User Group Meeting
Republic of Serbia
Stephan KraftSenior Account Director
Republic of Serbia
26/11/2009
Ilona Pouna, StockholmPoland, Ukraine, Estonia, Latvia, Lithuania
Team & regional coverage AT_CEE
Judit Baracs, ViennaPayments Market Infrastructures for whole region AT_CEEDirect: RZB group
Stephan Kraft, ViennaAlbania, Bosnia, Bulgaria, Croatia, Macedonia, Montenegro, Romania, Serbia, Slovenia
Silvana Micheli, Zürich(Commercial Assistant)
Michael Formann, ViennaRegional Head for AT_CEEDirect: AT, HU, CZ, SK and securities business for whole region
Do you find the error in the slide?
Ilona Pouna, StockholmPoland, Ukraine, Estonia, Latvia, Lithuania
Team & regional coverage AT_CEE
Judit Baracs, ViennaPayments Market Infrastructures for whole region AT_CEEDirect: RZB group
Stephan Kraft, ViennaAlbania, Bosnia, Bulgaria, Croatia, Macedonia, Montenegro, Romania, Serbia, Slovenia
Silvana Micheli, Zürich(Commercial Assistant)
Michael Formann, ViennaRegional Head for AT_CEEDirect: AT, HU, CZ, SK and securities business for whole region
4
The Region : Eastern Europe
Albania17 Live Users
Slovenia26 Live Users
Bosnia-Herzegovina31 Live Users
Bulgaria33 Live Users Croatia
38 Live Users
Eastern Europe :257 Live Users
SWIFT9,057
Live Users
http://3dflags.com/world/index.html
Republic .of Serbia
37 Live Users
Macedonia18 Live Users
Republic of Montenegro
12 Live Users
Romania45 Live Users
5
Eastern Europe0.78%
ROW99.22%
Eastern Europe : Traffic Share
Source : FIN_per Sales Area
AL2%
BG14%
BA9%
HR13%
MK2%ME
1%
RO37%
RS8%
SI14%
6
Sub heading if required
Eastern Europe : Traffic Growth
Growth
Source : FIN_per Sales Area
AL BG BA HR MK ME RO RS SI0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Jul/2008 Jul/2009
1.3% - 8.5% - 7.5% -1.1% - 2.2% - 8.9% - 3.2% -11.2% - 4.5%
Payments91%
Securities4%
Treasury4%
Trade1%
7
Messages by market
Serbia
Payments92%
Securities1%
Treasury6%
Trade1%
Eastern Europe
Source : FIN_per Sales Area
Jul/2009 Growth
Payments -5.23%
Securities 25.62%
Treasury -15.25%
Trade -28.33%
Total -4.93%
Jul/2009 Growth
Payments -8,18%
Securities -33,40%
Treasury -38,15%
Trade -26,63%
Total -11,22%
SWIFT News
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec10
11
12
13
14
15
16
17
18
19
2007 Actuals 2008 Actuals 2009 Budget 2009 Actuals
Average daily number of FIN messages (mln)Total SWIFT, all markets
November 2009 = average over the period 1 Nov till 18 Nov
Financial context
9
Year-to-date financial results
October 2009, in MEUR Actual Budget ΔOperating revenues before rebate 465.5 488.2 -22.8Operating expenses, DA and depreciation 429.6 460.3 -30.7Operating profit 35.8 27.9 7.9
Financial context
• Market conditions weigh on business and operational performance• YTD operating revenue below budget
• Lower FIN traffic• Shortfall in interfaces sales• Sibos revenues
• YTD operating profit above target despite revenue shortfall• Significant benefits from cost restructuring programme
• YTD profit before tax at 11 MEUR after one-time cost of Lean
10
FIN Average Daily volumesActual growth October 2009 YTD vs October 2008 YTD
EMEA Americas Asia Pacific
Total
Payments -4.9% -4.5% -2.7% -4.6%
Securities -0.5% +8.8% -0.8% +1.2%
Treasury -17.5% -33.8% -11.3% -20.3%
Trade -9.6% -19.4% -7.2% -10.6%
Total -3.8% -1.6% -2.8% -3.3%
-10%..0%< -10% > 0%
Financial context
11
SWIFT2015 Input
Community consultation
Markettrends
SWIFT perspective
Technology evolutions
SWIFT2015
SWIFT2015C
usto
merCost efficiency
Internet
Domestic networks
Cloud computingInformation sharing
Emerging markets
Marketplace
Real-time
Sec
urity
and
relia
bilit
y
RiskReporting
Shared platform
Mobile
Software as a Service
Interoperability
Innovation
PartnershipsRegulation
Governance
Automation
Insurance ReachIntegration
Liquidity
SWIFT2015
Community consultation - Principles
• Ensure all segments of the community are heard
• Brief customer prior to consultation
• Record all our consultations
• Provide feedback to customer to show how their information
has been used
SWIFT2015
Questionaire
17
Thanks for your input!
