If a framework were built in which remittance information could be attached to payment information, such as a beneficiary’s bank account or payment date information, firms would be able to automate accounts receivable reconciliation, thereby considerably enhancing the efficiency of payment-related operations. This framework that enables the link of payment information and remittance information is financial EDI.
In Europe, with the aim of maximizing the benefits stemming from the single currency, a project is underway in order to achieve financial EDI, including the adoption of the XML format as a standardized data format. This is a grand project that has been worked on by stakeholders for more than 10 years.