Corporates Seminar
Marina Bay Sands, Singapore
Agenda
• Opening remarks
• Outlook of treasury trends
• Client stories and SWIFT solutions
+ SWIFTRef
+ Accord for Treasur...
Outlook of treasury trends
Addressing the challenge of
corporate to bank connectivity
Damien Dugauquier
Commercial Manager...
A
co-operative
serving
the financial
industry since 1973
A provider of
highly secure
Financial Messaging
services
A
Financ...
Correspondent banks
Cash management
Treasury management
Trade Finance
Correspondent banks
Cash management
Treasury managem...
0
200
400
600
800
1000
1200
1400
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Numberofcorporategroups
How many corpor...
100%
132%
162%
173%
195%
224%
239%
272%
297%
100% 103% 100% 95% 93%
86% 88% 87% 81%
100%
27%
0%
20%
40%
60%
80%
100%
120%
...
Corporate
Accounts
payable
Accounts
receivable
Treasury
Other
Standardised
gateway
Corporate
e-banking Y
host to host X
e-...
free form text
“On behalf of Nika Sports
Inc, I want to pay
500,000 Yuan Renminbi
to M. Chan in Shanghai,.
Account Nr 9876...
Standards
and formats
Messaging FIN FileAct
SWIFT MTs
ISO 20022
Domestic formats
• MT 101 for
treasury payments
• MT 940 /...
• Aggregation of accounts worldwide
• Intra-day / end of day balance
• Cash forecasting for borrowing and
investment activ...
0%
100%
200%
300%
400%
500%
600%
700%
800%
# of Files Sent # of Files Received
0%
100%
200%
300%
# of FIN Messages Sent # ...
Per corporate group turnover & banking partners
Corporates by
annual turnover (USD)
Corporates by
number of banking partne...
What you may be thinking
Question
What are the benefits of joining SWIFT if I only have one bank?
SWIFT is expensive, I ca...
2ND TIER
Identity mgmt.
• 3SKey
SWIFT messaging
platform / Standards
• ISO 15022 : MT
messages
• ISO 20022: MX
messages
Bu...
Agenda
• Opening remarks
• Outlook of treasury trends
• Client stories and SWIFT solutions
+ SWIFTRef
+ Accord for Treasur...
SWIFTRef
Provides validated and maintained necessary
payments reference data of suppliers, clients and
financial instituti...
What’s the BIC
of Banco Real?
Is it a holiday in the
country of
destination
Which IBAN and BIC
correspond to my
suppliers’...
SWIFTRef for Corporates
Bankers World
Online
Corporates for who it is
sufficient to manually
check a limited number of
pay...
Customer
Customer
Challenge(s)
Data needs
SWIFTRef
solution
Compelling features
Packaging glass
manufacturer
(SAP user)
Lo...
Customer
Customer
Challenge(s)
Data needs
SWIFTRef
solution
Compelling
features
(SAP-user)
Customer, vendor and bank
entri...
Accord for Treasury
Enabling real-time matching and exception
handling for foreign exchange, money market,
OTC derivative,...
Treasury Operations Challenges in Treasury operations
Where are we experiencing problems?
• Usage of spreadsheets/email/ma...
ASEAN Traffic Sent by
market by country
Singapore
63.80%
Thailand
6.84%
Indonesia
7.23%
Malaysia
9.04%
Philippines
7.41%
V...
Multi Asset Class Matching Solution
CounterpartyCorporate
Streamlining and automating processes for tailored risk manageme...
Accord Case study
26
Daimler
1 FX Spot or NDF or
Money Market trade
2 Exchange of Confirmations 3 Matching of confirmation...
Key factsMulti Asset Class Matching
Accord / Affirmations
Bank Payment Obligation
The power of an irrevocable conditional
obligation from one bank to pay another bank,
subject to t...
BPO a new trade instrument
SellerBuyer
LC Advising
Bank
LC Issuing
Bank
Documents
Contract
Documents
Documents
Advice
Appl...
SWIFT role in BPO
SellerBuyer
BPO Recipient
Bank
BPO Obligor
Bank
Contract
Documents
Payment
Bank
Payment
Obligation
Bank ...
Integration solutions
Seamlessly links business applications to SWIFT
using Alliance infrastructure, enables your back-
of...
 Business applications not designed to
connect to SWIFTNet
 Discrepancy between internal
message formats and SWIFT forma...
