Bank connectivity with Microsoft Dynamics 365 Business Central

Introduction

Managing your finances in Microsoft Dynamics 365 Business Central can become cumbersome if you rely on manual uploads and multiple online banking portals. Each additional bank account brings its own login credentials, data formats, and synchronization requirements—multiplying the possibility of errors and compliance headaches. Constantly toggling between portals to retrieve statements or initiate payments not only drains staff hours but also increases exposure to data entry errors and security risks. Over time, these inefficiencies can slow down your month-end close and make it harder to maintain real-time visibility of your cash flow.

Introducing Cobase’s Bank Connector for Microsoft Dynamics 365 Business Central—a comprehensive solution that streamlines and automates the entire bank connectivity process. With Cobase, you can consolidate all your bank accounts under one secure platform, eliminating the need for repetitive manual tasks. By automating payment runs and statement imports while ensuring end-to-end encryption, Cobase’s Bank Connector helps your organization adhere to strict risk policies and meet regulatory requirements.

Below, we’ll show you how Cobase empowers finance teams to eliminate tedious data entry, enhance compliance, and gain the real-time insights needed to make strategic, data-driven decisions. If you’re ready to move away from labor-intensive bank processes and reduce the risk of costly errors, read on.

The problem: manual bank processes slow you down

Microsoft Dynamics 365 Business Central is widely lauded for its strong accounting, purchasing, and sales features. Yet many companies still handle their banking tasks outside the platform in a fragmented, manual fashion—leaving them exposed to a range of inefficiencies and risks:

• Labour-intensive payment runs: Manually downloading payment files and uploading them to each bank consumes hours and delays crucial approvals.
• Increased error potential: Every instance of manual data entry or file transfer creates another chance for inaccuracies, potentially leading to costly mistakes.
• Audit and compliance hurdles: Splintered processes across multiple portals make it difficult to maintain a clear audit trail. It’s challenging for auditors to pinpoint who approved specific payments when there isn’t a unified log or approval workflow.
• Disjointed bank accounts: Logging in to numerous portals squanders valuable time and muddies your view of cash flow—a problem that only compounds when you add more banks.
• Complex user onboarding: Each banking portal often requires its own KYC steps and user management configurations, slowing down the process and complicating internal approvals.
• Inconsistent payment formats: Banks can mandate specific file formats, heightening the risk of file rejections if they aren’t meticulously adhered to.
• Blind spots for payment failures: If a payment is rejected by a bank, you may not discover the problem until a vendor complains—long after the operational or financial damage has begun.
  

The solution: Cobase bank connector for Microsoft Dynamics 365 Business Central

Cobase’s Bank Connector extension removes the pain of multibank connectivity by linking Microsoft Dynamics 365 Business Central to more than 15,000 banks worldwide. Incoming statements are fetched every day and translated into a single, uniform layout, so your Payment Reconciliation Journal (or any third‑party tool you use) can match transactions in seconds—regardless of the original bank file format.

Below are the core ways Cobase simplifies payments, cash management, and treasury work inside Business Central.

Key features & benefits

• Approve single or bulk payments using one secure token, then let Cobase deliver them to each bank.
• Daily statements arrive pre‑formatted, making same‑day reconciliation routine instead of a chore.

• All traffic between Business Central, Cobase, and your banks is fully encrypted and covered by certifications such as SOC 2.
• Role‑based permissions are managed in minutes—no need to involve the bank each time you add or change a user.
• Fewer manual touchpoints mean a slimmer attack surface and cleaner audit trails.

3. Customisable approval chains

• Define multi‑level authorisation that mirrors your internal policy. Once a batch is cleared in Business Central or Cobase, the connector forwards it instantly to the right bank—reducing hand‑offs and mistakes.

4. Expert implementation support

• A dedicated Cobase project manager leads you from kickoff to go‑live. The specialised Bank Implementation team handles technical onboarding with each bank, tests file formats and channels, and walks you through a quick “penny test” before launch.

5. Modular treasury add‑ons

• Need more than basic connectivity? Activate extra modules—payment & cash management, FX dealing, liquidity forecasting, in‑house banking, cash pooling—exactly when you need them and pay only for what you use. Cobase’s scalable model grows in lockstep with your business.