MT202 COV
19
A cover payment
Clearing & Settlement
OrderingCustomer
Ordering Customer’s bank
Receiver's Correspondent
Sender’s Correspondent
Beneficiary Customer’s bank
202
103
910/950
Beneficiary Customer
UNKNOWN PARTIESIN THE COVER
PAYMENT
MT202 Cover
Standards documentation available via SWIFT User HandbookStandards Release Guide (SRG) 2009
Payments Market Practice Guideline available via www.pmpg.infoEnter PMPG -> Documents -> Guidelines for use of the MT202 COVNote: The PMPG document also includes a FAQ section.
Adobe Acrobat Document
MT202 COV (extract SWIFT SRG 2009)
MT202 COV (extract SWIFT SRG 2009)
MT202 COV (extract SWIFT SRG 2009)
MT 202 COV – to use or not to use?
• Sender:–As of the 21st of November the MT202 COV is the
proper message to send when covering for an underlying consumer credit transfer
–SWIFT can not police the use of MT202 COV
• Receiver: –General Use Message– If sent to you, you must able to process it
24
Responsibilities (1)
General:• Appropriate information should be included in payment
messages (not omit, delete or alter information)
Originators bank:• Complete information• Due diligence of originator (e.g monitoring against regular
patterns of an account activity)
25
Responsibilities (2)
Cover Intermediary banks:• Monitoring to ensure originator and beneficiary fields are not left
blank (and take appropriate measures like SAR report)• Document decisions taken• Screen against lists of names (could be outsourced to
Originator, but the FI is still fully responsible)• Monitoring of the correspondent relationship
Beneficiaries bank:• Identify the benificiary (according to customer due diligence)
26
Transparency of Originator – Field 50a
• In order to be FATF – compliant on Ordering Customer transparency you need:– Account Number (or if not available: Unique identifier)– Name and Adress
• If Adress is not available:– Date and Place of birth– Customer Identification Number– National Identity number
• In the European Union:– IBAN and name is sufficient
• Network rules change (e.g mandatory country code in option F)27
SWIFT Business Intelligence Solutions
SWIFT Business Intelligence
You would like to know:• What is the amount of FIN messages sent / received – grouped
by message type, counterparty, country and other key attributes?
• What is the market share of your institution compared with your country / world-wide?
• What are the main components of your overall SWIFT costs? How could you minimize it?
• Who are most important business partners?• How are new services and strategies evolving?
29
Watch Portfolio
30
SWIFT Watch Analyzer
• Just global license• Most of international groups already have one• Can be re-used:
– Only need named end user (starting from 30 EUR / month)
31
32
SWIFTWatch Reports• Monthly Reports
• 9 different Reports available– FIN traffic distribution by market– Your market share in your country– Top 200 counterparties BIC11– FIN traffic distribution by region & top 10 counterparties– FIN traffic costs– Consolidated cost of ownership year-to-date– BIC8 billing amounts year-to-date– Monthly invoice overview– Trade Finance Report
• Between 25 – 80 EUR per report / month
Corporate Access via SWIFT
34
e-banking Y
host to host X
e-banking Z
VAN
“fax-banking”
Internet
leased line
PSTN
Corporate
Accountspayable
Accountsreceivable
Treasury
Other
Typical corporate-to-bank messaging landscape Today’s situation
35
SWIFT: A secure, standardised global single window to the financial industry
Accountspayable
Accountsreceivable
Treasury
Other
LENZATLLM
iddl
ewar
e
SWIFTNet
36
Corporate access to SWIFTAn evolution
1998Treasury Counterparty
• Access to all banks on SWIFT
• Message usage limited to treasury deal confirmations
2001MA-CUG
• Each bank sets up its own 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
37
Corporates on SWIFTWhere do we stand today?
