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Preparing for the future with financial markets infrastructures


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Indonesia’s financial institutions have been cooperating in collaboration for more than 20 years on the SWIFT network. Recount the memories together as community.

Alain Raes, Chief Executive, APAC & EMEA, SWIFT

Published in: Economy & Finance
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Preparing for the future with financial markets infrastructures

  1. 1. Preparing for the future with Financial Markets Infrastructures Alain Raes Chief Executive, Asia Pacific & EMEA
  2. 2. Indonesia is the largest economy in ASEAN, accounts for 36% of the total GDP Data source: IMF 2014 GDP & UN GDP 2013 Indonesia is the 17th largest economy (IMF 2014) the biggest economy in ASEAN 36% of total ASEAN GDP 6+% annual GDP growth Safe, reliable, robust, secure Financial Markets Infrastructures is key for future growth SWIFT Business Forum Indonesia 2015
  3. 3. 2000 1995 2005 2014 2 . 8 8 m m e s s a g e s Indonesia’s growth in numbers 6 . 2 8 m m e s s a g e s 8 . 2 5 m m e s s a g e s >>> Increased by 118% <<< Increased by 32% 2 0 . 4 5 m m e s s a g e s >>> Increased by 148% Data source: SWIFT Data
  4. 4. SWIFT Business Forum Indonesia 2015 Strong growth in Indonesia Growth evolution (*) Base year: 2010 (100)Data source: SWIFT Data
  5. 5. SWIFT is … A co-operative organisation serving the financial industry A provider of highly secure Financial Messaging services The Financial Standardisation body 10,000 + customers spread over 212 countries A financial Services company SWIFT Business Forum Indonesia 2015
  6. 6. SWIFT’s Governance Model • Member driven • Transparency in decision making • Overseen by Central Banks Approach • Confidence we have right process • Collective wisdom • Peace of mind Benefits 6SWIFT Business Forum Indonesia 2015
  7. 7. 1,000+ Corporates +25 billion financial messages per year 25 million+ peak day messages 11,000 IT changes per year 99.999% availability + 100 million peak day batched transaction 10,000+ Financial Institutions SWIFT Business Forum Indonesia 2015 SWIFT scale and reach … 100+ MI connected globally
  8. 8. Right now in AP, our strategy is … 8 Strategic initiatives Reach Value Added Services
  9. 9. Australia Right now in Asia Pacific SWIFT Business Forum Indonesia 2015 Low-Value Payments 2 ACH 1 RT-RPS New KL office with 150+ employees (with plan to grow to 400) to support the region Focus on ASEAN (30% of APAC business) High-Value Payments 17 RTGS on SWIFT Dedicated CCC in HK and Help Desk in HK & KL to support local ASEAN customers Strong footprint in APAC includes standards, consultants, market experts, help desk, developers
  10. 10. Our commitment to serve Indonesia
  11. 11. MI ComplianceCore SWIFT will continue to serve Indonesia in • Standards • Messaging • Platform • Payment Market Infrastructure • Securities Market Infrastructure • Sanction Screening • Sanction Testing • Compliance Analytics • KYC SWIFT Business Forum Indonesia 2015
  12. 12. Standards Platform SWIFT’s core messaging service Financial messaging, enabled by platform and standards Messaging FIN InterAct FileAct
  13. 13. Principles for Financial Market Infrastructures (PFMIs) High Value Payment Systems Low Value Payment Systems Central Counterparties Central Securities Depositories Trade Repositories Foster financial stability Limit systemic risk Increase safety Support greater efficiency • Published by CPSS-IOSCO • 24 principles • Issued for consultation in 2011 • To be applied December 2012 Critical Service Providers "With these new principles, authorities have a good basis on which to ensure a safe and stable financial infrastructure. It is essential that authorities adopt the principles, and FMIs observe them, as soon as possible". - Paul Tucker, Deputy Governor, Financial Stability, Bank of England and CPSS Chairman 13
