What are over 1,000 Corporates doing over SWIFT?


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What are over 1,000 Corporates doing over SWIFT?

  1. 1. What are over 1000 corporatesdoing over SWIFT?SWIFT Operations Forum AmericasMarch 5, 2013
  2. 2. Agenda• Introductions• Where do we stand today?• Initiatives to support the corporate segment – Alliance Lite 2 – SWIFTRef – EBAM/3SKey• GE Case Study• Bank perspective – PNC Bank• Q&A 2
  3. 3. Introductions• Susan Boeri, Manager, Product Management, GE• George Hoffman, Senior Vice President, PNC Bank• Matteo Monaco, Head of Corporate Sales, Business Development, SWIFT Americas 3
  4. 4. Corporates on SWIFTWhere do we stand today ? # registered corporate entities Geographical split 1035 Americas 902 , 19% 726 579 Asia Pacific, 402 9% EMEA, 72% 2008 2009 2010 2011 2012 4
  5. 5. FIN traffic: Annual growth 20,3%Total FIN traffic exchanged by corporates (TRCO, MA-CUG, SCORE)# 000 messages (live and pilot) Received by corporates 13,300 Sent by corporates 12,312 11,778 11,054 11,249 +8% +4.5% +4.7% +1.8% 10,703 9,796 8,880 9,334 8,809 2,245 2,369 2,444 2,516 2,597 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Annual growth (Q4 ’11 vs. Q4 ’12): 20,3% 5
  6. 6. FileAct Mbytes: Annual decrease > 30%FileAct traffic exchanged by corporates excl. sent Lite-traffic# Mbytes (live and pilot) Received by corporates Sent by corporates 63,313 62,493 57,053 -1.3% -8.7% 47,516 29,766 28,489 -16.7% 43,465 24,851 -8.5% 20,528 18,076 33,547 34,004 32,202 26,988 25,389 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Annual growth (Q4 ’11 vs. Q4 ’12): -31,3% 6
  7. 7. FileAct files: Annual growth> 50%FileAct traffic exchanged by corporates excl. sent Lite-traffic# 000 files (live and pilot) 2,866 Received by corporates 2,640 Sent by corporates +8.6% 2,294 2,106 +15.1% 1,838 +8.9% 1,940 +14.6% 1,830 1,567 1,441 1,268 810 926 665 727 570 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Annual growth (Q4 ’11 vs. Q4 ’12): 55,9% 7
  8. 8. InitiativesAlliance Lite 2 10
  9. 9. Alliance Lite2 Highlights Easiest way to connect to SWIFT Cloud-based, with a light footprint Peace of mind with SWIFT’s world-class security, reliability, service and support Suitable for both manual and automated operations for most message volumesLow start-up cost and usage-based pricing 11
  10. 10. Alliance Lite2Light footprint / Minimum System requirements1 Standard broadband Internet connection2 Standard Internet Explorer browser3 Standard Windows PC / laptop4 SWIFT security tokens (USB) 12
  11. 11. Alliance Lite2 How it works Alliance Lite2 Secure server Secure connection Secure workflow SWIFTNet Interface USB Token to sign messages and filesBrowser Automated Internet or Alliance Lite2 All SWIFTNet Financialscreens File Transfer Alliance Connect VPN Servers flows Institutions Customer Premises Network SWIFT SWIFT SWIFT Operating Centres Network Community 13
  12. 12. Alliance Lite2Key features Full-featured, best-in-class SWIFT interface in the cloud; supports all SWIFTNet flows High availability, resilience and security Light footprint Secure Internet connection from any location; option to connect over SWIFT’s VPN Easy-to-use browser-based screens Automation using lightweight AutoClient (automated file transfer) Setup service and support (global 24/7/365) included, wide range of optional services 14
  13. 13. Case Study: Canadian National Railway, Canada Increasing back-office efficiency with Alliance Lite2“We decided to implement SWIFT cash reporting in our back office in order to further standardise andautomate our treasury operations. After exploring various options, we selected Alliance Lite2 as the best wayto start enjoying the benefits of SWIFT for our business. Alliance Lite2 has given us greater visibility over ourcash management and helped us optimise our connections with our banking partners. It is simple and easy touse, and the Lite2 service and support from SWIFT has gotten us up and running in a matter of weeks.” Paul Tawel, Senior Manager, Treasury Operations, Canadian National Railway Company Challenges Solution Benefits• Multiple web portals needed • Consulting support with on- • Enhanced cash management to manage bank accounts boarding and standards and thanks to better visibility and• Insufficient visibility over best practices implementation operational efficiency global accounts and banking • Automated wire transfers • Increased automation, relationships over SWIFT standardisation and straight-• Expensive to centralise • Global cash overview from through processing accounts in concentrator bank EOD cash statements over • Reduced operational and• Wanted more automation and SWIFT settlement risk standardisation • End-to-end support: project • Lower costs by diversifying• Lack of experience with management, implementation, banking connections SWIFT standards and bank on- collaborative troubleshooting • Greater flexibility and control boarding requirements • Alliance Lite2 cloud solution over its banking relations means lower banking costs and greater flexibility 15
