1 Transactional ServicesDublin, May 2015 Portugal
2 Transactional Products and Services for CorporatesSantander in Portugal Incoming Payments / Collections Payment Orders Cheques Direct Debits Bill payments (Multibanco reference payments) Debit /Credit Cards & POS Other related Products - Home Deposit Outgoing Payments SEPA transfers NON SEPA transfers Liquidity Management Cash pooling Other Services Reporting Electronic Banking main functionalities
3 1. Santander in Portugal Banco Santander TottaHighest rating in the Portuguese banking system. 550 branches with a nationwide presence in the mainland, Madeira and Azores. The 3rd largest private bank in domestic activity by total assets. A full range of products ... ... to handle all transactional needs, in particular all types of collection and payment instruments; ... to address working capital optimization (financial supply chain solutions). Electronic banking services, internet host-to-host and major FTP’s. Full STP processes. Dedicated teams to corporate clients.
4 1. Why Banco Santander Totta?There are just a few reasons that makes us the perfect partner for multinational companies operating in Portugal: We are part of one of the largest international banking groups, allowing us to offer locally all the expertise of Santander worldwide; We are one of the largest local banks with a strong presence in all the territory; We have the strongest and resilient balance; We have the highest rating in the Portuguese banking system; Our portfolio of products and services cover all the companies’ needs regarding cash and treasury management ; We have a strong commitment to Innovation, Quality and a close attention to our Client’s needs. In fact, our goal now is to make you an offer of our products and services and be able to prove why we have been receiving for the last years these awards: Euromoney - "Best Bank in Portugal" 2014 Global Finance - "Best Bank in Portugal" 2014 The Banker - "Bank of the Year in Portugal" 2014 Euromoney Private Banking Survey - "Best Private Banking in Portugal" 2014 Escolha do Consumidor - "The Consumer Choice in the segment of large banks in 2015" Structuredretailproducts.com - Best Sales in Portugal, Structured Products Awards 2014 Global Finance - Best Trade Finance Bank 2015 Global Finance - "Best Foreign Exchange Banks Provider " 2014 APCC Award - "Best Contact Centre in the Financial Sector" 2014 Award EDP Electricity and Environment
5 Incoming Payments / Collections Payment OrdersTransfers are processed by the following systems, according to transaction limits: SEPA transfers can be processed as “URGENT” and, in that case, the value date will be D D+1 without FX, D+2 with FX CCY System Transfer Amount Value Date EUR RTGS TARGET Any D ACH SEPA(1) D+1 ANY SWIFT n.d. D+1 / D+2(2)
6 Incoming Payments / Collections ChequesCheques payable abroad can be taken for credit, with recourse to the depositor. Credit value-dates depend on the currency and the country on which they have been drawn These cheques can also be taken on a collection basis Credit value-date depends on settlement date Regimen Date of deposit Currency Value Date Currency = Country D+ 8 D+ 14 Taken for collection D Any currency Day of receipt of funds + 1 Taken for Credit with recourse to the depositor
7 Incoming Payments / Collections Direct DebitsIt is an electronic collection service that allows creditors to receive payments that are charged on a regular basis directly from the bank account of the debtor, under his express agreement The system has been launched in Portugal on the 4th quarter of 2000 and is regulated by the Central Bank. The National System will be switched off on 31/07/2014 due to SEPA regulation. It uses the ACH processing by SIBS which is connected to EBA for SEPA payments Santander Totta is a direct participant in CORE & B2B Files with instructions can be transmitted by: Electronic banking FTP (thru SIBS – need a specific contract) EBICS / TCP-IP Magnetic Support Important AOS: National database both for Creditors and Mandates managed by SIBS Mandate Information update send to Creditors (IAD file)
8 Incoming Payments / Collections Bill payments (Multibanco reference payments)Bill Payments is a service which allows collections, through any terminal with access to the Multibanco System ATM Electronic Banking POS The companies (Service Suppliers) can make available, to their clients, the payment of invoices related to the services provided. In order to allow their clients to make payments in the Multibanco network, the Service Supplier must issue invoices with the following essential data: Service Supplier’s ID Code Reference Amount 29999 89,90
9 Incoming Payments / Collections Debit/Credit Cards & POSIn Portugal there is only one nationwide POS network, which is operated by SIBS. It is an on-line and real time system. National Payment Scheme: Acquired by Banco Santander Totta (Multibanco) Accepts more than 95% of domestic issued cards 100% on-line authorized 100% PIN based International brands acquiring (VISA / MASTER CARD) Acquired by UNICRE (inter-bank corporation) Acquiring Debit and Credit cards Debit cards 100% PIN based
10 Incoming Payments / Collections Debit/Credit Cards & POSTypes of terminals Countertop Terminals Latest generation of 32 bit processor Terminals Contactless Terminals (optional) Available communication types: ADSL Mobile Terminals – GPRS Latest generation of 32 bit processor Terminals Communications via GPRS Contactless Terminals Flat fee communications (included) BST will use POS terminals EMV and PCI Terminals can be connected to the registers in order to speed up and secure the payments (subject to software compatibility). Terminals can be personalized in the display and the ticket with Clients logo.