2004 2005 2006 2007 2008
282
402
55
108
# registered corporate entities Geographical split
EMEA
Americas
69%
20%
Asia Pacific
11%
181
Alliance News
39
SWIFTNet and Alliance Interface release 6.3Where do we stand today?
SWIFTNet 6.3Messaging release
Area Changes FIN InterAct FileAct Browse
Overall 1. Changes for Distributed Architecture HSM 2. Increased HSM capacity
Functionality 3. Traffic distribution to multiple SNLs4. Enhanced access control (reroute function)
Validation 5. Enhanced header validation6. Long term signature validation
Operations 7. Enhanced error text8. Increased SNL server throughput9. Enhanced service feature definition
Store&Forward 10. Faster detection of session abort11. Queue status report12. Non-delivery warning13. Increased receiver throughput14. Increased flexibility for file delivery
Browse GUI 15. Additional Browse GUI framework16. Updated usage rules for Browse
40
41
Alliance Access 6.3 Summary
Value Proposition Feature
Simplified deployment of business functions Thin client support
Central user management LDAP integration
Single window for MT/MX and files FileAct support
RMA integration Web Services
Industry standard for back office integration SOAP adapter
No message loss on database incident Database Recovery
Segregation of manual and STP flows Standalone Access
Control message delivery order Message priority
Segment
42
Alliance Gateway/
Starter Set
AllianceAccess/
Entry
https
AllianceMessenger
SWIFTNet
GUI harmonisationCurrent Messenger 6.0 (2008)
Browser MX message entry
MT message entry
WebStation
Workstation
Access/Entry Admin
PKI Admin
Service GUI
MT message entry
RMA
Gateway Admin
Browse
43
Alliance Gateway/
Starter Set
AllianceAccess/
Entry
https
AllianceWeb Platform
SWIFTNet
GUI harmonisationIntroduction of Web Platform 6.3 (2009)
Browser MX message entry
Gateway Admin
Browse
MT message entry
WebStation
Workstation
Access/Entry Admin
PKI Admin
Service GUI
RMA
FileAct Consultation
MT message entry
RMA
FileAct Consultation
Gateway Admin
Browse
44
Alliance Gateway/
Starter Set
AllianceAccess/
Entry
https
AllianceWeb Platform
SWIFTNet
GUI harmonisationAll functions on the Web Platform 7.0 (2010)
Browser
PKI Admin
Gateway Admin
Browse
RMA
MT message entry
Access/Entry Admin
FileAct Consultation
MX message entry
WebStation
Workstation
MT message entry
RMA
FileAct Consultation
Gateway Admin
Browse
Access/Entry Admin
PKI Admin
Service GUI
Alliance Messenger
Benefits:
– Better user experience: Easily accessible Graphical User Interface via a Web Browser (Internet Explorer) for Message input
– Less effort needed for installation and version upgrades: Avoid spending a lot of time installing on each workstation => central installation / upgrade is all what is necessary
– New functionality: amongst others full support of MX
messages => get familiar with new SWIFT solution like Exceptions and Investigations, SWIFTNet Funds,…)
45
Alliance Messenger PROMOTION (2)
• Commercial conditions:
– Discount of 10% for 2 new SAM licenses Price: 3.960 EUR, Discount granted: 440 EUR
– Discount of 30% for 5 new SAM licenses Price 7.700 EUR, Discount granted: 3.300 EUR
– Discount of 50% for 10 or more new SAM licenses Price: 8.950 EUR, Discount granted: 8.950 EUR
• Duration: valid from now on till end of 2009
46
47
SWIFTNet and Alliance Interface release 7.0Planning
SWIFTNet 7.0Messaging features overview (1/3)
Business featuresMessage Copy • Full copy (entire message)
• Available in T or Y modes with FIN-like options
File Copy • Full copy (entire file)• Sender can select copy destination
Message and file distribution • Send a message or file to a distribution list
Using solutions made easier • Using solutions based on membership rules• No specific subscription, no specific config
RMA for InterAct and FileAct • Ability to exchange authorisations for non-FIN• Ability to filter traffic based on such authorisations
48SWIFTNet Messaging Evolution
SWIFTNet 7.0Messaging features overview (2/3)
Operational featuresEnhanced store-and-forward delivery options
• Load balancing incoming traffic on several systems• More subset selection options
Session History Report • Overview of previous sessions with sessions statistics
Easier routing management using shared BIC operations
