailed report on the characteristics of an account, including
What else ?
mandates (audit purpose for instance)
 Access to a consolidated view of all accounts, signatories and proxies within all
Value-added the legal entities, at a given moment for a better control
services
 High level of traceability on all exchanges and alerts (eg. Id card’ expiration)
EBAM : Overcoming key challenges | 2012 | 3

4. Corporates’ needs : mandate management is the top priority!
Key points impacting account EBAM Key services
management :
 Number of accounts
 Number of legal entities 100%
 Number of banks 80%
59%
60%
Most frequent changes : 40% 34%
41%
44% 44%
28%
 Mandate maintenance 25%
22%
20%
 Open new accounts
0%
Manage mandat e
account / mandat e
Close account s
account s
Open new
informat ion
st ruct ures
Report on
Reporting on account structure :
 Mandatory for nearly all corporates
Top priorit y High priorit y
 Most often once a year
Treasurers are usually in charge
of mandate management. Cash Management University - Dec2012
52 answers, corporate average profile : 1 to 5 billions € turnover, 100 to 500 legal
entities, activity mostly in Europe
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5. Agenda
• Needs expressed by large corporates
• Main advantages of EBAM for both banks and corporates
• Feedback on EBAM Project
• Last main challenges to overcome for a successful adoption
EBAM : Overcoming key challenges | 2012 | 5

6. EBAM : a similar exchange logic to payments
eBAM XML ISO20022 message exchanges
Corporate with attachments via SWIFTNet File Act Bank
Software for bank account management Global Connectivity Hub
1. The corporate prepares an EBAM request for instance to 3. BNP Paribas receives and controls the EBAM file
update the list of authorized signatories on bank accounts from its with the updated list of signatories and powers for an
software (similar principle to payment remittance), attaching account, the attached supporting documents and the
compulsory supporting documents (ex : signatory ID paper). signatories delegations.
2. The duly EBAM authorized signatory visualise the message 4. An acknowledgement of receipt is immediately
content, electronically signs the EBAM file (XML message and generated by BNP Paribas.
attachments) with its certificate (ex : 3SKey), which is transmitted
to BNP Paribas via SWIFTNet File Act. The dematerialization 6. The request is executed by BNP Paribas (update of
process is complete. powers and signatories referential).
7. An EBAM account report is sent to the corporate with
5. The status of the power change request is updated in the
the list of signatories and powers taken into account.
EBAM software.
8. The status of the power change request is updated. An alert
may be addressed to the banking power manager (ex :
confirmation of power update).
EBAM : Overcoming key challenges | 2012 | 6

7. EBAM advantages
Benefits for
A common Common Benefits for
corporate
objective benefits banks
clients
 Facilitation of the  Improvement of  Improvement of STP,  Improvement of
procedures linked to internal control / audit security and rapidity service quality and
account management  Harmonization of of account client satisfaction
with standard XML internal process management  Optimization of back-
messages exchanges office process
 Archival of all
exchanges  Improved request  Encouraging
visibility and tracking centralization
 Standard
communication  Paper reduction and
process with all banks data capture
improvement
 Value added to
existing SWIFTNet  Cost savings…
secured
communication
channel
EBAM : Overcoming key challenges | 2012 | 7

8. Agenda
• Needs expressed by large corporates
• Main advantages of EBAM for both banks and corporates
• Feedback on EBAM Project
• Last main challenges to overcome for a successful adoption
EBAM : Overcoming key challenges | 2012 | 8

9. Feedback on EBAM project
BNP Paribas actively takes part in EBAM development :
 Participation in working groups driven by SWIFT
 Testing of account opening EBAM XML messages with two pilots
 Testing of the digital signature with 3SKey certificate.
 EBAM offer currently under development
 A panel of clients to design and test the solution.
 The mandate management messages are the top priority EBAM messages
expected by our customers.
What EBAM achieved so far…
 A big step towards dematerialization.
 Better traceability on the exchanges between banks and corporates.
EBAM : Overcoming key challenges | 2012 | 9

10. Feedback on EBAM project
and features to be improved…
 A complex legal and technical set up
 Management of attachements and digital signature requirements
 ISO20022 XML messages to be completed with new data / messages.
 EBAM is a new standard : needs time to be mature (2/3 releases)
Needs Standards
Work together
Favor usage Achieve standards
There’s still a lot of work to do together!
EBAM : Overcoming key challenges | 2012 | 10

11. Feedback on EBAM project
An investment from all actors is now necessary to facilitate the standard
implementation and usage.
Innovation General
Improvement Usage Roll-out
Design
V1 V2 V3
Nov. 2012
 SWIFT initiative  Real usage by pioneer  Wider acceptance
 Strong implication from users  Development of eBAM
a few banks  Standard improvement offers
to take into account  Standard maturity
 Pilot with two major
pilots’requirements,
corporate clients
design of our target
eBAM offer (corporate
panel)
EBAM : Overcoming key challenges | 2012 | 11

12. Agenda
• Needs expressed by large corporates
• Main advantages of EBAM for both banks and corporates
• Feedback on EBAM Project
• Last main challenges to overcome for a successful
adoption
EBAM : Overcoming key challenges | 2012 | 12

13. Last main challenges to overcome for a successful adoption
Software
Banks Corporations SWIFT vendors
 Legal and compliance  Adapt their internal  To take into account  Integrate EBAM
considerations, organization if new needs in the next standards in their
different from one necessary EBAM standards solution : softwares
country to another releases for authorization and
 Manage EBAM
 Develop EBAM sign management,
standards (internal  To facilitate EBAM
standards : XML bank communication,
development or operational
messages, security, SSB, treasury
dedicated software, implementation
transport… management
SWIFTNet
system…
 Adapt their IT systems adaptations…)
 Offer a solution fully
 Change management  Adopt the digital
integrated in Cash
in back-office signature at a
Management suites
organization personal level to sign
(shared database :
EBAM instructions
 Offer various channels accounts, signatories,
for EBAM to fit all  Launch EBAM powers…)
types of corporations pilots/projects with
their banks
EBAM : Overcoming key challenges | 2012 | 13

14. Our ambition : make account management easier for all our clients
EBAM standards
adoption
Harmonization of
documentation
A panel of customers
A multi-channel to design and test our
strategy solution
EBAM : Overcoming key challenges | 2012 | 14

15. Conclusion
Corporations
Software Banks
vendors
Adoptio
n
EBAM
Standards SWIFT
Adoption is now essential to make EBAM a reality!
EBAM : Overcoming key challenges | 2012 | 15

16. Disclaimer
This document has been prepared by BNP PARIBAS for informational purposes only. Although the
information in this document has been obtained from sources which BNP PARIBAS believes to be
reliable, we do not represent or warrant its accuracy, and such information may be incomplete or
condensed. This document does not constitute a prospectus or solicitation.
All estimates and opinions included in this document constitute our judgement as of the date of the
document and may be subject to change without notice. Changes to assumptions may have a
material impact on any recommendations made herein.
This document is confidential and is being submitted to selected recipients only. It may not be
reproduced (in whole or in part) to any other person without the prior written permission of
BNP PARIBAS.
© 2011 BNP PARIBAS. All rights reserved.
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17. Thanks!
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