STP Processing for Banks – Alchemy Connect

Payment processing is a complex operation at the heart of the banks service portfolio.

In many large and small banks the Payments Department still uses outdated manual or semi-manual procedures processes. This makes your operations department a cost and risk center at the bank.

Every time an officer handles a piece of paper or re-enters data into legacy systems in order to process a payment, the bank loses valuable staff time and introduces operational, fraud and compliance risk into the bank.

Doing business the way banking has always been done over the last century is no longer sufficient to keep up with the demands of today’s complex global economy with the demand for fast, accurate and compliant transfers in real-time.

The requirements of international banking today include real-time responses to the banks customer’s, access to all the information on the customer’s payment for customer service, and a preventative and proactive compliance that provides the bank with a complete audit trail for all transactions.

The average bank today takes at least 15 to 30 minutes to manually process a transaction from the time a customer initiates a payment request until it reaches fulfillment. However the aggregate elapsed time for each person in each department to complete their part of the payment processing cycle may reach up to 4 hours before a payment reaches a fulfillment channel such as the SWIFT or ACH network.

With this in mind, Alchemy Connect was designed to automate and optimize banks’ payment processing system according to the latest compliance regulations. This Alchemy connect solutions also include a high-tech Internet banking, Mobile banking, and the core of the payment processing solution for full end-to-end efficient straight through processing.

Alchemy contains a powerful array of features and benefits to automate your internal and domestic transfers, international payments, standing orders, central bank reporting and compliance with a real-time interface to standard core banking applications. All these features headlined in blue come as standard with your Alchemy Implementation.

Optional Modules within Alchemy

Alchemy Internet Banking
The Alchemy Internet Banking enables the user to initiate payment transactions, execute inquiries and request services 24 hours a day, 7 days a week through the internet. The website operated by the customer’s bank can be accessed via desktop, tablet or smart phone, where it will automatically adapt to the screen size. To have access to the system the user must first be defined as such in the contract between the bank and the customer. Basically, there are two kinds of contracts, the single-client and multi-client contract.

Within a single-client contract an agreement is reached for providing services on all the accounts and account types of one customer. Within a multi-client contract an agreement is reached for providing services on all the accounts and account types of a defined group of customers. In both cases the customer can determine which user gets full or limited access to which account.

Alchemy Mobile & Money Transfer
The power of Alchemy is in the integrated payment processing that empowers your bank to deliver advanced functionality, speed and service to your customer base.

Every payment originating through Alchemy Mobile banking is passed on seamlessly for full automated processing and posting in your back office. This ensures blazingly fast client service. And of course your bank benefits from state of the art security, audit and reporting controls.

Additional Alchemy Payment Processing Suite Custom Modules

E-Alerts for Payments Processed by Alchemy
E-mail alerts will notify an officer of the bank if there are payments that need to be reviewed before release. For example, if an ordering account has insufficient funds the account manager will receive an alert to review the payment. This system proactively keeps the bank notified of all exception items without the need for officers to be constantly logged in and monitoring the system.

STP Check & Draft Printing Manager
The printing of checks and drafts is completely automated with Alchemy’s Check Printing Manager. Payments that require checks to be drafted/printed, once entered into Alchemy from any source, can be easily routed to the check printing manager for printing and further processing. All posting sets as well as SWIFT Messages (if required) will be automatically generated and processed automatically.

Drafts print automatically onto pre-formatted security paper using your correspondent bank’s template.

SWIFT 940/950 Statement Manager
Provide your corporate clients as well as correspondent banks with electronic SWIFT formatted statements. In today’s banking the need to be able to provide your corporate and corresponding clients with fast and accurate electronic SWIFT statements is invaluable. The Alchemy SWIFT 940/950 Statement Manager will automatically extract, format and send via SWIFT statements to your clients. This feature is also essential for the implementation automated reconciliation systems.

