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ARC 2014 SWIFT Businss Intelligence

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SWIFT Business Intelligence Portfolio

SWIFT Business Intelligence Portfolio

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  • 1. Research Paper Africa Payments: Insights into African transaction flows African Regional Conference Thierry Chilosi June 2014 Head of Banking Initiatives Marrakesh, Morocco thierry.chilosi@swift.com
  • 2. SWIFT PowerPoint toolkit - July 2008 2 Highlights Growth Regionalisation Change
  • 3. Overview of current transaction flows BI for Africa - August 2013 3 Where are commercial payments from Africa going to? Which payment routes are being used? Key highlights • The importance of intra-Africa commercial flows, and between Africa and Asia Pacific is not reflected in the transaction routes • The dominance of USD as currency for international trade places banks in the United States in a unique position to intermediate flows with clearing services USD 49% EUR 27% ZAR 7% GBP 6% Others 11% Currency distribution for outgoing commercial payments from Africa Source: SWIFT (number of cross-border MT103 sent from Africa to end-beneficiary country/region, April 2013) Source: SWIFT (number of cross-border MT103 sent from Africa to counterparty country/region, April 2013) Source: SWIFT (number of cross-border MT103 sent from Africa in 2012) 23% 22% 1% 26% 15% 4% 9% Africa Asia-Pacific Central & Latin America Europe - Euro Zone Europe - Non Euro Zone Middle East North America 14% 5% 0% 28% 13% 1% 39% Africa Asia-Pacific Central & Latin America Europe - Euro Zone Europe - Non Euro Zone Middle East North America
  • 4. Africa is regionalizing BI for Africa - August 2013 4 Evolution of outgoing commercial payments from African regional initiatives Key highlights • The continent sees several regional initiatives aiming at easing business between neighbouring countries • Some of these involve a high degree of integration with a common currency (ECOWAS- UEMOA/WAEMU and ECCAS-EMCCA/CEMAC) whereas others remain rather inactive (Maghreb) • The SADC region dominates. However, other regional unions show a significant growth such as ECOWAS – WAMZ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Others SADC ECOWAS - WAMZ ECOWAS - WAEMU/UEMOA ECCAS – EMCCA/CEMAC EAC Arab Maghreb Union Source: SWIFT (number of cross-border MT103 sent from African regions)
  • 5. Key forces driving change BI for Africa - August 2013 5 African Banking Rebalancing? Financial Market Infrastructures FMIs interlinking and modernising FMIs extending their geographical reach FMIs increasing the accessibility and attractiveness of local financial instruments Regulators & Risk Management More prudential controls globally Regulation driving-up transaction costs Global banks reviewing compliance risk exposure Demand Side Growing economic activity Proximity with trading partners Competitive pressure Political Will More Regional Integration Attracting more FDI Investments in Infrastructure Shift in Currency Usage? Opportunity for Regional Clearing?
  • 6. Conclusion Banking in Africa • Leverage domestic and regional foot-print to gain pan-African reach • Raise the bar on the license to operate internationally • Build efficient solutions to corporate clients following the evolution of their needs • Will this require new banking partnerships? Banking with Africa • Banks from mature markets may want to review their footprint in Africa • Means that compliance becomes a joint effort • Banks from emerging markets may find it worthwhile collaborating with African players on new offers • On both sides there are drivers for revisiting relationships 6 Number of counterpartie s in Africa, - 5%-6% -5% -4% -3% -2% -1% 0% 201201 201204 201207 201210 201301 201304 Banks with HQ in Africa 80% Foreign banks in Africa 20% Payment volumes sent by bank profile in Africa Evolution of number of African counterparties for European and American banks Source: SWIFT (number of cross-border MT103 sent from Africa in 2012) Source: SWIFT (number of banks in Africa sending MT940 to counterparties in Eurozone or North America) BI for Africa - August 2013
  • 7. Business Intelligence The competitive advantage of transforming data into actionable business insights African Regional Conference Thierry Chilosi June 2014 Head of Banking Initiatives Marrakesh, Morocco thierry.chilosi@swift.com
  • 8. SWIFT Business Intelligence - African Regional Conference 8 Agenda 2. BI insights for Africa 3. BI Solutions for commercial banks 4. BI Solutions for central banks 1. Business Intelligence within Swift
