Large
multinational corporation
A multinational corporation (MNC; also called a multinational enterprise (MNE), transnational enterprise (TNE), transnational corporation (TNC), international corporation, or stateless corporation, is a corporate organization that owns and cont ...
s want to streamline their banking practices. To do this, they need all of their bank billing electronically, and in a common format.
Corporations do not know with any degree of accuracy what is being paid to international banks for their services. Main concerns were:
* No way of accurately verifying international
bank fees.
* Analysis of bank fees is labor-intensive.
* No way to provide management with global bank relationship metrics.
* International cash management fees are decentralised with few controls in place.
* Compliance issues, like
Sarbanes-Oxley Act.
Normally billing in banking has following aspects.
# It must be periodic (at pre agreed duration...).
# Details of the transaction must contain ref no. of client.
# It also covers statutory payment details if any.
# Format can be customised as per the client's requirements.
# Mode of presentation can also be selected per clients selection (fax, mail, hard copy...).
# Grouping of services done at various levels.
# Tracking of repayment.
#
Reconciliation
Reconciliation or reconcile may refer to:
Accounting
* Reconciliation (accounting)
Arts, entertainment, and media Books
* Reconciliation (Under the North Star), ''Reconciliation'' (''Under the North Star''), the third volume of the ''Under the ...
for repayment.
The BSB Standard
Bank Services Billing (BSB) is an industry standard that governs the format of
electronic bills send out by financial institutions to
wholesale
Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...
customers (e.g.
corporation
A corporation or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law as ...
s,
government
A government is the system or group of people governing an organized community, generally a State (polity), state.
In the case of its broad associative definition, government normally consists of legislature, executive (government), execu ...
s,
institution
An institution is a humanly devised structure of rules and norms that shape and constrain social behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions and ...
s). BSB is a statement to report on the corporate customers' usage of financial services and their related charges. It takes the form of a periodic electronic statement that lists all the chargeable service events that occurred during a reporting cycle, along with detailed
tax
A tax is a mandatory financial charge or levy imposed on an individual or legal entity by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities. Tax co ...
and
currency
A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general definition is that a currency is a ''system of money'' in common use within a specific envi ...
information. This standard is developed by
TWIST, a
not-for-profit
A not-for-profit or non-for-profit organization (NFPO) is a Legal Entity, legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives.
While not-for-profit organizations and Nonprofit organ ...
industry group delivering open,
XML
Extensible Markup Language (XML) is a markup language and file format for storing, transmitting, and reconstructing data. It defines a set of rules for encoding electronic document, documents in a format that is both human-readable and Machine-r ...
-based, standards in certain financial processes.
The main idea behind this standard is to ''"obtain an electronic billing statement from international banks in a standard format"''.
According to TWIST,
Denmark's Danske Bank has become the first European bank to use its bank billing standard to deliver detailed information to corporate treasurers and wholesale clients. The bank is using the Twist BSB standard for the electronic transmission of information relating to bank charges to
General Electric (GE).
References
{{reflist, 1
Banking