S/4HANA Transactional Banking (S/4TRBK) is a hot topic at the moment, but surprisingly from a quick Google search there is very little information or reading out there. If you are new to S/4TRBK here is a crash course in the latest SAP solution.

In short, what is S/4 Transactional Banking?

S/4HANA Transactional Banking is a core banking solution provided by SAP Fioneer, one of the world’s leading enterprise software companies. It is designed to help financial institutions digitise their operations and processes, enhance their customer experience, and increase efficiency.

The solution is built on the SAP S/4HANA platform, which provides real-time data processing and analytics capabilities. This allows financial institutions to quickly process transactions, monitor risks, and make informed decisions based on up-to-date information.

What are the key features and functionalities of the solution?

S/4 Transactional Banking provides a range of segment agnostic (retail, SME, commercial – transactional or lending) features and functionalities that cover all aspects of banking operations. These include:

  1. Account management: S/4 Transactional Banking provides a centralised platform for managing customer accounts, including account opening, maintenance, and closing. It also supports multi-currency and multi-language operations.
  2. Payment processing: The solution enables financial institutions to process a variety of payment types, including domestic and international payments, SEPA payments, and real-time payments. It also supports payment reconciliation and monitoring.
  3. Modern FIORI user interfaces: S/4 Transactional Banking provides Modern, browser agnostic, smart UI with focus on user convenience. Improves business results via increased staff productivity and streamlined processes, and reduces integration complexity
  4. Treasury and liquidity management: excite your commercial clients by offering a marketing leading, end-2-end, cash and liquidity management proposition.  Enabling your corporate institutions to manage their cash positions and liquidity in real-time, channel agnostic (on-channel, off-channel and API) and provide comprehensive solutions such as physical  cash concentration, notional pooling and Virtual Account Management.
  5. Embedded Machine Learning: Embedded machine learning capabilities enable automation of back office processes out-of-the-box, improving efficiencies and can be leveraged for predictive analytics use cases, such as next-best-offer, reconcile match for broken payments and so on.

Why should banks consider implementing or upgrading to S/4 Transactional Banking?

S/4 Transactional Banking helps financial institutions to streamline their operations, reduce costs, and provide better services to their customers. It is a comprehensive banking solution that can be customised to meet the specific needs of different financial institutions.

Overall, S/4 Transactional Banking can help banks improve their competitiveness, increase their profitability, and better meet the evolving needs of their customers through:

  • Increased efficiency: With S/4 Transactional Banking, organisations can streamline their banking operations and reduce manual processes by automating many routine tasks such as account opening, loan processing and payment processing, which can help to increase efficiency and reduce costs.
  • Improved customer experience: S/4 Transactional Banking provides a modern, user-friendly and unified view of customer data and transactions, which can help to improve the customer experience by enabling faster and more personalised services and enable banks to deliver a seamless customer experience across all channels.
  • Enhanced security: S/4 Transactional Banking includes robust security features to help protect against fraud, cyberattacks, and other security threats.
  • Better risk management: S/4 Transactional Banking includes advanced risk management tools that enable banks to monitor and manage their risk exposure more effectively.
  • Real-time data analytics: S/4 Transactional Banking provides real-time data analytics and reporting capabilities, which enable banks to gain a better understanding of customer behaviour, identify emerging trends to support more informed business decisions.
  • Flexibility and scalability: S/4 Transactional Banking is a highly flexible and scalable solution that can be tailored to meet the specific needs of different organisations, regardless of size or complexity.
  • Support for digital banking: S/4 Transactional Banking supports a wide range of digital banking services, including mobile banking, online banking, and social media banking, helping banks stay competitive in today’s digital landscape.

What important questions need to be considered when planning a transition to S/4TRBK?

  • What are the immediate and long-term benefits of transitioning to S/4TRBK?
  • Why start now ahead of the 2027 out of maintenance deadline?
  • What are the varying pathways to transition to S/4TRBK?
  • How can I minimise the downtime window and how does that impact the transition pathway I should adopt?
  • How do I reduce the amount of custom-code, yet keep the custom-code that is still relevant?
  • What tools or accelerators are available to support a transition to S/4TRBK, and what benefits do they provide?

What can you expect from working with bancon?

bancon are proven leaders of SAP FSI data migrations have supported over 75 banking partners worldwide with their core banking requirements and implementing S/4 Transactional Banking. Our global reach enables us to advise on best practices from around the world, apply our wider experience to help deliver market first implementations, connect clients to share knowledge and provide critical insight into lessons learnt from previous projects.

So, if you need support in deciding whether transitioning to S/4TRBK is right for you, we’re the partners who can assist you in making an informed decision that makes best sense for you and your business across a range of business scenarios;

If you’d like to find out more get in touch and find further reading on the solution here