5 key things banks should consider while implementing host-to-host/corporate to bank connectivity
Host- to- Host Integration (H2H)/corporate to bank connectivity solution makes it easy for banks to exchange data with their corporate clients. The solution supports high-volume data transfer(e.g. transfer and processing of thousands of salary payments) and gives banks the flexibility to adapt to their clients’ formats/systems in addition to their standard formats.
Here are the 5 key things that banks should consider while implementing host-to-host/corporate to bank integration:
Onboarding corporate customers faster
UI based configuration makes it easier and faster to onboard corporate customers with a few clicks. The solution needs to be capable of supporting several data formats out-of-the-box like XLS, CSV, delimited/fixed length formats, XML, JSON, few financial formats like ISO20022 XML formats, MT103, MT940, etc. Additionally, creating custom formats from scratch should be straightforward and easy.
Operational visibility at a BAU level
Having access to quick-view dashboards that track files/API requests helps the operation’s team to troubleshoot failures quickly. Further, detailed information at file/API level along with failure reasons, etc. should be maintained for auditing purposes.
Scalability and flexibility
It is very likely that corporates have different file formats which are quite different from the bank’s standard offerings. To enable quicker onboarding, banks should be able to create customer-specific data formats quickly and easily. Moreover, the solution should be able to handle webscale data by leveraging containerized microservices-based architecture.
Data security
The solution should be able to overcome one of the key limitations of SFTP where the data being transferred is written on the disk in a DMZ and hence making it vulnerable for the time it is in the DMZ. One of the ways to overcome this is by leveraging two-way SSL or mutually authenticated HTTPS channels to deliver files to and from the bank. Using API security, trusted IPs, role-based access control further enhances data integrity.
Quicker go-to-market
There needs to be an easy way to construct new “products” for the customer segment banks want to target. For instance, if banks want to partner with Fintech companies and offer an API-based payments product, the solution should enable them to do it quickly accelerating their time to market.