  14. 14. SOFA – What are Over 1000Corporates Doing Over SWIFT?March 5, 2013
  15. 15. PNC Corporate Profile PNC US FOOTPRINT (as of 1/1/2013)EMPLOYEES: Retail footprintMore than 57,000 in the Additional C&IB offices – plus locations in Canada and the UKU.S. and abroad and a representative office in ChinaSIZE BY BRANCHES:5th largest U.S. bank bybranchesCUSTOMERS:Approximately 6.5million checkingaccount customersLOCATIONS: OperationalBranches – conversion of RBCApproximately 2,900 in completed March19 states and the 2012 included 424District of Columbia branches in the SoutheastATMS:Approximately 7,300machines FINANCIAL PERFORMANCE (as of 1/1/2013)  $3 billion in 2012 Net IncomeINTERNET ADDRESS:  $305 billion in Assetswww.pnc.com  $112 billion Assets Under Management  $213 billion in Deposits  $39 billion Shareholder Equity 17
  16. 16. PNC Sees the Value of SWIFT to Corporates PNC ranks at the top among U.S. peer banks with SWIFT for Corporates services and number of Corporates – Of the 1000 Corporates on SWIFT globally, PNC has relationships with 10% – Increase in SWIFT users at PNC by more than 500% since 2009 SWIFT is an enabler, an alternative consolidated channel to portals and host-to-host connections – Not just an international solution, but for companies with U.S. domestic business as well 18
  17. 17. Consultative Listening PNC brings new, innovative ideas to our clients to simplify business processes – Are you installing new TMS or ERP systems? – Is there a need to improve overall automation and straight-through processing? – Do you have relationships with multiple banks or other financial institutions? – Are you already a member of SWIFT using it with other partners? Banks don’t “sell” SWIFT. Corporate has to make global commitment 19
  18. 18. Robust Suite of SWIFT Services Meets Client Needs FIN messages – Funds Transfer, Information Reporting and Confirmations FileAct – Bulk File Transfer for Wire, ACH, Information Reporting, Lockbox, ARP, Comprehensive Payables, EDI822 – PNC was the 2nd bank to support GE’s eStatement initiative SWIFT Bank Readiness Certification- PNC is one of 7 U.S. banks with this validation of our high quality testing facilities, documentation, implementation support and knowledgeable, trained staff Future Considerations – EBAM – 3SKey 20
  19. 19. Robust Suite of SWIFT Services Meets Client Needs FIN messages – Funds Transfer, Information Reporting and Confirmations FileAct – Bulk File Transfer for Wire, ACH, Information Reporting, Lockbox, ARP, Comprehensive Payables, EDI822 – PNC was the 2nd bank to support GE’s eStatement initiative SWIFT Bank Readiness Certification- PNC is one of 7 U.S. banks with this validation of our high quality testing facilities, documentation, implementation support and knowledgeable, trained staff Future Considerations – EBAM – 3SKey 21
  20. 20. Ongoing Customer Support Model Dedicated Product Manager – Position solution with sales and clients (PR, marketing, training, sales calls) – Development efforts (business case, project sponsorship) Dedicated SWIFT Implementation Staff – SWIFT Network Service Unit (SNSU) – Highly consultative approach – Experience that grows from each new implementation 24 X 7 Servicing Model – Proactive file monitoring of inbound and outbound files – Work with processing application support teams to quickly investigate and resolve issues – Corporate clients have access to SWIFT support staff 24/7 via either email or pager 22
  21. 21. Proven Success – A Win-Win Scenario International Fortune 500 food products client was challenged with streamlining funds transfer and information reporting activity globally Corporate was exploring new TMS system to increase STP and maximize transaction flow when PNC suggested SWIFT be included as part of the solution Highly consultative implementation with PNC and SWIFT Consulting Services Eliminated LOB reliance on spreadsheets and manual monthly reporting processes Corporate saw significant improvement in cash positioning and reconciliation capabilities, as well as better cash forecasting 23
