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ISO 20022: Case Studies and
Implementation
Malene McMahon, Senior Business Manager, SWIFT
13 April 2016
Toronto
IPFA
SEPA,EU
BR
DK
CH
US
CPA, CA
IPFA
T2, EU
AU
Zengin,
JP CNAPS2,
CN
IN
Low-
value
High-
value
BOJNet,
JP
CPA, CA Live
Live
Live
NZ
SG
Live
PG
CL
ZA
PL
BN
CIPS, CN
SADC
UK
ISO 20022 Global Adoption – Payment Market Infrastructures
US
EC
PE
CO
FI
ASEAN
BD
MY
Live
Live
Live
TH
VN
KH
PH Live
DTCC, US
JASDEC, JP
[Post-trade]
Galgo, BR
T2S, EU
CSD, LI
EVK, EE
CSD, LT
ASX, AU
CLS
Treasury MI Securities MI
SGX, SG
[Corp Act, Post-trade)
JASDEC & TSE,
JP
[Corp.Act]
Live
CN
Live
Live
NSD, RU
VP Lux
VP Sec
DK
KDPW
CCP, PL
Live
Live
SADC ID
LCH.Clearnet,
UK
Euroclear, FI
Euroclear, ESES
NBB-SSS,
BE
Live
BN
ABMF
CSIF
VN
MY
ISO 20022 Global Adoption – Securities and Treasury Market
Infrastructures
ISO 20022 Global Adoption – Context
200 initiatives
Market Infrastructures Financial Institutions FI Customers/Corporates
4
Europe Asia Pacific
Americas
Middle East
& Africa
> 100 Payments MIs
> 85 Securities MIs
> 20 FX/trade/cards
700 Corporates
10% in 2015
Regulations in Europe 4
ISO 20022 Global Adoption – REMINDER !!
Market Infrastructures Financial Institutions FI Customers/Corporates
5
SWIFT is
not
mandating
migration
SWIFT will
continue
to support
MTs
ISO 20022 Global Adoption – Americas
Market Infrastructures Financial Institutions FI Customers/Corporates
6
Galgo (BR)
- Investment funds
- Automation
Live since 2011
CPA
- All payments
- New services to
customers
Date TBD
DTCC - Securities
transformation
- Corporate actions
Live since 2011
U.S.
- New HVP system
(Fedwire and CHIPS)
Specs in 2017
New services Automation Transformation
AU-NPP
- Real-time payments
- New services to
customers
2017
ISO 20022 Global Adoption – Asia Pacific
Market Infrastructures Financial Institutions FI Customers/Corporates
ASX
- Corporates actions
- New announcement
service
Live since 2014
JASDEC - Settlement and
reconciliation
- Additional plans
for post-trade
Live since 2014
Brunei
- New RTGS System
- Part of ASEAN
integration
Live since 2014
India
- New Generation
RTGS System
Live since 2013
New services Regional integration Internationalization
Nordic CSD communities
- 6 banks, 4 CSDs
- Funds, CA, Account
Management
As of 2016
ISO 20022 Global Adoption – Europe
Market Infrastructures Financial Institutions FI Customers/Corporates
TARGET2
EURO1/STEP1 - HVP systems
- Close to 1,000
member banks
Under Discussion
T2S - Settlement and
reconciliation
- CSDs and NCBs
with T2S
As of 2015
Payment
systems in CH
- All payment systems
and instruments
As of 2016
Regional integration Regulation Real-time payments
Other
- Jordan
- South Africa
ISO 20022 Global Adoption – Middle East & Africa
Market Infrastructures Financial Institutions FI Customers/Corporates
SARB
- All payment systems
- New services to
customers
Under discussion
SADC
- Low-value
payments
- 13 African countries
2015
New services Regional integration Renewal of legacy systems
10
Adoption Approaches, Challenges and
Harmonization
Full implementation approach
CSD with no ‘ISO’ implementation
‘Like-for-like’ approach
CSD with ISO 15022 already implemented
ISO 20022 challenges
13
Versions
Consistent information
Variations
Towards a harmonized use of ISO 20022
ISO 20022 Harmonization Framework – Who and How
ISO 20022 Harmonization Framework – Principles
ISO 20022 Harmonization Framework
Global market practice
Actors Messages
Message
flows/
choreography
Usage
guidelines
per business
segment
Parties involved
in the end-to-end
transaction
Messages
used
Successful
execution
and exception
handling
Documented ‘subset’
of each message,
‘restrictions’ to simplify
scope
Describes, for a specific business segment, a common
core basis, comprising:
ISO 20022 Harmonization Framework
Version and release management
3 2
Adopt latest message version
for any new project
1 Synchronize
standards
upgrades with
industry
MT release cycle
Remain up-to-date with ISO 20022
standards release
ISO 20022 Harmonization Framework
Publication and consistency
MyStandards A common platform
for ISO 20022
Harmonization
ISO 20022 Harmonization Framework – Stakeholders Involved
ISO 20022 Harmonization Framework – Stakeholders Involved
Financial Institutions and their challenges
Market Infrastructures Financial Institutions FI customers/corporates
Financial Institutions and their challenges
Participation in multiple market infrastructures
Impact?
