Getting ready for SWIFT for Corporates
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Getting ready for SWIFT for Corporates

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SOFA 2013

SOFA 2013

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Getting ready for SWIFT for Corporates Getting ready for SWIFT for Corporates Presentation Transcript

  • Getting ‘ready’ for SWIFT for CorporatesSWIFT Operations Forum AmericasMarch 5, 2013
  • Speaker Introductions Bank Readiness CGI Background Microsoft: Corporate Viewpoint Bank of America Merrill Lynch – Global landscape Panel discussion / QuestionsAgenda 2
  • Speakers•Pankaj Gudimella, Senior Cash Operations Manager,Microsoft Corporation•Tom Durkin, Bank of America Merrill Lynch, ManagingDirector, GTS Global Integrated Channels•Stacy Rosenthal, Senior Business Manager, Initiatives,SWIFT 3
  • Key considerationsFor Corporates implementing SWIFT globallyBank Readiness Common Implementations• What are the banks capabilities? • What standards are supported?• Are the capabilities available across • Can I implement the same standard all regions? across banks and regions?• Do the banks have staff that are • Why is my bank using their own knowledgeable about SWIFT? ‘version’ of the standard?• Is there a dedicated implementation • How do I prepare my teams for team? these variations? 4
  • Bank readiness certification programme in anutshell• Online publication of banks ready to offer connectivity to Corporates over SWIFT• Assessment based on a set of criteria : 2 levels – Mandatory criteria (to be met to be certified) – Optional (additional capabilities can be published)• 2 dimensions : operational and commercial criteria• Granularity at country level (bank A ready in country X)• Self-declaration from the bank• Free of charge• Link 5
  • 20101005CAGmeeting_v2.pptx 6
  • Bank readiness certification programme :Status• Rolled out end 2010• Certification started in January 2011• So far 43 banking groups certified (569 branches), covering 117 countries• Very good feedback from banks : “gratified to be listed”, “feeling the peer-pressure” 7
  • Bank readiness certification programme :Barriers• Main barriers for certification (among mandatory criteria): – No commercial documentation available on the website (SWIFT for Corporate bank’s offering) – Lack of SWIFT for Corporates knowledge at the bank – MT942 not supported  Banks working to lift these barriers 8
  • CGI: mission and objective• Provides a forum for financial institutions and non-financial institutions to progress various corporate-to-bank implementation topics on the use of ISO 20022 messages and other related activities in the payments domain• Promote wider acceptance of ISO20022 as the common XML standard used between corporates and banks• Agree one common global implementation for ISO20022 messages – Common implementation templates for relevant ISO 20022 financial message• Simplify corporate implementations“A corporate can use the same message structure for all their payments withall of their transaction banks reaching any payment system across the globe” 9
  • Introducing SWIFT – dd month yyyy – Confidentiality: Public 10
  • 11
  • Banking Infrastructure >250 >100 ~85 Subsidiaries global currencies banking partners ~1,000 Visibility to cash via MT Bank messages and other Accounts local statements ~500 Multiple Bank-specific managed VPN connections daily
  • Managing Global Cash with CGI Reduce Costs Visibility Simplify infrastructure and process Global Risk Managem Mobility ent Move from Visibility to Agility
  • Journey in Cash Management Big Data to BI FY 13… Visibility to Mobility FY12 Initiate Gaining eBAM Insights FY12 SQL & MT101 & Powerview FY11 XML PAINCash Visibility ISO 20022 .001 for XML for Payments bank via Swift FY 06 statements MT via Swift Format for bank statements statement via SWIFT reporting MT format for bank statement reporting
  • Costs and Benefits Costs Benefits • Implementation, • Single Data Pipe project management • Lower IT support costs & Operations • Easier maintenance • Infrastructure and troubleshooting development of • Increased STP and messaging visibility into cash • New monitoring balances globally systems and • Enables mobility of dashboards cash across banks and regions
  • Collaboration Drives Innovation Win-win First Ever ISO-XML 20022 Industry Solution v2 Implementation Recognition - Pinnacle for - Alexander Corporate Hamilton and Banks Prepare, Build Implementation May Vary Plan, and Partnerships due to different practices: Plan again! with Banks - Market and SWIFT - Banks - Corporates
  • Getting ready for SWIFT for CorporatesTom Durkin, Bank of America Merrill Lynch,Managing Director, GTS Global Integrated ChannelsMarch 5, 2013
  • Global landscape Key trends for discussion:  Global operating model  Standardization  Automating through technology  Working capital optimization  Risk management and mitigation
  • Connectivity Options Standard integration capabilities Corporate File Format Network Transfer H2H File Transaction Platforms Standards Options Protocols Management Services Services CMS, TMS, ISO 20022 Reporting SWIFTNet FileAct TWS, etc. (XML) (PKI) Encryption Advising ANSI X12 Public AS2 Wires & FX Authentication Internet ACH US & ERP (PKI) (Payables, ERP-specific SFTP Control Global Receivables, IP VPN Payroll) (IPSec/PGP) FTP Validation Checks UN/EDIFACT SSC / VAN HTTPS Translation Collections Bank (Secure+) Payment (Proprietary) Factory / IHB NDM Distribution Card Leased Line/ Client Frame Relay (Proprietary) Other Other CORPORATE TO BANK CONNECTIVITY Other Standard Interfacing Options Not all network options and transfer protocol options are interoperable
  • SWIFT Expertise at BAML Accredited SWIFT for Corporate associates are positioned globally to serve youSWIFT Corporate AccessThe Bank of America Merrill Lynch Advantage Leadership within and commitment to SWIFT  Pilot bank for SCORE model and ISO 20022 XML standards  Senior leadership on SWIFT Corporate Access Strategy  Robust global product capabilities available through Group (CAG) SWIFTNet  Frequent sponsor of SWIFT Corporate Access educational sessions and materials  SWIFT Corporate Access – offered since 2003 with  Global leadership as facilitator of the Common Global Implementation (CGI) payments message workgroup  SWIFT readiness certified  eBAM standards workgroup  Experienced technical implementation teams  Bank “Readiness” Certification  Trained SWIFT service associates  40 accredited SWIFT for Corporate Specialists FIN message SWIFT ISO XML FileAct 20022 22 1 Payments and Information Reporting through FileAct
