Business and Technology Solutions - Tom Alaerts
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Transcript of Business and Technology Solutions - Tom Alaerts
Business & Technology Solutions
Tom Alaerts, Head of Business Solutions, APAC
Melody Chua, Corporate Solutions Manager, APAC
7 April - Manila
Agenda
• Your corporate onboarding made easy
• Effective payments through correct reference
data
Corporate Onboardingmade easy
Why are corporates connecting to SWIFT?
Drivers for Corporate Banking Connectivity
• Aggregation of accounts worldwide
• Intra-day / end of day balance
• Cash forecasting for borrowing and investment activities
• Payment factories (A/P consolidation)
• Treasury centralization
• Consolidation of Bank relationships
• ERP / TMS consolidation
• Secure and resilient connectivity to banks
• ISO 20022 standards
Centralization and consolidation
Multibank cash reporting
Compliance and risk management
• Straight-through-processing
Automation
Evolution of Corporate groups on SWIFT
52119
232
407
594
819
962
1135
1380
1539
0
200
400
600
800
1000
1200
1400
1600
1800
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YoY Corporates Adoption
Why are banks getting ready to offer SWIFT for corporate
connectivity?
6
Perceived as
Innovator
with new
efficient channel
for multi-bank
corporates
New opportunities of business
GROWTH AND RETENTION
“SWIFT connectivity has grown in popularity amongst corporates worldwide, and since
CMB introduced corporate connectivity through SWIFT in 2008, China is no exception.
There are two groups of customers that we find are most attracted to SWIFT: Chinese
companies with an international growth trajectory, and foreign multinational corporations
investing in China. By implementing this, these companies enjoy a consistent experience
when communicating with their banks worldwide.”
7
Wang WeiXing, Product Manager &
Zhou MuYang, Product Manager, Cash Management,
China Merchants Bank
Most commonly used messages by Corporates
8
FIN
MT940 Customer Statement (3 million statements sent by AP banks in 2014)
MT942 Interim Transaction Report (4 million reports sent by AP banks in 2014)
MT101 Request for Transfer
MT300 FX Confirmation
MT320 Fixed Loan/Deposit Confirmation
MT910 Confirmation of Credit
MT900 Confirmation of Debit
FileAct 0.5 million files transferred in 2014 between AP banks and global corporates
MT101, MX pain Payment instruction
MX camt, MT940 Reporting
The Challenges of onboarding your corporates
Many challenges towards efficient corporate
onboarding:
- Can you support corporate-related MT and ISO 20022
standards? (MT940,941, pain.001…)
- How efficiently can you create and share your
specifications?
- How efficiently can your corporates implement the
SWIFT messaging and how much
support does it take?
- How rich is your trade services offering?
- New MT798 functionality
- Do you need integration support?
- Do you need project
management support?
- How well am I doing versus other banks?
Your Bank
Your Corporate
Your Corporate
Your Corporate
Step 1
Your Bank Readiness certification
Melody Chua, Corporate Solutions Manager, APAC
Is your bank ready for SWIFT for Corporates?
It is a standardised corporate environment on SWIFTNet
It is based on a closed user group
It is administered by SWIFT
Corporates can interact with all banks registered in SCORE
Banks can interact with all corporates registered in SCORE
CORPBIC1
CORPBIC2
CORPBIC3 Your institution
SCORE
Standardised
Corporate
Environment
Bank readiness certificationProgramme objectives
• Publish bank business capabilities over SWIFT
• Facilitate corporate reach for banks over SWIFT
• Enable corporates to increase their bank reach globally using SWIFT
• Promote the operational and commercial capabilities across banks
• Endorse bank’s best practices for corporates over SWIFT
Payments
Cash management
Treasury
12
Today’s Entry and Advanced Certification Criteria
Criteria Advanced certification Entry certification
Participate in SCORE Yes Yes
Receive FIN MT 101 and send MT 940 Yes Yes
Send MT 942 Yes No
Send/Receive files over FileAct* Yes* Yes*
Testing facilities & scripts Yes Yes
Operational documentation Yes Yes
Have SWIFT-knowledge and trained sales staff Yes Yes
Offer Basic commercial documentation Yes Yes
Provide either dedicated SWIFT-page on the bank website OR a
contact detailYes Yes
*Bank should comply with FA implementation guideBank Readiness 13
14
Bank Readinesshttps://corporates.swift.com/en/certification/
“It is important to note that the Barclays
team is certified by SWIFT under the
stringent “Bank Readiness Program” and
corporates have a clear view of the extent
of the SWIFT capabilities of the bank.”
15
16
We can train both you and your corporate customers.
• One day training covering traditional messages like:
MT 101
MT 940
MT 300
On request also ISO 20022 messages, CGI guidelines, etc.
