SAP Financial Services Network – Overview Presentation

SAP Financial Services NetworkOverview 2016

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2

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document, except if such damages were caused by SAP intentionally or grossly negligent.


SAP Financial Services Network (FSN) Agenda

• SAP Banking

• Key Challenges

• Introduction

• Key Capabilities

• Business Cockpit

• Security and Compliance

• Messaging and Mapping

• Support Process

• Rapid Deployment Solution

• Links for Further Information

• Summary

SAP Confidential – For internal use only

SAP Banking


Commercial Banking TrendsNothing is as it used to be

Changing behavior

Real time society – customers /

employees

Product cherry picking

Digital natives - ease of usability

Impersonalization of service Changing external conditions

Changing trade flows – trade increases

between emerging economies

Industrialization of commodities –

including banking servicesIncreasing cost pressure

Manual processes

No economies of scale

IT infrastructure costs

Cost of regulation


Two Flavours of Banking – Same Challenges

Corporate Banking

Relationship banking

Multinational customers –

international network

Advanced products

Involving partner banks

Small & Medium Enterprises

Retail distribution network

Simple easy-to-explain products

Low-cost sales process

Reduce manual processes for

the customers and the bank

Digitalize relationship

Simplify product offering down

market

Bring analytic knowledge

closer to the customer

Reduce transaction costs

Simplify IT landscape

Non-traditional competitors

Mid-market

Large

corporates

SMEsSmall to medium-market


We Know Your Customers

SAP has 232,000 customers in 142 countries

including 86% of Fortune 500 companies

80% of SAP customers are commercial

banking customers

74% of all the world’s transactions world-wide

touch an SAP system

28% of SAP Customers run Business One

(and growing fast)

SAP customers span 25 industries

Our customers are your customers!

Mid-market

Large

corporates

SMEsSmall to medium-market


SAP Commercial Banking Offering

Digital Enabled Commercial Banking

Offer customers digital banking

Engage with your customers digitally

Collaborate in teams

Simplify Transactional Banking

Standardize Payment Processes

Optimize working capital

Reduce connectivity cost

Analyze payments and cash flows

Achieve Operational Excellence

Reduce process complexity

Provide single view of information to

meet customer and regulatory

requirements

Use real time information as a

competitive advantage

Analyze processes in detail

The Power of Business Networks

Integrate buyers, sellers and banks

in one network

Easily exchange information across

company borders

9© 2016 SAP SE or an SAP affiliate company. All rights reserved. SAP Confidential – For internal use only

17,000+Banking customers in 142 countries

180+Core Banking customers in 48 countries

70+Sales, Services and Marketing customers

150+Integrated Risk and Finance customers

2600+Business Analytics customers

130 million+Bank accounts running in SAP

19 million+Payments per day

100+Banking customers in the cloud

600+SAP Core Banking Implementation resources

SAP for Banking – Global Footprint

http://www.nationwide.co.uk/default.asp

http://www.nationwide.co.uk/default.asp

http://www.unicreditgroup.eu/DOC/jsp/navigation/index.jsp?parLocale=en

http://www.unicreditgroup.eu/DOC/jsp/navigation/index.jsp?parLocale=en

http://www.atb.com/Dev/home/index.asp

http://www.atb.com/Dev/home/index.asp

https://www.commerzbanking.de/P-Portal2/XML/IFILPortal/pgf.html?WSPL_ID=.b3tuRNsVjxvJ9brEwGA17aUUu6UGZFcW2t24VqEq5seA07mUNn6PdBq99.FPrGsUocrFZ60HfMr6Ik7gljhmmoKU162OHwGK.CKWiudLFgFgs18Dv5VlE8H3ng1BE-S&tab=103&url=http://www.commerzbank.de

https://www.commerzbanking.de/P-Portal2/XML/IFILPortal/pgf.html?WSPL_ID=.b3tuRNsVjxvJ9brEwGA17aUUu6UGZFcW2t24VqEq5seA07mUNn6PdBq99.FPrGsUocrFZ60HfMr6Ik7gljhmmoKU162OHwGK.CKWiudLFgFgs18Dv5VlE8H3ng1BE-S&tab=103&url=http://www.commerzbank.de

http://www.socgen.com/sg/socgen/pid/169/context/SC/lang/en/nodoctype/0.htm

http://www.socgen.com/sg/socgen/pid/169/context/SC/lang/en/nodoctype/0.htm


Comprehensive SAP for Banking Solution Portfolio

Core Banking

Business Support

HR & Payroll

Technology

User Experience

& Mobile PlatformCloud Platform

Information &

Intelligence

Process

Orchestration

HANA & Database

Management

Integration

SOA

Talent Management Self Service Procurement Real Estate

Product Bundling & Servicing

Deposits Payments CollateralsLoans Leasing Funding

Multi-channel Banking

Client Manager Telephone e-bankingATM/ABM m-BankingSocial Media FSN

Sales & Service

Customer Data Mgmt

Customer Channels

Customer Information & Analytics

Customer Service, e.g. Origination, Next Best Offer, Pricing, Loyalty Management

Mobile Agents

Finance

Risk and Compliance

Funds Transfer Pricing Cost Allocation

Financial Instruments Accounting Disclosure & Notes Mgmt

Strategy Management Planning, Budgeting and Forecasting

Consolidation General Ledger

Limit ManagementLiquidity Risk Operational Risk, GRCEnterprise Risk

ReportingMarket Risk Credit Risk

Focus of Today


The SAP for Banking Platform Offers a Flexible Base Functionality

Common solutions for retail and commercial banking

Multi-currency

Multi-language user interfaces and

correspondence languages

Multi-channel with common processes and data

Multi-bank / white-labelled

Multi-country

Multi-time zone cut-off time

Multi-site deployment scenarios

Process definition through parameterization

Real-time 24x7 access and high availability architecture

Scalable solution for both small and large banks


Investor

SAP Solution for Working Capital ManagementOne Solution for Factoring, Supply Chain Finance and Receivables Financing

Bank

BuyerSupplier

ERP Accounts Payable

ERP Accounts

Receivable

SAP Financial Services

Network

SAP FSN Generic Connector

Receivables Pool

(Funding Management)

Accounts Receivable/Payable

(Customer Financials Management)

Collections (BRIM)

(Customer Financials Management)

Invoice approval (buyer)

Receivables pool reporting

Receivables events

New receivable

Paid/partially paid

Default

Accepted / Rejected

by bank/buyer

Invoice notification

Early payment

Due date payment *

Accounting entries (open items)

Billing events (factoring)

Status of open items

Factoring *

Cu

sto

me

r In

form

atio

n M

gm

t

* Supply chain finance / Factoring


Key Challenges


The Corporate Banking Supply Chain Partnership

Corporates demand

enhanced services to

facilitate treasury

management interactions

with their banks.

Banks demand

simplified approach to

electronic service

development, deployment

and delivery

A complete solution needs to have interoperability, scalability, standardization and process

integration all together as part of the business’ core processes


Financial Crisis and

Globalization

Cash Transparency

Counterparty Risk

Regulation

SEPA

Global ISO20022

EMIR

Adopting New Technology

Leveraging new technologies and capabilities

Mobility

Cloud

Efficiency

Cash Flow Optimization

Straight Through Processing

Integration and Automation

Centralization

Payment Factories

Multi Bank Gateways

Payment Hubs

Cost Reduction

Focusing on working capital

Reduction of bank fees

Simplify IT Infrastructure

Source: Treasury Today

Key Trends for Corporate Finance


Key challenges for corporate finance

…liquidity Statements – manual download

Collections – incomplete

remittance data for reconciliation

Payment rejections due to

incorrect bank master data

…risk Lack of up-to-the-minute currency

rates, commodity prices, and so on

Poor visibility of business impacts

due to currency rate fluctuation

Nonsecure handling of payment files

…cost Maintaining hundreds of data formats

and hardware and software for bank

connectivity

Expensive and time consuming to set

up new banking relationships

Hard to cross-check banking fees

against processed transactions

Corporate

finance

…cash Lack of visibility to cash in

different accounts

Time to move money across different investments

Manage…


Number of respondents N=653

Source: SAP/CFO Research Global Survey of Corporate, Finance, and Treasury Executives, 2013

65%

Office of the CFO is setting new priorities

CFO Magazine and SAP Survey of Finance/Treasury Executives

corporate finance executives

have some difficulty with the

connection and

communication between

their systems and their

banks’ systems.