  22. 22. Standard DisclosurePNC, PINACLE, Working Cash, ActivePay, Global Trade Excellence, XPACK and Vested Interest are registered marks of The PNC FinancialServices Group, Inc.(“PNC”)Midland Loan Services, Enterprise!, CMBS Investor Insight, Portfolio Investor Insight, Borrower Insight, Deal Flow and Shared Servicingare registered marks of PNC Bank, National Association.Banking and lending products and services and bank deposit products and investment and wealth management and fiduciary services areprovided by PNC Bank, National Association, a wholly-owned subsidiary of PNC and Member FDIC. Certain fiduciary and agency servicesare provided by PNC Delaware Trust Company. Equipment financing and leasing products are provided by PNC Equipment Finance, LLC, awholly-owned subsidiary of PNC Bank, National Association. Aircraft financing is provided by PNC Aviation Finance, a division of PNCEquipment Finance, LLC. Merchant services are provided by PNC Merchant Services Company. Private equity financing is provided byaffiliates of PNC Equity Management Corp. Mezzanine financing is provided by PNC Mezzanine Capital Corp. Investment banking andcapital markets activities are conducted by PNC through its subsidiaries PNC Bank, National Association, PNC Capital Markets LLC, andHarris Williams LLC. Services such as public finance advisory services, securities underwriting, and securities sales and trading areprovided by PNC Capital Markets LLC. Merger and acquisition advisory and related services are provided by Harris Williams LLC. PNCCapital Markets LLC and Harris Williams LLC are registered broker-dealers and members of FINRA and SIPC. Harris Williams & Co. is thetrade name under which Harris Williams LLC conducts its business. Foreign exchange and derivative products are obligations of PNC Bank,National Association. Securities products and brokerage services are offered through PNC Investments LLC, a registered broker-dealer andmember of FINRA and SIPC. Insurance products and advice may be provided by PNC Insurance Services, LLC.Important Investor Information: Brokerage and insurance products are:Not FDIC Insured. Not Bank Guaranteed. May Lose Value.PNC does not provide legal, tax or accounting advice. PNC does not provide investment advice to Vested Interest plan sponsors orparticipants.Lending and leasing products and services, including card services, trade finance and merchant services, as well as certain other bankingproducts and services, require credit approval.©2012 The PNC Financial Services Group, Inc. All rights reserved.
  23. 23. InitiativesSWIFTRef – Reference data utilityEBAM – Bank Account Management3SKey – Multi-bank authentication and signing 26
  24. 24. Reference dataYour needs.. Who’s the USD- Is this IBAN correspondent valid? Is this BIC of Afriland Bank still active? Is Stuttgart What do i Bank SEPA- need to build ready ? a Bank What is the Which IBAN and master file? BIC correspond to nationalclearing code my suppliers’ local of Bank of Which BIC account? Taiwan ? belongs to What is the this IBAN? BIC of Banco Real? 27
  25. 25. SWIFTRefPurpose Efficient messaging = SWIFTRef for reference identification & data routing + SWIFT/ISO MT103 standards for the format + SWIFTNet for connectivity
  26. 26. SWIFTRef Utility Background Today TomorrowYou maintain the data • Yesterday SWIFTRef Utility • you needed to worry BA about maintaining BA SSI payments reference EPC SSI ISO data from different SWIF EPC EBA sort sources. SWIF SSI EBA sort T SSI SSI c. T c. SSI ISO • Today, • with SWIFTRef utility, • get consolidated data Beneficary’s BIC • through a single Beneficary’s BIC Beneficiary’s acc.nb channel Beneficiary’s acc.nb Intermediary BIC Intermediary BIC Intermed. acc. nb • At your choice: Intermed. acc. nb Intermed. bank code Intermed. bank code Payment system X • the delivery method fully Payment system X FIN service Y ....... automated or manual FIN service Y ....... • the frequency 29
  27. 27. Data collectionFrom multiple sources central banks, collecting data banking associations, collecting datafrom communities data vendors from individual online data FIs maintenance SWIFTRef system data team Comsys maintenance data initial load consolidated data SWIFT national Ref maintenance FIscommunity utility PAK – Publishing Area Key 30