SWIFT’s answer to the integration challenge
Consulting
Services
Integration
Platform
Alliance
Access
Combining SWIFT servi...
SWIFT Consulting Services
Delivering an end-to-end solution
Analyse Design Implement Test Go-Live Care
• Bring SWIFT Skill...
Alliance Access
Application
Interface
Integration Platform
IPLA Internal API
FIN
Interface
SWIFTNet
Interface
SWIFTNet
Mes...
Benefits of the Integration Platform
Validations and reference data usage
Equally applies to manually entered messages
Int...
3SKey
A multi-bank and multi-network personal digital
identity solution for Corporates
Damien Dugauquier,
Commercial Manag...
MyDogName!01
MySonName515!&
MyFavouriteCar_X3
Too many tokens, passwords and processes
One day in the life of a treasurer
3SKey in 4 steps
Revoked ?
Obtain token1
Activate token on 3SKey
Portal2
Register token with one or
multiple banks3
Authen...
From a bank perspective
Building, maintaining and running a security solution is costly
Cost effective use of PKI technology
Banks and service providers can save
between 25% and 40% on their cost per
user by ou...
3SKey adoption
113 countries
38 banking groups
3,700 corporates(*)
24,000 active users
47,000 tokens
54 vendors
(*) Estima...
Standards ISO20022
What is ISO20022? Its’ benefits and challenges
for Corporates.
Kiyono Hasaka
Lead Standards Specialist,...
Evolution of standards
1977 1987 1995 2004 20172008 2013 2014
RBI NG-
RTGS
SWIFT MT
ISO 7775
for
securities
ISO 15022
Targ...
Benefits of ISO 20022
 Richness of the data - greater automation and foundation
 Scenario-based standards - business-cen...
Overview - ISO 20022 Adoption
Bank A
Bank B
Bank CCORPORATION
Key to success
Interbank
Clearing &
Settlement
ISO 20022 Adoption – Key challenges
ASIAN CORP
1. ISO 20022 awareness and readiness
2. Different standards interpretation
...
Common Global Implementation
Mission & Objective
• Provides a forum for financial institutions and non-financial instituti...
ISO 20022 Adoption – Key Benefits
Global
Interoperability
Increased STP
Straight Through Processing
Cost
Efficiency
ISO 20022 Adoption by Corps & Vendors
Coffee Break
Agenda
• Opening remarks
• Outlook of treasury trends
• Client stories and SWIFT solutions
– SWIFTRef
– Accord for Treasur...
Jatin Sheth
DBS Bank
David Dobbing
SWIFT
Joan Lee
SWIFT
David Blair
Acarate Consulting
Agenda
• Opening remarks
• Outlook of treasury trends
• Client stories and SWIFT solutions
– SWIFTRef
– Accord for Treasur...
Corporates Work-Session
Financial Messaging Standards
Insights and Way Forward
David Dobbing
July 9, 2014
Profile of SWIFT registered corporates
Over 1000 corporates are connected
Corporates by
Annual Turnover (USD)
Corporates b...
ISO 20022 adoption in the corporate-to-bank space
More than 60 banks in 27
countries receiving payment
initiation messages...
ENTER
ISO 20022 is being used
MIs around the globe lead the way
Globalization/
alignment with other
major initiatives
Mode...
ISO 20022 is being used
MIs around the globe lead the way
SWIFT is not mandating
migration, communities decide
if and when...
WG2
Cash
Management
Reporting
WG3
Direct Debit &
Mandates
WG4
Bank Account
Management
WG1
Credit Transfer &
Payment Status...
Payment Initiation
Customer Credit Transfer
(pain.001) [MT101]
Customer Payment Status Report
(pain.002) [MT101 REJT]
Debi...
Customer Direct Debit
(pain.008) [MT104]
Payment Initiation
Customer Payment Status Report
(pain.002) [MT104 REJT]
Credit ...
Cash Management Reporting
Corporate Bank
Bank to Customer Account Report
camt.052 [MT941]
Bank to Customer Statement
camt....
Power of ISO 20022
67
Open, neutral
methodology to
develop standards
Key concepts
Everyone can
participate
Ease of
integra...
ISO 20022 is
more than
just
messages
Methodology
Content SWIFT is the
golden source of
ISO 20022
knowledge
Registration au...
Questions
Agenda
• Opening remarks
• Outlook of treasury trends
• Client stories and SWIFT solutions
– SWIFTRef
– Accord for Treasur...