64%corporate finance executives

expect to explore ways to

improve their connectivity

within the next two years.


The Next Generation is About Simplicity

1st Generation

2nd Generation

File Uploads

Manual or semi-

automated

FI-specific formats

Host-to-host

More automated

Single Bank

Connectivity

3rd Generation

Cloud-based network

Eliminate Complexity

Multibank / Single

Format


Banks have High Costs and Inability to Scale their Business

Typically 3-6 months required to

integrate each corporate

expensive IT resources for

implementation and support

Lack of agility, inability to offer

new services

Costly maintenance of multiple

versions, multiple point-to-point

connections

Inability to scale to thousands

Banks

Corporates


Corporate Connectivity Increased Risk and High costs

Multiple failure points and/or complex

infrastructures

Implementation, operational and

development costs

Inability to manage counterparty risk

Reconciliation cost and capability

Lack of financial messages visibility and

control

Difficulties in managing working capital

across multiple banking relationships

ERP

Banks

Corporate clients

Banking Systems Banking Systems

Corporate clients

ERP

ERPERP


SAP Financial Services Network –

Introduction


SAP Financial Services NetworkWhy SAP?

SAP’s vision is to help the world run better and improve people’s lives.

Our mission is to help every customer become a best-run business.

Our Financial Services Network enables:

• Instant integration with your existing SAP business processes

• Cost and resource reduction in maintaining proprietary or 1:1

connections and formats

• An innovative cloud platform for the 21st century that addresses your

needs via a single, comprehensive service offering with simplified

integration with your banking relationships.

• Vast industry knowledge on business processes, message handling

and payments across a global organization.

Our inspiration: “We remain focused on the success of our customers – they are at the heart

of our ambitions. The passion of SAP employees has brought amazing momentum…our

best-ever financial results…are testament to our strategic direction, our customer

orientation, and our world-class employees.”

Bill McDermott, co-CEO, SAP


SAP Financial Services NetworkWhy SAP?

85%Of Fortune 500 companies are running SAP

230,000 Corporates run SAP

65%Of companies state that they sometimes have

difficulties communicating with the Information

System(s) of their bank(s)

74%Of the world’s transactional revenue touches an SAP

system

> 90%Of treasury executives will improve or will consider to

improve the connectivity between their treasury and

banking systems

Financial markets consistently reward companies with integrated business and

management processes. The ability to drive top-line growth and increase profits is the

ultimate determinant of whether shareholder value will appreciate over time.

Source – IPO Readiness , SAP


Constating the Current Situation around SAP Financial Services

Network (SAP FSN)

• 232.000 SAP Corporate Customers in 142

Countries

• 1.000.000 SAP Ariba Buyers and Suppliers

• High ERP-Software – Market Share / extremely

high in Germany

• High degree of usage of SAP-Software in banking

• SAP introduces FSN as Standard Procedure for

Handling Payments in their ERP Suite


SAP Financial Services NetworkOverview

Interoperability, Scalability, and Integration

The network integrates corporate treasury, accounts payable, and accounts receivable

functions to provide better visibility into and control over payments, corporate virtual card

payment requests, remittance data, and other services. It streamlines the interchange of

financial messages – including payments, payment status, and statements – and can

improve reconciliations, settlement updates, financial reporting, and other key

processes.

A Win-Win for the Corporate to Bank Relationship

SAP Financial Services Network provides deep integration of the key processes of

banks and their corporate customers with minimal up-front investment. It helps reduce

operational risk while increasing control and visibility.

“SAP’s ERP systems are installed at 40,000 clients around the world. We can take payment instruction files from all of their ERP,

but this is important because it embeds us with their new cloud-based solution, FSN. We anticipate that being able to make Visa

payments via connection to the SAP Financial Services Network will help corporations streamline accounts payable processing

while avoiding the upfront and ongoing costs that would be associated with custom software for the payment process.” Edward

Fordyce, Head of Commercial Business, VISA


SAP Financial Services NetworkSolution Design: Co-Innovation


Innovative service connecting financial service providers and corporate customers

Allows corporate and bank participation in a financial supply chain with agility

Enables multiple services over one single channel

Strategic SAP business network solution

SAP FSN is unique in the market

Seamless integration with the SAP ERP backed by SAP’s expertise in corporate finance

A platform for building and deploying value added financial services

Financial supply chain across multi-corporate and multi-bank relationships

Introduction to SAP Financial Services Network


SAP Financial Services NetworkWhat Activities Are Included

• SAP FSN is an innovative cloud platform for the 21st century that addresses your needs via a

single, comprehensive service offering with simplified integration with your banking relationships

• SAP FSN activities is a comprehensive solution that extends your SAP Financials and Treasury

activity

• SAP packaged integration in to the payment run and reconciliation processes in your ERP

• Messaging management that separates your use of formats from your banks so that you can gain greater efficiency

• Transaction routing of both “mediated” (transformed in SAP FSN) messages and pass through messages

(unopened by SAP FSN)

• Monitoring of transaction activity including balances and latest available status on transactions initiated through SAP

FSN

Integration To SAP

Payment Run,

Reconciliation &

Treasury

Messaging

Management

Transaction

Routing

Monitoring for

Visibility &

Transparency


SAP Financial Services Network: Solution Overview

SAP® Financial Services Network is a strategic platform that facilitates easy connection

between Banks and Corporate Customers

SAP® Financial Services Network is an innovative cloud-based solution

It offers a single connection point across multiple services, businesses, and financial

institutions for exchanging orders, statements, reports and declaration of will.

It provides secure connectivity and tight process integration on a platform that

accommodates future integration needs.

This scalable network delivers predefined services and a stable development environment.


Bespoke service and

connectivity implementations

with no harmonization

Increased costs, loss of

revenue

Lack of agility, Lock in effects

and increased risk.