• Using one BIC, execute routing commands that affect all (defined) institution's BICs at once
Security and routing management through new Browse GUI
• WebStation functions for certificates, roles and routing management accessible through Browse
Enhanced capability to handle undeliverable traffic
• On request, SWIFT can hold or delete undeliverable messages from a receiver's queue
Traffic segregation • InterAct and FileAct use different line (Gold connectivity)
Enhanced error texts • Allows quicker identification of root cause
Automatic traffic routing to default queue
• If no specific routing rule is available, traffic is delivered into default queue
Easier notification reconciliation • Notifications now contain original message details
49SWIFTNet Messaging Evolution
SWIFTNet 7.0Messaging features overview (3/3)
Security featuresAbility to delete obsolete users • Allows Security Officers to mark obsolete users as deleted
On-line SWIFTNet Link certificate recovery
• Allows Security Officers to recover SNL certificates on-line
Enhanced access control to services
• Ability to control user access to services not using RBAC
Easier role delegation • Role delegation to a list of DNs in one action• Role delegation based on the profile of another user
Flexible Shared Security Officers functionality
• Allows to delegate the Shared Security Officers role within an institution and to limit their scope of authority
Security administration segregation • Ability to segregate certificate and role administration to dedicated branches for test/pilot purposes
Reporting enhancements • Certificate & roles reports• Activity log report
Simplified 4-eyes authorisations • Authoriser no longer needs to re-type all actions
General security enhancements • Includes: human password expiry enforcement
HSM enhancements • Related to resilience, security, operability and supportability50SWIFTNet Messaging Evolution
Alliance Access 7.0
51
52
Access 7.0 Main Evolution
Streamline GUIEvolution
AutomationSupport
RemoteDisaster
Resiliency
Candidate features for 7.0
Company meeting – December 2008_final_v1 – Confidentiality: restricted 53
Phase OutEntryR7
Alliance RMAWithdrawal
SWIFTNet 7.0
Oracle DB
DB Recovery
FileAct Support
FIN Cold Start
LDAP Support
Telex/FAX
CAS LU 6.2
Disk Mirroring
R7.0 Alignment
Remove Dialup
Remove BKE
Access for RMA
Migration Tool
Product Streamlining
Candidate features for 7.0
Graphical User Interface Evolution
54
Web PlatformFor AccessFinalisation
Web PlatformMonitoringDashboard
Web PlatformFor Entry
Administration
Configuration
At a glance View
Multi Instances
Monitoring
Candidate features for 7.0
Unix Embedded
Automation and Scripting support
55
Installation ConfigurationManagement
OperationalMonitoring
Command line
Parameterized
Export Tool
Import Tool
Text File
Command line
Command line
Server based
Output XML File
Exit code
OperationalControl
Command line
Server based
Exit code
Install & Patch
Apply GUI rules
Candidate features for 7.0
Age Monitoring
Company meeting – December 2008_final_v1 – Confidentiality: restricted 56
ExternalOracle
InstanceSupport
Remote Disaster Recovery Support
DatabaseRecoveryEnhanced
Mode
InformationGap
Recovery
For Embedded Model
Partial Recovery Option
Disaster Configuration- Oracle Data Guard- RMAN
New Installation Method
Database Synchronisation
Message Completion
LT Recovery
Duplicate Check
External Oracle Instance
Internal Schema
Potential DR Data Loss
Candidate features for 7.0
Other Functional Evolution
57
FileActRMA Message
QueryService
Audit trail
SOAP support
MQ support
RMA filtering
FTA with RMA
Web Services
Message Search
Message Details
Live and Archive
RMA beyond FIN
Candidate features for 7.0
58
Alliance ConnectVPN box migration until end 2011
59
Alliance Connect Overview
60
ALLIANCECONNECTBRONZE
ALLIANCECONNECTGOLD
ALLIANCECONNECTSILVER
Upgrade ScenariosSTANDARD SCENARIOS
ANY OTHER UPGRADE TYPE. E.g.:
NON-STANDARD SCENARIOS
ALLIANCECONNECTBRONZE
DIAL-UP
ALLIANCECONNECTSILVER
DUAL-ISINGLE-P[SINGLE-I]
ALLIANCECONNECT
GOLDDUAL-P
Upgrade Scenarios Description
61
UPGRADE SCENARIO
DESCRIPTION
Order your Alliance Connect product through an “Upgrade” form where your configuration data is automatically pre-filled in.No need to fill in a “termination” form for your old connectivity set-up.UPGRADE REBATE: USD 1,650.