11 Incoming Payments / Collections Other related products – HOME DEPOSITHome Deposit is an efficient and innovative service in order to optimize the corporate treasury management Pick up Services Banknotes Cheques Home Deposit Coins Home Deposit* consists on the following : To provide equipment which allow the company to make deposits at their premises into their account with our bank Centralized management of pick up services
12 Without operative costsIncoming Payments / Collections Other related products – HOME DEPOSIT For the clients point of view, the traditional model of collection and transport of cash, can be analysed in two different ways: Without operative costs In this situation, the client his self transports the cash in order to make a deposit in the Bank or, the Bank will support all operation costs With operative costs In this situation, the client will support partially or fully all operation costs.
13 Incoming Payments / Collections Other related products – HOME DEPOSITWithout Home Deposit Financial flows For the same point of view, the process steps are usually the following: D + ? * D Opening of the cash register Deposits during the day Cash transportation to the safe at the end of the day or several times during the day Amounts validation by the supervisor (double check). Cash processing (wad of banknotes, safe bags, etc) Safekeeping according to the rules agreed with CIT companies Cash-in-transit - collection and counting in pre-established days Credit into the account at confirmation day (at least D+1) * It depends of the number of travels agreed
14 Incoming Payments / Collections Other related products – HOME DEPOSITCorporates have identified the following needs: Liquidity importance – Establish a deadline between the client’s deposits and funds availability in the Bank; Process efficiency – eliminate non-value added tasks and control increase Security – Reducing risks
15 Incoming Payments / Collections Other related products – HOME DEPOSITBanco Santander Totta has created a solution which allows companies to have a new level of proximity with their Bank, answering to all identified needs: This service includes: Installation, in the company’s address, of a cash management equipment immediate availability of deposited funds Possibility to raise money from the machine Cash Collection / delivery Bank reconciliation - Data base integration Insurance policy included
16 Incoming Payments / Collections Other related products – HOME DEPOSIT1 2 Client Portal Web Bank Notes Checks Coins 1 Client make a deposit 2 BST receives information BST credit customer’s account in the same day 3 BST collect the funds when needed 4 Bank have access to all clients and machines Amounts “on-line” control both by the client and the Bank 3 4
17 Incoming Payments / Collections Other related products – HOME DEPOSITWith Home Deposit With Home Deposit model, the flow will be: D * Opening of the cash register Deposits during the day Cash transportation to the safe at the end of the day or several times during the day Credit into the account after system information (until 17:00) * The equipment allows to raise money (optional)
18 Incoming Payments / Collections Other related products – HOME DEPOSITADVANTAGES DIRECT BENEFITS Costs reduction – Elimination of collection and cash processing costs; Liquidity – Daily deposit of the amounts received; INDIRECT BENEFITS Productivity – elimination of double tasks such as, e.g. counting banknotes, wad banknotes, deposit slips,…; Efficiency – Agility in the process of closing the cash receiver Integration – Bank reconciliation OPERATIONAL RISK Security – Bank assumes responsibility for the credited cash; Frauds - immediate detection of suspect bank notes ; Control, counting and automatic validation
19 Outgoing Payments Transfers - DomesticDomestic transfers can be issued though the different national systems, according to transactions limits, as follows : System Portuguese System Transfer Amount Value Date (at destination bk) RTGS TARGET Any D SEPA SEPA(2) D+1 Will be switched off on 31/07/2014 due to SEPA regulation SEPA transfers can be processed as “URGENT” and, in that case, the value date will be D Tax payments or in favour of state institutions can be made directly over electronic bank and is free of charge.