  • 9. SWIFT Business Intelligence - African Regional Conference 9 1. Business Intelligence within Swift Economics BI for Compliance Services RMB tracker Products Global Transaction Banking Compliance Securities Treasury SWIFT Index Currency Index Watch Value Analyser Watch Securities Analyser Intraday liquidity reporting BI Services: Peer benchmarking//Workshops/Training Enriched data Watch Insight Swift Business Intelligence products & services support various business lines and give opportunities to optimise functions and understand where business growth sits in the market Existing Exploration Development
  • 10. 2. BI insights for Africa 10SWIFT Business Intelligence - African Regional Conference Destinations of Commercial Payments from Africa Cross-border Payments from Africa in Q1 2014 and Q1 2013 Where are commercial payments from Africa going to? Which payment routes are being used? Overall payments growth= +6.9% Q1 2014 vs Q1 2013 Source: SWIFT Watch Number of cross-border MT103 sent from Africa in Q1 2014 and Q1 2013, Live and delivered. 13.0% 4.2% 15.5% 26.0% 0.6% 21.0% 19.7% 12.1% 4.4% 14.7% 25.8% 0.6% 22.3% 20.1% North America Middle East Europe - Non Euro Zone Europe - Euro Zone Central & Latin America Asia-Pacific Africa Q1 2014 Q1 2013 39.2% 0.9% 14.1% 30.1% 0.1% 4.9% 10.7% 41.6% 0.8% 12.5% 29.1% 0.0% 4.8% 11.3% North America Middle East Europe - Non Euro Zone Europe - Euro Zone Central & Latin America Asia-Pacific Africa Q1 2014 Q1 2013 Which payment routes are being used?Where are commercial payments from Africa going to?
  • 11.  Consulting services helping you to leverage the full potential of WATCH products  Consulting services providing more information – e.g. peer benchmarking, enriched data, workshops,… 3. BI solutions for commercial banks 11 WATCH Insights WATCH Analyser Business Intelligence Services Reports focusing on four specific business domains: Trade Finance, Payments, Network management, Operations Subset of data  Interactive database with possibility to build customized reports  Complete set of data with value and currency or only number of transactions SWIFT Business Intelligence - African Regional Conference Volume Value For 1 BIC8 For group CPD
  • 12. Example analysis: Charges analysis (BEN, SHA, OUR) Initial Ordering Country End Beneficiary Country FX in transactions Length of LC (tenor) LC confirmed/unconfirmed 3. BI solutions for commercial banks 12SWIFT Business Intelligence - African Regional Conference  Consulting services helping you to leverage the full potential of WATCH products  Consulting services providing more information Business Intelligence Services Peer benchmarking: Understand your position and growth in the market compared to peers Enriched data: Go beyond Watch and create your competitive advantage by understanding your traffic and market practices even better Training/Workshop on Watch: Get the best out of your Watch subscription and embed it in your daily workflow B a n k X Ordering option Top 10 Ordering Country Ordering option Top 10 Ordering Country Initial ordering Initial ordering 4% 81% 15% Blank Option A Other options 27% 22% 15% 8% 6% 5% 5% 5% 4% 3% United Arab Emirates Russia United States Ukraine Turkey Kazakhstan United Kingdom Poland Tajikistan Uzbekistan 18% 55% 27% Blank Option A Other options 28% 24% 23% 11% 5% 3% 3%1%1%1% United Arab Emirates Uzbekistan Russia Cyprus Azerbaijan Armenia Switzerland Kyrgyzstan Czech Republic Tajikistan Tenor Length in 2013 Tenor Length with preferred correspondents in 2013 Tenor Length Tenor Length 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Correspondent E Correspondent D Correspondent C Correspondent B Correspondent A 0-30 days 31-60 days 61-90 days 91-180 days > 180 days 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Correspondent E Correspondent D Correspondent C Correspondent B Correspondent A 0-30 days 31-60 days 61-90 days 91-180 days > 180 days
  • 13. SWIFT Business Intelligence - African Regional Conference 13 4. BI solutions for central banks Visualisation: Real-time monitoring, deeper analysis, customised reporting (liquidity, trends & forecasts) Data capture in real- time: Via FinInform service Central Bank Bank Bank Data transformation & parsing: Via IPLA and Integration services – different info sources in 1 central DB Database Efficient and cost effective way to monitor market activities supporting risk management, supervision and regulatory reporting
  • 14. SWIFT Business Intelligence - African Regional Conference 14 Thank you