Published: March 25, 2021
Best API Project
Switzerland-based tier one supplier of thermal and acoustic insulation for the automotive industry Autoneum was looking for a solution to easily and quickly gain real-time visibility over cash balances in its global subsidiaries. The solution needed to integrate with its existing software platform, as well as having strong fraud and cybersecurity protocols. Autoneum turned to J.P. Morgan for help to use one of the bank’s API plug-ins to increase visibility over its account data. And with the solution up and running in just one month, Autoneum deservedly takes home the TMI Corporate Recognition Award 2020 for Best API Project.
Autoneum operates in around 25 countries, with more than 13,000 employees. From a financial point of view, the company operates in a net debt position and, as an original equipment manufacturer (OEM), is constantly under cost pressure.
To help keep a close eye on cash, the business operates a centralised treasury model. But Autoneum is also a major international manufacturer – and gaining real-time visibility over the cash balances held by global subsidiaries was a challenge. Complicating matters, many of these operations were working on a ‘plus one day’ basis via MT940s.
This lack of real-time cash visibility was negatively impacting the company’s treasury management. Janko Hahn, the company’s Head of Treasury Operations, wanted greater transparency and faster access to transaction data. This was even more pressing given the disruption caused by the Covid-19 crisis.
Autoneum needed a treasury solution that could provide this enhanced visibility and could also be set up quickly and integrated with its existing software platform. It was especially important that it had strong fraud and cybersecurity protocols, such as enabling easy monitoring and tracking of users.
“Historically it was sometimes hard to have the local finance teams reacting proactively in returning excess cash once they had some. We wanted to be faster to the business, closer to the business and have greater transparency so we could intensify discussions with the teams on faster reactions on cash needs or on returning excess cash back to us,” explains Hahn. With this in mind, Hahn approached J.P. Morgan, the main bank for its Canadian and American subsidiaries, to discuss a potential solution.
After a number of exploratory and technical discussions, Autoneum opted to use one of the bank’s application programming interface (API) plug-ins to increase visibility over its account data. As part of its product range, J.P. Morgan has built multiple APIs that integrate with the major treasury management systems (TMS) and enterprise resource planning (ERP) systems. As a result, the plug-in for Autoneum was installed, tested and launched within just four weeks. The TMI judges were more than impressed with this rapid turnaround.
The benefits of this API project also deserve special recognition, in the judges’ eyes. In short, the API solution provides Autoneum’s treasury with real-time visibility into its balances and transactions both in North America and globally. To simplify the user experience, the API also utilises an Excel plug-in, enabling Autoneum to retrieve treasury data at the click of a button. This has greatly improved its reconciliation and forecasting processes, while providing a deeper understanding of its cash positions.
J.P. Morgan’s approach also gave Autoneum greater insight into its electronic banking system, such as who can make payments, who can authorise payments and who the digital users are. The user-friendly interface, coupled with these strong cybersecurity and fraud protections, make it a truly unique and modern system.
In addition to the immediate benefits the API solution has brought to Autoneum, the project has also enabled treasury to be ready for the future. Mario Benedict, Head of APIs and Open Banking, EMEA- Digital Solutions, J.P. Morgan, comments: “When you think about the treasury function of tomorrow – it’s about real-time banking, more intelligent automation, more efficiency. How do you get your data when you need it? How do you bring the best banking experience to your ecosystem without going into multiple banking portals?”
Autoneum has certainly tackled these questions head on and deployed an award-winning solution that will prove indispensable in the years ahead.
Deploying this API solution has helped Autoneum move towards a real-time, automated, intelligent treasury model. The key benefits include:
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