SAP Financial Services Network – Revolutionizing Business

Connectivity between Banks and Corporates

BanksCorporates

Value Services

Platform Services

SAP Cloud

Financial Services Network

Tra

de

& C

ash

Ma

na

ge

me

nt

Re

con

cili

ation

Mo

nitro

ing

& A

lert

ing

Oth

er

Va

lue

Se

rvic

es

Integration Services

Pa

ym

ents

/

Sta

tem

ents

Re

mitta

nce

Single and Secure Connection Point for Banks and Corporates

Gain customers through

network based

marketplace

On-board customers

faster

Reduce Connection Costs

Benefits

Reduce connection costs

Optimize Working Capital

Management

Improve Receivables /

Payables operations

Benefits

Both Participate in Development and Growth of the Network

Electronic Banking

Host 2 Host


SAP Financial Services NetworkSolution Design

Standards Mediation

Business Integration

Single Pipe -

Multiple Partners

• Allow participants to achieve benefits of

integration when not all partners are at the

same level

• Extensibility to multiple financial supply chain

partners with new connectivity and security

requirements

• Integration directly into core business

processes at the company

• Create the foundation for value added

services

Intelligence & Analytics


SAP Financial Services NetworkSolution Design

10% 20% 30%

SWIFT Corporate Access

CGI/Multibank Harmonization

Bank Proprietary Host-to-Host

Bank Proprietary Integration Tools

SAP FSN

Connectivity Security Format Integration

30%


SAP Financial Services Network extends corporate finance

functions transacting with financial provider services

SAP Financial Services Network

Data mapping and process integration

Secure, private SAP-Hosted platform

Pa

ym

en

ts

Ma

rket d

ata

*

Ma

ste

r d

ata

*

Reco

ncili

atio

n

Rem

itta

nce d

ata

*

An

aly

tics*

Oth

er

se

rvic

es

Virtu

al ca

rds

Sta

tem

ents

pa

ym

en

t a

dvic

e

Bu

sin

ess

mo

nito

ring

Banks, Card Providers, and

Market Data Providers

Payment

processing

Accounts

payable

automation

Card solutions

Cash

managementMarket data

Trade finance

Core Finance

Risk and Regulatory

Compliance

Receivables management

Payables management

Shared services

Treasury and financial

risk management

Accounting and financial close

Financial Service

Providers

Corporates *Planned


FSN Addresses Key Market Segments

Small/Medium Enterprise

Small Enterprise

Large Enterprise

SAP simplified Financials

Provide an E2E corporate service supporting the entire procurement, sourcing, payments and supply chain

Lending

Savings

Deposits

Current Accounts

Mobile* Online* DirectConnect

Sales* Other

Supply Chain Financing

Invoice Discounting

Factoring

Purchase programsSAP Business One

SAP ERP

Bank

Co

rpo

rate

s


Pa

ym

en

ts

Ma

rke

t d

ata

*

Ma

ste

r d

ata

*

Reco

ncili

atio

n*

Rem

itta

nce

da

ta*

An

aly

tics*

Oth

er

se

rvic

es

Data mapping and process integration

User Management, Security, private SAP-Hosted platform

Vir

tua

l ca

rds

Sta

tem

en

ts p

aym

en

t a

dvic

e

Bu

sin

ess m

on

ito

rin

g*

Key Features:

• Automated message mapping and transformation, payment status delivery, automated reconciliation

• In-built security features

• On-boarding of corporates via rapid-deployment solution (RDS*) and pre-packaged* installation, configuration, testing

• Platform for Bank or Partner to develop bank-specific value added services (plug-in apps) *roadmap items


SAP Financial Services NetworkOn-board only once and add services and partners over time

Network On-boarding

Agree contract with SAP

On-board to network

Agree message mapping

requirements

Perform on-boarding tests

Service Activation

Request connection to

FSN network partner

Perform E2E connectivity

testing

Finalise service activation

Run and Manage

Monitor, manage and

deliver financial messages

Grow FSN network

connections

Add new services

Bank


Con

ne

cto

r

ER

P

Corporate

BankCorporateTest

Production

Test

ProductionBankCorporate

Con

ne

cto

r

ER

P

SINGLE integration to the financial institutions

EASIER access to new services

ZERO footprint and cost-effective model

OPTIMIZED cash flow and budget allocation


SAP Financial Services NetworkTechnical On-boarding

Requirements

• Company Policies

• Existing Implementation

• Impact Analysis

• Integration Options

Network & Security Configuration

• Security

• Firewalls

• Certificates

Local Install & Config

• SAP FSN Connector, SAP Internet Gateway, etc…

• SAP ERP Basis

• Update House Banks

SAP FSN Configuration

• Integration Layer

• Applications

• Roles


SAP Financial Services NetworkImplementation Approach

Requirements Questionnaire

Kick-off Workshop

On-boarding Scope and Plan

Project Start

Session 1

Project Kick’Off

Session 2

FinancialProcess

Session 3

TechnicalIntegration

Session 4

Cloud Setup

Session 5

Summary& Wrap-Up

1

2

3

4


SAP FSN Enhances the Bank-to-Corporate Customer Relationship

Single connection from bank to any number of corporates

SAP takes care of on-boarding corporates via rapid-deployment solution (RDS*)

Pre-packaged* installation, configuration, testing

Bank integration deep into AP, AR, Treasury

Enables bank revenue growth by scaling corporates

A/P optimization* via vendor

master data, centralized monitoring

A/R optimization* via rich

remittance, match and merge of

bank statements for “touchless”

reconciliation

Bank’s value-added* services

No IT footprint – no new hardware, software, middleware required at corporate

Scalable “pay-as-you-go” cost model

Format independence

Removes the IT cost barrier for new bank services

Service

Software

Enablement

Configuration

*Roadmap Items


SAP HANA Cloud Integration (HCI)Lowers cost, increases speed, and enhances simplicity for our customers

Strategic service for OD-OD & OP-OD

integration on SAP HANA Cloud Platform

Pre-packaged integration content hub in cloud –

“Discover, Configure, Manage”

Engineered for Cloud: Multi-tenancy, rolling

software updates, horizontal scalability.

Subscription-based usage

Strong focus on security including data isolation

Used by Success Factors, SAP Cloud For

Customer, FSN etc.

Complementary offering to SAP Process

Integration

Open for partners – projects, content,

connectivity etc.

Available as

SAP HCI Standard Edition, SAP HCI

Professional Edition

SAP HCI Developer Edition

SAP HCI Application Edition (bundled with SAP

cloud apps.)

SAP HANA AppServices, Premium Edition

SAP HANA Cloud Integration

Real-Time Process

Integration

Prepackaged

Integration flows

Community and

Marketplace

Data

Integration

SAP

On-Premise

3rd Party

On-Premise

3rd Party

Cloud Solutions

SAP Cloud Applications



Key Capabilities


SAP Financial Services NetworkSystem Overview

Technical Communication:

• Various connectivity options (e.g. HTTPS/WSRM, SFTP)

• High security with multiple security layers

• Transport level with certificate based authentication

• Message level via encryption and signing

• Reliable messaging: “at-least-once” quality

• Bidirectional with multiple communication patterns (e.g.

push-push, push-pull)

• Integration capabilities e.g.:

• Routing

• Mapping

• Security Protocol Mediation, e. g. PGP, PKCS#7, web

service security, XML digital signature

Corporate

SAP ERP System

Business User

SAP

SAP HANA Cloud

FSN Systems

Financial Institute / Bank

Corp Tenant Bank Tenant

FSN Admin

Bank Account

System

Bank Expert

Infrastructure:

• SAP HANA Cloud as platform

• Multi-tenancy with strict isolation during

runtime and persistence

• Secure storage of key store material in data

base

• Encrypted data persistency

• Virtualization and scalability

• Failover and rolling software update

• Disaster / Recovery

• Multiple services, e.g. persistency, identity

management, key management

• (Java) application development on-top

• ISO27001 certifications on information

security

• Trial, test and production systems


SAP Financial Services NetworkKey Functions

FSN as a Network

• Multi-bank routing

• Multi-bank on-boarding

• Test & Production Environments

Connectivity

• SFTP (push or pull)

• Web Services

• Web Services Reliable Messaging

Message Handling

• Payments, Virtual Card, Account Reports, Status

• Message Mapping & Transformation

• Message Aggregation

FSN Operations

• Global Availability

• 24/7 & Follow the Sun Operations & Support

• Disaster / Recovery

• Dedicated On-boarding team

• Message Maintenance

• Existing SAP support procedures

Business Cockpit

• Payments Monitoring

• Payment Status Matching

• Statement Confirmation

• Payment Approvals and Rule Definitions

• Payments KPI Tracking


SAP Financial Services NetworkSender-Receiver Tenant Isolation

Corporate FSN on SAP Cloud Bank

SAP

Corporate Tenant (Own isolated VM)