20 Outgoing Payments Transfers – Cross BorderTARGET Outgoing Payments Transfers – Cross Border Cross border transfers can be issued though several systems, namely: SWIFT, IBOS (International Banking One Solution – IBOS Association), SEPA and TARGET All types of transfers are available through our electronic banking System *SEPA transfers can be processed as “URGENT”. In that case, the value date will be D but the cutoff 14:00 ** Considering that are no intervention by the bank System Type Sending date of transfer Value date to at beneficiary's bank Cut-off time ** (GMT) With FX D+2 11:30 Without FX D+1 D 14:00 12:00 21:00 TARGET Always in € 15:00 SEPA* SWIFT IBOS Always in €
21 3. Outgoing Payments Automatic Cheque Issuance for suppliers – (Carta-cheque)What is it ? Automatic cheque issuance is a service by which and according to file instructions from the Customer, cheques in Euro are sent directly to beneficiaries by the bank. How it works ? These cheques are automatically signed and mailed by the bank as part of a standard A4 letter which mentions the number of the invoices they refer to. An internal “cheque account” is opened for this processing and customers authorize the bank to debit it according to file instructions. This account is debited at cheques presentation to the bank Instructions are transmitted by EB service Detailed reporting is available via EB service as follows: - Cheque account statement + invoice references: monthly - Cheque account investigation: using EB service
22 Liquidity Management Domestic Cash Pooling “Zero Balance”One of the accounts in the pool is the master account At the end of each day the ledger balances of the peripheral accounts are totally transferred into the master account, independently of their balance being debtor or creditor. These cash concentration movements are processed by blocks of value dates, with a cash pooling reference plus number of the account from which it was originated. As a result of this batch processing the ledger balances of the peripheral accounts are null in the end of day D. Daily interest is calculated on the compensated balance of the master account. All the accounts must be domiciled in Santander Totta. Master account Acc 1 Acc 2 Acc 3
23 Liquidity Management Domestic Cash Pooling “Two Way Sweeping”One of the accounts in the pool is the master account and it works in 2 sequential phases: 1st phase - A Zero balance is performed on D from the peripheral accounts to the master account 2nd phase - The original closing balances of the peripheral accounts return to them; these entries are processed in D but with value-date D+1 By this “two way” movement daily interest is calculated on the compensated balance of the master account as peripheral accounts balances are null at the end of day D. Master account Acc 1 Acc 2 Acc 3
24 Liquidity Management Domestic Cash Pooling – “Notional Pooling”There is no need for a master account as there is no transfer of funds whatsoever between the accounts in the pool: The value-date balances of all accounts in the pool are daily grouped in order to establish if it is the credit or debit interest rate that will be applied to all of them The debit or credit interest rate is applied to all accounts respectively in case of a debtor or creditor grouped value-date balance that day This is done independently from the debtor or creditor position of the balance of each account The company’s accounts whose value date balance position (D or C) is opposite to the grouped value date balance will benefit from this pooling.
25 Liquidity Management Cross Border Cash Pooling - “DZero Quick Fix”Dzero Quick Fix is a Cross Border Cash Pooling in EURO, between IBOS Banks as follows : This system is limited to customers of the member banks of IBOS Association, both as Host Bank or Account Holding Bank (AHB). Based on Agreements established among the Association Member Banks It allows the transfer of funds with the original value dates, using specific swift messages (IBOS messages – IBO tagged) Reporting via MT940 (bank to customer) and MT950 (bank to bank) All transfers are same day value → Available version at BST : AHB (BST as Account Holding Bank)
26 Other Services Liquidity Management – Information and ReportingStatements, availability and formats: Electronic Banking The client can download statements in these formats: Norma 43 Norma 43 Registo 24 Composto com NIB Consolidado Tabulado (Folha de Cálculo) Excel worksheet BIT Reconciliação EMC MT940 SWIFT MT940 can be send to any bank indicated by the client Periodicity (daily, weekly, monthly) A specific contract must be signed EBICS/TCP-IP MT940 & AFB120 can be send thru this channel
27 5. Other Services Access Profiles and System SecurityNetBanco Empresas allows the company managers to define access profiles according to the company´s structure and to create the necessary authorization levels and amount plafonds to perform authorized transactions. To all Users of this service we provide the following: A Username A Enquiry Code A Movement code Please note that for further security each movement code is provided by a matrix card received by each user. The Customers will instruct the Bank which of the Users will have the capacity to access to enquiries of accounts and/or make transfers; it is up to the Customer to define witch groups of functionalities each one of the users will have access on the site. The Client should instruct the maximum daily amount to be transferred from all the accounts indicated in the contract; The Customer should instruct the Bank the maximum amounts per transaction.
28 Other Services Electronic Banking – Main Functionalities/MenusMultilingual interface (English, Spanish & Portuguese) User profile customization – Setup each user account according to his own specific working needs Secure environment: Choice of Matrix Card or OTP by SMS* when sending instructions Assets: Global Position Balances & Transactions (Accounts, statements, etc.) Payments & Collections: Send Files (Direct Debits, transfers, Checks, Confirming, etc) Payments (manual payments) Collections (manual collections) Factoring/Confirming (balances, history, files, etc) Investments (Exchange Rates, Investment funds, deposits, etc) Credit (Loan accounts, overdraft acc, Guarantees, etc) Cards (Consult, balances & statements, etc) Cheques (Request, view, etc) Beneficiaries Database Download Return Files Alerts The URL is :
29 Corporate Products and Services DepartmentRua da Mesquita, 6 – B3D LISBOA (Portugal)