The Current Account Management - Business Operations ES bundle provides enterprise services for creating and making changes to current accounts (called checking accounts in the U.S.). Current accounts have implications for a customer's standing at the bank. If the current account is constantly overdrawn, the bank may not want to offer loans.
If a customer asks for a large overdraft limit, this could have implications for other loan or line of credit accounts with the bank. A second important function of this ES bundle is to provide services that propagate any changes to the current account to other software that the bank uses to make such decisions, such as SAP Collateral Management or a third-party collateralization application.
For supporting the first and most basic function, the Current Account Management - Business Operations ES bundle includes enterprise services that enable bank employees to create and change current accounts and have those changes immediately communicated to and confirmed by SAP Deposits Management. Bank tellers and other employees can help customers set up and change their current accounts using these services. A streamlined web-based interface, not part of this bundle but easily created using tools provided with SAP NetWeaver, could be provided for bank employees. This interface would then call the enterprise services to carry out the functionality of Current Account Management - Business Operations.
Once a user has created a new account for a customer, it is possible to alter it in a number of ways. For example, bank employees can modify credit or overdraft limits or change who has authority to access the account (for example, a husband or wife might be added to the account or even given primary ownership of the account). This type of functionality is synchronous. It happens in real-time, with the enterprise services at the front-end communicating with SAP Deposits Management, delivering and receiving data in real time.
Current Account Management - Business Operations (click to enlarge)
The enterprise services in the Current Account Management - Business Operations ES bundle can serve corporate customers as well as consumers. Corporations and other large entities often have a group of accounts called a facility, and credit limits for all accounts are pooled and can be no greater than the total amount established for that facility. Current accounts that are part of a facility can be changed, and new current accounts can be created for a facility using the Current Accounts Management - Business Operations ES bundle. This process happens in conjunction with SAP Deposits Management.
The second area of functionality of the Current Account Management - Business Operations ES bundle is its ability to propagate changes to relevant applications such as SAP Collateral Management. This application-to-application (A2A) functionality occurs behind the scenes, without a user interface, because of changes made to current accounts.
Whereas Current Account Management's account creation and change enterprise services are synchronous, these A2A services are typically asynchronous. Applicable information from the Current Account Management - Business Operations ES bundle is propagated to SAP Collateral Management and any other systems that require that data to enable processes within those systems. The types of account data that are available during this integration process include master data such as change of product, change of current account currency, change of current account limit, reactivation of current account, and cancellation of current account. Transactional data resulting from such processes as collateral monitoring is propagated as well. However, since transactional data processes require real-time information; they are exchanged synchronously.
The preceding examples are just a few among the many types of processes that can be facilitated using the enterprise services in the Current Account Management - Business Operations ES bundle.
Implementing the Current Account Management - Business Operations ES bundle permits organizations to:
- Improve customer service by extending access to SAP data to a broader end user base
- Employ custom user interfaces
- Offer current account management in new scenarios fitting to customer requirements
- Integrate other applications more easily with SAP Deposits Management and SAP Collateral Management
- Boost accuracy and speed of calculations used to create and update current accounts
- Access current and real-time information about financial contracts for vital collateral processes
The Current Account Management - Business Operations ES bundle is part of the SAP business process platform for banking (BPP for banking). The BPP for banking includes SAP NetWeaver. The Current Account Management - Business Operations ES bundle leverages enterprise SOA through reusable enterprise services and business objects. This standards-based approach to integration provides robust interfaces from a variety of user interfaces, including web interfaces, to SAP Deposit Management System and SAP Collateral Management System back-end functionality.
Any financial institution, large or small, that offers current accounts to individual or corporate customers will find the Current Account Management - Business Operations ES bundle an indispensable addition to their solutions arsenal. Companies such as auto dealers and others who offer current accounts to their customers can also benefit from using this ES bundle.
As with other SAP ES bundles, the enterprise services in Current Account Management - Business Operations are available across the chain of command, from top-end executives to mid-level managers to bank tellers on the floor. Because the Current Account Management - Business Operations ES bundle integrates easily with SAP Deposits Management and SAP Collateral Management, its deployment will boost the accuracy and speed of calculations used to create and update current accounts, as well as provide access to current and real-time information about financial contracts for vital collateral processes. In addition, the Current Account Management - Business Operations ES bundle will extend access to SAP data to a broader end-user base via industry-customized user interfaces, a benefit sure to improve customer service. Lastly, its deployment will satisfy new scenarios fitting to customer requirements. Early beneficiaries include the banking and financial sectors.
For details on Service Operations, Business Objects and Process Components, please check the ES Workplace.
How To Use This ES Bundle
To date, integration with SAP for Banking has involved the creation of SAP-specific interfaces such as Business Application Programming Interfaces (BAPIs) and Remote Function Calls (RFCs). Now, with the introduction of the Current Account Management - Business Operations ES bundle, a standards-based approach to integration using web services is enabled. Those institutions using prior incarnations of SAP Banking Services will find the enterprise services in the Current Account Management - Business Operations ES bundle central to the protection of their competitive edge.