Merchant Settlements Manager
Settle your merchant payments automatically with the Merchant Settlements Manager of Alchemy. When merchant settlement files are received from your processor, Alchemy will automatically read, convert, process and settle these amounts to your merchants. All postings, fees, debits, credits, as well as reversals, will be automatically handled by the Merchant Settlements Manager of Alchemy.

Credit Card Payments Manager
With the Credit Card Payments Manager of Alchemy, all client accounts will be quickly and seamlessly updated with the Credit Card payments into Alchemy, validated and immediately processed to debit the customer’s account and update the various GL accounts. Use the Credit Card payments Manager to settle monthly as well as ad-hoc client payments to your processor. All postings, fees, debits, credits as well as reversals will be automatically processed by the Credit Card Payments Manager of Alchemy.

Credit Card Settlements Manager
The Credit Card Settlement Manager assists financial institutions with automated STP processing of the monthly minimum or full amount credit card settlements into your core banking system.
The financial institution receives from the credit card processor an electronic payment file containing the monthly credit card settlement information including credit card number, customer demand debit account, and full or minimum settlement amount.

The credit card settlement file is automatically processed by the Credit Card Settlement Manager and the credit card settlement payments are processed STP into your core banking system based on your pre-defined business rules and workflow setup. The credit card settlement payment will be credited to a suspense account with the credit card number as a description.

Real Time Gross Settlement (RTGS) Interface
The RTGS Interface assists financial institutions with the automated handling and STP processing of incoming and outgoing local SWIFT payments.

RTGS payments
Outgoing RTGS payments that have to be processed to other local banks or Incoming RTGS Payments processed by other banks will automatically be identified by Alchemy based on your payment processing rules. The processing rules can be defined within Alchemy based on the following criteria:
• Local BIC
• Payment currency
• Payment amount threshold
• Priority

The RTGS payments are processed as any other payment. The payment is entered/received through the real-time SWISSRoute Incoming Interface and processed. The customer’s account is debited/credited for the requested amount, fees are calculated and charged (if applicable) and the RTGS payment is posted within your core banking system.

Payment Performance & Compliance Reporting & Dashboards Alchemy Insight
As a separate module of the Alchemy Payment Processing Suite, Alchemy Insight will provide a structured and reliable Reports and Dashboards based on payment history data (payment warehouse). The centralized Data Warehouse contains the entire detail spectrum of each payment information that can be used for statistical reporting on transaction volumes, revenues, user productivity and profitable clients. Data mining, statistical reporting and analysis can easily been done. Alchemy Insight also offers an excellent data source for AML screening, profiling and reporting by external AML applications.

Corporate Batch Payments Manager
The Corporate Batch Payment Manager allows corporate and other clients, as well as internal departments, to submit multi-currency payment batch files containing payroll, vendor, dividend or any other SWIFT, clearing or internal transactions, to be processed automatically.

The financial institution receives from the client or internal department an electronic batch file containing the payment details including bank, account number, amount, debit/credit indicator and description. The batch payment file is automatically processed by the Corporate Batch Payment Manager and the payroll, vendor, dividend, or any other payments are processed STP into your core banking system based on your pre-defined business rules and workflow setup. The Corporate Batch Payment Manager contains a separate inquiry function to view batch payments by client by batch number.

The Corporate Batch Payment Manager supports 2 standard file formats (Excel & Fixed Text) and development of 1 custom client format will be part of the implementation. For a detailed description of the standard file formats please refer to the document Alchemy Batch Payment Manager File Format description. Additional formats will be charged separately.

ACH File Manager
Outgoing transfers that have to be processed through the National ACH clearing network will automatically be routed to the network based on your internal ACH processing rules. The ACH file Manager will ensure secure and reliable interfacing to the ACH network.

Custom Core Banking API Development
Alchemy interfaces in real-time with your core banking system to look-up account and client data. In case a standard API between Alchemy and your Core banking is not available, we will custom develop an API to your core banking system if not already standard available.

IBIS Management advises that additional custom modules be installed onsite by our banking consultants.