Cocktail reception
Clearing & SettlementDebtor’s Agent
Debtor Creditor
Purchase order
Creditor’s Agent
pain.001
FIToFI Transaction Id
FIToFI ...
dsfsos
29 September-2 October 2014
Boston Convention and Exhibition Center
Corporates Worksession, SWIFT Business Forum Singapore 2014
Corporates Worksession, SWIFT Business Forum Singapore 2014
Corporates Worksession, SWIFT Business Forum Singapore 2014
Corporates Worksession, SWIFT Business Forum Singapore 2014
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Corporates Worksession, SWIFT Business Forum Singapore 2014

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Corporates worksession at the SWIFT Business Forum Singapore 2014

Topics:
- Outlook of treasury trends
- Case studies "What Corporates Want"
- Financial messaging standards for Corporates: insights and way forward

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Corporates Worksession, SWIFT Business Forum Singapore 2014

  1. 1. Corporates Seminar Marina Bay Sands, Singapore
  2. 2. Agenda • Opening remarks • Outlook of treasury trends • Client stories and SWIFT solutions + SWIFTRef + Accord for Treasury + Bank Payment Obligation (BPO) + Integration solutions + 3SKey + Standards ISO20022 Coffee Break • Panel discussion: Enabling better operational efficiency in corporate-to-bank flows • Financial messaging standards for Corporates : insights and way forward • Closing remarks Cocktail reception
  3. 3. Outlook of treasury trends Addressing the challenge of corporate to bank connectivity Damien Dugauquier Commercial Manager, Corporates
  4. 4. A co-operative serving the financial industry since 1973 A provider of highly secure Financial Messaging services A Financial Standardisation organization 1 0 , 0 0 0 + C U S T O M E R S S P R E A D O V E R 2 1 2 C O U N T R I E S O V E R 2 0 M I L L I O N M E S S A G E S / D AY 9 9 . 9 9 9 % AVA I L A B I L I T Y About SWIFT
  5. 5. Correspondent banks Cash management Treasury management Trade Finance Correspondent banks Cash management Treasury management Trade Finance What is SWIFT for corporate
  6. 6. 0 200 400 600 800 1000 1200 1400 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Numberofcorporategroups How many corporate are connected to SWIFT?
  7. 7. 100% 132% 162% 173% 195% 224% 239% 272% 297% 100% 103% 100% 95% 93% 86% 88% 87% 81% 100% 27% 0% 20% 40% 60% 80% 100% 120% 0% 50% 100% 150% 200% 250% 300% 350% 2006 2007 2008 2009 2010 2011 2012 2013 FY estimate 2014 FY Estimate traffic evolution (Kchar) messaging revenue evolution unit cost evolution (2nd axis) 2006 is used as base year (100%). 2013 full year estimation is a lineair projection based on the months available. Figures are after Fixed Fee, after discount for High Volume Connections (including estimate for 2013 and 2014) and before Rebate. Traffic is expressed in kilo characters, and is the combination of FIN, InterAct (including CREST) and FileAct (Kchar after compression). 73% Unit cost reduction over 9 years
  8. 8. Corporate Accounts payable Accounts receivable Treasury Other Standardised gateway Corporate e-banking Y host to host X e-banking Z VAN Internet Leased line Accounts payable Accounts receivable Treasury Other Multiple bank channels Single, standardised gateway The challenge of multiple channels
  9. 9. free form text “On behalf of Nika Sports Inc, I want to pay 500,000 Yuan Renminbi to M. Chan in Shanghai,. Account Nr 98765 for invoice number 3012. The charges will be shared. Our reference number 652401.” • May require translation • Time-consuming to interpret • Manual & subject to re-keying error SWIFT message • One standard language • Quick & easy to understand • Electronic Sender: BANKFRPPXXX MT 103 Receiver: BANKCNSHXXX :20:652401 :23B:CRED :32A:090903CNY500000, :50K:NIKA SPORTS INC :59:/98765 M. CHAN SHANGHAI :70:/INV/3012 :71A:SHA FROM: TO: The challenge of multiple formats
  10. 10. Standards and formats Messaging FIN FileAct SWIFT MTs ISO 20022 Domestic formats • MT 101 for treasury payments • MT 940 / 942 account statements • MT 300 FX confirmations Example • ACH files • Supplier payments • Direct debits • Salary payments • Domestic payments Application Treasury and Risk Management Cash Management FIN & FileAct MT 798 Documents • Letter of Credits • Bank Guarantees • Supporting documentation Trade Finance Standards for corporate to bank
  11. 11. • Aggregation of accounts worldwide • Intra-day / end of day balance • Cash forecasting for borrowing and investment activities • Payment factories (A/P consolidation) • Treasury centralization • Consolidation of Bank relationships • Secure and agnostic connectivity to banks • Compliance to new regulations Centralization and consolidation Multibank cash reporting Compliance and risk management • Straight-through-processing • Low TCO Automation Your job as treasurer Corporate-to-bank requirements SWIFT Manage payments and collections processing Manage cash Manage Foreign exchange New revenue from better cash management Actual cost savings Opportunity cost savings Risk management Building your business case In short: why are corporate joining SWIFT?
