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| Source: Fujitsu. Schematic for the fintech pilot system. |
Mizuho Bank and Fujitsu have launched a field trial aimed at providing electronic invoicing and payment and automated accounts receivable reconciliation services using electronic invoice presentment and payment (EIPP) and financial electronic data interchange (EDI). The field trial is based on an agreement, signed by the two companies on July 29, to investigate invoice and payment digitisation and accounts receivable reconciliation automation services.
In financial EDI, information related to business transactions is attached to electronic settlement confirmations (wire transfer data), then exchanged and shared. Financial EDI is expected to offer a variety of benefits, including more efficient and automated transactions. The two companies considered partnering after a shift to XML telegrams for domestic payment instructions between companies* had been suggested to the financial services and manufacturing industries, and have begun an initiative to build a pilot system and verify the impact of financial EDI, particularly for process optimisation and cost reduction on the one hand, and enhancement of internal controls and acceleration of settlements on the other.
The field trial aims to digitise all transactions, from invoice to payment and receipt, and to improve automation of accounts receivable reconciliation for companies by implementing EIPP and financial EDI in the invoice and payments processes of business transactions.
Through this trial, the two companies will work to develop advanced settlement services that lead to efficiencies in corporate accounting processes, to promote the creation of new businesses and convenient services using ICT. The two companies aim to provide services that support a shift to XML telegrams for domestic payment instructions between companies, a move which is already being considered within the financial and industrial sectors. The two companies are also studying the feasibility of creating a possible common environment that could also improve back-office productivity and enable business process outsourcing of credit management tasks for companies.
In financial EDI, information related to business transactions is attached to electronic settlement confirmations (wire transfer data), then exchanged and shared. Financial EDI is expected to offer a variety of benefits, including more efficient and automated transactions. The two companies considered partnering after a shift to XML telegrams for domestic payment instructions between companies* had been suggested to the financial services and manufacturing industries, and have begun an initiative to build a pilot system and verify the impact of financial EDI, particularly for process optimisation and cost reduction on the one hand, and enhancement of internal controls and acceleration of settlements on the other.
The field trial aims to digitise all transactions, from invoice to payment and receipt, and to improve automation of accounts receivable reconciliation for companies by implementing EIPP and financial EDI in the invoice and payments processes of business transactions.
Through this trial, the two companies will work to develop advanced settlement services that lead to efficiencies in corporate accounting processes, to promote the creation of new businesses and convenient services using ICT. The two companies aim to provide services that support a shift to XML telegrams for domestic payment instructions between companies, a move which is already being considered within the financial and industrial sectors. The two companies are also studying the feasibility of creating a possible common environment that could also improve back-office productivity and enable business process outsourcing of credit management tasks for companies.
The construction of the pilot system is planned to take place between July and October 2016 while the verification phase is estimated to occur from November 2016 to March 2017. Transactions studied will be between Fujitsu and various Fujitsu Group companies in Japan.
*In December 2015, the Japanese Financial Services Agency and Financial System Council suggested, with regard to the messaging format used in domestic payment instructions between companies, that the current "fixed length telegrams" be eliminated by 2020, and that companies migrate to XML telegrams, which offers superior information volume and data compatibility. For details, read see the Financial System Council's Report by the Working Group on Payment and Transaction Banking.
*In December 2015, the Japanese Financial Services Agency and Financial System Council suggested, with regard to the messaging format used in domestic payment instructions between companies, that the current "fixed length telegrams" be eliminated by 2020, and that companies migrate to XML telegrams, which offers superior information volume and data compatibility. For details, read see the Financial System Council's Report by the Working Group on Payment and Transaction Banking.
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