166851 General+Partner+Session +Sibos+2019+London v0 · 6hswhpehu 7kh frppxqlw\ kdv djuhhg wr dgrsw...

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SWIFT Partner ProgrammeDriving the Digital Transformation of cross-border payments

SWIFT Partner Management team

22 September 2019

23 - 26 SeptemberSibos 2019 London 4

Unprecedented changes

New opportunitiesStronger collaboration

More challenges

ISO 20022 ProgrammeSWIFT API’s: Enabling Innovation SWIFTgpi roadmap and Universal Confirmations adoption An update on Instant Payments

Networking drink @ Centred Lounge receptionFrom 6pm to 7pm


ISO 20022 Programme

Saqib Sheikh, Stephen Lindsay

23 - 26 September 7

What is ISO 20022?A recipe for making financial messaging standards

A methodology to develop

common financial messaging

standards, based on a

business dictionary

An open, neutral and global

standard, freely

implementable by anyone

and supported by an open

governance process

Syntax independent

business model, commonly

implemented in XML and may

be represented in any other

future format including JSON

for APIs

Business model

Message model

Syntax

Before 2010 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Live year

CIPS Phase 1 CNY

BOJ-NET JPY

SIC CHF

23 - 26 September 8

80% of global high value payments volumes will adopt ISO 20022 by 2025

14 planned

10 live

7 under discussion

SAMOS ZAR

BISS BYR

BESP RUB

LVTS CADCHIPS USD

Fedwire USD CHAPS GBP

BN-RTGS BND

NG-RTGS INR

CNAPS CNY

All reserve currencies are either live or have declared a live date: USD, EUR, JPY, GBP, CNY, CHF

CHATS HKD

RENTAS ZAR

MEPS+ SGD

EURO1 EUR

TARGET2 EUR

Compliance

FATF recommendation #16 and local regulations typically require

intermediary FI’s to transmit all originator and beneficiary details

received from a counterparty

23 - 26 September 9

ISO 20022 enables

Rich rails

ISO 20022Harmonisation with

payment systems

Domestic payment systems of all major currencies are either live or in progress of going live with ISO

20022

Rich customer experience

Send rich remittance information end to end from payment initiation, to cross-border and domestic customer credit transfers, to customer statements

Efficiency

Rich, structured, mandatory data will significantly improve efficiency of screening, reconciliation and payment processing

23 - 26 September 10

New capabilities enabled by ISO 20022

Rich rails

ISO 20022Rich data End to end

Structured & meaningful

Right the first time

In 2018, the global

financial community

agreed to migrate

from the MT (FIN)

payment message

standard

to ISO 20022

The move to ISO

20022 will begin in

November 2021 and

coexistence with MT

(FIN) will run until

November 2025

All players need to

start preparing for the

migration now to be

ready for November

2021

All FI to FI

payments and cash

reporting messages

will move to ISO

20022


The community has agreed to adopt ISO 20022 in FI to FI payments and reporting


The community has agreed to adopt ISO 20022 in FI to FI payments and reporting

Usage guidelines are

being published by the

Cross-Border Payments and

Reporting Plus (CBPR+)

working group, an expert

working group

By logging into

MyStandards, downloading

the guidelines, and using the

Readiness Portal we can

test and ensure we have

implemented

ISO 20022 correctly

SWIFT will provide a

CBPR+ Embedded

Translator to enable your

financial applications for

the new standard and

practice


CBPR+ Usage Guidelines are available on MyStandardsUpdated August 2019

MT ISO 20022 equivalent AvailabilityMT 103 / 102 pacs.008.001.0x Published on MyStandards, July 2019MT 200 / 201 / 202 / 202 COV / 203 / 205 pacs.009.001.0xMT 103 RETURN / MT 202 or 202 COV RETURN

pacs.004.001.0x

Business ACK / NACK pacs.002.001.0x

Business Application Header (BAH) head.001.001.0x Under review by CBPR+ group

Planned for availability December 2019MT 210 camt.057.001.0xMT 900 / 910 camt.054.001.0xMT 941 / 942 camt.052.001.0xMT 940 / 950 camt.053.001.0xMT n92 camt.056.001.0xMT n96 camt.029.001.0x