  12. 12. 0% 100% 200% 300% 400% 500% 600% 700% 800% # of Files Sent # of Files Received 0% 100% 200% 300% # of FIN Messages Sent # of FIN Messages Received Traffic Overview: Corporates in Asia Pacific From theory to practice Evolution of Files exchanged by corporate in Asia Evolution of FIN messages exchanged by corporate in AsiaA strong growth in the usage of SWIFT by corporate in Asia More corporate and more volumes are being exchanged over the SWIFT network in both FIN and FileAct. Transaction types exchanged on SWIFT Reporting to end customer 68% Customer Credit Transfers 8% Foreign exchange 6% Others 18% SWIFT volumes are dominated by bank statements and payment initiations The need for cash visibility is materialized in high volumes of reporting messages from banks to corporate. Volumes have more than doubled since January 2013.
  13. 13. Per corporate group turnover & banking partners Corporates by annual turnover (USD) Corporates by number of banking partners $1-10Bn 28% >$10Bn 31% <$1Bn 41% >20 banks 13% 10 to 20 banks 21% 5 to 9 banks 29% <5 banks 37% >$10Bn 30% $1-10Bn 34% <$1Bn 36% 63% of SWIFT-connected corporates deal with 5 banks or more 64% of SWIFT-connected corporates have a turnover >$1Bn Corporate group connectivity
  14. 14. What you may be thinking Question What are the benefits of joining SWIFT if I only have one bank? SWIFT is expensive, I can access my bank e-banking platform at no cost! Are all banks ready to exchange transactions with me on SWIFT? SWIFT can only be used for cross-border transactions, most of my payment volumes are domestic…
  15. 15. 2ND TIER Identity mgmt. • 3SKey SWIFT messaging platform / Standards • ISO 15022 : MT messages • ISO 20022: MX messages Business flows • Cash mgmt. • Liquidity mgmt. • FX confirmation • Trade / BPO • Treasury • E-statements • Ebam Connectivity portfolio • Alliance products Sanctions - Screening Accord • Matching • Affirmations Regulations - Trade reporting Integration Trainings • SWIFT4Corporates • Lite2 Services Portfolio • RFP • integration • Bank onboarding • Standards review Integration Portfolio • Converter • IPLA Standard Mgmt. • MyStandards Reference data • Swiftref/BWO Beyond connectivity
  16. 16. Agenda • Opening remarks • Outlook of treasury trends • Client stories and SWIFT solutions + SWIFTRef + Accord for Treasury + Bank Payment Obligation (BPO) + Integration solutions + 3SKey + Standards ISO20022 Coffee Break • Panel discussion: Enabling better operational efficiency in corporate-to-bank flows • Financial messaging standards for Corporates : insights and way forward • Closing remarks Cocktail reception
  17. 17. SWIFTRef Provides validated and maintained necessary payments reference data of suppliers, clients and financial institutions for corporates. Tom Alaerts, Director, Payments and Reference Data, Asia Pacific
  18. 18. What’s the BIC of Banco Real? Is it a holiday in the country of destination Which IBAN and BIC correspond to my suppliers’ local account? Where can I find up- to-date bank identifiers to build my Bank master file? Which BIC belongs to this IBAN? Payment initiation instruction What is the national clearing code of Bank of Taiwan ? What is the CHIPS, Zengin, CNAPS,…. National code of the beneficiary bank? You Your bank Do I have all data do correctly populate my international payment instructions? Cost savings Risk Management
  19. 19. SWIFTRef for Corporates Bankers World Online Corporates for who it is sufficient to manually check a limited number of payments per day. Corporates with SAP or ERP systems requiring integration of reference data to make frequent automated international payments • Full online access -Bankers World Online Corporate Pack Two • Full online access -Bankers World Online • Monthly or daily file download – Bank identifiers (BIC and Niational codes), IBAN validation, much more Bank Directory for SAPTM