Integration Bus

Https

/WSRouteStore

Bank

Filesystem Management

Sftp Server

File

Webservice Stack

Corporate

HANA Cloud Persistency Service (Sybase ASE)

SAP SaaS Schema Corporate Schema (isolated)

MPL MPL Payload RMStore

SAP ERP System (R/3 .. ECC)

Bank Schema (isolated)

MPL Payload RMStore

FI

FSN

Connec

-tor

R

Payment

R

(Non) - SAP

Banking

Solution

Bank Tenant (Own isolated VM)

Integration Bus

R

Payment Status Response /

Account Statement

R

Map

Sftp

ClientRoute StoreMap

Payment Status IFlow - Sender

Payment IFlow - Sender

sftp

Client

Https/

WSMap Store

R

Payment IFlow - Receiver

Https/

WSStore Map

Payment Status IFlow - Receiver

WS

RM

Https/

WSWSRM

R

R

R


SAP Financial Services NetworkSecurity: Sender / receiver tenant split

Receiver A

Sender B

Sender

Tenant

In Format

Canonical

Model

Value Apps. Value Apps.

Runtime isolation between sender

and receiver tenant

Message mappings are executed

in the tenant they belong to

Message payload is always stored

encrypted (AES 128 bit algorithm

is used)

Value apps (e. g. business

monitor) can be deployed per

participant (tenant)

Receiver B

Sender A

Value Apps. Value Apps.

Sender

Tenant

In Format

Canonical

Model

Receiver

Tenant

Out Format

Canonical

Model

Receiver

Tenant

Out Format

Canonical

Model


SAP Financial Services NetworkSecurity & Disaster Recovery

Disaster Recovery Summary

Primary data center in St.Leon-Rot, Germany

Secondary data center in Ashburn, USA

Continuous data replication via secured communication

channel

Components in secondary data center

Global traffic management

SAP FSN applications (cold-standby)

Dedicated computing power for SAP FSN applications

SAP Hana Cloud Platform (hot-standby)

SAP FSN sftp server (hot-standby)

SAP Identity Service (hot-standby)*

Risk Mitigations

Redundancy within one data center

Disaster Recovery Solution in case of data center loss

* Secondary data center for global SAP Identity Service is Newton Square, USA

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 4

5

Customer Key Performance Indicators for Disaster

Recovery Solution

Recovery Time Objective (RTO) = 2 hours

Recovery Point Objective (RPO) = 30 minutes


SAP Financial Services Network – Message LayerFSN Message or Native Application Payload<?xml version="1.0" encoding="UTF-8" standalone="yes" ?>



<SOAP:Envelope

xmlns:SOAP="http://schemas.xmlsoap.org/soap/envelope/"

xmlns:SAP="http://sap.com/xi/XI/Message/30">

<SOAP:Header />

<SOAP:Body>

<n0:FSNMessageBulk

xmlns:n0=https://fsnschemas.netweaver.neo.com/fsnflow

xmlns:prx="urn:sap.com:proxy:XLP:

/1SAI/TAE646AFACA686A8BD91404:700:2011/05/10">

<FSNMessage>

<SenderId>DE49900100000001000023</SenderId>

<ReceiverId>WOWIDES1</ReceiverId>

<MessageType>pain.001.003.03</MessageType>

<FileName>DTA120807181425_0000</FileName>

<NumberOfRecords>17</NumberOfRecords>

<MessageId>MID-SAP-EBA-SCT-812-001</MessageId>

<RelatedMessageId \>

<ExtendedHeader \>

<MessageContent>

QlNOX2lzX3N1cGVyIQ==

</MessageContent>

</FSNMessage>

</n0:FSNMessageBulk>

</SOAP:Body>

</SOAP:Envelope>

FSNMessage Header Sender/ReceiverID

– Used for routing– IDs agreed between bank and corporate– Bank-ID is unique in context of FSN. Corporate-ID is unique in context of a bank

Payload information MessageID is ISO payment ID and therefore unique in context of a bank Number of records: Validation and billing RelatedMessageID refers to previous messages in case of correlated messages (e.g.

pain.001 / pain.002) ExtendedHeader allows flexible extensions

FSNMessage Content Message content is encrypted, signed and encoded FSN can send/receive also native application payloads without security envelopes

FSNMessageBulk SOAP Body contains a FSN message bulk with multiple FSN messages inside

SOAP Message FSN messages are transported as SOAP documents But: FSN can send/receive also native application payloads (e.g. pain.001) without FSN

Message wrapping

https://fsnschemas.netweaver.neo.com/fsnflow



Business Cockpit


SAP Financial Services Network (Corporate Tenant)

SAP FSN Business CockpitScope I – Business Monitor on Payment and Payment Transaction Level

Corporate

Connecto

r

ER

P

Back O

ffic

e S

yste

ms

Bank

Business Cockpit

HDB


SAP Financial Services Network (Corporate Tenant)

SAP FSN Business CockpitScope II – Business Monitor & Approval

CorporateC

onnecto

r

ER

P

Back O

ffic

e S

yste

ms

Bank

Business Cockpit

Business Monitor

Approval / Rejection

HDB


Scenario – Payment Execution in

Cloud-based Finance Network


Corporations execute thousands of payments to their suppliers and business partners every day.

1


The treasury department requires governance and insight over bank transfers and direct debits. Detection of rejected or late payments is vital for finance operations and the business relations to partners and suppliers in general.

2


Payment execution happens across multiple systems while treasury operations has limited insight into the processing.

3


Challenges

Rejected payments need to be detected for immediate mitigation.

Late payments will incur additional costs from our business partners.

We do business with multiple banks.

Jim NaimadHead of Treasury Operations

“I need to govern payments from abroad and detect late or rejected payments by the banks”

1

2

3

4

Payments originate from different subsidiaries and therefore cannot be centrally controlled.


SAP FSN Business CockpitMonitoring the Lifecycle of Payment Initiations

Business User View:

Aggregated View on Payment Batches along their life

cycle:

– Approval

– Transfer

– Bank Response

Access to historic Payment Batches

Drill-down functionality into Payment Transactions

New Measure to detect Bank Rejections

Filter Functionality to limit operatonal view on

Payment Data

Indicator to calculate the manual completion ratio for

incomplete payment life cycle.


SAP FSN Business CockpitFunctionality

Measures and Indicators which

track the execution of the

payment life cycle.

Measures and indicators which

monitor functional aspects of the

payment (e.g. number of

rejected payments from bank,

average time until payments get

approved, etc.)

Phase Viewer aggregates

the life cycle of in progress

payments into phases.


SAP FSN Business Cockpit Payment Lifecycle

Semantic:

Contains Payment Batches requiring

approval

Approval is required because of defined

business rules.

Semantic:

Bank has reverted back for payment

This can be a rejection, acceptance or

any other supported status.

An account statement entry (MT.940)

has been received for the payment

with status “BOOK”

This finalizes the life cycle and

concludes the “happy path” of a

payment batch and its payment

transactions.

Correlation currently based on

PaymentInformationIdentification and

EndToEndID

Semantic:

Payment has been approved and is on

its way to bank

Status CTOK: corporate tenant

processing finished

Status BTOK: bank tenant processing

finished

The message has essentially left FSN

processing and should have reached

the bank system

Approval Transfer Bank Response


SAP FSN Business CockpitAnalytical Functionality – Filter on Dashboard Level

Filte

r

No Filter Applied Bank Filter Applied

Getting Buiness Answers

Free definition of filter along available payment attributes.