MT 204 pacs.010.001.0x Planned for availability by Q2 2020MT n95 camt.026.001.0x, camt.087.001.0x,

others tbc

MT 103 REVERSE pacs.003.001.0x

Out of scope:

MT n98 / n99• Not in scope of CBPR+, customers should move from using proprietary & free form

messages to structured ISO 20022 equivalent messages• Customers can agree bilaterally and continue to exchange these messages


ISO 20022 CBPR+ self-attestation and certification

Applications and connectivity

products must comply with

the CBPR+ guidelines

Once CBPR+ compliance

has been confirmed via the

Readiness Portal self-

attestation can be

completed and product

names will be published on

SWIFT.com

Existing SWIFT labels will

be updated to include

CBPR+ compliance

requirements - once

certification is achieved via

full VTB testing vendors can

use the SWIFT brand and

network to promote products

and services


ISO 20022 CBPR+ milestones for partners

Key Payments specifications publishedon MyStandards

Cash Reporting specifications published(Dec 19)

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21

Readiness Portal liveon MyStandards

Banks begin pilot service(Sep 20)

Certification opens -vendor readiness testing begins using VTB to certify(Jun 20)

Start full community pilot(Sep 21)

Self-attestation opens (Nov 19)

Updated label requirements released(Apr 20)

Vendor go-live -deadline for 2020-2021 self-attestation and certification(Nov 20)

Note: A plan for Phase 2 to publish CBPR+ approved usage guidelines (UGs) for MT 204, n95, 103 REVERSE will be defined in Q1 2020

Messaging & Translation services live(Nov 21)


Where can I find more information?

1 Join us for the ISO 20022 Programme – Vendor BriefingThursday at 10:00 in SWIFT Room 2

Register for the SWIFT Partner Programme

Access ISO 20022 CBPR+ documentation and readiness portal on MyStandards

Contact us at [email protected]

2

3

SWIFT API’s Enabling Innovation

Max Ratchkauskas


APIs are powering the Platform Revolution across industries…

Examples of API enabled platforms and ecosystems

across industries (non exhaustive)

PROVIDERS

CONSUMERS


Open Banking is a global phenomenonIllustrative, non exhaustive examples

European UnionPSD2 requires banks to share banking data and payment initiation, but technology neutral

United KingdomCMA requires 9 identified banks to share banking data & payment initiation through open API standards

CanadaRegulators have begun discussions and exploration. Formal consultation on open banking kicked off in 2018

USData sharing regime under discussion in various forums; API adoption ramping up, with platform players as enablers

MexicoPassed Fintech law in 2018, laying the groundwork for an Open Banking Standard

AustraliaThe first phase of the Open Banking reform will be introduced by July 2019.

Hong KongHKMA issued a consultation on Open API framework, which sets out the approach for the banking industry

BrazilRegulators have begun discussions and exploration

India“India Stack” embraces APIs for identification services (Aadhar), and payment services (Unified payments Interface)

SingaporeMAS issued an Open API playbook

Japanthe Japanese Banking Act requires banks to announce support on Open API banking. The implementation timeline is middle of 2020.

New ZealandRegulators have begun discussions and exploration

South KoreaRegulators have begun discussions and exploration

Mature Emerging Exploratory


SWIFT API Pillars


Developing API Products

Collaborative process of converting business process into technical specifications to design APIs, and finalize

as API contracts.