  • Industry Collaboration Forum for FI and Non-FI to progress usage of ISO 20022, simplify implementation Promotes acceptance of ISO20022 as common XML standard between corporates/banks Achieves – through consultation, collaboration and agreement – common implementation templates for relevant ISO 20022 financial messages Increases customer demand for multibank coordination of implementations Global corporate, multi-banked, multi-payment type, multi- country implementations (mixed payables) Intended specifically for global, multi-country, multi-bank and multi-instrument implementations the participating banks can commonly accept Can be published/endorsed from appropriate communities Engages corporate partnership Influences adoption by market infrastructures and application vendors
  • Integrated architecture Online Channels Flexible, scalable Integration interface architecture Payment files encompassing ISO 20022 Corporates Banks Statements/ Direct Upstream ERP or Treasury reporting connection solutions applications and H2H Connectivity clearing systems File flows via electronic file direct link Payables/ Statements and FX and eBAM and Receivables custom reports Trade billing analysis
  • Approach and design — Implementation Take a phased approach, Centralize data prioritizing easy and most impactful Executive sponsorship Technology Deployment Schedules Build robust performance Clear Alignment between management Business and Technology Develop a robust business plan Testing and Pre-Production and focus on Agreement with your bank objectives Retention and attraction of best employees Strong project management clear documentation 25
  • CGIFor further information• Co-Conveners: – Harri Rantanen – harri.rantanen@seb.fi – Stig Korsgaard – stkor@nets.eu• Information available: – www.swift.com/cgi – www.swiftcommunity.net /cgi – Support.CGI@swift.com• Three Working Groups – Credit Transfer /Status Report (Susan Colles – Bank of America Merrill Lynch) – Direct Debit (François Lemaire – UTSIT) – Account Reporting (Harri Rantanen – SEB) 26
  • Notice to RecipientConfidential “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, capital markets, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, locally registered entities. This document is intended for information purposes only and does not constitute a binding commitment to enter into any type of transaction or business relationship as a consequence of any information contained herein. These materials have been prepared by one or more subsidiaries of Bank of America Corporation solely for the client or potential client to whom such materials are directly addressed and delivered (the “Company”) in connection with an actual or potential business relationship and may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with us. We assume no obligation to update or otherwise revise these materials, which speak as of the date of this presentation (or another date, if so noted) and are subject to change without notice. Under no circumstances may a copy of this presentation be shown, copied, transmitted or otherwise given to any person other than your authorized representatives. Products and services that may be referenced in the accompanying materials may be provided through one or more affiliates of Bank of America, N.A. We are required to obtain, verify and record certain information that identifies our clients, which information includes the name and address of the client and other information that will allow us to identify the client in accordance with the USA Patriot Act (Title III of Pub. L. 107-56, as amended (signed into law October 26, 2001)) and such other laws, rules and regulations. We do not provide legal, compliance, tax or accounting advice. Accordingly, any statements contained herein as to tax matters were neither written nor intended by us to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on such taxpayer. For more information, including terms and conditions that apply to the service(s), please contact your Bank of America Merrill Lynch representative. Investment Banking Affiliates are not banks. The securities and financial instruments sold, offered or recommended by Investment Banking Affiliates, including without limitation money market mutual funds, are not bank deposits, are not guaranteed by, and are not otherwise obligations of, any bank, thrift or other subsidiary of Bank of America Corporation (unless explicitly stated otherwise), and are not insured by the Federal Deposit Insurance Corporation (“FDIC”)[1] or any other governmental agency (unless explicitly stated otherwise). This document is intended for information purposes only and does not constitute investment advice or a recommendation or an offer or solicitation, and is not the basis for any contract to purchase or sell any security or other instrument, or for Investment Banking Affiliates or banking affiliates to enter into or arrange any type of transaction as a consequent of any information contained herein. With respect to investments in money market mutual funds, you should carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market mutual funds. The value of investments and the income derived from them may go down as well as up and you may not get back your original investment. The level of yield may be subject to fluctuation and is not guaranteed. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. We have adopted policies and guidelines designed to preserve the independence of our research analysts. These policies prohibit employees from offering research coverage, a favorable research rating or a specific price target or offering to change a research rating or price target as consideration for or an inducement to obtain business or other compensation. [1] unless noted as issued under the FDICs Temporary Liquidity Guarantee Program (TLGP). For more information about TLGP, please see http://www.fdic.gov/regulations/resources/TLGP/index.html. 27
  • Panel discussion ? 28
  • Thank you 29