How much different is my process execution for bank ABC compared with overall execution?

What is the average cycle time for bank ABC compared with overall execution?


SAP FSN Business CockpitAnalytical Functionality – Filter and Grouping of Data

Filte

r

Clu

ste

r Vie

wGetting Buiness Answers

Analytical drill-down from operational data.

How many credit transfers are executed with a certain bank?

How many credit transfers are executed with bank xyz with service leve code „URGT“?


SAP FSN Business CockpitNavigation to “To Be Approved” Payments

Batch Approval

Dedicated Role Assignment

Single / Multiple Approval

Financial Services Visibility powered by SAP OPInt

Standard ListViewApproval ListView

FS

V-A

ppro

va

l R

ole

Scenario Role


SAP FSN Business CockpitBatch List View

Batch List View

Configurable attributes from payment

batch.

Recurring pattern for navigation in

business cockpit.

Drill-down functionality to Details of

payment batch.


SAP FSN Business CockpitBatch Instance Detail

Batch Instance Detail

New: Redesign of Instance Detail UI

Overview on processing of the payment batch

along phases.

Configurable detail information of PaymentBatch

Drill-down to associated Payment Transactions

Access to Journal which lists events during life

cycle in detail.


SAP FSN Business CockpitJournal View for Payment Batch

Journal

Provides insight on detailed event which occurred

during execution of payment batch.

Allows for navigation to approval tasks for audit

purposes.


SAP FSN Business CockpitStatus Reason Information

Status Reason Information

• Helps treasury users to see why payments

have been rejected by the bank.

• Help to mitigate rejected payments

immediately.

• Display of Status Reason Information which

was submitted from bank during payment

execution.

• Status Reasons can be displayed as narrative

text or codes including structured information


SAP FSN Business Cockpit Approval List View with Decision Actions

Approval Decision

Single or multiple approval decision / rejection

from ListView

Optional reason text

Approval Application

Access to relevant payment batch attributes to

get one-stop overview

Filter and search capabilities


SAP FSN Business CockpitApproving Single Instance from DetailView

Single Payment Batch Approval

Approving or rejecting the entire payment

batch

Access to payment transactions for more

details

Transparency over the life cycle of the

payment batch.

Optional reason text to enter for approval

decision.


SAP FSN Business CockpitPost Processing

Manual Completion of Payment Batches

Unmatched payment batches may require

manual completion of life cycle to synchronize

business cockpit monitor with reconciled

payments.

Manual completion through auditable activity.

Dedicated role required to perform this action.

Visibility of post processing action in journal log.

68© 2016 SAP SE or an SAP affiliate company. All rights reserved. SAP Confidential – For internal use only

SAP FSN

Bank

Payment

Engine

Corp Banking

System

Payment Process Status Update

Payment

Customer Installation

SAP ERP

Accounting

Payments

Statement Reconciliation

Ge

ne

ric FSN C

on

ne

ctorSA

P E

RP

FSN

Co

nn

ect

or

Payment Status#87 $1,000 processed

Account Processing

Accounting Entries

Payment Status#88 $1,500 processed

Statement#87 $1,000 processed#88 $1,500 processed

Demonstration Overview



The Corporate To Bank Flow Example

SAP FSNCorporate Tenant

Corporate

BankSAP FSN

Bank Tenant

Canonical Mapping

Canonical

Format

Canonical Mapping

Corporate

Format

Bank

Format

Mapping Steps:1. Execute standard mapping

cartridge e.g. (pain.001 Canonical)

2. Execute customer specific mapping

Mapping Steps:1. Execute standard

mapping cartridge (Canonical ISO20022)

2. Execute bank specific mapping



Security and Compliance


SAP Financial Services Network – Security and ComplianceContent

• Physical Security

• Network and logical Perimeter Protection

• Isolation and Multi-Tenancy

• Availability

• Compliance

• Global Distribution

• Business Continuity and Disaster Recovery

• Data Protection and Privacy

• Authentication and Access Control

• Encryption and Digital Signatures

• Tamper Protection

• Security Key Management and -Storage

• Use of VPNs

• Audit Logging

• Vulnerability Assessments and Penetration

Tests

• Secure Development

• System Changes

• Operations Model

• Handling and Reporting of Security Incidents


Physical Security

• World-class data centers in Rot, Germany (SAP-owned) and Ashburn, US, VA (3rd-party collocated)

• Redundant power supplies (diesel engines), aspirating smoke detectors (ASD), fingerprint access control

and 24-hour surveillance

• Ceilings, walls, and doors provide 90 minutes of fire resistance; a fire extinguishing system based on gas

(INERGEN) is in place

• Various certifications such as ISO27001 (certification for the operation of software) and ISO22301 (Business

Continuity management) and SSAE 16 (U.S. equivalent of ISAE 3402)

Network and logical Perimeter Protection

• External facing network is divided into multiple demilitarized zones (DMZ)

• A multi-level firewall and an intrusion prevention system is in place

• Load balancer (vendor F5) terminates SSL and distributes the requests

SAP Financial Services Network – Security and CompliancePhysical Security / Network and logical Perimeter Protection


• Each customer gets its own tenant assigned

• Message processing runtimes of different customers are located on different virtual

machines

• One database schema per customer

• It is technically enforced that only HTTPs communication between tenants is possible

• Internal components of SAP FSN are placed in different network segments

• SAP FSN landscapes that serve different purposes, e.g. Test and Prod are isolated from

each other

SAP Financial Services Network – Security and ComplianceIsolation and Multi-Tenancy


Availability

• Guaranteed uptime of 99,5%

• System is setup for high-availability that includes redundant software- and infrastructure components

• Capacity planning ensures needed resources are available in time

Compliance

• ISO27001-Certified

• Compliant with various SAP-internal policies, procedures, directives and guidelines

• Compliant with SAP-Security product standard

SAP Financial Services Network – Security and ComplianceAvailability / Compliance


Global Distribution

• SAP FSN is offered out of the SAP Data center in St. Leon-Rot, Germany

• An additional data center is located in the US, Ashburn, VA. This additional data center is used as a

secondary site for disaster recovery.

Business Continuity and Disaster Recovery

• Business Impact Analysis regularly performed and results considered

• Disaster Recovery is offered with Ashburn as secondary data center

• Ashburn secondary data center is operated as a hot-site for FSN

• In Q1/2015 an additional data center in Europe (Amsterdam, Netherlands) is planed to be the DR secondary

site

• Recovery Time Objective (RTO) which is the time until the service is up after a disaster is 2 hours

• Recovery Point Objective (RPO) which is the point in time until data might be lost that was processed

previously to the disaster is 30 minutes

• Disaster recovery is regularly tested and test reports can be provided to customers on request. Customers

can connect their own systems to such tests on request.

SAP Financial Services Network – Security and ComplianceGlobal Distribution / Business Continuity and Disaster Recovery


• Primary data center in St. Leon-Rot is subject to the data protection and privacy law of

Germany

• Customer data processed by FSN is classified as confidential

• SAP FSN does not process personally identifiable information (PII) as part of message

content

• SAP’s development approach and system operating procedures take data protection and

privacy into account

• New European data protection regulation is upcoming. It will mainly affect European

customers.

SAP Financial Services Network – Security and ComplianceData Protection and Privacy


• Authentication of incoming messages is performed at the load balancer

• SSL is terminated and the X.509 client certificate is checked

• A defined set of CAs is supported. New CAs can be applied after an approval process.