Enabling seamless connectivity to consume APIs, bringing content

providers and consumers together

Publishing API contracts on the developer portal for the

Community to self serve what is available, and can

test using a sandbox

Modelling ConsumptionPublishing

SWIFT Content

Community Content

SWIFT Collaborative modeling tools and methodologies, powered by SwaggerHub

SWIFT API Gateway, with SWIFT content APIs and Community

content APIs, with consumption options

SWIFT Developer Portal with Sandboxes and SWIFT API

Catalogue


Value Added Services


Value Added Services

To notifying customers and internal systems of various business events, leveraging a variety of delivery methods such as Email, SMS, WebHooks etc.

A service that will provide security on top of API communications, blocking black or non-white listed entities.

Trend insights and reports pertaining to API traffic including industry benchmarks, versioning report outlining which API versions are used and which are obsolete etc.

Notification Service

API RMA Services

Business Intelligence Reports


Community Use Cases


Payments

Use Case Definition

Business Process

Swagger Hub Collaboration

Design

Sandbox / API Gateway

Developer Portal

Design and Develop Test and Deploy

Conversion and Publication of API contract

Pre-Validation

PayLater

On-Demand Cash Positions

Pilot

Pre-Production Testing

Production

Production Rollout


Securities

Status Reporting

Position/Holdings

Corporate Actions

NAV

Complex Assets

Sandbox / API Gateway

Developer Portal

Test and Deploy Pilot

Pre-Production Testing

Production

Production Rollout

Use Case Definition

Business Process

Swagger Hub Collaboration

Design

Design and Develop

Conversion and Publication of API contract

SWIFT gpi roadmap and Universal confirmations adoption

Gaurav Sabharwal


The cross-border payments landscape is being reshaped by changing customer expectations, technology, competition and regulation

Customers’ expectations are changing rapidly due to new digital norms mandating immediate access to accurate data

New payment providers are challenging incumbentsusing technology to disrupt traditional models, putting pressure on costs

Regulation is increasingly protecting end-customers and focusing on market reform, fostering more competition and increased requirements related to liquidity & risk management

Sibos 2019 London


SWIFT gpi has been tackling the challenges in cross-border payments since its inception

Sibos 2019 London

RocheGeneralElectric Viacom Zoetis

Transparency Tracking Remittance information

Speed


SWIFT gpi traffic has doubled since last Sibos

Sibos 2019 London

cross-border MT103 sent as gpi

30%

60+%

live gpicountry corridors

700

1,400+

payments value sent as gpi every day

$100 bn

$300 bn


Making gpi FASTER – SWIFT gpi is already very fast

8%

4%

5%

6%

8%

5%

10%

11%

4%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Within 5 minutes

Between 5 and 15 minutes

Between 15 and 30 minutes

Between 30 minutes and 1 hour

Between 1 and 2 hours





More than 1 day

96% within 24h

40% within 5 min

50% within 30 min

Build on the successful pilot with the Australian real-time payment system (NPP), we have launched

gpi for instant international payments

Sibos 2019 London


Making SWIFT gpi RICHER – building on the success of the core gpi service

25bank portals have gpitracking built-in

50participants in gpifor Corporates

Further reduce frictions Portfolio evolution roadmap

1.UBIQUITOUS2.SIMPLE3.FAST 4.COST-EFFICIENT

“We are making cross-border payments as seamless as domestic payments”

New live gpi services

gpi for corporates launched

gpi service evolution

66+% SWIFT gpi cover payments

12,000+gpi stop & recall requests since Jan’19


SWIFT gpi roadmap has innovative services aimed at reducing friction and transforming cross-border payment market

Instant internationalpayment(live)

Pay and trace(live)

Financial institution transfer

Pre-validation Case resolution

Inbound tracking

Request to pay

gpi link

(Q1 2020) (Q2 2020)

(v1-Q4 2019v2 – Q2 2020)

(TBD-exploration ongoing)

(Q3 2020)(TBD- PoC ongoing)


Taking SWIFT gpi BROADER – gpi to become the new norm on SWIFT

Basic Tracker

2018 2019 2020

Extended tracking on SWIFT

Universal Confirmations

Basic Tracker $

UETR on all SWIFT

payments

All SWIFT members will benefit from

end-to-end tracking

All SWIFT Financial Institutions to

confirm MT 103


Why Universal confirmations?