  28. 28. Distribution channels5 channels available manual query tools (daily updates) data feeds File download (daily updates) (monthly updates) internet internet internet SWIFT Ref internet utility SWIFTNet FileAct web services File delivery (daily (monthly updates) updates) 31
  29. 29. For Corporations3 Packages available For corporates with large-scale payments To make your existing To make frequent operations , looking for client & supplier SEPA and international high STP rates of cross- database SEPA- payments border/ SEPA payments compliant and handling critical FX/MM transactionsCorporate Pack Corporate Pack Corporate Pack One Two Three• Full online access - • Full online access - • Full online access - Bankers World Online Bankers World Online Bankers World Online• One file download - • Monthly file download - • Monthly file download – IBANPlus IBANPlus + Bank Payments Plus (incl. directory Plus Bank Dir. Plus, • SAP-compatible files IBANPlus, SEPAPlus, available SSI Plus) • SAP-compatible files available
  30. 30. Electronic Bank Account Management (EBAM)Objectives Today Tomorrow Paper Fax XML messages Supporting documents Personal Digital Signature• Slow • Low integration • Automated/STP • Dematerialised• Expensive • Low satisfaction • Standardised • Faster/cheaper Account Reporting Existing Customers (no KYC) Account Opening Mandate Maintenance Account Maintenance Account Closing
  31. 31. Electronic Bank Account Management (EBAM)SWIFT Solution – 3 layers Messaging service - FileAct Personal Digital Signature Header specifications Technical specifications (acmt…) Sign an XML ISO XML messages Attachments enabled Sign attachments multiple Multi formats 15 msges business Transport scenarios certificates Naming convention 34
  32. 32. Digital Signing and AuthenticationYour challenges MySonName515!& MyFavouriteCar_X3 MyDogName!01 Too many tokens, passwords and processes
  33. 33. Our solution - 3SKeySWIFT Secure Signature Key Secure electronic signature and strong authentication Cost-effective re-usable credential with multiple institutions Easy to use ONE CENTRALISED SOLUTION Token Administration: Multiple Banks - Signatories & entitlements Multiple applications Password Revocation within the corporate Multiple channels Process Multiple countries Installation
  34. 34. Today’s 3SKey usage scenarios Multi-banked Corporates Internal Use A single 3SKey personal token Use of 3SKey to to reach multiple banks over strengthen security in SWIFTNet, proprietary or internal approval domestic channels workflows Proprietary Security User Authentication Replace or enhance proprietary solution with Strong 2-factor 3SKey the 3SKey PKI service authentication in on-line services Communities 3SKey as a standard and shared market solution amongst banks Market Infrastructures Use of 3SKey for individual approvals and/or signatures on SWIFTNet or proprietary channels 3SKey Value Proposition – February 2013 37
  35. 35. Roll-out status 32 subscribers 50 vendors 65 countries (**) 15,000 treasurers +2,000 corporates (*) 27,000 tokens (*) Estimated based on # of user groups (**) Source: SWIFT for Corporates Bank Readiness Certification Programme
  36. 36. Status 39
  37. 37. Q&A?
  38. 38. Thank you! 41
  39. 39. eBAM – Electronic Bank Account Management Status 15 XML messages - ISOMessaging live on the SWIFT certified Naming conventions for network over FileAct FileAct and attachments V2 submitted to ISO Application vendors focused on eBAM with LIVE Solutions: Focus is on working with •IT2/Wall Street Systems banks, vendors and •SunGardDigital Signatures Supported corporates to be operational •Open Solutions (Weiland) ready to use the standards •E5 •Hanse Orga
  40. 40. SWIFTRef UtilityThe Fundamental Elements Utility Everyone has access Global Geography & Payments Networks – not just SWIFT Comprehensive All data sets required for effecting payments Transparency Source of data is clear and benchmarked Flexible Output content & format – and pricing Partners Working with them –other data providers Service Data plus Information plus helpdesk facilities 43
  41. 41. Electronic Bank Account Management (EBAM)SWIFT Solution: scope & status Account Opening Account Maintenance Mandate Maintenance Account Closing Account Reporting Existing Customers (no KYC)