• SFTP messages are authenticated using SSH

• Authentication of dialog users is performed against the SAP ID Service

• Access to all functions, either invoked manually by dialog users or invoked automatically

(for example, by a scheduler) is protected by a permission check

• A fine-granular permission concept is applied

• The concept is based on different persona, e.g. SaaS-Admin, Tenant-Admin

SAP Financial Services Network – Security and ComplianceAuthentication and Access Control


• All data in-transit, either exchanged with customers or internal is encrypted

• SSL/TLS and SSH are leveraged; HTTP-based communication uses a key length of minimum

1024 Bits

• SSH is used to protect SFTP communication using a key length of minimum 1024 Bits

• Both SSL/TLS- and SSH-Communication is mutual-authenticated

• At the message layer, data can be encrypted using various algorithms and key lengths

• Among them are AES, DES, RC2 and Camellia

• Strong encryption can be used for AES and Camellia

SAP Financial Services Network – Security and ComplianceEncryption of Data in-transit


• Data-at-rest is stored encrypted in the DB using AES

• Encryption key is automatically generated, unique per tenant and not-stored in the same database as the

encrypted data

• Data that is stored at the SAP FSN-hosted FTP-Server (vendor Cleo) is encrypted because

the messages are encrypted

• Digital signatures are leveraged to achieve detection of both unintentional - and intentional

message changes

SAP Financial Services Network – Security and ComplianceEncryption of Data at-rest / Digital Signatures


• Tamper Protection allows the receiver to verify that certain message fields have not been

modified by SAP FSN

• Works even if message mapping is applied within SAP FSN

• Based on digital signatures

SAP Financial Services Network – Security and ComplianceTamper Protection


• Keys associated with tenants are not stored in the file system. Instead they are stored in a

database, leveraging the platform’s key store service.

• Keys are protected using a strong password

• Keys of the load balancer and the SAP FSN-hosted FTP server are stored securely in the file

system of these components

• Public key material (certificates) is exchanged between SAP and customers during

onboarding to SAP FSN

SAP Financial Services Network – Security and ComplianceSecurity Key Management and Storage


Use of VPNs

• On request, customers can connect to SAP FSN using an IPSec-based virtual private network (VPN)

• The VPN uses pre-shared keys, works in IP-Sec tunnel mode and is of type Cisco ASA Firewall

• For disaster recovery, the data sync from the data center in Rot, Germany to the data center in the US,

Ashburn, VA is done via an SSL-based VPN (leased line)

Audit Logging

• Audit logs are generated per tenant

• The audit log contains entries for configuration changes and security events, such as failed authentications

• The audit log is stored in a 3rd party audit log system (vendor Splunk)

• Audit logs are retained 18 months

• Audit logs can be provided to customer on request

• The load balancer as well as the intrusion prevention system also log into Splunk.

SAP Financial Services Network – Security and ComplianceUse of VPNs / Audit Logging


• Done by 3rd parties in request of SAP

• Penetration tests focus on the network- and infrastructure layer

• Performed three times a year

• Vulnerability assessments focus on FSN business functionality

• Performed yearly

• Done by Primeon Inc.: http://www.primeon.com

SAP Financial Services Network – Security and ComplianceVulnerability Assessments and Penetration Tests

http://www.primeon.com/


• SAP Security Development Lifecycle (SDC) is applied

• Regular quality gates

• Monthly security code scans and audits

• Security architecture and design

• SAP-internal product standard for security are applied

• Threat Modeling of selected parts

SAP Financial Services Network – Security and ComplianceSecure Development


System Changes

• All changes to the system must be approved and are performed in a controlled manor

• Several processes are relevant: Authorization Process, Integration Content Lifecycle Process, Correction

Process and Release Deployment Process

Operations Model

• SAP FSN is operated by SAP Cloud Operations and supported by a dedicated FSN Support team

• SAP FSN Cloud Operations & Support are available 24*7*365

• An alerting infrastructure is used to detect any anomaly inside the system

• Access rights of operators are constantly monitored, reviewed and minimized

• Maintenance “windows” are defined at which system updates and changes are applied

SAP Financial Services Network – Security and ComplianceSystem Changes / Operations Model


• SAP’s Security Incident Reporting is used

• Depending on the criticality, local security staff will be informed or SAP’s Global Security Incident

Management tool will be used

• On request, customers can be provided with a monthly report on security incidents

• SAP FSN security team interacts with customers for the investigation and resolution of

security incidents

SAP Financial Services Network – Security and ComplianceHandling and Reporting of Security Incidents



Messaging and Mapping


SAP Financial Services NetworkThe Canonical Model – Why is it important?

Any Input

Canonical Model

Standard Output


Bank TenantCorp Tenant

SAP Financial Services NetworkSystems and Messaging (Corporate Bank)

Bank

Bank System

In Format

Canonical

Format (CMF)

Canonical

Format (CMF)

Out Format

pain.001 CGI CMF

pain.001 ISO CMF

pain.008 ISO CMF

PEXR2003 CMF

SAP ERP 6.0

Corporate

FS

N C

on

ne

cto

r

SAP ERP 4.6C+

Corporate

CMF pain.001 CGI

CMF pain.001 ISO

CMF pain.008 ISO

Payments,

Direct Debits

Payments,

Direct Debits

SAP FSN


Bank TenantCorp Tenant

SAP Financial Services NetworkSystems and Messaging (Bank Corporate)

Bank

Bank System

Out Format

Canonical

Format (CMF)

Canonical

Format (CMF)

In Format

CMF pain.002

CMF MT940/942

CMF camt.052

CMF camt.053

SAP ERP 6.0

Corporate

FS

N C

on

ne

cto

r

SAP ERP 4.6C+

Corporate

pain.002 CMF

MT940/942 CMF

camt.052 CMF

camt.053 CMF

Status,

Statements

Status,

Statements

SAP FSN


A Canonical Data Model provides an additional level of indirection between application's

individual data formats [Hohpe & Woolf, 2003]

Integration effort is reduced from n * (n - 1) to 2 * n mappings

CMF, central format for building services / value apps

SAP Financial Services NetworkCMF – The Intermediary at SAP FSN

ISO 20022PAIN.001|-- PstlAdr

|-- StrNm|-- BldgNb|-- TwnNm|-- CtrySubDvsn|-- Ctry|-- AdrLine

|-- CtryOfRes|-- CtctDtls

|-- Nm

Mappings

EDIFACTPAYMUL|-- NAD

|-- C058 Name|-- 3124 Name|-- 3124 Name

|-- C059 Street|-- 3042 Street|-- 3042 Street

|-- 3164 City name|-- 3251 Postcode|-- 3207 Country

ASC X12820|-- N3

|-- 166 Address|-- 166 Address

|-- N4|-- 19 City Name|-- 156 State|-- 116 Country|-- 26 Postal|-- 309 Location|-- 310 Location

Ma

pp

ing

s

SAP IDOCPEXR2001|-- EDI_DC40

|-- SNDSAD|-- SNDLAD

Ma

pp

ing

s

Mappings


|-- C058 Name|-- 3124 Name|-- 3124 Name



FSN CDM




|-- Nm

ASC X12820|-- N3






SAP Financial Services NetworkSAP FSN working as a Network

ISO 20022PAIN.001|-- GrpHdr

|-- MsgId|-- CreDtTm|-- Authstn|-- NbOfTxs|-- CtrlSum|-- InitgPty

|-- PmtInf|-- PmtInfld|-- PmtMtd

ACHACH|-- VOL1

|-- 1 (Label ID)|-- 2 (Label Nr)|-- 3 (Submission Nr)

|-- HDR1|-- 1 (Label ID)|-- 2 (Label Nr)|-- 3 (File Id)|-- 4 (Set Id)|-- 5 (File Section Nr)

