Is SAP Fioneer Collections and Disbursement (FS-CD) still relevant in 2024 (and beyond)?

It’s been a few months since I launched Bultman Consulting, and the response has been overwhelmingly positive. But, there have been a people who questioned my decision. Going independent, especially in a niche market, comes with its own risks. Some people also raised concerns about my continued focus on SAP Fioneer’s Collections and Disbursement (FS-CD) solution. I’ve heard arguments like: “Isn’t FS-CD a bit outdated by now, being around 25 years old?" Or, "It’s shifted to SAP Fioneer." Others pointed out how companies are moving more towards cloud solutions or seeking software tailored to their specific needs—implying that a large ERP like SAP doesn’t always fit the needs and wishes of these companies.

Those are important discussions, and they’re certainly worth taking seriously, especially since I’ve encountered the same questions in the past years. That’s why I want to take a moment to address whether FS-CD still holds relevance in today’s digital era.

Is SAP Fioneer Collections and Disbursement (FS-CD) still relevant in 2024 (and beyond)?

The financial services industry is evolving quickly, driven by rising customer demands, digital innovation, and rapidly tightening regulatory standards. For insurers and reinsurers to stay competitive, adaptability is key, and having strong but flexible technology solutions in place is essential in this age. 

SAP Fioneer FS-CD (Financial Services - Collections and Disbursements) has been a key software in the Insurance/Reinsurance industry for years. But how relevant is it in 2024? In this blog, I’ll dive into how FS-CD addresses modern challenges, supports the current needs of the market, and why it remains essential for today’s financial institutions. 

Key Drivers Shaping 2024

Digital Transformation

In 2024, digital transformation is no longer optional—it's vital to stay afloat. Innovations like automation, AI, and cloud computing are now central to operations in financial institutions. Automating collections and disbursements improves efficiency, decreases Days Premium Outstanding, reduces costs, and enhances customer experiences.

SAP Fioneer FS-CD taps into these technologies, cutting down on manual tasks like debt collection and payment handling. Its (private) cloud-based infrastructure ensures institutions can scale rapidly and stay flexible in a dynamic market.

Regulatory Compliance and AML

With regulations focussing on Anti Money Laundering (AML), Know your Customer (KYC), and General Data Protection Regulation (GDPR) growing stricter, financial institutions must ensure compliance while maintaining operational efficiency. FS-CD supports compliance with built-in AML functionality, flagging suspicious transactions and providing a complete worklist for manual reviews. The system automates record-keeping and reporting, ensuring both local and cross-border transactions meet regulations.

FS-CD also supports KYC* compliance by automating customer identity verification, transaction monitoring, and offering detailed audit trails, enabling institutions to track and respond to suspicious activities effectively. For GDPR*, FS-CD ensures data privacy through encryption, role-based access, and secure data storage. It facilitates compliance with the "right to be forgotten" rule and automates data retention policies, helping institutions manage customer data securely and in line with regulatory requirements.

*might need other SAP modules like FS-BP, SAP BIS or SAP ILM for full functionality

Meeting Modern Customer Expectations

Customers today expect that you can offer real-time interactions and that services are tailored to their needs, especially when it comes to payments or claims. Nobody wants to wait for a day anymore to see their online balance being updated. If updating takes longer than an average TikTok video, you might have lost their attention. 

FS-CD responds to these demands by integrating with real-time payment systems like SEPA Instant and FedNow, allowing for faster claims payments and premium collection. Additionally, the system supports customizable payment plans, letting institutions offer more personalized services that actually support their customer base.

Globalization and Cross-Border Challenges

As financial institutions expand, merge and grow internationally, handling multi-currency transactions and complying to varied regional regulations will become harder and harder. FS-CD addresses these challenges with its strong multi-currency management and compliance tools, enabling smooth global operations while reducing FX risks and transaction costs.

Additionally, FS-CD functions as a central operational hub in your Financial Landscape, managing multiple entities, products, lines of business (LoBs), and regions in complex global environments. It unifies cross-border operations, acting as a central sub-ledger that integrates diverse financial activities (often coming from various sources) into one cohesive platform, simplifying processes and ensuring compliance across various regions. 

Efficiency and Cost Reduction

FS-CD’s native integration with SAP S/4HANA (Finance) allows for fully automated, seamless reconciliation, cutting down on manual tasks, accelerating payment cycles, and enhancing cash flow. This not only reduces operational costs but also frees up your finance teams to focus on strategic initiatives and the future growth of your business.

Best of Breed Strategy

In the last years I’ve seen more and more companies moving towards a Best of Breed approach. They’re opting for specialized solutions tailored to specific functions rather than relying on a single, all-encompassing (SAP) system. It is like FS-CD was designed with this strategy in mind, offering the flexibility to integrate both SAP and non-SAP systems, helping organizations stay competitive while leveraging the best tools for each area of their operations.

Integration with Non-SAP Systems: FS-CD easily connects with mainframes, custom-built systems, and third-party platforms like Guidewire, Sapiens, and Duck Creek. This allows institutions to utilize FS-CD’s strengths in collections and disbursements while continuing to use their preferred systems for Policy management, Incentive Management, Reinsurance Management or Claims processing.

Modular Design: Often compared to a toolbox, FS-CD allows institutions to adopt only the tools (features) they need, making it scalable as their business evolves or grows while not limiting future choices. The out of the box Tools (capabilities) can easily be activated via customizing when your needs change. 

Servitization in Insurance

Servitization— moving from selling standalone products to offering comprehensive custom focussed solutions — is a major trend of the last years. In the insurance industry, this shift means providing not just policies or bundles of insurance products, but value-added services that improve customer experience and help mitigate risk.

FS-CD supports this evolution through Convergent Invoicing, enabling insurers to manage both insurance and non-insurance products on a single platform. For example, an insurer could offer a fire prevention package that includes:

• IoT sensors to detect fire risks;

• Preventive maintenance services; and

• Fire insurance coverage for complete protection.

With FS-CD’s Convergent Invoicing, customers receive one consolidated invoice for all these services, streamlining the experience, having a positive effect on customer retention and improving overall risk management.

Conclusion: Is FS-CD Still Relevant in 2024?

It’s clear that FS-CD has been around for quite some time, and yes, there are valid concerns about its age and the shift to SAP Fioneer. Some have even questioned whether large ERP systems still meet the needs of today’s businesses, given the growing focus on cloud-based, niche solutions. I’ve seen these perspectives firsthand in my work with clients, and they’re definitely worth considering.

But after taking a closer look, it’s obvious that FS-CD remains highly relevant in this digital era. Its adaptability, integration capabilities, and robust support for automation and compliance make it a strong contender, even as the industry evolves. With the move to SAP Fioneer FS-CD has also seen a push towards providing new functionalities fitting today’s demands. FS-CD continues to provide the flexibility and functionality financial institutions need to thrive in a rapidly changing market. For those still doubting, I believe it’s a solution that will continue to prove its worth in the years to come. If you are still not convinced, let’s discuss over a cup of coffee