(Vocus) October 1, 2009
Ken Dummitt, president of SunGard’s corporations business, said, “Despite the many advances we have seen in the past ten years, there remains a requirement for a more structured and secure exchange for communication between business applications and entities in the corporate commercial EcoSystem, particularly between corporations and banks. Results of a survey conducted by SunGard, released today, confirm the pressing need for improved connectivity between participants of the corporate commercial EcoSystem.” Visit http://www.sungard.com/avantgard to download the complete study findings.
Results of SunGard’s global payments and connectivity study reveals increased requirements for transparency and efficiency across the corporate commercial EcoSystem of suppliers, buyers, banks and other trading partners. The basis of the study is grounded in the concept that the intrinsic value of any corporation is based on its ability to drive free cash flow in a predictable fashion. The aim of the study was to uncover the primary areas that corporations should target to help them improve this predictability through increased transparency, efficiency and networking; focusing heavily on how to improve corporate to bank communication. The study revealed the following:
- In the wake of the financial crisis that exposed the vulnerability of financial institutions, many corporations created increased diversification of their banking partners. As a result, there is a need for multi-bank connectivity that can help these firms more efficiently communicate with multiple banks, particularly with respect to proprietary communication, and formats for each banking entity.
- Corporations are using a large number of dissimilar payment systems, which creates further inefficiencies and poor visibility across the network of corporate suppliers, buyers, banks and other trading participants. One holistic view of payments operations can help corporations gain transparency across the financial supply chain and improve their liquidity management.
Study Findings: 358 respondents from small to large-sized corporations across 20 primary industries throughout the United States, Europe and Asia.
- Increased need for multi-bank connectivity: 30% of corporations grossing $5 billion or more are relying on 21 or more cash management banks.
- Holistic view of payments: 40% of respondents in the $5 billion category reported that they are operating with 11 or more different payment initiation systems, with 25% of these utilizing more than 21 different systems.
Mr. Dummitt continued, “In contemplating commercial trade, the concept that settlement of corporate to corporate transactions often takes 30, 60 or even 90 days clearly indicates that there is an enormous opportunity for improvement. SunGard’s strategy is to operate as a community leader, helping to drive transparency and efficiency in the corporate commercial EcoSystem through data aggregation, connectivity, the creation of relationships within the EcoSystem, and the delivery of value-added services between these entities.”
About SunGard’s AvantGard:
SunGard’s AvantGard is a leading liquidity management solution for corporations, insurance companies and the public sector. AvantGard provides chief financial officers and treasurers with real-time visibility into cash flows and increased operational controls around receivables, treasury and payments. AvantGard helps companies drive free cash flow and reduce inefficiencies across the EcoSystem of suppliers, buyers, banks and other trading partners. For more information, visit http://www.sungard.com/avantgard.
SunGard is one of the world’s leading software and IT services companies. SunGard serves more than 25,000 customers in more than 70 countries.
SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software.
With annual revenue exceeding $5 billion, SunGard is ranked 435 on the Fortune 500 and is the largest privately held business software and services company on the Forbes list of private businesses. Based on information compiled by Datamonitor*, SunGard is the third largest provider of business applications software after Oracle and SAP. Continuity, Insurance & Risk has recognized SunGard as service provider of the year an unprecedented six times. For more information, please visit SunGard at http://www.sungard.com.
*January 2009 Technology Vendors Financial Database Tracker http://www.datamonitor.com
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