FSN Canonical FormatCustomerCreditTransferInitiation|-- GroupHeader

|-- MessaegIdentification|-- CreationDateTime|-- Authorisation|-- NumberOfTransactions|-- ControlSum|-- InitiatingParty

|-- PaymentInformation|-- PaymentInformationIdentification|-- PaymentMethod

ISO 20022 (CGI ACH)PAIN.001|-- GrpHdr

|-- MsgId|-- CreDtTm|-- Authstn|-- NbOfTxs|-- CtrlSum|-- InitgPty

|-- PmtInf|-- PmtInfld|-- PmtMtd

Corporate 1 SAP FSN Bank 1

Corporate 2

(SAP ERP or other) Bank 2SAP IDOCPEXR2003|-- EDI_DC40


|-- E2EDK02|-- BELNR|-- POSNR|-- DATUM|-- UZEIT

|-- E2EDK12


Requirements towards CMF Structure

CMF must include all elements from all used data formats

CMF must unify semantic equivalent data elements

Hierarchical Structure of CMF must be fitting for hierarchies of all

supported data formats

FSN CMF V1.0 based on ISO V4 Messages

ISO taken as starting point

ISO was result of unification/standardization effort and took already

many message formats into account

Currently FSN CMF messages are mostly equivalent to ISO V4

(pain.001, pain.002, pain.008, camt.052, camt.053, camt.054)

Main difference: FSN CMF uses full element names

– <PaymentMethod> instead <PmtMtd>

Future versions of FSN CMF

FSN CMF needs to be evolved according to upcoming requirements

FSN CMF might move away from ISO standard over time

SAP Financial Services NetworkCMF – Content and Structure

CDM

?




|-- Nm


|-- C058 Name|-- 3124 Name|-- 3124 Name



ASC X12820|-- N3






SAP Financial Services NetworkStandard Offering versus Customer-specific Projects

SAP FSN will offer a select list of Standard Message Formats for customers to use

• Examples: ISO20022 v3 family; CGI; SEPA; PEXR payments; MT payment and account report messages; …

• Offering includes

• Complete Specification of FSN Standard Messages (Message Implementation Guide)

• Mapping Guideline for Mapping between Standard Message and FSN CMF

• Implemented Base Map for mapping between Standard Message and FSN CMF

• Specification approach (and tool)

For customers there are in basic two choices:

• 1) Use one of the offered FSN Standard Messages Standard implementation

• Some customizing / adjustments are expected and accepted (~ 10-20%)

• 2) Customer has a format not (yet) supported by FSN Standard Customer implementation

• Higher customizing / adjustments are expected


SAP Financial Services NetworkStandardization of Messages for SAP Backends

SAP FSN will offer Standardized Message Implementations for Corporates with SAP Backends

• Provision of a so called DMEE Tree (based on pain.001 and pain.008)

• DMEE Tree = predefined mapping from SAP Backend data into ISO messages

• Smaller customizing required and expected

• Implementation of FSN-related messages significantly simplified

Some properties of Corporate FSN Standard Message

• One (ISO) message on Corporate side (per message type like CT or DD) independent of specific format

required by bank(s)

• Message includes all required data – include format-specifics & domain-specifics (country, payment

instrument) = “Overpopulated” ISO message

• CGI ISO used as basis and starting point



Support Process


SAP Financial Services NetworkSupport Process

SAP Initiated

FSN contacts corporate if a message may not be transferred within SLA to bank tenant (formessages from corporate) or corporate (for messages from bank) and corporate customerinvolvement is required for issue resolution

FSN contacts bank if a message may not be transferred within SLA to bank (for messages from

corporate) or corporate tenant (for messages from bank) and bank involvement is required for

issue resolution

Corporate

Customer

Create CSS Ticket

Response in CSS Ticket

SAP SupportBank

Customer

Create CSS Ticket


1 2



Customer Initiated

Corporate

Customer

Create CSS Ticket


SAP SupportBank

Customer

Create CSS Ticket


1 3

Contact Bank2

Contact Corporate4

Corporate customer contacts FSN if messages may not be transferred to FSN for technical error

messages in the sending backend due to events like FSN Connector configuration, security

configuration or FSN service availability.

Corporate customer contacts Bank for all business (message content) inquiries such as missing,

negative or faulty messages from Bank, missing pain002 / camt053, negative pain002, pain002 /

camt053 messages received but with unexpected content.



Customer Initiated

Bank customer contacts FSN if messages may not be transferred to FSN for technical error

messages in the sending backend due to events like security configuration or FSN service

availability.

Bank customer contacts Bank for all business (message content) inquiries such as faulty

messages from the corporate, pain001 received but with unexpected content.



Priority Definition Response Level

P1 Very High: The production system is not accessible or a critical business

process for mission critical application cannot be completed for multiple

users and no workaround is available. It may include issues that materially

affect data integrity or breach of security.

Initial Response: within one hour of case being submitted

Ongoing communication: Once every hour

Resolution Target: SAP to provide a response within four hours.

Response to include either (i) a resolution; (ii) a workaround; or (iii) an

action plan.

P2 High: The production system is operational but experiencing a major

functional loss that impedes transactions from being completed. The

development/test system is not accessible or operational.

Initial Response: within two hours of case being submitted

Ongoing Communication: Once every six hours.

P3 Medium: The production system is experiencing a minor functional loss that

does not significantly impede transactions from being completed.Also

includes configurations or change requests that have high business impact.

Initial Response: within four business hours of case being submitted

Ongoing Communication: Once every three business days for non-

defect and two weeks for product defect.

P4 Low: Change or configuration requests and minor problems. Inquiries

about product usage and application capabilities.

Initial Response: within one business day of case being submitted

Ongoing Communication: Once every week for non-defect and three

weeks for product defect.



Rapid Deployment Solution


SAP ERP Integration for SAP FSN Rapid-Deployment SolutionWhat’s Included – Solution Scope

Financial Institute

Payment Initiation

Payment Status Update

Bank Statement

Corporate

Tenant

SAP ERP

SA

P F

SN

Co

nn

ec

tor

Ad

d-o

n

Bank

Tenant

SAP HANA Cloud Integration

SAP HANA Cloud Platform

With this rapid-deployment solution, you can quickly connect your SAP Business Suite system to the cloud-based Financial Services Network Secured,

owned and managed by SAP providing pre-configured content for the payment process. The scope covers connectivity for:

• Payment initiation and bank statements Integration

• Payment status and approvals

* BCM is an optional scope item and requires ERP ECC 6.0 EHP02 or higher

FI


SAP FSN Rapid Deployment Solution

• Accelerates corporates to SAP Financial

Services Network

• Simplified and secure connectivity for

transacting with multiple financial institutes

• Single integration point instead of multiple

point-to-point technologies for each bank

• Automated payment transactions

• Lower TCO with minimal up-front investment

and predefined configuration

• Get simplified and accelerated on-boarding to

the SAP Financial Services Network from your

SAP ERP system(s), for Payments, Status

and Statement Reconciliation.