Different timelines
Different scopes
Different sets of messages
Different market practices
Different adoption
strategies/approaches
Different roll-out
approaches Securities
2017 2016 2015 Step
2
EURO1/
STEP1
Baltic CSDs
ACH CENIT (CO)
Payments
Financial Institution and their challenges
2017 2016 2015 Step
2
EURO1/
STEP1
Baltic CSDs
ACH CENIT (CO)
How to
prepare, plan
& budget for
MI imple-
mentations
How to
internalise
ISO 20022
in your
infrastructure
How to offer
flexible
services to your
customers
Financial institutions and their challenges
Starting point for an implementation roadmap
What are the gaps to be addressed and what are the constraints
Work out implementation plans (iterative process)
Understand impact on business applications, shared services, infrastructure and integration
Get visibility on current and future ISO 20022 initiatives in other geographies & business areas
Address current and future requirements by leveraging technology
Translation at the edge, core system revamp, silo based …
Engage with all stakeholders across business lines and departments to ensure a holistic view
1
2
3
4
5
6
7
Design to-be model
Make an overview of the initiatives
Identify and involve all stakeholders
Review As-is
Gap analysis
Consider implementa-tion options
Roadmap for implementation
Building an ISO 20022 implementation roadmap
How can SWIFT help?
ISO 20022
Impact
Assessment
Solution
Design
Strategic
Interface
choice
MyStandards
ISO 20022 Impact Assessment
Building your ISO 20022 implementation roadmap
Recommended actions &
Implementation Roadmap
Analyse
‘As-Is’ Operating
Model
Establish
ISO 20022
Landscape
Benchmark against
discussed ‘Ideal
Solution’
• External ISO 20022
market initiatives
landscape
• Inventory
ISO 20022 internal
landscape
• Customized
ISO 20022
impact overview
>>
Your landscape
• Prepare and
present findings,
conclusions
and high level
recommendations
• Identify gaps towards
ideal solution
• Identify secondary
effects
• Establish
recommended
target operating model
• Evaluate and prioritize
• Define recommended
implementation
roadmap
• Assess ‘as-is’
situation
considering:
o Products /
functions
o (internal)
customers
o network and
interface gaps
o flows
o counterparties
Workshops with key people
Analysis of current documentation
Interviews with stakeholders
H o w
Standardized Best Practices and Disciplined Approach
ISO 20022 Solution Design
Designing the best solution for your institution
Business processes &
activities use..
Data that must be
collected, organized,
safeguarded,and distributed using..
Applications such as custom or
off-the-shelf software tools that run on…
Technology such as computer systems and
networks
Governance, process flows
Build on ISO 20022 business model
Sizing of systems and
connections,
Recovery and resiliency
Middleware, manual processing,
connectors and converters
Design your strategic ISO 20022 infrastructure by
applying an enterprise architecture approach, putting
four views on an organisation together
Strategic interface choice
Choosing the right tool to support your long term solution for all relevant
business domains
Operations
• Single view
• Monitoring
• Manual processing
• Connectors and converters
Business
Technology
• Sizing of systems and connections,
• Recovery and resiliency
• Flexible business processing
• Extensive user interface
• Supports cut off times and prioritization management
MyStandards
For Market Infrastructures, for Financial Institutions, and End-Customers
MyStandards
& Readiness
Portal
MI
MI You MyStandards
& Readiness
Portal
+ Compare and analyse versions
+ Compare and analyse market practice of multiple market infrastructures
• MI multi-format documentation
• MI integration components (XSDs, deployment packs)
• MI CUG set-up and provisioning
• MI self-service internet testing
+ Create your own internal and customer guidelines
+ Offer your customers the same easy on-boarding experience
www.swift.com
SWIFT Business Forum Canada - Real-time retail payments: Building for the future - 13 April 2016