  20. 20. Customer Customer Challenge(s) Data needs SWIFTRef solution Compelling features Packaging glass manufacturer (SAP user) Low quality reference data • Many delayed payments • Bank charges for failed payments • Becaus eof returned payments:: ca 30.000 euro per month loss of early payments discounts • Accurate SEPA/IBAN data • BIC identification • National bank/sort code identification Corporate Pack Two Including IBANPlus and Bank Directory for SAP  Single source for all data  Compatible with SAP  Being able to rely on accurate data  providing ALL we need for hassle-free international and SEPA payments International Air Transport Association • Increase automation • Reduce risk • Local variations leading to inconsistent datasets. • Failed payments • BIC identification • National bank/sort code identification • IBAN validation and generate BIC from IBAN Corporate Pack Two Including IBANPlus  Complete and accurate data  Easy to integrate  Data can be used across departments Cases Studies 1/2
  21. 21. Customer Customer Challenge(s) Data needs SWIFTRef solution Compelling features (SAP-user) Customer, vendor and bank entries in SAP system were always out- of-date, inaccurate or missing as the company relied on all employees to keep these data up-to-date.. As a result, company had high volumes of payment mistakes –and rejections • BIC identification • National bank/sort code identification • IBAN validation Corporate Pack Two Including Bank Directory for SAP  SAP-compatibility  Single source for all data  Very competitive pricing!  SWIFT = high quality  Technical specifications & sample file provided additional proof of good quality (Oracle-user) University relied on suppliers to provide regular updates of payment/bank details. Often very incomplete and providing only bank & branch name of their bank, University needed to find according BIC or national ID. As a result, payments were delayed, compromising their reputation AND time & resources wasted on data research and payment repairs • Verify IBANs • Understand IBAN structures per country to be able to work out exact bank account and branch number • Identify BICs • Find Bank addresses Corporate Pack Two Including IBANPlus and Bankers World Online  Quick and easy access to data (BWO)  Being able to rely on accurate data  providing ALL we need for hassle-free international and SEPA payments Case Studies 2/2 International travel agent University in UK
  22. 22. Accord for Treasury Enabling real-time matching and exception handling for foreign exchange, money market, OTC derivative, and commodity trade confirmations Simona Catanescu, Director Post Trade, Securities Markets, Asia Pacific, SWIFT
  23. 23. Treasury Operations Challenges in Treasury operations Where are we experiencing problems? • Usage of spreadsheets/email/manual work => inefficiencies, risk, lacks scalability • Usage of ERP systems => non-standardised, lacks flexibility => paper based audit trailer • Settlement failures, financial claims • Post-trade regulations
  24. 24. ASEAN Traffic Sent by market by country Singapore 63.80% Thailand 6.84% Indonesia 7.23% Malaysia 9.04% Philippines 7.41% Vietnam 5.48% Other 0.21% Treasury ASEAN Traffic Received by market by country Singapore 60.74% Thailand 7.31% Indonesia 7.60% Malaysia 9.50% Philippines 8.50% Vietnam 6.03% Other 0.32% Treasury ASEAN Treasury traffic Challenges in Treasury operations Where are we experiencing problems?
