This article provides an overview of the integration between banks and the CS Lucas Treasury Management System, highlighting the benefits, methods, and costs of integration.

 

During the integration process, information is exchanged between the bank and CS Lucas in two directions:

The bank sends electronic bank statements and bank balances to CS Lucas. This information is typically delivered once a day, either at the end of the business day or at the start of the next. The bank statements and balances provide up-to-date information on the account balances and transactions, which are essential for cash planning and fund tracking. The bank statements are also used for bank reconciliation and can be automatically imported into CS Lucas or accounting system if the bank provides them in a compatible format. The manual way of getting this information from the bank is to log in to the e-banking portal and download the statements or check the latest available balance, usually provided in excel or CSV format.

The CS Lucas sends payment instructions to the bank, which include the payee’s bank details, currency, amount, and value dates. By sending this information to the bank, CS Lucas initiates payment transactions. The manual way of sending payment information to the bank is through the e-banking platform, where the data needs to be created individually. Some banking platforms allow uploading payment information using spreadsheets to handle large volumes of line items.

 

There are two ways for the bank and CS Lucas to exchange information.

File exchange involves a sending system providing information in a pre-defined format and placing it in a staging location for the receiving system to read and populate as required. While file formats are typically based on industry standards such as SWIFT MT or ISO20022, most companies create their variations with unique fields and data, creating a “dialect.” The sending and receiving systems must consider these variations to ensure a successful exchange.

API involves a secure connection between two systems for data transfer, where the calling and handshake process between the systems is agreed upon for secure communication and exchange format.

 

The bank typically determines the method of integration available to their customer.  We have also found situation in some banks where they provide alternative methods but and these are not universally available to all their customers. Therefore, it is recommended that customers speak with their bank to determine the integration options available to them.

 

To assist our customers in evaluating integration with their banks, we suggest the following steps:

 

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