Business BenefitsAt a glance

–SAP Business Suite Integration for SAP Financial Services

Network rapid-deployment solutions



The scope covers payment message formats for:

Payment initiation

Bank statement

Scope item 1: Connectivity for payment initiation and bank statements integration

The scope covers payment message formats for:

Payment initiation

Payment status updates, payment approvals (with BCM – Bank Communication Management)

Payment statement

Scope item 2: Connectivity for payment status and approvals using BCM



On-Premise service options

The core service is the minimum requirement and build the backbone for the optional services

The core service can be implemented within 6 weeks

Service OptionsRequirement/

OptionalScope Items / Functionality delivered

Core Minimum requirement Payment initiation and Bank statements Integration based on FSN Connector

for three-tier system

BCM Integration* Optional BCM integration* for payment status updates and approvals based on FSN

connector for three-tier system

On-Premise Services

* BCM is an optional scope item and requires ERP ECC 6.0 EHP02 or higher



Links for Further Information


SAP Financial Services NetworkBank Commentary

“Our clients are always exploring integration solutions that help reduce operating cost and time to implement. The SAP

Financial Services Network addresses clients’ needs via a single, comprehensive service offering that simplifies integration

between corporates and banks. Citi is pleased to collaborate with SAP and extend our set of integration solutions.”

Andrew Gelb, Head of Citi North America Treasury and Trade Solutions

Common Standards, a Superior Experience LINK

An Interview with Hemant Gada, Head of Channel and Enterprise Services, EMEA, Treasury and Trade

Solutions, Citi

“Citi is working closely with SAP to create the SAP Financial Services Network (FSN). This is a cloud-based, secure

network managed by SAP that enables corporate treasurers and finance managers to connect with their banks directly

through their SAP platform, without the need to manage individual bank connections. By leveraging the FSN, corporations

are insulated from the idiosyncrasies of each bank’s systems and formats, and bank connectivity becomes seamless.”

http://en.wikipedia.org/wiki/File:Citibank.svg

http://en.wikipedia.org/wiki/File:Citibank.svg

http://www.treasury-management.com/article/1/300/2500/common-standards-a-superior-experience.html


SAP Financial Services NetworkBank Commentary

“At DBS, we constantly look at how we can leverage technology to simplify banking for our customers. Trailblazing the use

of SAP FSN underlines this effort. In this competitive business landscape, CFOs and corporate treasurers want a seamless,

integrated connection with their banks that automates financial transactions and provides them with visibility of their

cashflow. With FSN, we are able to provide straight through processing, operating efficiencies, as well as a more

streamlined onboarding process for our corporate clients.”

Lum Yin Fong, Global Head of Product Management, Global Transaction Services, DBS LINK, LINK

“One of our clients’ biggest pain points was high-volume connectivity — how to get large files to Citi — and they had to do

that multiple times with multiple banks. We knew that if a client wanted to work with Citi across a region, it would take

months for them to connect each of their individual ERP instances into Citi. It was a major effort and pain point for them,

and an expense for us as well. …The other big benefit is we’ll be able to exchange better data back to our clients.”

Hubert Jolly, managing director at Citi LINK

https://ctmfile.com/story/dbs-joins-sap-financial-services-network-to-simplify-bank-to-corporate-link#.VGYLp6MwdaT

http://www.dbs.com/newsroom/DBS_partners_SAP_financial_services_network_to_simplify_banking_for_corporate_clients

http://www.pymnts.com/news/2014/saps-fsn-bank-partnerships-streamlines-corporate-transactions/#.VGYLuaMwdaR


SAP Financial Services NetworkPublic Resources for SAP FSN

SAP FSN on SAP.com

LinkedIn: SAP-Financial-Services-Network

SAP Financial

Services Network

is available today

http://www.sap.com/fsn

http://www.linkedin.com/groups/SAP-Financial-Services-Network-6538960


SAP Financial Services NetworkLinks for further information


SAP FSN Homepage: http://www.sap.com/fsn

SAP FSN Solution Overview: http://www.sap.com/solution/lob/finance/software/financial-services-network.html

SCN: http://scn.sap.com/docs/DOC-40696

Rapid Deployment Solution (RDS) for Corporate Onboarding: http://service.sap.com/rds-fsn

Documentation on SAP Help Portal: SAP FSN: http://help.sap.com/sapfsn, SAP FSN Connector: http://help.sap.com/fsnagent

Ramp-up Knowledge Transfer (RKT): https://websmp103.sap-ag.de/~form/sapnet?_SHORTKEY=01100035870000759375&

Security and Compliance @ SAP – General Information

SAP Data Center Security: http://www.sapdatacenter.com/

SAP Data Center Certifications: http://www.sapdatacenter.com/article/security_certificates

CIO Security Guide: http://www.sap.com/bin/sapcom/en_us/downloadasset.2013-12-dec-10-16.cio-guide-it-security-in-a-cloud-and-mobile-environment-

pdf.bypassReg.html

SAP Security Development Lifecycle: http://www.sap.com/bin/sapcom/downloadasset.the-security-development-lifecycle-at-sap-how-sap-builds-security-into-

software-products-pdf.bypassReg.html

Source Code Scanning at SAP: http://www.sap.com/bin/sapcom/downloadasset.source-code-scan-tools-used-at-sap-detecting-and-eliminating-security-flaws-early-

on-pdf.bypassReg.html

Product Security Validation at SAP: http://www.sap.com/bin/sapcom/downloadasset.product-security-validation-at-sap-the-customer-advocate-for-holistic-product-

security-pdf.bypassReg.html

SAP Product Security Response Team: http://www.sap.com/bin/sapcom/downloadasset.the-product-security-response-team-at-sap-keeping-sap-software-secure-at-

customer-sites-pdf.bypassReg.html

http://www.sap.com/fsn

http://www.sap.com/solution/lob/finance/software/financial-services-network.html

http://scn.sap.com/docs/DOC-40696

http://service.sap.com/rds-fsn

http://help.sap.com/sapfsn

http://help.sap.com/fsnagent

https://websmp103.sap-ag.de/~form/sapnet?_SHORTKEY=01100035870000759375&

http://www.sapdatacenter.com/

http://www.sapdatacenter.com/article/security_certificates/

http://www.sap.com/bin/sapcom/en_us/downloadasset.2013-12-dec-10-16.cio-guide-it-security-in-a-cloud-and-mobile-environment-pdf.bypassReg.html

http://www.sap.com/bin/sapcom/downloadasset.the-security-development-lifecycle-at-sap-how-sap-builds-security-into-software-products-pdf.bypassReg.html

http://www.sap.com/bin/sapcom/downloadasset.source-code-scan-tools-used-at-sap-detecting-and-eliminating-security-flaws-early-on-pdf.bypassReg.html

http://www.sap.com/bin/sapcom/downloadasset.product-security-validation-at-sap-the-customer-advocate-for-holistic-product-security-pdf.bypassReg.html

http://www.sap.com/bin/sapcom/downloadasset.the-product-security-response-team-at-sap-keeping-sap-software-secure-at-customer-sites-pdf.bypassReg.html



Summary


SAP Financial Services NetworkKey Takeaways and typical next steps

Key Functionality

• Secure Multi-Bank / Multi-Corporate Connectivity

• Message Mapping & Transformation

• Outgoing Payments & Credit Card Instructions

• Payment Status Delivery

• Statement Reconciliation

Deeper Dive

• Technical Review

• Payment Services Inventory

• Customer Segmentation

• Current Approach

Value Proposition Review

• Understand Business Drivers

• Current vs. Target Cost Model

• Determine the New Business Potential

• Calculate the ROI

• Build Business Case

Summary

• Multi-service solution for multi-corporate connectivity

• Automatic data mapping and maintenance

• Rapid on-boarding

• Low TCO

Key Benefits

• Reduced technology connectivity challenges

• No new hardware or software footprint, extends

existing SAP resources

• Rapid deployment for ERP configuration

• No customer development or mapping

• Multi-bank, single format solution, delivering risk

mitigation and business agility

• “Pay-as-you-go” subscription model

• Corporate customer integration

• Platform for Value Added Services

• Better Corporate Customer Satisfaction

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