e-invoices through the existing e-banking channel jasna Žaler 1 confidential. all rights reserved....

E-Invoices through the existing e-banking channelJasna Žaler

1Confidential. All rights reserved. Halcom d.d.

„Replicating“ Slovenian E-Invoicing modelTransferring best practices to Serbia


• Abanka Vipa • Banka Celje • Banka Koper • Banka Sparkasse • Banka Volksbank • Delavska hranilnica • Deželna banka Slovenije • Gorenjska banka • Hypo Alpe-Adria-Bank • Nova Ljubljanska banka

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> 90% of the market

• Nova kreditna banka Maribor • Poštna banka Slovenije • Probanka • Raiffeisen Banka • UniCredit Banka Slovenija

E-Invoices – national project in SloveniaBanks in e-invoicing service

Confidential. All rights reserved. Halcom d.d.

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Issuers: distribution & reconciliationE-billing at electro companies in Slovenia

All electro companies in Slovenia issue more than 900,000 bills and 300,000 invoices each moth to households and organizations respectively. Proprietary systems for generating, issuing and sending e-invoices and e-bills can be very expensive. They wanted to set up an efficient system that would not require a very high investment.

They jointly entered the Hal E-Invoices system. All their recipients – corporate and retail – can generate a payment order directly from the e-invoice or e-bill inside their internet banking application. In this way the beneficiary gets accurate incoming payment data. Correct and accurate data is crucial for reconciling payments received against invoices issued (clearing of issued invoiced).


Corporate recipients: importing dataE-invoicing at Adria Mobil

Adria Mobil is one of the leading European manufacturers of caravans, mobile houses and motorhomes. The company yearly receives more than 30,000 invoices. In Hal E-Invoices they saw a great opportunity for cutting the costs of data entry, reconciliation and archiving.

Just 3 months after entering the Hal E-Invoices system Adria Mobil was already receiving

e-invoices from its 10 biggest suppliers that send more than half of 30,000 yearly received invoices.


Click icon to add picture

E-InvoicingBenefits for involved parties


Why E-Invoices? • Electronic invoicing, an automated way for suppliers and buyers to send, process, and

collect invoices, reduces the cost per invoice between 70% to 75%. • EC research identified the average processing cost of a paper invoice across Europe to be

approximately €30, meaning a cost reduction of min. € 21 per invoice can be achieved. (Source: SEPA: potential benefits at stake Capgemini research, 2011)

7Confidential. All rights reserved. Halcom d.d.Confidential. All rights reserved. Halcom d.d.

Bill payment in Serbia today Association of Serbian banks, 2012

• Serbia - over 12 million invoices issued monthly for: • Telekom services – approx. 5,5-6 million invoices per month• “Energy” services – 3 million invoices per month• Utilities - 2 million invoices per month• Insurance (car ins., life ins.)

• Settlement methods for issued invoices:• Standing order < 2%• E-banking 5-6%• Cash at Post Office or Bank counter > 90+%

Confidential. All rights reserved. Halcom d.d. 8

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Benefits for Invoice Issuers (B2C, B2B)

• improved efficiencies • fewer mistakes, automatic reconciliation, more invoices paid on time, shorter invoice

processing times

• reduced customer complaints • call volumes from e-invoice adopters lower than from paper invoice users

• increased control & cash managment• ability to optimize cash flow

• delivery report• reduced costs of invoice delivery

• eliminate paper, printing, packaging, postal services, delay, no lost mail, no paper archiving (once the legal framework is set)


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Benefits for Invoice Recipient (B2B)

• reduced costs• no manual sorting, no scanning, no data entry, fewer mistakes, shorter invoice processing

times

• eliminating billing errors • billing errors (estimated at 1- 5% of spend), eliminate duplicate invoices

• gain internal processes efficiency• invoice approval and payment • automate administrative processes • archived e-documents easily accessible• improved cash flow


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Benefits for Consumers (B2C)

• from invoice to payment with a single click• fast and easy, no manual data entry, no errors

• e-bills can be paid anywhere & anytime• home, office, on the street, abroad• even after banks‘ working hours• with mobile payments and portal even for non e-bank users•DD with confirmation

•as simple as DD but with more control

• better overview of e-bills• archived electronic documents easy to find, sort and group