1. Order your Alliance Connect product through a “new connection” form.
2. Terminate your old connectivity set-up though a “termination” form.UPGRADE REBATE : USD 1,650.
STANDARDSCENARIOS
NON-STANDARDSCENARIOS
E.g. Silver or Gold [USD] One-Time Monthly
Set of 3 VPN boxes 2,425 15
Upgrade Rebate -1,650 -Net Amount 775 15
E.g. Bronze [USD] One-Time Monthly
Set of 2 VPN boxes 1,650 10
Upgrade Rebate -1,650 -Net Amount 0 10
62
Alliance Connect Documentation
MATERIAL BRONZE SILVER GOLD
SWIFT.COM PAGES FACTSHEETS SERVICE DESCRIPTION IMPLEMENTATION GUIDE
QUICK INSTALLATION GUIDE [DHCP]
[NON-DHCP]
ALLIANCE CONNECT UPGRADE GUIDE
NETWORK ACCESS CONTROL GUIDE
CONNECTIVITY PACKS
PRICING (PART C > ALLIANCE CONNECT)
MX based Solutions
64
What is driving the move to ISO 20022?
• New initiatives– Global harmonisation– Giovannini and SEPA in Europe– Market infrastructures– Automation in the ‘funds’ market
• New players– Corporates, fund managers
• New technology– XML, SOA, web services
65
ISO 20022 messages
Payments, Cash and Trade• Payments and Cash
– Payments Initiation (4)– Payments Clearing and Settlement (6)– Payments Exceptions & Investigations (17)– B-to-C Cash Management (3)
• Trade – Trade Services Utility (50)– Invoice Financing Request (3)
Securities, FX and Derivatives• Investment Funds
– Securities Trade (30) and Settlement (16)– Reference Data (3) and Acct Mgmt (5)– Securities Management (7)– Cash Forecast (6)
• Other Securities– Securities Transaction Regulatory Reporting (4)– Proxy Voting (8)– Issuers’ Agents Communication (22)
• Foreign exchange and OTC Derivatives– Non-Deliverable Forwards (7)– Currency Options (4)– Generic (4)
83 messages 116 messages199 completed messages
66
Overall coexistence framework
1. Prepare MX 2 . Introduce MX 3. Implement MX
MTMX MT/MX
Decision to build/use MX
MX live on SWIFT
MT removal
MXMT
Milestones, dates and length of phase to be determined by each MT or MT group, governed by users
Decisions by Standards Committee (STC) and business committees (BPC and SSC)
Busin
ess c
ase
and r
ation
aleMX
deve
lopmen
t
and p
ilotin
gCo
exist
ence
supp
ort +
tools
67
Current timeline and milestones forExceptions & investigations
1. Prepare MX 2 . Introduce MX 3. Implement MX
MTMX MT/MX
Busin
ess c
ase
and r
ation
aleMX
deve
lopmen
t
and p
ilotin
gCo
exist
ence
supp
ort +
tools
MXMT
E&I steering group to finalise adoption/migration plan by
‘corridor’ MT messages are removed (MT
192/292, 195/295, 196/296)
2006 MX messages go live
End 2009 End 2012
End 2010
25 live users 15% of current FIN E&I eligible
traffic migrated
End 2011
30% of current FIN E&I eligible traffic
migrated
Milestone 1
Milestone 2
Milestone 3
68
*
SWIFT for Exceptions & Investigations
DebtorCorporate
FirstAgentFinancial Institution
FinalAgentFinancial Institution
CreditorCorporate
1. RequestToCancelPayment
2. RequestToCancelPayment
3. NotificationOfAssignment 4. DebitAuthorisationRequest
5. NotificationOfAssignment
6. NotificationOfAssignment 7. DebitAuthorisationResponse
8.ResolutionOfInvestigation
9. ResolutionOfInvestigation
• Highly manual enquiries management Multiplier of the overall payments costIncreasing operational, financial and reputational riskImpacting customer satisfaction
• Issues to be resolved at an industry level• Lack of adopted industry standards (MT195/ 196/ 295/ 296/ 192/ 292 are marginally
used as they do not cater for the business needs)• Lack of rules and business practice
• ER 937 in 2004
E&I provides an E2E business & communication protocol
69
Benefit area Industry benefits
Cost reduction• Automation: Up to 60% of enquiries – reduce 35% of staff
costs (*) with re-usability for different payment’s types • Increased productivity• Reduce provider invoicing
Risk management• FATF7/ SR7 – stricter compliance, XML granularity/ flexibility• Faster recovery after outages and disasters• Improved operational efficiency (Basel II - reducing enquiry