  25. 25. Multi Asset Class Matching Solution CounterpartyCorporate Streamlining and automating processes for tailored risk management, regulatory compliance and efficiency Accord / Affirmations Deal (offline) Matched Confirmations Matching (Accord / Affirmations) Confirmations (MT 3XX)
  26. 26. Accord Case study 26 Daimler 1 FX Spot or NDF or Money Market trade 2 Exchange of Confirmations 3 Matching of confirmations Accord Matching Real Time reporting and exception handling Bank / Broker Counterparties MT 300, MT 320 “Although we are predominantly a non-financial corporation, our financial services activities and the overall objective to be best-in- class in our business operations called for the investment in a solution which while new for corporates, provided a firm and versatile basis for the future.” Volkmar Lorenz Finance Controlling & Operations Daimler AG Multi Asset Class Matching Accord / Affirmations
  27. 27. Key factsMulti Asset Class Matching Accord / Affirmations
  28. 28. Bank Payment Obligation The power of an irrevocable conditional obligation from one bank to pay another bank, subject to the presentation of compliant data in the Trade Services Utility Damien Dugauquier, Commercial Manager, Corporates, Asia Pacific, SWIFT
  29. 29. BPO a new trade instrument SellerBuyer LC Advising Bank LC Issuing Bank Documents Contract Documents Documents Advice Application Issuance Payment Letter of Credit Bank services based on paper document processing SellerBuyer Seller’s BankBuyer’s Bank Contract Payment Open Account Documents Bank services limited to payment processing SellerBuyer BPO Recipient Bank BPO Obligor Bank Contract Documents Payment Bank Payment Obligation Bank services based on electronic trade data exchange Data Data Data
  30. 30. SWIFT role in BPO SellerBuyer BPO Recipient Bank BPO Obligor Bank Contract Documents Payment Bank Payment Obligation Bank services based on electronic trade data exchange Data Data Data BPO legal framework defined by ICC A BPO is an irrevocable undertaking given by one bank to another bank that payment will be made on a specified date after a successful electronic matching of data according to an industry- wide set of rules. SWIFT TSU  SWIFT TSU is an industry- wide trade matching engine  SWIFT TSU covers bank-to- bank exchange of data  Use of BPO / TSU does not have requirements regarding the communication channel between corporate and banks. Bank e-banking platform, papers or SWIFT FileAct are possible means of communication.
  31. 31. Integration solutions Seamlessly links business applications to SWIFT using Alliance infrastructure, enables your back- office systems to connect to SWIFT, without changing them Hemant Chandak, Presales Consultant, SWIFT Services Asia Pacific
  32. 32.  Business applications not designed to connect to SWIFTNet  Discrepancy between internal message formats and SWIFT formats  Yearly Standards Releases cause applications to be updated  Specialised SWIFT skills are hard to find  Complications are multiplied: multiple systems, multiple internal and external teams involved 35 Your integration challenges ?
  33. 33. SWIFT’s answer to the integration challenge Consulting Services Integration Platform Alliance Access Combining SWIFT services and SWIFT products to offer a true end-to-end solution!
  34. 34. SWIFT Consulting Services Delivering an end-to-end solution Analyse Design Implement Test Go-Live Care • Bring SWIFT Skills & Experience & Approach • Then you are free to focus on running your business
  35. 35. Alliance Access Application Interface Integration Platform IPLA Internal API FIN Interface SWIFTNet Interface SWIFTNet Message store Message queuesMessage routing Validation Transformation Application 1 Application 2 proprietary format SWIFT format Connectors proprietary format Enrichment Alliance Gateway Application 3 Alliance Access Integration Platform (IPLA) Overall architecture Getting more out of your messaging interface!
  36. 36. Benefits of the Integration Platform Validations and reference data usage Equally applies to manually entered messages Integrated in Access No need to update your own systems Less risk in implementing SWIFT End-to-end SWIFT products and services offering for end-to-end SWIFT communication Footprint and TCO reduction Exchange proprietary messages with Access One stop shop solution model Enhance existing flows Community enablement Getting more out of your messaging interface ! Productized integration package
  37. 37. 3SKey A multi-bank and multi-network personal digital identity solution for Corporates Damien Dugauquier, Commercial Manager, Corporates, Asia Pacific, SWIFT