Why banking channels?Benefits for the banks


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E-Invoices in E-Banking Client Network• every corporation and most adults have at least one bank account

• unique mail address for identification of counterparties (IBAN)

• > 98% of companies are rather small (produce 60% of invoices) • cannot afford to accommodate a variety of standards• cannot afford to support connectivity to numerous counterparties• cannot afford to make large investments into accounting/ERP systems• can only be brought in via E-Banks• waiting for banks to provide the simplest tools and interfaces


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Benefits for banks• new incremental revenue from non-banking services

• estimated between €0,4 Bn and €3,4 Bn per year in SEPA area•leverage existing e-banking infrastructure• leverage existing staffing and processes (support, helpdesk, maintenance)

• building an image of client centric bank• attract new customers, especially big issuers and big recipients• increase customers’ loyalty• offer a unified, single platform to cater to all your clients‘ needs

• increase the number of e-payments• cutting costs with issuing own e-bills• attracting new e-clients with e-bills portal and mobile payments


Leveraging existing assets


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• Strong reliable brand • Existing corporate and retail clients• Trusted Network

• Leverage existing e-bank infrastructure • gathers corporate (STP) and retail users• safe and reliable infrastructure• no spam, no viruses

• Security• Leverage existing e-bank authentication and authorisation methods• Leverage encryption and digital signature already embedded in e-banking

• Software needed• familiar e-banking tools upgraded with e-invoices

• average use of E-Bank (3 times per day) - corporations


Prerequisites 1/2

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• Billing presentment linked to bill payment • E-invoices payments within E-bank

• one click from E-Invoice to the payment

• Other success factors• Short time-to-market• Most cost-efficient approach


Prerequisites 2/2

Stakeholders and process overview


How does it work?

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Bank

DC

Bank

DC

Bank

DCCorporates Consumers

DOS-TAVA

PRI-JAVA

PRI-JAVA

DOS-TAVA

21 banks

E-invoice WEB portal

PRI-JAVA

DOS-TAVA

E-Bank user

E-invoice portal user



E-Invoices issuing and receiving optionsAutomated issuing and receiving through existing banking channels


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E-Invoice issuing and receivingfor large companies…

AccountingApplication / ERP

Commercial bank

Corporate


Commercial bank

Corporate/B2B

AccountingApplication / ERP

B2B

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E-Invoice issuing and receivingfor SME‘s


Copyright Halcom 23

• E-banking – DD, e-bank, mobile• E-Invoice WEB portal – DD,

mobile

ConsumersReceiving and paying invoices

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E-Invoice portal & mobile paymentsE-Invoices for non e-bank users



Product marketing activities


•Marketing plans - Slovenian model• Direct acquiring of e-invoice participants• Specialized acquiring events for corporations• Training for banks (user group, sales trainings, support materials,

success stories)

• Acquiring events with high success rate (+22%)• 360 invitations sent to corporations• 178 of them attended• 47 already exchanging e-invoices (22%)• 26 in the process of implementation (17%)

Marketing activities in Slovenia



• Serbian roadshow • Banks (12 offers issued)• Companies (30+ companies visited)• Big issuers (VIP, EDB,Telekom, Informatika, EuNet…)

Product marketing activities RS



Positive feedbacks

“Telenor is interested in using Halcom’s solution for electronic sending of invoices, as long as this also provides us the opportunity to reduce costs.”Vanja Todorović, Accounting, Treasury and Tax Director, Telenor

“Telenor je zainteresovan da koristi Halcomovo rešenje za elektronsko slanje faktura, sve dok nam isto pruža mogućnost uštede.”Vanja Todorović, Accounting, Treasury and Tax Director, Telenor

“We really like the concept of the unique e-invoicing system and would love to become its users if this system came to life in Serbia.”Bojan Milanović, IT Manager, Diners Club

“Nama se koncepcija jedinstvenog sistema fakturisanja jako dopala i ukoliko takav sistem u pravom smislu reči zaživi u Srbiji, rado bismo postali njegovi korisnici.”Bojan Milanović, IT Manager, Diners Club

“We are also interested in receiving electronic invoices, however, for us issuing of e-invoices is a priority right now.”Zorica Jelovac, Treasury Department, Holcim

