banking-communication-swift

Banking communicationPWC: Treasury hot topics conference

Elie Lasker

Head of Corporate market – SWIFT Thursday: 24 Feb 2011

2

Agenda

• Corporates on SWIFT – status update• Bank certification programme • Additional services

PWC - 24 February 2011

Breakdown by region and annual revenues

unknown <500K 500K-1B 1-10B >10B

020406080

100120140

A/P

AME

EMEA

Annual Revenues (in EUR)

500M-1B<500M

# corporates

Emergence of mid’ market adoption in EMEA

PWC - 24 February 2011 3

Total: 726

ERP Connectivity

Typical implementation

Paymentfactory/

middleware

FIN (individual messages)Payments (MT101), statements (MT940/2) and FX confirmations (MT3xx)

FileAct (File transfer)Transport any format; payments files, iDOC, ISO 20022, ACHs, BAI formats, …

SWIFTNet

ERP(s)ERP(s)

Treasury Workstation


Distribution of connectivity per corporate size

> 10B EUR1-10B EUR500M-1B EUR

< 500M EUR0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

LiteService ProviderOwn connectivity

5

Annual turnover


6

Agenda



Bank readiness certification programme: background

Reason

Early 2010 bank and corporate survey results

Goal

1. Increase banks' (operational and commercial) readiness status

2. Increase visibility of banks' readiness status towards corporates

Scope

3. Operational:• correct offer of essential message standards• availability of documentation• efficient support during roll-out

4. Commercial:• availability of collateral• qualified sales force

7PWC - 24 February 2011

Bank readiness website


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Agenda



AccordConfirmation Matching

Broker / DealerCopies of

confirmations

Real-time interactive

Reporting and Exception handling

Deal

2

3

4

1

Treasury deals confirmations and SWIFT AccordCentral Matching Service

MT 3xx

MT 3xx

Corporate

FIN


FIN MT7xx

SWIFT flows FIN MT798

SWIFT flows FileAct

MT798s Any format

SWIFT flows FIN MT7xx

Buyer’s bank(s)

Seller

Seller’sbank(s)

Buyer

1 Buyer sends Application for a Letter of Credit to its bank either via FIN (MT798) or via FileAct (eg, other format)

2 Buyer’s bank extracts the appropriate data from the incoming Application flows (eg, MT798), putting them into an Issue of Letter of Credit and sends them to the seller’s bank over FIN (eg, MT700)

3 Seller’s bank forwards the MT700 to the Seller as an Advice of Letter of Credit using FIN (MT798) or FileAct (eg, other format)

1 2 3

Trade for Corporates


MT798s Any format

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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


Electronic Bank Account Management (EBAM)Solution objectives

Fax

Paper

Today Tomorrow

• Faster/cheaper• Standardised

• Dematerialised• Automated/STP

XML messagesSupporting documents

Personal Digital Signature

• Slow

• Expensive

• Low integration

• Low satisfaction


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The EBAM Central Utility - being investigated

Key features and benefitsCentral Utility validates XML instructions, incl. bank and country specific implementations

Banks offer a single “source of truth” for bank/country requirements, to vendors and customers

Corporates offer an "administrators database", with the legal representatives of an organisation

A GUI allows to manually initiate EBAM transactions

Access through SWIFTNet and/or internet

Registration and access control is 3SKey-based

EBAM central utility

app-to-appmessaging

BanksCorporates

browsing

Messaging and validation moduleGUI

Bank and countryrequirements database

Administrator database

SWIFTNet

Internet



BPO: new inter-bank instrument in support of Open Account services

Physical presentation of compliant documents

Electronic presentation of compliant data

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16

Q&A

?PWC - 24 February 2011

banking-communication-swift

Economy & Finance

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