backlog)
Improved customer service
• Absorb additional volumes while maintaining service level• Development of on-line services• Enquiries transparency• Overall faster and more accurate resolution of cases
(automation of cases and concentration of liability cases)
Exceptions and Investigations (E&I) : industry business case
(*) for MT103/202 payments related enquiries
70
Adoption status – regional view
109 BICs:
77 Financial institutions
2 Corporate
1 ACH
Legend:
Early adopter
E&I adoption status
• Easy E&I-pilot: 3 European banks participate• Further articulated interest of banks• Systematic approach (traffic-profile of Easy E&I-pilots, address banks
with similar profile)• NordLB – software installed and live, change management-process
ongoing, tests with external correspondents next 2 months, live Q4)• BremenLB: same as NordLB• LBBW: tests: october / november, live november / december)• VTB: live, tests with Citi ongoing with interest from both to go live asap• Workshops with large players in other countries (how to design project)
SWIFTNet E&I Rollout-Activities in Europe
Implementation models
73
Manual Manual message creation, enrichment and workflow management through a messaging application o No case management capabilityo No back-office integration
Semi-automated Stand-alone case management application Off-the-shelf functionality (message creation, allocation, workflow management, audit trail)o No integration with back-office applications
Automated
Integration with business application
Case management application integrated with one or more application (e.g. payments or reconciliation)
Integration through an Enterprise Application
Integration solution (EAI)
EAI accesses different back-office systems
EAI includes case management application or links to existing case management application
Full integration through enterprise backbone
Case management application part of enterprise backbone
Backbone connecting to all kind of back-office systems (payments, email, fax,..)
Note: Remotely hosted solutions are offered as well but are not included in this overview
E&I solution providers supporting the different models
74
Manual
Semi-automated
AutomatedIntegration with business application Integration through an
EAI solutionFull integration
enterprise backbone
SN Messenger
Easy Exceptions and
Investigations
SWIFT Alliance Integrator
Easy Exceptions and Investigations
Easy E&I
Subscription to E&I Case management application Access to e-learning
End-to-end E&I solution
Cost effective
From “off the shelf” to “extended” version Integration with payment application Includes professional services
Very competitive price Self installable, GUI with workflow Runs in user or automated mode Handles FIN and XML standards Integrated with Alliance Access/Entry
Start now, upgrade later
Provided in release 1 by
“Extended” “Off the shelf”
Concept
76
SWIFT Alliance
Access/Entry
Case management application
Payments messages
Inquiry messages(MT, XML)
Payment application
Easy Exceptions and InvestigationsPricing
SWIFT COMPONENTS PRICINGRegistration to SWIFT for E&I service (one timefee per BIC)
2.000 EUR
SWIFTNet Messaging Interface SAA/SAE-> XML module
0 EURElectronic training on Exceptions and Investigations
0 EUR
High level ROI study (to be looked at….) 0 EUR Expertus COMPONENTS“One click install” license feeYearly maintenance fee
30.000 EUR 6.000 EUR
Fully documented installation/ user handbook (*)
Total cost 30.000 EUR (one time) 6.000 EUR (yearly)
Off the shelf
Workers Remittances
79
Market overview
Market:• International migrants 200 million• Financial flows USD 400 billion• Industry revenue USD 15 billion• Annual transactions 1 to 1.5 billion• Average transaction value +/- USD 300
A remittance is a cross-border, person-to-person payment of relatively low value.