“Zainteresovani smo i za prijem faktura elektronskim putem, ali nam je za sada prioritet izdavanje e-faktura.”Zorica Jelovac, Treasury Department, Holcim

“As users of Halcom’s e-bank we were especially drawn by the possibility of using the existing solution to receive and issue e-invoices. We believe this solution, which also supports all types of invoices, would not only be a technological development for our company but would also improve our business processes and produce savings.” Duško Novaković, Assistant Director of IT, JKP Informatika, Novi Sad

“Kao korisnike Halcomovog rešenja za e-bankarstvo, posebno nas je privukla mogućnost da upotrebom postojećeg rešenja, primamo i izdajemo e-fakture. Kako pomenuto rešenje, između ostalog ima mogućnost plaćanja i podršku za sve tipove faktura, smatramo da bi bilo, ne samo tehnološki iskorak za našu kompaniju već bi donelo i unapređenje određenih poslovnih procesa i samim tim određene uštede.”Duško Novaković, pomoćnik direktora za IT, JKP Informatika, Novi Sad

“Idea d.o.o. Company is interested in entering the e-invoices system, especially because of a large number of transactions performed with commercial banks and large companies that also support the presented concept.”Gordana Lečić, Executive Project Director

“Društvo Idea d.o.o. izražava interesovanje za ulazak u sistem e-faktura posebno zbog toga što u svom svakodnevnom poslovanju obavlja vrlo veliki broj transakcija sa poslovnim bankama i velikim kompanijama koje takođe podržavaju prezentovan koncept.”Gordana Lečić, Izvršni direktor projekata

“City Express has a significant number of invoices and money accounts, and we are very interested in the possibility of using e-invoices. In the segment of legal entities we issue over 7,000 invoices per month, the segment of individuals is less frequent, but the plan is to target this market and this service would help us significantly. We believe that the services offered by Halcom would substantially contribute to our efficiency and reduce our costs as well as costs of our clients. "Tihomir Kotujić, IT Manager, City Express

“City Express ima značajan broj faktura, kao i keš računa, i vrlo smo zainteresovani za mogućnost korišćenja e-faktura. U segment pravnih lica, radi se o preko 7.000 faktura mesečno, segment fizičkih lica je manje zastupljen, ali plan je da se pojača pritisak na to tržište i ova usluga bi značajno doprinela tome. Smatramo da bi servisi koje Halcom nudi značajno doprineli efikasnosti i smanjenju naših troškova, a i troškova naših klijenata.”Tihomir Kotujić, IT Manager, City Express

“The concept of e-invoices is very interesting for us. EUnet has always been dedicated to implementing solutions which would enable our clients to use simple electronic payment methods, and this project would help us in doing just that. From the technical standpoint, this e-invoicing system is fully compatible with our system.”Ivan Sekulović, Director R&D, EuNet

“Koncept E-faktura je za našu kompaniju veoma interesantan. EUnet je oduvek bio posvećen implementaciji rešenja koji će korisnicima omogućivati jednostavnije i lakše metode elektronskog plaćanja, i ovaj projekat posmatramo kao korak dalje u tom pravcu. Sa tehnološke strane, E-Fakture sistem je potpuno kompatibilan sa našim sistemom.”Ivan Sekulović, Director R&D, EuNet

” Dunav Osiguranje Company is interested in participating in the e-invoices project using Halcom’s solution and being part of the pilot project for development of these services in the Serbian market.”Ivan Ćorović, Director, Directorate for selling non-life insurance, Dunav Osiguranje

”Kompanija Dunav Osiguranje je zainteresovana da se uključi u projekat E-faktura pomoću Halcomovog rešenja i da bude deo pilot projekta kao početne faze razvoja ovih usluga na tržištu Republike Srbije.”Ivan Ćorović, Direktor, Direkcija za prodaju neživotnih osiguranja, Dunav Osiguranje

• Holcim Serbia• Public, Valjevo• EDB• Mercator• Direct Group• Idea doo• City express• NELT• SBB

• Delhaize Serbia• Telenor• Nectar• JP Informatika, NS• Omnico distribucija• Dunav osiguranje• Vip Mobile• Diners club• Eunet

• Veletabak• Imlek• Coca Cola• Carlsberg• Telekom• Philip Morris• Mellon d.o.o.

