Standard Chartered Bangladesh has recently inked an agreement with Lanka Bangla Securities Limited (LBSL) to automate LBSL's collection from investors and subsequent reconciliation process.
LBSL was looking for an end to end solution to digitize its collection from investors as well as receiving prompt notification of the collection, said a press release.
Further, it wanted to have the report fed into its Enterprise Resource Planning (ERP) system without manual intervention to automate the reconciliation process, reducing operational risk and increasing data security.
Standard Chartered provided LBSL with Virtual Account for Collection solution whereby each investor is provided with a unique virtual account to make their payment to LBSL seamlessly from their respective banks online portal using any of the available digital channels e.g. BEFTN, RTGS, IBFT (NPSB) etc.
Apart from that investors are also able to make payment in cash through real-time Cash Recycler Machine placed in various ATM booth or over the counter and cheques using the same virtual accounts.
The virtual accounts are tagged to LBSL's bank account number held with Standard Chartered and enables LBSL to get the required depositor information for reconciliation purposes. The use of virtual account significantly improves the automated reconciliation success rate within their ERP system
Standard Chartered has also provided Host to Host (H2H) connectivity with LBSL's ERP system. Through this connectivity, LBSL will be able to get all the required MIS reports in its ERP system directly fed from SCBs online banking channel Straigh2Bank (S2B).
This removes the need for any manual intervention on LBSL's side and having to access multiple systems. All banking information is automatically made available to LBSL's ERP system.
Leveraging on Standard Chartered's Virtual Account for Collection solution with Host to Host Connectivity, LBSL is now able to deliver detailed information of its clients (stock market investors) against their payment in any mode as well as get the reconciliation done automatically and immediately.
This solution has provided significant efficiency in LBSL's processes enabling them to reduce client servicing turn-around times, reduction in operational risk and providing enhanced data security.
LBSL CEO & Director, Khandoker Saffat Reza, said "Lanka Bangla Securities is a pioneer in the capital market intermediaries and has always been the early adopter of different innovative and value added technologies to cater its superior client base and provide investors with a smooth investment experience. LBSL introduced first time in Bangladesh, broker hosted Order Management System (OMS) with CSE to provide DMA (Direct Market Access) to the valued investors since 2013.
Shortly, DSE is in process of providing the API (Application Program Interface) connectivity with their Matching Engine NASDAQ which will expand the market and investors will be able to execute Zero Touch trading from anywhere in the world.
With the help of SCB's Virtual Account and Host to Host integration, LBS clients can now make investment through banking channel digitally with little effort as well as helping us in day to day reconciliation which has direct impact on our efficiency and customer service.
Standard Chartered MD & Head, Financial Institutions, Alamgir Morshed, said "Standard Chartered Bank has been the forerunner of banking innovation in Bangladesh starting from first ever credit card launch to first letter of credit issuance and in continuation, our solutions like Virtual Accounts combined with H2H enable the digitization of collection with automatic reconciliation for brokerage houses, financial institutions and corporates.
We are proud to partner with Lanka Bangla Securities, an early adopter of innovation in the capital market segment, to bring in automation and efficiency in their collection process"
Standard Chartered offers a wide range of online capabilities with state of the art products and tailormade solutions to support our client's cash management needs through its award winning digital platform Straight2Bank which can be fully integrated with the clients' ERP using our global standard H2H, SwiftNet or API capabilities.