How it works with Microsoft Dynamics 365 Business Central

1. Multi-bank integration:

Cobase connects Microsoft Dynamics 365 Business Central to more than 15,000 financial institutions through an extensive catalogue of protocols and channels—EBICS in Germany and France, SWIFT FIN/FileAct for global corporates, Host‑to‑Host (H2H) SFTP connections, and modern PSD2/Open‑Banking APIs. Cobase handles all of the handshake details, security certificates, and file‑format quirks (MT940, CAMT.053, BAI, CSV, ISO 20022, and more). Your finance team sees just one consolidated dashboard and one set of mapping rules, so adding or replacing a bank is as simple as ticking a box rather than launching a new IT project.

Microsoft-commissioned survey of Business Central users

2. Secure payment transfers:

Payment batches created in Business Central (pain.001, direct‑debit files, payroll runs, urgent single payments) are encrypted with TLS 1.2+ and signed with digital certificates before travelling through Cobase’s secure tunnel. Cobase then routes each file to the correct bank, taking cut‑off times and bank‑specific limits into account. Built‑in validation checks for duplicates, missing references, and format errors—drastically reducing rejections while eliminating the need to log in and upload files manually.

3. Automated statement retrieval:

Cobase pulls intraday and end‑of‑day statements—CAMT, MT940, BAI2, CSV, or custom formats—from every connected account as frequently as your banks allow (hourly, daily, or on predefined schedules). The data is normalised into a single structure and posted to Business Central’s Payment Reconciliation Journal (or any third‑party reconciliation add‑in you prefer) the moment it arrives. That means up‑to‑date cash positions, faster auto‑matching, and a shorter month‑end close.

4. Compliance & control:

Granular role‑based permissions let you mirror your internal segregation‑of‑duties policy: one user drafts the batch, another reviews, a third releases. Approval chains can span unlimited tiers, include multi‑factor authentication, and require dual control on high‑value payments. Every step—who created, edited, approved, or rejected a transaction—is time‑stamped and stored in a tamper‑evident audit log that supports SOX, GDPR, and SOC 2 requirements.

5. Flexible, modular approach:

Best practices for ongoing management

• Regular reconciliation: Despite automated bank feeds, schedule daily, weekly, or monthly reviews to confirm accuracy and catch discrepancies early.
• Monitor activity logs: Check logs for failed transactions or anomalies; catching issues quickly prevents minor mishaps from escalating.
• Stay compliant: Keep both Business Central and Cobase updated to meet local and international regulatory requirements like GDPR.
• Optimize & adapt: As your organization expands or evolves, revisit mapping rules and approval flows to ensure processes remain efficient.

Beyond basic bank connectivity

Cobase goes far beyond the fundamentals of payment processing and statement retrieval. By integrating a range of powerful, modular features directly within Microsoft Dynamics 365 Business Central, you can tailor your financial operations to your specific needs - without overpaying for functionality you won’t use.

Here are a few ways Cobase enhances and extends your Microsoft Dynamics 365 Business Central experience:

• Payment & cash management 

With Cobase’s comprehensive payment and cash management capabilities, you can centralize multiple financial activities under a single platform. This consolidation not only streamlines payment approvals and scheduling but also simplifies multi-account oversight.

According to a 2021 IDC study on digital finance, companies that unify their cash management activities in one system can reduce administrative workloads by 20% and speed up payment cycles by 30%.

• FX dealing & hedging 

For businesses operating in multiple currencies, Cobase’s built-in foreign exchange (FX) dealing and hedging tools offer a significant advantage. By managing currency exposures and executing trades right within Microsoft Dynamics 365 Business Central, you eliminate the back-and-forth hassle of third-party FX platforms.

A 2022 Accenture report on treasury optimization revealed that organizations leveraging integrated FX solutions can save up to 15% on currency conversion costs and significantly lower the risk of unhedged positions.

• Liquidity forecasting

Cobase’s Liquidity Forecasting engine pulls together bank balances, open AP/AR, and projected cash events from across your entities to build a rolling, multi‑currency cash‑flow view. Real‑time dashboards highlight surpluses or deficits weeks in advance, letting you time investments, drawdowns, or hedges with confidence. Scenario modelling helps you gauge the impact of market shifts or large transactions, while automated updates feed directly into Microsoft Dynamics 365 Business Central so forecasts stay current without manual uploads.

• In-house banking - intercompany netting

The In‑House Banking module centralises treasury flows between subsidiaries. It automates intercompany netting, manages internal loans and invoice settlements, and calculates interest on those positions. Resulting transactions are sent straight to Business Central as journal entries, keeping the general ledger perfectly aligned with internal cash movements. The payoff: lower bank fees, greater visibility into intra‑group funding, and a faster close.