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Targeted corporations



E-Invoicing in SerbiaTechnical overview


System architectureComplete system overview



Implementation Requirements


Implementation requirementsNo additional development for banks• B2B issuers, recipients (Hal E-Bank)

via Hal E-Bank/Personal, Corporate

• B2C recipients (Hal E-Bank) via Hal E-Bank/Web

• B2C recipients (non E-Bank) via Hal M-Payments/Portal

Development on banks side needed for• B2C recipients (non Hal E-Bank)

using existing Retail E-Bank solution


E-Invoice issuing options

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e.g

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Issu

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ED

B, S

BB• Manual preparation within Hal E-Bank• Manual import/export using Hal E-Bank/Personal,

Corporate

• Automated distribution via Hal E-Bank/B2B• Automated import/sending – receiving/export

• Hal E-Invoices/Issuer (converting existing flat or XML file to E-Invoice)


Implementation requirementsB2B Issuers via Hal E-Bank

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Bank• Installing new version of Hal E-Bank/Admin• Adding new permissions to clients (server script performed by Halcom)• Providing new version of Hal E-Bank/Personal, Corporate• E-Invoice subscription management

Issuers • Installing new version of Hal E-Bank/Personal, Corporate, B2B• E-Invoice preparation based on issuer's size

Halcom• Providing support for Hal E-Bank users • Providing support at generating syntactically correct XMLs

(validation, technical advices, Hal E-Bank installations)• Mutual testing with the bank and issuers


Implementation requirementsB2B Recipients via Hal E-Bank

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Bank • Adding new permissions to clients (can be done via server script)

Recipients • Installing new version of Hal E-Bank/Personal, Corporate, B2B• Subscribing to E-Invoices

Issuers • E-Subscription handling support


B2C recipients - Retail Gateway (non Hal E-Bank)

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Bank• Providing WebService for routing (eInvoice Recipient)• Connectivity to data retrieving WebServices (RetailGateway)• Connectivity to subscription WebServices (IssuerReg, SubscriptReg)

Recipients • Subscribing to E-Invoices

Halcom• Providing support for integration with bank infrastructure• Mutual testing with the bank and issuers or recipients


B2C recipients Hal M-Payments/Portal

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Bank • Providing WebService for online payments (mpayments-bank)

Recipients • Subscribing to Portal

Halcom • Halcom provides Portal


B2C recipients (non Hal E-Bank)Retail Gateway WebServices


Billing in E-Invoice system• Halcom provides cumulative information for all issuers and

recipients• Once a month the Bank receives XML file with at least

• Issuers name, recipient name, …• Issuers account id, recipient account id, …• Type of document• Envelope size • Attachment size• Number of attachments• …



AdministrationUsers, issuers,…


Users administration

• Via existing Hal E-Bank/Admin


Hal E-Bank/Admin

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• Via existing Hal E-Bank/Admin• Via new Hal E-Invoice/Admin


Hal E-Invoices/Admin



• Via existing Hal E-Bank/Admin• Via new Hal E-Invoice/Admin• Via servers scripts for mass issuers/recipients activations



Getting the correct XML Invoice


Best practices from Slovenia• Halcom will provide:

• E-invoice specifications based on ISO 20022• Documentation for Issuers• XSD schemes for all documents supported • Standalone validation software for XML files (using XSD

schemes)• Technical support for banks and issuers



Simplifying E-Invoice issuing


Simplifying integration for issuers• Halcom provides:

• Converters for Hal E-Bank• Hal E-Issuer


Converters for Hal E-Bank

• Standard converters for• Importing ISO XML E-Invoice without envelope

• Special converters for existing Mpayment issuers


Hal E-Issuer• Infrastructure for mass E-Invoice issuing• Server based infrastructure for complete E-Invoice generation:

• Creating envelopes• Creating E-Invoices• Creating / Adding PDF (optional)• Signing (using HSM module)

• High speed• Several certificates possible

• Multiple output directions (E-Bank, E-Archive, email, …)


Hal E-Issuer


Next steps?


e-invoices through the existing e-banking channel jasna Žaler 1 confidential. all rights reserved....

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