  14. 14. SWIFT provides an end-to-end solution offering to Market Infrastructure initiatives SWIFT Business Forum Indonesia 2015 Complete Messaging Solution Secure & Resilient Network and Connectivity International Standards Expertise End-to-end solution with lower cost community approach • Messaging Topology • Reporting & Liquidity Management • Flexible Connectivity solutions • Resiliency  Participant  Network • Messaging Security • MT/MX Expertise • ISO Enablement • PMI Project & Delivery Expertise • End-to-end solution for community • Consultancy/Support • Re-use Infrastructure • Community Approach & Reach
  15. 15. 80+ SMI 64 countries Securities Market Infrastructures Live on SWIFT Africa Egypt Kenya South Africa Zimbabwe Nigeria Asia Pacific Australia China Hong Kong India Indonesia Japan Korea New Zealand Singapore Sri Lanka Thailand Central & Eastern Europe Armenia ⃰ Bulgaria Croatia Czech Republic Hungary Kazakhstan Poland Romania Russian Federation Slovakia Slovenia Ukraine North America Canada USA Central & Latin America Argentina Brazil Chile Mexico Ecuador Uruguay Western Europe Denmark Estonia Latvia Lithuania Norway Sweden Switzerland United Kingdom Eurozone Austria Belgium Finland France Germany Greece Ireland Italy Luxemburg Netherlands Portugal Spain Cyprus Malta Middle East Dubai Israel Kuwait ⃰ Lebanon Qatar Turkey Status YTD 2014 Legend Size Count < 10,000 msgs S 23 10,000 - 1,000,000 msgs M 20 1,000,000 - 10, 000,000 msgs L 13 >10, 000,000 msgs XL 8 ⃰ Countries’ SMI is connected but currently no securities traffic Taking considerations of all services, i.e. FIN, IA, FA SWIFT Business Forum Indonesia 2015
  16. 16. Payments Market Infrastructures Globally there are 76 RTGS live on SWIFT 76 HVP systems (>240 Million payments/year in 2014) 29 LVP systems (>20 Billion payments/year in 2014) 2000+ banks in 90+ countries Central & Eastern Europe Albania Azerbaijan Bosnia & Herzegovina Bulgaria Croatia Hungary Romania Russia Latvia Poland Serbia North America Canada Central & Latin America Bahamas Barbados Chile CMCA Colombia (service bureau) Dominican Rep. ECCB El Salvador Guatemala Honduras Trinidad & Tobago Venezuela Western Europe Denmark Iceland Norway Sweden Switzerland UK Eurozone Target 2 EBA Clearing (2 HVP, 1 LVP) Austria Belgium Germany Greece Italy (2 LVP) Spain Ireland The Netherlands Middle East Lebanon Bahrain Israel Jordan Kuwait Palestine Qatar Angola Algeria Botswana BEAC COMESA Egypt Gambia Ghana Kenya Lesotho Mauritius Morocco Namibia Nigeria Sierra Leone South Africa SADC Swaziland Tanzania Tunisia Uganda Zambia Zimbabwe BCEAO Status 2014 HVP only LVP only Both HVP and LVP Global IPFA Eurogiro Africa Asia Pacific - LIVE Australia Fiji Hong Kong Macao New Zealand Philippines Singapore Sri Lanka Thailand Taiwan (USD & RMB) Papua New Guinea Brunei Asia Pacific - NEW India (2015) Malaysia (2016) Australia (2017) SWIFT Business Forum Indonesia 2015
  17. 17. Development Financial Crime Compliance services, tools and roadmap ExplorationLive Qualification Standards Sanctions list management service Data repositories KYC Registry Traffic analysis Compliance Analytics FATF 16 information quality Quality assurance Sanctions Testing (testing / tuning of transaction & client systems) AML testing & tuning Processing services Client / Name screening Sanctions Screening Traffic Restriction (RMA) Sanctions KYC AML
  18. 18. Sands Expo and Convention Centre Marina Bay Sands
  19. 19. Sibos – ASEAN at the heart of it SWIFT Business Forum Indonesia 2015
  20. 20. Our commitment to serve Indonesia