  38. 38. MyDogName!01 MySonName515!& MyFavouriteCar_X3 Too many tokens, passwords and processes One day in the life of a treasurer
  39. 39. 3SKey in 4 steps Revoked ? Obtain token1 Activate token on 3SKey Portal2 Register token with one or multiple banks3 Authenticate or sign messages on multiple channels 4 John ?? ? John = Corp 12345678 John = Corp 12345678 John = Corp 12345678 SWIFT Web channels Proprietary channels
  40. 40. From a bank perspective Building, maintaining and running a security solution is costly
  41. 41. Cost effective use of PKI technology Banks and service providers can save between 25% and 40% on their cost per user by outsourcing the PKI to SWIFT • Strengthen your security by using SWIFT PKI • Lower your TCO in managing proprietary security infrastructures ▼ Download the paper
  42. 42. 3SKey adoption 113 countries 38 banking groups 3,700 corporates(*) 24,000 active users 47,000 tokens 54 vendors (*) Estimated based on # of user groups SWIFT for Corporates - Adoption report Q1’ 2014
  43. 43. Standards ISO20022 What is ISO20022? Its’ benefits and challenges for Corporates. Kiyono Hasaka Lead Standards Specialist, Asia Pacific
  44. 44. Evolution of standards 1977 1987 1995 2004 20172008 2013 2014 RBI NG- RTGS SWIFT MT ISO 7775 for securities ISO 15022 Target2SEPA ISO 20022 payment v1 ISO 20022 new edition
  45. 45. Benefits of ISO 20022  Richness of the data - greater automation and foundation  Scenario-based standards - business-centric approach  Repository and reusable components - ease of integration  XML syntax - easy processing and lower integration cost  Syntax-independent model - future-proof
  46. 46. Overview - ISO 20022 Adoption Bank A Bank B Bank CCORPORATION Key to success Interbank Clearing & Settlement
  47. 47. ISO 20022 Adoption – Key challenges ASIAN CORP 1. ISO 20022 awareness and readiness 2. Different standards interpretation 3. Short implementation timeframe
  48. 48. Common Global Implementation Mission & Objective • Provides a forum for financial institutions and non-financial institutions (e.g., corporates, vendors) to progress various C2B implementation topics on the use of ISO 20022 in the payments domain. • Simplify implementation for corporate users and thereby promoting wider acceptance of ISO20022 as the common XML standard used between corporates and banks. • Achieved through consultation, collaboration and agreement on common implementation templates for relevant ISO 20022 financial messages, leading to their subsequent publication and promotion in order to attain widespread recognition and adoption.
  49. 49. ISO 20022 Adoption – Key Benefits Global Interoperability Increased STP Straight Through Processing Cost Efficiency
  50. 50. ISO 20022 Adoption by Corps & Vendors
  51. 51. Coffee Break
  52. 52. Agenda • Opening remarks • Outlook of treasury trends • Client stories and SWIFT solutions – SWIFTRef – Accord for Treasury – Bank Payment Obligation (BPO) – Integration solutions – 3SKey – Standards ISO20022 Coffee Break • Panel discussion: Enabling better operational efficiency in corporate-to-bank flows • Financial messaging standards for Corporates : insights and way forward • Closing remarks Cocktail reception
  53. 53. Jatin Sheth DBS Bank David Dobbing SWIFT Joan Lee SWIFT David Blair Acarate Consulting
  54. 54. Agenda • Opening remarks • Outlook of treasury trends • Client stories and SWIFT solutions – SWIFTRef – Accord for Treasury – Bank Payment Obligation (BPO) – Integration solutions – 3SKey – Standards ISO20022 Coffee Break • Panel discussion: Enabling better operational efficiency in corporate-to-bank flows • Financial messaging standards for Corporates : insights and way forward • Closing remarks Cocktail reception
  55. 55. Corporates Work-Session Financial Messaging Standards Insights and Way Forward David Dobbing July 9, 2014
  56. 56. Profile of SWIFT registered corporates Over 1000 corporates are connected Corporates by Annual Turnover (USD) Corporates by Number of Banking Relationships $1-10Bn 28% >$10Bn 31% <$1Bn 41% 1–5 BGs 55% 11–20 BGs 14% >$10Bn 30% $1-10Bn 34% <$1Bn 36% 64% of SWIFT-connected corporates have a turnover >$1Bn >20 banks 13% 10 to 20 banks 21% 5 to 9 banks 29% <5 banks 37% 63% of SWIFT-connected corporates deal with 5 banks or more
  57. 57. ISO 20022 adoption in the corporate-to-bank space More than 60 banks in 27 countries receiving payment initiation messages Around 98 members (corporates and banks) defining payments market practice ZA RU CN AU CA HK BE AT DE FI FR IE JP KRLU MX NL DK SEPA PT IT SG SK SE CH UK US ES SWIFT for Corporates – Cash management