Payment flow

Basis for future payment services

Enhance customer experience

Confirmation flow

Payment flowPayment flow

Reduce payment enquiries

Develop Value added services on top of tracked and confirmed payments

New SWIFT services based on payment confirmations

proactively status of payment transparency

Reduce inbound enquiries on payment whereabouts

Offer Transparency and Payment finality

Prevent frustrating disputes

Support Integrated business processes relying on payment confirmations


Business application and connectivity partners are well placed to support the different Universal Confirmations channels

Options to provide confirmationsManual

1 Basic tracker GUI (*) Pilot in H2 2019

(*) gpi members use the full SWIFT gpi Tracker GUI for manual confirmations

Automatedv

2 MT 199 Confirm for All SR 2019

3 API Confirm for All SR 2019

4 ISO 20022 Q2 2020

5 Batch confirmations Pilot in Q2 2020

Payment application

Certified Interfaces

Service Bureaux


Application providers can benefit by adopting SWIFT gpi services and enabling your customers

Reuse existing capabilities

Offer innovative and future proof solution

Enhance customer satisfaction and Loyalty


SWIFT will support you during every phase of your gpi deployment

Development Pilot & Testing Commercialization Innovation


Business application providers are critical to support SWIFT gpi

Business application

SWIFT gpi

15 application vendors confirmed to have a gpi-ready application

gpi Label Program


Universal confirmations supporting application providers

Support in all business application versions currently active

Support Universal confirmation in 2019/2020 Standards MT Release support

Support at least one of the automated channels (MT 199s/APIs)

Validate the application readiness through proper testing (self/with SWIFT)

WHAT ABOUT YOU?

Self-Attestation Program


SWIFT invites you to join us and take the next steps to transform cross-border payment space

Basic Service: Universal confirmations Standard release 2020

(Mandatory confirmations for all MT 103s)

Standard gpi services(gpi Customer Credit Transfer, Cover and Stop& Recall)

Additional gpi services (opt –in)(Instant payments, gpi for corporates, Friction reduction )


Capture me to get the presentation and be part of relevant communications

https://www.swift.com/ufap


Join below sessions to learn more on SWIFT gpi

Title Monday Tuesday Wednesday Thursday

Morning

10:00 – 10:45CON: SWIFT gpi – Your guide to the new era of global payments

09:15 – 10:45CON: SWIFT gpi revealing the roadmap

08:45 – 09:15THEAT: SWIFT gpi payments in the capital markets

10:00 – 10:45CON: SWIFT gpi -SWIFT gpi - Creating value for corporates

08:45 – 09:15THEAT: SWIFT gpi cross-border payments collection – a dream come true for every global corporate09:15 – 09:45KNOW: Simplifying your SWIFT gpi onboarding journey10:00 – 10:45CON: Delivering a customer-first payments experience

Lunch-time

13:00 – 13:45CON: What will the world look like when all payments are confirmed? Get ready for 202013:00 – 13:30: THEAT: gpi Observer Analytics solution: a must-have for your organisation

13:15 – 13: 45:THEAT: SWIFT gpi pre-validation: Letting payments fly

12:15 – 12:45THEAT: SWIFT gpi meets ISO 20022: Reducing friction further12:15 - 13:00MAIN: Ecosystems are blooming – What does it mean for payments?

