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Getting ready for SWIFT for Corporates


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SOFA 2013

Published in: Economy & Finance
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Getting ready for SWIFT for Corporates

  1. 1. Getting ‘ready’ for SWIFT for CorporatesSWIFT Operations Forum AmericasMarch 5, 2013
  2. 2. Speaker Introductions Bank Readiness CGI Background Microsoft: Corporate Viewpoint Bank of America Merrill Lynch – Global landscape Panel discussion / QuestionsAgenda 2
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 20101005CAGmeeting_v2.pptx 6
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. Introducing SWIFT – dd month yyyy – Confidentiality: Public 10
  11. 11. 11
  12. 12. 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
  13. 13. Managing Global Cash with CGI Reduce Costs Visibility Simplify infrastructure and process Global Risk Managem Mobility ent Move from Visibility to Agility
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. Getting ready for SWIFT for CorporatesTom Durkin, Bank of America Merrill Lynch,Managing Director, GTS Global Integrated ChannelsMarch 5, 2013
  18. 18. Global landscape Key trends for discussion:  Global operating model  Standardization  Automating through technology  Working capital optimization  Risk management and mitigation
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. CGIFor further information• Co-Conveners: – Harri Rantanen – – Stig Korsgaard –• Information available: – – /cgi –• 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
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  26. 26. Panel discussion ? 28
  27. 27. Thank you 29