SWIFT Business Forum

London 2013

Special Interest Sessions

Applying Business Intelligence to

minimise risk and maximise profitability

Paulo Dacosta, Bart Claeys, SWIFT

Why Business Intelligence?

Presentation title – dd month yyyy – Confidentiality: xxx 2

Increased Automation

Market

Volatility

Regulations

Competition

Quality

Support the

decision-

making

process

More data

Accuracy

Availability

3

SWIFT can help you source the transactional data

and analytics that you need

Banks

IMI's

Corporates

Insurance Companies

Payments MI's

Government Institutions

Trustees

Broker-Dealers

Payment Systems

Clearing & Settlement Systems

Depositories

Stock Exchanges Securities MI’s

SWIFT in figures (Nov. 2012)

10,118 customers

210 countries

X average daily payments

18 millions daily messages

More than 62 HVPS

22 LVP MI’s

SWIFT as a provider of Business Intelligence?

What?

• History

– Providing traffic volumes for Operational purposes

only

Presentation title – dd month yyyy – Confidentiality: xxx 4

Me

- Capacity planning

- Bandwith sizing

- Operational efficiency

- Cost allocation

SWIFT as a provider of Business Intelligence

What?

• Today

– Providing intelligence for Business development

purposes

Presentation title – dd month yyyy – Confidentiality: xxx 5

Me

- Business strategy

- Network Management

- Performance Monitoring

- Compliance

- Regulations

Me vs. totals

Industry

Trends &

Insights

More

Granularity

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The need for insights around Industry trends

“Example: A shift towards the Renminbi…”

Source: The Economist, 10th September, 2011

China is on a formidable growth path …. Setting the scene

7

RMB Tracker – What is it?

SWIFT’s relevance in providing industry insights

Monthly reporting and

statistics on Renminbi

(RMB) progress

towards becoming an

international currency.

8

RMB

in

2012

+ 119% in payments

value

+ 64% in payments

volume + 12 % Countries with

in/out payments (90)

Evolution of various indicators between January and

December 2012

+ 27% Financial

Institutions (1096)

+ 6 positions as the world’s

payments currency (most notably passing NZD and

already in 2013 RUB)

9

RMB payments value continue to grow substantially to

a all time high in March 2013

RMB as world payments currency is positioned #13

with an activity share of 0.74%

CNY gained

1 position

compared to

Feb-13

March 2013

March RMB tracker is focusing on France:

1st Euro country as RMB offshore

RMB payments – What about United Kingdom? (Exclusive figures)

#2 country in value after HK

• YoY growth in Value: +165%

• +14.5% vs. February 2013

• Weight in RMB (excluding HK-CN): 27%

Payments value evolution Payments volume evolution

#4 country in volume after HK, TW &

CN

• YoY growth in Volume: +138%

• +28.9% vs. February 2013

• Weight in RMB (excluding HK-CN): 12%

14

SWIFT Unique Insights on RMB internationalisation

BI Products and

Customised

RMB Analyses

Quarterly in-depth analyses into the SWIFT proprietary monthly RMB

transactions for a comprehensive view of the trends:

• It excludes the traffic of Central Banks – a key differentiator as this can’t be

achieved in Value Analyser – to show true RMB payments movements

between financial institutions serving their customers.

• This unique dataset together with a customised RMB analysis can be used to

calculate your firm’s activity share or ranking in the currency.

• It includes all RMB transactions over SWIFT for the last 5 quarters in volume

and value by market (not specific to one institution), in 13 tables and 19

charts.

Monthly reporting and statistics on renminbi (RMB) progress towards becoming

an international currency.

The RMB Market Insight report, providing market data, can be extended to

provide you with business insights on your own RMB activity: flows, evolution

and growth, your activity share or position in some corridors and peer

comparison.

Thought

Leadership

Learn how SWIFT can support and engage with the Industry on several aspects

relative to the RMB internationalisation through white papers, conferences,

articles, and much more.

Monthly RMB

Tracker

RMB

Market Insights

Presentation title – dd month yyyy – Confidentiality: xxx 15

The need for more granular institutional insights

“Example: A shift towards intra-day liquidity…”

New liquidity regulatory frameworks includes

measures to monitor intra-day’s exposures

16

Source: Swedish National Bank

Change in value of banks intraday liquidity balance

Firms experiencing issues

to be compliant with FSA rules

BASLE III / BCBS intra-day risk measures

confirmed - implemention by Jan 2015

Information flows

Liquidity risk

analytics

Branches Retail bank /

divisions

Correspondent banks

Settlement systems

Institutions are experiencing liquidity data

issues at two levels

1. Get real-time transactional data to

build a liquidity dash board

Monitor and controlling intra-day

on a real-time basis

Consolidate positions at group level

across currencies

2. Build liquidity analytics

Build historical information to support

intraday liquidity modelling

Build intra-day analytics to reduce

credit line usage & optimise liquidity

across entities

Demonstrate compliance & reduce

liquidity buffer

Market data

Transaction

data

warehouse

Calculation

engine

Reports Risk

Dashboard

Customers

Liquidity Dash Board

The set of BCBS intra-day monitoring tools Exhaustive and on different levels

Applicability Tools

All reporting banks 1. Daily maximum intraday liquidity usage

2. Available intraday liquidity at the start of

the business day

3. Total payments

4. Time-specific obligations

Bank offering Correspondent

Banking services

5. Value of payments made on behalf of

correspondent banking customers

6. Intraday credit lines extended to

customers

Direct participants 7. Intraday throughput

18

1-jan-2015

Intra-day liquidity reporting

19 BI for LM

Bank A Bank B

Bank

C

Intra-day

movements

on accounts

already

available

through

existing

SWIFT traffic

What SWIFT can offer

* Balance of MT900 and MT910 received by group X from group Y

A payment sent

results in a

MT900 in return

to notify funds

are moved from

the account

The holder of the

account to which

the money is

transferred is

notified with a

MT910

-

(267)

- - -

(284)

-

(14)

(200) (199)

(46) (6)

(340)

-

(0) (0)

-

(0)

- -

(0) (0)

- - - 0 - 0 - 0 2

96 41

228

72 56 44 3 0 - - - - - - 5

(400)

(300)

(200)

(100)

-

100

200

300

00 02 04 06 08 10 12 14 16 18 20 22

Mill

ion

s

MT900 MT910

Presentation title – dd month yyyy – Confidentiality: xxx 20

Q&A