80
Issues and options for Bank service delivery
1. Build a proprietary network
2. Build a bilateral service with a correspondent
3. Use open correspondent banking arrangements
Costly
Lacks scale
Poor service
Options:
Issues:1. Open correspondent arrangements do not deliver price and
time transparency for consumers2. Processing is inefficient and costly for banks
81
Workers’ remittances objectives
• Deliver a robust end-customer value proposition– time transparency– price transparency– ease of use
• Bring scalability to bilateral bank services
• Support any type of retail payment product
• Remain commercially and brand neutral
Service framework fit in the person-to-person payments ecosystem
83
Debtor CreditorAgentAgent ParticipantParticipant
Settlement Agent
Bilateral ContractBilateral Service Level Template
Market PracticesService Levels, Product Groups, Charges & FX Practices
Reference DataParticipant and Agent Capabilities and Points of Service
Messaging StandardsInstruction, Reject, Return & Status
Messaging ServicesFileAct Strore & Forward 6.1
84
Market Practice Rulebook
- Participants- Participants’ Agents
- Service levels (instant, urgent, non-urgent)- Two product groups (account & cash disbursement)- Transaction ID specification (sender defined)- OUR (DEBT) charging default- FX guidelines- Reject/returns charging practices
- Definition of sorting, transmission etc.- Transmission timing relative to service level
- Gross bilateral settlement- Serial method recommended, but guidelines for Cover incl.- No restrictions on provider or currency choice
Participation
Products
Charging practice
Clearing
Settlement
85
Ref. data
FileAct S&FISO UNIFI 20022
Architecture
Rules + Guidelines
Settlement
sender beneficiary
Distribution network
sending countryDistribution network
Receiving country
CB CB
MT cover payment
High-level overview
End-to-end service level
86
Competitive pricing: EUR 0.03 to 0.08 txn
Payment instruction, reject, return
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Tier
Payment instruction, reject, return
- Per transaction pricing ranging from EUR 0.03 to 0.08
- Annual recurring fee of EUR 1,000 per participant
- 66% lower than equivalent FIN MT messaging
- More cost effective than proprietary solutions
1 not included in business case
87
Benefits
• Robust end-customer value proposition– time transparency– price transparency– ease of use
• Scalable bilateral bank services• Any type of retail payment
product supported • Commercial and brand neutrality
Bring your services and your brands to your customers, efficiently!
32 service participants, 12 certified live
ABSA ZABanco Africano de Investimentos AOBanco BHD S.A. DOBanco BISA BOBanco Bolivariano S.A. ECBanco Davivienda ( Bancafé ) COBanco de Guayaquil ECBanco del Austro S.A. ECBanco do Brasil BRBanco Nacional de Fomento ECBanco Solidario ECBanque Centrale Populaire-Maroc MAChina Construction Bank CNCitigroup USCitigroup UKCodesarrollo EC
Financiera Cambiamos COFirstRand Bank Limited ZAGiro y Finanzas COHabib Bank PKICBC CNICCREA ITICICI Bank Ltd INIvobank UKLa Caixa ESMacrofinanciera COMillennium BCP PTNedbank ZARusslavbank RUStandard Bank of South Africa ZAStandard Chartered HKWall Street Exchange Centre LLC AE
88
Key take-aways
89
Topic ImpactTraffic is declining, SWIFT compensates through Lean +
Take MT202 COV serious +++
SWIFT is looking for collaborative innovation (SWIFT2015)
+
Get prepared for Exceptions & Investigations ++
Get additional insight into your business with SWIFT Business Intelligence Solutions
++
Key take-aways (2)
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Topic ImpactConnect your Corporate customers via SWIFT +
Alliance v6.3 eases your SWIFT infrastrucutre ++
Get additional revenue with Worker Remittances ++
SWIFT Training +
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