FREE MINI-COURSE · 5 MODULES

Bank Connectivity

The Hybrid Treasurer's Toolkit — Part 1

Five ways to connect your TMS or ERP to a bank — SWIFT, H2H/SFTP, EBICS, APIs, and multi-bank aggregators — how each works end to end, what it costs, and when to use it.

SWIFT
H2H / SFTP
EBICS
APIs
Aggregators
After this course, you will be able to
  • → Explain how SWIFT, H2H/SFTP, and EBICS actually move a file from your ERP to your bank
  • → Set up a bank API integration end to end — from developer portal to production OAuth calls
  • → Know when a multi-bank aggregator is worth the middleman fee
  • → Compare all five methods on real-time capability, setup time, cost, and complexity

Alina Turungiu | TreasuryOS · treasuryease.com

SWIFT

Society for Worldwide Interbank Financial Telecommunication

The global standard for bank-to-bank messaging — one network, thousands of banks.

Your Company
TMS / ERP
→ Messages →
Access Point
Alliance Lite2 / Bureau
→ SWIFTNet →
SWIFT Network
Encrypted, BIC routing
→ RMA check →
Your Bank
Receives & responds
What is RMA?

Relationship Management Application. Your BIC and your bank's BIC must exchange RMA keys before any message flows between them. No RMA = message blocked. Think of it as a mutual whitelist.

Access Options

Alliance Lite2: cloud-based, low cost, <50K messages/year.
Service Bureau: managed by a 3rd party, faster setup, no infra needed.
Direct: Alliance Gateway, enterprise only.

What You Need
  • BIC code (your bank's address)
  • RMA exchange with each bank
  • SWIFT membership or bureau
  • Message types: MT940 / CAMT.053
  • Cost: €10K+/year, depending on setup
H2H / SFTP

Direct file-based connection to your bank

No network intermediary — just an encrypted tunnel straight into the bank's server.

TMS / ERP
Generates / receives files
File drop →
SFTP Client
Scheduled transfers
SSH tunnel →
SSH Key Exchange
Public/private auth
Encrypted →
Bank SFTP Server
Inbox / outbox folders
Setup Process
  1. Request H2H from your bank/TMS provider
  2. Bank provides SFTP endpoint + port
  3. Generate SSH key pair (keep it private)
  4. Send public key to bank
  5. Bank whitelists your IP
  6. Test connection → go live
Typical Folder Structure
  • /outbound → you upload payments
  • /inbound → bank drops statements
  • /archive → processed files
  • /error → rejected files
Good to Know
  • Batch only — not real-time
  • Bank-specific formats possible
  • IP whitelisting = firewall work with IT
  • Each bank = separate connection
  • Setup: 2-8 weeks per bank
EBICS

Electronic Banking Internet Communication Standard

Dominant in Germany, France, Austria, Switzerland — one client, many banks.

1
Generate Keys

3 RSA pairs: Auth, Encryption, Signature

2
INI Letter

Initialization letter with key hashes, sent to bank

3
HIA

Upload auth + encryption keys to bank server

4
Bank Activation

Bank verifies letter vs. keys, activates user

5
HPB

Download bank's public keys, verify fingerprint

6
Ready

Send FUL/CCT payments, receive STA/C53 statements

Why 2-Step Init (INI + HIA)?

Security. The INI letter is physical — printed, signed, mailed. The HIA is digital. The bank compares both to ensure the person requesting access is who they claim. No match = no activation. No shortcuts.

Key Facts
  • Dominant in: DE, FR, AT, CH — growing in EU
  • Transport: HTTPS (internet-based)
  • Multi-bank: same client for all EBICS banks
  • Order types: FUL, FDL, CCT, STA, C53, CDZ
Bank APIs

Real-time connectivity via REST / JSON

The only method on this list that's actually real-time.

Register App
client_id + secret
→
OAuth 2.0
Token, ~1hr expiry
Bearer →
API Call
GET/POST + JSON
HTTPS →
Bank Processes
Validates, executes
Response →
Real-Time Data
Balances, txns, FX
Sandbox → Production
  1. Register on bank developer portal
  2. Get sandbox credentials
  3. Test with mock data
  4. Apply for production access
  5. Bank reviews & approves
  6. Get production keys
  7. Go live with real data
Banks with APIs

PSD2: EU regulation that forced banks to open APIs.
Individual bank APIs: direct connection, you build and maintain each integration separately.
Aggregators: one connection, many banks — they handle the integrations.

API vs. Everything Else

SWIFT/H2H/EBICS = file-based, batch. APIs = real-time, request/response.

  • → Instant balance checks
  • → Payment status in seconds
  • → Webhooks (bank pushes to you)
  • → No file parsing needed (JSON)
Aggregators

When a middleman makes sense

One connection to the aggregator; they hold the SWIFT, H2H, and EBICS connections to each bank for you.

Your TMS
Single connection
1 connection →
Aggregator
SWIFT → Bank A
H2H → Bank B
EBICS → Bank C
Who?

TMS providers, SWIFT for Corporates (via bureau).

When to Use?

5+ banks · Multiple countries · Big enterprise

Which Method Do You Need?

There's no single right answer — it depends on your banks, geography, and volume.

SWIFTH2H/SFTPEBICSAPIsAggregator
Real-time?NoNoNoYesDepends
Setup time2-6 months2-8 weeks1-3 weeks1-4 weeks4-8 weeks
Cost€10-50K+/yrLow/freeLow/freeVaries€5-30K/yr
Best forGlobal, high volumeEstablished relationshipsDACH / FR / AT / DEModern, real-timeMulti-bank
ComplexityHighMediumMediumMediumLow
Multi-bank?Yes (1 pipe)No (per bank)Yes (1 client)No (per bank)Yes (1 pipe)

There's no single right answer — the setup depends on your banks, geography, and volume.

✓ Course complete

What you know now

"Which connectivity method do we need?" felt like a vendor decision

→ You can weigh it yourself on real-time capability, setup time, cost, and multi-bank support

SWIFT, EBICS, and H2H sounded interchangeable

→ You know EBICS is one client for many DACH/FR banks, H2H is one connection per bank, and SWIFT is one pipe worldwide via RMA

"Real-time banking" was a vague marketing claim

→ You know only APIs are actually real-time — everything else is file-based, batch

Aggregators looked like an unnecessary extra cost

→ You know they earn their fee past ~5 banks or multiple countries, trading per-bank complexity for one connection

Built by a treasurer, for treasurers. · treasuryease.com