Current Account Management's functionality can handle the processes required when a customer requests a new current account. After the bank employee has gathered the customer's personal information and then specified such account characteristics as product type, unique service branch, account holder, account start date, type of currency managed by the contract to be established, and account identification number, she then uses the enterprise services in Current Account Management - Business Operations to create the current account. Other enterprise services can be employed to change the characteristics of this or any other account held by the same customer at any subsequent point. Credit or overdraft limits can be set, and default limits can be increased. Persons authorized to make withdrawals can be added or removed from the account at will as well. Organizations can employ the teller application of their choice, including creating an interface using SAP NetWeaver Visual Composer or other tools to consume these services.
Yet another example of Current Account Management's functionality involves working with the more complex account structure of corporate and institutional customers called facilities. The enterprise services in Current Account Management - Business Operations can be used to create a new current account or modify an existing current account that is associated with a facility. Any composite user interface for facility management can consume these services.
In addition to its powerful account management functionality, the Current Account Management - Business Operations ES bundle also propagates changes to other banking applications, supporting processes such as collateralization. When contracts are created or the account and overdraft limits of bank accounts are established or revised, the resulting data must be propagated in real or near real time to the numerous business systems on the back end that enable automatic processes within those systems.
The Current Account Management - Business Operations ES bundle:
- Extends processes across the life cycle of core financial and banking events
- Enables users to create and modify current accounts
- Permits users to create new current accounts to add to facilities
- Allows users to modify preexisting current accounts in facilities
- Propagates data in real or near real time to the consumer business systems on the back end that enable automatic processes within those systems
This section will explore a series of use cases for the Current Account Management - Business Operations ES bundle. Each use case will show how different outcomes can be achieved by using the enterprise services in different combinations. Note that these examples may refer to users directly invoking enterprise services. This illustrates the flow of the service operations; service operations are invoked by an application, by an application's user interface (UI), or by another service operation. While these examples illustrate a few of the ways that this ES bundle could be used, the intention is to show the flexibility and reusability of these business objects and enterprise service operations so that you will have a clearer understanding of how to best deploy them in your own environment. This wiki is also a space for you to share knowledge and collaborate with others who are implementing the Current Account Management - Business Operations ES bundle.
Use Case 1: Creating and Modifying Current Accounts
A customer enters a bank to establish a new checking account. Before the bank employee can create the account, however, she must first enter a new business partner into the system, a process that involves using enterprise services from a related ES bundle, FS Business Partner Maintenance. Once she has gathered such key personal information as the customer's name, address, phone number, social security number, and birth date, the bank employee can establish the business partner under which the new current account will be created.
It may be that the customer is an established business partner with the bank in question. Here, the bank employee merely needs to verify that the existing business partner data is correct before proceeding to fill out the new account application.
To complete the new account application, the bank employee must first define the account's parameters. Required information includes the product type, branch identifier, account holder, account start date, type of currency managed by the contract to be established, and account number. With the completed application filled out on the screen, the bank employee can now create a new current account, invoking the Create Current Account Contract enterprise service operation, which uses the bundle's sole business object, Current Account Contract. The account is stored in the back end and ready for customer usage.
Bank employees may also use the services in the Current Account Management - Business Operations ES bundle to modify a current account. Before making changes, the officer must first access the customer's business partner information and then identify which among the existing accounts the customer would like to alter. Should the customer fail to have his account number handy, the officer can search for the account using the name of the account holder. The search can also be executed using combinations of information, such as the name of the account holder and product type. Entering the appropriate data configuration triggers the Find Current Account Contract by Basic Data service operation. If the resulting search list fails to include the desired account, the officer may use other search criteria.
Now that the bank employee has identified and selected the account in question, she may begin to modify it. Here, the customer wishes to make two changes. First, he would like to increase the overdraft limit. Second, he wants to add his wife to the account.
Before the officer can increase the customer's overdraft limit, she must first know the current limit. To find out, she triggers the Read Current Account Contract Item Limit service operation. The output of this service provides a list of all limits associated with the relevant account. These include limits for the value and currency, as well as validity dates for these limits. In addition, current accounts can have both a granted credit limit and an overdraft limit. Once she is armed with the current limit, the officer then enters the amount for the new limit and saves her changes using the Change Current Account Contract Item Limit service operation.
Just as the officer had to review the list of authorized limits prior to modifying it, so too must she first review the list of persons authorized to make withdrawals before she can add or delete others. The query is executed using the Read Current Account Contract Authorized Drawer Party Assignment. The resulting list confirms that the customer's wife is not authorized to use this account, so the officer enters the name and saves the changes using the Change Current Account Contract Authorized Drawer Party Assignment service operation.
Use Case 2: Creating and Modifying Current Accounts within Existing Facilities
Corporate customers can hold several current accounts within the same bank. For instance, a company may hold current accounts for each of its branches, for each of the countries in which it conducts business, and for each type of currency with which the company deals. In all cases, the multiple related accounts are governed by a master facility contract, which, in addition to its standard agreements and terms, defines the company' total credit line, as well as the individual credit lines for each account within it. For example, a facility contract may stipulate that the total overdraft limit for all accounts in the facility is $10,000. Although the facility contract regulates ten accounts, two are used more than the others, so that while the individual limit for these is $3,000 each, the limit for each of the other eight is only $500. Debits posted to the individual accounts are regularly checked against their individual limits, as well as against the facility's overall limit.
