SWIFT Middle East Regional Conference Abu Dhabi, March 2012 Corporate Connectivity

SWIFT Middle East Regional Conference

Abu Dhabi, March 2012

Corporate Connectivity

SWIFT Community

Banks

IMIs

Corporates

InsuranceCompanies

Payments MIs

GovernmentInstitutions

Trustees

Broker-Dealers

Payment Systems

Clearing & SettlementSystems

Depositories

Stock Exchanges Securities MIs

2SWIFT MERC Regional Conference - Abu Dhabi

Connectivity – An evolving landscape

E-Banking Portal

Single client-to-bank connection

Host-to-Host Connectivity

Single bankmultiple corporates in a supply chain

SWIFT for Corporates

Multi-banked corporation

Incr

ea

sin

g n

um

be

r o

f b

an

kin

g r

ela

tion

ship

s

Increasing corporate technical sophistication & international reach


4

Corporate

SWIFTNet

Accountspayable

Accountsreceivable

Treasury

Other

Single gateway

“SWIFT for Corporates” value proposition

Corporate

e-banking Y

host to host X

Fax - emails

VAN

Internet

Leased line

Accountspayable

Accountsreceivable

Treasury

Other

Multiple bank channels Standardised gateway

– High cost– Security issue– Manual processing– Many parties involved– Multiple implementation skills

– Enables visibility on cash globally.

– Lower cost– Increased control and security– Reduced risk– Clear cost structure

SWIFT MERC Regional Conference - Abu Dhabi

5

Treasury and Risk Management

Cash

Management

Trade Finance

Evolution of Financial services


MT103MT940

MT101

MT798FileAct

SWIFT MERC Regional Conference - Abu Dhabi 6

Competitive advantages for banks

New value added benefits for your Bank:

• Respond to corporate clients needs• Complete channel product range• Focus on value added services• provided over a standardized channel• Cross sell, gain additional business

New value added services for your customers :

• Centralized accounting• Real time visibility on funds and payment process• Bulk payment offer• Money market confirmation and real time matching• New banking opportunities (Trade, Funds…)

Corporate

MACUG SCOREMembership

•Listed on Stock Exchange of FATF country

•Nominated by a bank in FATF country

•Register on each Bank CUG and

obtain approval from each bank

FIN

•Treasury payment

•MT Messages

FileAct

•File Transfer

•File formats supported : PAYMUL,

iFile, iDoc, XML ISO20022

Messaging

Services

Connectivity IndirectDirect

•Infrastructure owned and

operated by customer

Alliance Lite

•Infrastructure owned and

operated by Service Bureau

•SWIFTNet connectivity

infrastructure via the intenet

SWIFTnetFramework for SWIFT connectivity

• Multi-banked, Seeking channel Standardisation


Corporate access to SWIFT - MembershipAn evolution

2001MA-CUG

• Each bank sets up its own CUG environment – Corporates can join several MA-CUGs

• No usage restrictions

Corporate A

Corporate B

Bank B

Bank A

Bank C

2007SCORE

• Each bank joins the SWIFT administered CUG - Corporates access all banks in SCORE

• Limited usage restrictions


Alliance Lite

Simple solution over Internet

Internet

Direct connection

Manage your own SWIFT connection

Indirect connection

Outsource SWIFT connection Service bureau or Member/Concentrator

VPN

Internetor VPN

Web server

Work flow

SWIFTAlliance

SWIFT

Network partners

VPN

VPN

Connectivity options


10

Corporates on SWIFTWhere do we stand today ?

2008 2009 2010 2011

402

579

726

902

# registered corporate entities Geographical split

EMEA

Americas

73%

18%

Asia Pacific

9%


11

28 corporates

Corporates MENA Distribution

AE; 4

QA; 5

KW; 3SA; 7

IR; 1

DZ; 1

LY; 2

MA; 1

TD; 1

LB; 3


List of Corporates in MENA



Evolution of corporate traffic in MENA

2007 2008 2009 2010 20110

50,000

100,000

150,000

200,000

250,000

300,000

Traffic Sent

2007 2008 2009 2010 20110

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Traffic Received

Corporates in MENA - 2011 Distribution of MT sent with values


96%

1%3%

66%

25%

8% 1%

Chart TitleMT101 MT320 MT103 MT300 MT700 MT999 MT798 MT192

Volume sent

Value sent

Corporates in MENA - 2011 Distribution of MT received with values


1%8%

81%

6% 3%1%

47%

23%

22%

6% 1%1%

MT320 MT910 MT900 MT300MT103 MT548 MT202 Others

Volume received

Value received

16

Case studies and customer testimonials(5 year business case analysis)

Together with your bank

we can make your

business case

Arcelor Mittal 600% ROI

GE 410% ROI

Novartis 120% ROI

Swiss Re 4 x savings to investment

T-Mobile 180% ROI

DuPont 200% ROI

Iberia 280% ROI

Petronas 410% ROI

EADS

BELCORP

Microsoft 326% ROI

Yves Rocher


SWIFT Secure Signature Key


Current Landscape – The Corporate View

• No uniform mechanism• Different system per bank• Costly & difficult to maintain


We have !!!We want

ALL BANKS

• Multi-Bank• Multi-Application• Multi-Network• Multi-Country

Bank & Community Perspectives

• Interoperable: multi-bank, multi-application, multi-channel and multi-country• Non-repudiation: PKI digital signature - WHO, WHAT, WHEN• Highly secure: personal certificates and secure keys stored on hardware token• Reducing costs: single shared CA infrastructure & operations

BUT

• Banks do not want to rely on registration activity and/or PKI infrastructure of each other

• Each bank must do its own registration and comply with its own Know-Your-Customer rules


Key benefits

For Vendors

Benefit from interoperable solution, easy to integrate and can be used across banks globally

For Banks

Cost effective use of trusted shared infrastructure whilst keeping control over the user identity (KYC)

For CorporatesOne token, one process, one password across banks, networks and countries


3SKey in 5 steps

Obtain token 1

Activate token on 3SKey Portal

Register token with one or multiple banks

John

John=corp12345678

John=corp12345678

John=corp12345678

Authenticate or sign messages on multiple

channels

2

3

4

corp12345678

Revoked ? Revoked ?


Check the CRL5

21

Why using 3SKey?


• Multi-bank signing solution

• Reduced complexity & cost by using single device & process

• Secure solution using latest cryptographic technology

• Better service to clients

• Interoperability without reliance amongst banks

• Cost reduction by using shared infrastructure

CORPORATE USERS BANKS

Roll-out StatusRoll-out Status

+9,000 activated users

25 banking groups

40 application vendors

+20,000 tokensdistributed


80 countries

23


Thank you

24

Documents

SWIFT Middle East Regional Conference Abu Dhabi, March 2012 Corporate Connectivity