Nucleus Software launches FinnAxia 7.0; Introduces Virtual Account Management for Real-Time Banking

Nucleus Software, the leading provider of lending and transaction banking solutions to the global financial services industry, today announced the launch of the latest version of its transaction banking solution FinnAxia 7.0.

With this launch, Nucleus Software introduces a sophisticated virtual account management (VAM) solution designed to enable banks to open virtual accounts for their corporate customers – accounts that can replace real current accounts and instantly route payments and collections to a linked ‘master’ current account. Reducing the number of physical accounts helps streamline the corporate accounts receivable process, ensuring faster payee identification, error-free reconciliation, reduced days sales outstanding (DSO) and improved working capital management. With FinnAxia VAM, banks can centralize cash operations for their corporate customers thereby providing real-time visibility and better control of liquidity positions along with enhanced forecasting capabilities for faster and more informed decision making. Banks can also provide a range of self-service options to the corporates – allowing them to design complex shadow account hierarchies for a real physical account in line with their specific business needs.

The solution increases the addressable market for banks as corporates like Pension Funds and Mutual Funds companies handling client money can leverage the solution for client money management through notional segregation of the clients’ money using shadow accounting and shadow balance tracking at the virtual account level. Corporates can slice and dice reports according to their business needs with the solution providing them the flexibility to structure, segregate and aggregate data. The clarity on transaction streams at the entity or subsidiary level combined with the reduction in the number of physical bank accounts brings treasury efficiencies of improved account rationalization and real-time liquidity. FinnAxia VAM also helps banks onboard customers faster with a number of features including an AI-based intelligent text extractor.

FinnAxia VAM enables banks to provide an enhanced customer experience, reduce their operational costs through high STP rates combined with low IT expenses, and also improve their compliance to regulations such as BASEL III, IFRS and BEPS.

Mr. R. P Singh (CEO, Nucleus Software) said, “In this age of hyper connectivity, where consumers have little tolerance for delays and errors, banks need to provide corporate treasurers with high quality products and services, fast and with accuracy. In fact, research shows that 70% of corporate treasurers consider the provision of real-time systems as the most important factor when establishing a banking relationship. With On-Behalf-Of structures such as POBO (Payments On Behalf Of) and ROBO (Receivables On Behalf Of), organizations can dramatically reduce the complexity of their banking structures – that often encompass thousands of accounts across hundreds of banks, and involve a wide range of currencies – into just a single physical account in a single bank. This ensures greater visibility of cash positions and faster and more informed decisions. With the latest release of FinnAxia, banks will be well placed to help their corporate customers finally realize their real-time treasury vision”.

Mr. Harshit H Jain (Global Head – Transaction Banking and Digitization Business, Nucleus Software) added “We see Nucleus as a trusted advisor and partner for our banking customers. We strive to continuously keep enhancing our FinnAxia product based on valuable inputs and use cases from our customers as they, in turn, embark on their digitization journey to offer a superior experience to their Corporate and SME customers.”

FinnAxia is an integrated global transaction banking solution built on latest Java J2EE technology over Service Oriented Architecture (SOA) platform, which allows banks to break down traditional product silos, launch personalized products/services over multiple channels, achieve operational excellence and embrace digitization. The solution empowers financial institutions to establish and maintain a market-leading presence through the flexible, speedy and efficient execution of transaction banking processes.