In this use case, a corporate customer has recently added a new branch to its franchise and wishes to create a corresponding new account within the facility that regulates the accounts for its other branches. At the same time, in order to grant the new account a sufficient limit of its own, the customer needs to decrease the credit limits of three other accounts.
Although the services in Current Account Management - Business Operations ES bundle do not possess the functionality to create, change, search for, or display facilities themselves, they can create new accounts to add to existing facilities, as well as revise accounts that are already been associated a facility.
SAP Deposits Management will not permit the creation of an account with an individual limit that when added to the total combined limit of its sister accounts would amount to a number higher than that of the overall limit stipulated in the facility contract. Consequently, the bank employee must first decrease the limits of the other accounts before adding a new one.
A business partner has already been created for the current customer, along with the facility contract to regulate its numerous accounts. Now the bank employee merely needs to verify that that business partner's current data is accurate before proceeding to modify the pertinent older accounts and complete the application for the new one.
To identify the three accounts the customer must alter, the bank employee enters the account numbers for each and then presses Enter to trigger the Find Current Account Contract by Basic Data service operation. Next, she triggers the Read Current Account Contract Item Limit service operation, enters the new limit for each account, and saves her changes using the Change Current Account Contract Item Limit service operation. The facility contract will now accept the creation of a new current account whose limit meets the customer's needs.
As in the earlier use case, the bank employee must complete an application for the new account. When the application is complete, she hits the button to trigger the Create Current Account Contract service operation. The account is stored in the back end, where it is ready to be added to the relevant facility.
Use Case 3: Collateralization of Current Accounts
To hedge the risks that a bank or financial institution assumes when it grants a customer a loan, credit line, or overdraft limit, it requires the customer to pledge a security or guarantee, usually as an asset called collateral, should he fail to meet the contractual agreements. Collateralization, then, is the process of verifying and, if necessary, adjusting the collateral status of a contract between a bank or financial institution and the customer to whom they have granted a loan, credit, or overdraft limit.
Several kinds of events can increase the risks of a bank. The Current Account Management - Business Operations ES bundle propagates changes to the SAP Collateral Management System, a solution that supports all functions and processes for the management of collateral between contract partners. To maintain the accuracy of an institution's facility contracts and accounts, for instance, the services in the Current Account Management - Business Operations ES bundle systematically evaluate collateral constellations in accordance with the latest legal requirements.
When the bank employee creates a new current account whose extended credit line and overdraft limit requires a sizable form of collateral, she triggers the Create Current Account Contract service operation. The functionality in this instance is A2A synchronous; after the data from the account application has been transmitted to and stored in the SAP Deposits Management back end, the back end returns data to the contract officer confirming that the account has been created and, if need be, is ready to add to a facility. At the same time, Current Account Management - Business Operations functionality is executing A2A synchronous services as well. The data for the newly created account, including that for the collateral, is automatically propagated to all relevant systems in the network.
Conversely, when SAP Collateral Management discerns that a contract has been modified, in consequence of, for example, a customer's decrease in credit worthiness, the increase of an account's limit, the decrease in market value of the collateral object, or the extension of the life of an account, the bank will request that the customer provide further collateral.
Upon presentation of the added collateral, two processes occur. First, a new contract is drawn up or the existing one is modified. Second, as in the former example, the resulting new data is extracted from the primary database and propagated to those systems whose functionality requires it.
If a new contract is generated, the old one will be canceled and appropriate systems notified asynchronously. Creating the replacement contract will again notify the backend systems and automatically propagate the changes. In the event that the contract is simply modified, the Change Current Account Contract Item Limit service operation will be triggered to propagate requisite data to the appropriate systems. Three events, including cancellation of, creation of, change of limit for a current account, trigger the notification of SAP Collateral Management and any other related systems.
Collateralization is just one example of the types of information that the Current Account Management - Business Operations ES bundle propagates to other systems, depending on the type of event that has transpired. Events that require real-time propagation include the calculation of a collateral constellation, the presentation of collateral constellation data in the SAP Collateral Management Business Partner Overview, the monitoring and reporting on coverage gaps of collateralized contracts, and the preparation of extraction to Bank Analyzer and Business Intelligence Warehouse. Maturity reporting and task reporting are also propagated in real time.
There are many possible directions for Current Account Management - Business Operations. In the future, more banking related services may be added, such as checking a balance on a current account or transferring funds into a current account.
The Current Account Management - Business Operations ES bundle achieves connectivity between a client-specified UI and the back-end system via SAP NetWeaver Process Integration (formerly XI or via a direct web service interaction.
SAP Banking Services 5.0
Related ES Bundles
- Sales and Service - Account Origination
- Loans Management - Business Operations
- FS Business Partner Maintenance