  58. 58. ENTER ISO 20022 is being used MIs around the globe lead the way Globalization/ alignment with other major initiatives Modernization/ upgrade of [end-to- end] services Renewal of legacy systems Compliance with regulation/ harmonization Interoperability for MI- members with multiple MI- connections Reputation
  59. 59. ISO 20022 is being used MIs around the globe lead the way SWIFT is not mandating migration, communities decide if and when they want to adopt ISO 20022 SWIFT will continue to support FIN
  60. 60. WG2 Cash Management Reporting WG3 Direct Debit & Mandates WG4 Bank Account Management WG1 Credit Transfer & Payment Status Report  Credit Transfer (pain.001) - Low value - ACH - High value - RTGS / Wire - Cheques / drafts  Appendix A – Clearing system classifications  Appendix B – Country specific data requirements  Appendix C - Country specific Purpose codes  Payment Status Report (pain.002) CGI-MP PaymentsWGs  Account Report (camt.052) - intra-day  Statement (camt.053) - end of period  Debit/Credit Notification (camt.054) - detail notification  Appendix A – Uses cases and examples  Direct Debit (pain.008)  Appendix B – Country specific data requirements  Mandate Management (pain.009 / pain.010 / pain.011 / pain.012)  Bank Account Management (acmt) messages covering account opening, account maintenance, account closing, mandate management (under Review)
  61. 61. Payment Initiation Customer Credit Transfer (pain.001) [MT101] Customer Payment Status Report (pain.002) [MT101 REJT] Debit Notification (After Settlement) (camt.054) [MT900] Statement (camt.53) [MT940] Debtor (Corporate) Debtor Agent (Bank) Customer Payment Cancellation Request (camt.055) [MT192] Customer Payment Status Report (pain.002) Debtor (Corporate) Debtor Agent (Bank) Credit Transfer Payment Cancellation Clearing & Settlement
  62. 62. Customer Direct Debit (pain.008) [MT104] Payment Initiation Customer Payment Status Report (pain.002) [MT104 REJT] Credit Notification (After Settlement) (camt.054) [MT910] Statement (camt.53) [MT940] Creditor (Corporate) Clearing & Settlement Direct Debit Creditor Agent (Bank) Creditor (Corporate) Creditor Agent (Bank) Debit Notification (camt.054) [MT900] Direct Debit Reject/Return (after settlement) Clearing & Settlement
  63. 63. Cash Management Reporting Corporate Bank Bank to Customer Account Report camt.052 [MT941] Bank to Customer Statement camt.053 [MT940] Bank to Customer Debit / Credit Notification camt.054 [MT900 / MT910] Account Reporting
  64. 64. Power of ISO 20022 67 Open, neutral methodology to develop standards Key concepts Everyone can participate Ease of integration Greater automation Future-proof End-to-end business- centric approach Allows for interoperability Rich, structured data Re-usable message components, electronic message formats (XML Schema’s), character set Syntax- independent model Scenario-based standards facilitating market practice Data dictionary approach allowing referencing by other standards The standard is being used!
  65. 65. ISO 20022 is more than just messages Methodology Content SWIFT is the golden source of ISO 20022 knowledge Registration authority Contributor to content In-depth knowledge of models, data dictionary and messages SWIFT has unparalleled expertise in ISO 20022 adoption SWIFT has tools and services for standards management Standards Consulting & Training MyStandards & Readiness Portal Contributes to market practice groups Facilitates, coordinates, supports Key take-aways – SWIFT and ISO 20022 Shares adoption overview [free mApp]
  66. 66. Questions
  67. 67. Agenda • Opening remarks • Outlook of treasury trends • Client stories and SWIFT solutions – SWIFTRef – Accord for Treasury – Bank Payment Obligation (BPO) – Integration solutions – 3SKey – Standards ISO20022 Coffee Break • Panel discussion: Enabling better operational efficiency in corporate-to-bank flows • Financial messaging standards for Corporates : insights and way forward • Closing remarks Cocktail reception
  68. 68. Cocktail reception
  69. 69. Clearing & SettlementDebtor’s Agent Debtor Creditor Purchase order Creditor’s Agent pain.001 FIToFI Transaction Id FIToFI Instruction Id FIToFI Message Id Remittance Id EndToEnd Id Creditor’s Ref Initiation Remittance Id EndToEnd Id Creditor’s Ref C2B Instruction Id C2B PaymentInf Id C2B Message Id pacs.008 camt.052 camt.053 camt.054 Invoice Creditor’s Ref Reporting Remittance Id EndToEnd Id Creditor’s Ref B2C Message Id B2C Report Id B2C Transaction Id B2C Acc Serv Ref ISO 20022 Payment Reconciliation Remittance Advice remt.001
  70. 70. dsfsos 29 September-2 October 2014 Boston Convention and Exhibition Center

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