Afternoon

13:45 – 14:15: KNOW: Unparalleled actionable insights to optimiseyour gpi payments with gpi Observer Analytics14:00- 14:30THEAT: Basic Tracker: Unlocking payment confirmations for all 14:45 – 15:15KNOW: Top tips for a smooth gpi onboarding 15:15 – 16:00MAIN: Pulp friction – where are we on the roads towards frictionless payments?16:15 – 16:45THEAT: SWIFT gpi instant payments making instant cross-border payments a reality

14:00 – 14:30THEAT: SWIFT gpi case resolution: exceptions and investigations made simple

14:45 – 15:15KNOW: Integrating gpi tracking into your customerportal

15:15 – 16:00MAIN: Banks and instant payments – where is the sweet spot?

16:30 – 17:00KNOW: Getting ready for the mandatory payment credit confirmations

13:15 – 13:45THEAT: SWIFT gpi inbound tracking: Serving supplier needs

14:00 – 14:45 CON: SWIFT gpi – looking into the future

15:45 – 16:15THEAT: SWIFT gpi link: Linking SWIFT gpi with trade platforms – the results

16:30 – 17:00KNOW: SWIFT gpi pay and trace: Multi-bank tracking embedded in corporate treasury dashboards


Pass by the SWIFT stand for a demo on the Basic Tracker

23 - 26 SeptemberSibos 2019 London 45www.swift.com/confirm

Update on Instant Payments

Elie Lasker


Instant payments evolution (Sep 2018)Live in many markets, and more being planned


Instant payments evolution (Sep 2019)Live in many markets, and more being planned


Instant Payments: current SWIFT Initiatives

Australia Europe

TIPS RT1AU-NPP

Country B

Country A

TIPS4a. direct connection to TIPS

4b. via a CSM (instructing party model)

RT15a. direct connection to RT-1

5b. via a CSM (instructing party model)

CSM1

CSM2

50

Instant Payments in the Euro-zoneWhilst various methods to execute Pan-European payments exist …

2. X-border payment –EACHA framework

3. X-border payment –direct connection to other CSMs

1. Domestic payment

5. X-border payment through RT-1Note: ‘x-border’ means ‘x-border intra-eurozone’ in the context of this slide

4. X-border payments through TIPS

23 - 26 SeptemberSibos 2019 London

Direct Access

Access via instructing party

Country B

Country A

TIPS

RT1

CSM1

CSM2

51

Instant Payments in the Euro-zone …Direct Access and Instructing Party models are currently pre-vailing

23 - 26 SeptemberSibos 2019 London

Direct Access

Access via instructing party


Proposed solution for instant paymentsOverview of key components

Reporting files

User to application interactions

Payments and queries Alliance GatewayInstant

Participants

SWIFTNet Instant

Clearing and Settlement Platform

Clearing and Settlement Mechanism(s)

SWIFTNet FileAct

SWIFTNet WebAccess

CSM

Existing SWIFT Interface* and

gateway

AllianceMessaging

HubInstant

Participant

Acquisition channels

Screening/ Fraud det

GeneralLedger

…

Reporting files

User to application interactions

€

Payments and queries

NEW

EXISTING

Proprietary network (TCH RTP, HKICL FPS)

3rd partyInstant

Payment Application

or

€

SAA

3rd partyFIN

interface

SAG / SNL

Alliance GatewayInstant

Sibos 2019 London

ESMIG

READY

Cross-borderinstant paymentswith SWIFT gpi

Use case 1 – Real-time cross-border payment, via gpi between 2 banks

Use case 2 – Real-time cross-border payment, via gpi into domestic instant payment system

Use case 3 – Real-time end-to-end payment, from one domestic instant payment system to another via gpi

SWIFT gpi tracker


Documentation

Implementation support

Vendor testbed for Instant Payments

Need help or more information ? [email protected]

Supporting our partners

NEW


Moving ahead to 2020

Questions

Sibos 2019 London 23 - 26 September 56


Join us for a drink!

@Centred Lounge reception

From 6pm to 7pm

166851 General+Partner+Session +Sibos+2019+London v0 · 6hswhpehu 7kh frppxqlw\ kdv djuhhg wr dgrsw...

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