• Cash pooling - automated funding & sweeping

Cobase’s Cash Pooling module continuously sweeps surplus balances from cash‑rich accounts and tops up any shortfalls elsewhere, so money always sits where it earns (or saves) the most. Automated rules minimise overdraft fees, shrink idle balances, and reduce reliance on external credit. Every sweep is booked in real‑time and posted back to Microsoft Dynamics 365 Business Central, giving you a live, consolidated view of group liquidity—no spreadsheets required.

• Modular scalability for a custom fit

Perhaps one of Cobase’s biggest strengths is its modular approach: you only pay for the features you require. Whether you’re looking to add treasury management, advanced reporting, or just keep things basic with secure bank transfers, Cobase helps ensure your organization’s financial operations evolve at your own pace. This scalability is particularly important for fast-growing companies and those with fluctuating transaction volumes, as you can swiftly add or remove modules without migrating to an entirely new system.

By seamlessly integrating these advanced financial tools into Microsoft Dynamics 365 Business Central, Cobase provides a holistic solution for managing complex financial processes. From straightforward payment automation to sophisticated liquidity management, these flexible modules empower you to maintain strict financial oversight, adapt rapidly to market challenges, and unlock strategic opportunities for growth.

Ready to transform your financial operations?

Whether you’re a small business just starting to scale or a large enterprise managing multiple subsidiaries, bank connectivity with Microsoft Dynamics 365 Business Central can completely reshape your financial workflows. By integrating your banking processes directly into Microsoft Dynamics 365 Business Central, you eliminate the inefficiencies of manual uploads and disjointed portals—gaining a real-time view of your cash flow, automating repetitive tasks, and maintaining tighter control over risk and compliance.

According to a 2022 Forrester study on ERP integration, businesses that adopt automated bank connectivity reduce administrative overhead by up to 35%, freeing your finance team to focus on strategic analysis rather than data entry.

Cobase’s Bank Connector makes this transformation seamless:

• Automate tasks you used to handle manually, slashing tedious data-entry hours.

• Gain real-time visibility into daily balances, payments, and cash flow—no more guessing or waiting for overnight updates.

• Ensure compliance with robust security measures, role-based permissions, and audit trails that satisfy both internal and external regulations.

• Scale effortlessly as your organization grows or expands to new markets, adding additional banks, currencies, or advanced treasury features on demand.

In short, the Cobase Bank Connector is your all-in-one solution for effortless, error-free financial management in Microsoft Dynamics 365 Business Central. With its flexible modular approach, it adapts to your unique business requirements—empowering you to operate with greater precision, confidence, and agility in a rapidly changing financial landscape.

Conclusion

Seamless bank connectivity in Microsoft Dynamics 365 Business Central has become an essential component for businesses aiming to streamline financial operations and stay ahead in today’s fast-paced market. Cobase’s Bank Connector offers an out-of-the-box solution that combines automated workflows, robust security, and real-time visibility—all backed by a professional implementation team. Whether you manage a handful of local accounts or operate across multiple regions, integrating your banks through Cobase significantly reduces manual tasks, enhances accuracy, and provides the flexibility to grow with your business. By embracing this automated, centralized approach, you can drive efficiency, mitigate risk, and focus on what truly matters: driving your organization forward.

Want to find out what Cobase can do for you?

Frequent Asked Questions (FAQs)

1. How often should I reconcile my bank accounts in Business Central?
It depends on your transaction volume. Many organizations reconcile daily or weekly to quickly spot discrepancies, but monthly reconciliations might suffice for smaller businesses.

2. Is bank connectivity compatible with multiple currencies?
Yes. Business Central and most bank connectivity solutions are designed to handle multiple currencies, which is especially helpful for companies operating in different regions.

3. What if my bank doesn’t support direct feeds?
You can often use third-party connectors or import statements manually. While less seamless, these methods still cut down on some of the manual processes associated with financial management.

4. Does automated bank connectivity increase security risks?
Quite the opposite. Automated connectivity usually employs encrypted data transfers and strict authentication protocols, often reducing the risks tied to human handling of financial data.

5. Can I expand functionality after setting up basic bank connectivity?
Absolutely. You can integrate add-ons or third-party modules for treasury management, advanced analytics, and more as your business needs evolve.