• Assistance with SWIFT onboarding process like:
SWIFT-related Documentation
Online application process
Liaising with SWIFT Membership and Legal teams on behalf of the
Corporates.
SWIFT Onboarding – training and support
Step 2
Your Bank Readiness certification
+
Standards management tools
+
Integration support, standards consulting & training
Tackling the complexity of standards
A collaborative web platform
… to better
manage standards and onboard customers
MyStandardsReadiness
Portal
Specifications and Testing for your customer
Machine specifications (schemas)
Your customer
Documentation (online + PDF)Analysts
Implementers
& systems
Implementers
& testers
Your Bank
Readiness
Portal
Publication
Test against specifications
over internet
All of your customers can
test against your specific
messaging formats on-
line at the click of a
button!
Bank to Corporates segment
Customer testimonials: CITI
Source: Citi presentation, MyStandards User Group, La Hulpe, 18 November 2015
50% time saving !
22
Customer case study – British Council (Citi’s customer)
• Testing timelines were shortened by 50%
• Citi implementation team was able to monitor testing progress and offer
timely advice to compress overall testing
“Citi’s support of SWIFT’s MyStandards proved to be highly
efficient for us. With our developers having online access to
Citi’s payment and formatting rules, development and testing
was very rapid.”
Richard Symonds, Manager,
Treasury Operations, British Council
Key Success Factors
• Secured buy in from top down, ensured alignment of all key players
• Started with small scope and demonstrated value. Then expanded
• Use the kick-start package from SWIFT for a running start
• Thoroughly tested the Usage Guidelines before opening up to clients
APR MAY JUN JUL AUG SEP OCT
Setup GovernanceTraining and platform
configurationPilot with corporates Expansion to other markets
Live in UK
Customer case study: Barclays
5 months from licencing to live service
• “This removes the bottlenecks and
streamlines the onboarding process to the
point where we have enhanced the
onboarding time for new clients from
months to weeks” ̶ Nick Morrissey, Director, Cash Management Channels, Corporate Banking, Barclays
• MyStandards fully integrated in BAU processes
• Significantly (70% +) faster implementation cycles
• Onboard more clients quickly
• Lighten the workload for subject matter experts
25
MyStandards – Example of Usage Guidelines Content
Readiness portal: fit for purpose yet consistent across the industry
Your
brand and
description
Only the
relevant
guidelines
26
A discovery-based approach to understanding bank-specific formats
2.Easy to
fix and
re-test
1.Discover
format issues
27
A discovery-based approach to understanding bank-specific formats
3.Direct link to
Documentation
4.Contextual
questions
to support
Straight to field description
in the right guideline
document
One click: I don’t
understand this error when
I test this file against this
guideline.
Documentation is
second line of
support
28
Summary: smooth onboarding experience
29
Fit for purpose yet consistent across the industry
• Dedicated portals for each onboarding project
• Consistent industry approach
• Intuitive platform
• Applies across channels (SWIFT, host to host, e-banking) and formats
A discovery-based approach to understanding bank-specific formats
• Discover the specifications by testing against them
• Easy to fix and re-test
• If in doubt, go straight to the right place in the documentation
• If needed, contact the bank support with very precise
Business applications not designed to
connect to SWIFTNet
Discrepancy between internal message
formats and SWIFT formats
Specialised SWIFT skills are hard to find
Complications are multiplied: multiple
systems, multiple internal and external teams
involved
SWIFT
Clients
Service
Providers
30
Your integration challenges ?
SWIFT Services
– In-depth SWIFT technical
knowledge
– Functional analysis from
your infrastructure
– Solution design
– End-to-end project
management
– Development
– Testing
– Go live
– Maintenance and customer
care
Full integration, standards consulting and training
Tailored implementation from design to implementation and support
Services
Integration
Standards
– Standards consulting
– Expert assistance in all your
corporate to bank standards
specifications, market practices,
mapping and more.
Training
– Training
– Training of your staff AND
your corporate customers in
the use of MyStandards &
Readiness Portal
– Training on the correc tuse
of the standards.
Combining SWIFT
services and SWIFT
products
to offer a true end-to-end
solution!
SWIFT Consulting ServicesDelivering an end-to-end solution
Analyse Design Implement Test Go-Live Care
• Bring SWIFT Skills & Experience & Approach
• So you are free to focus on running your business
Benefits of the Integration Platform
Validations and reference data usage
Equally applies to manually entered messages
Integrated in Access
No need to update your own systems
Less risk in implementing SWIFT
End-to-end SWIFT products and services offering
for end-to-end SWIFT communication
Footprint and TCO reduction
Exchange proprietary
messages with Access
One stop shop
solution model
Enhance existing flows
Communityenablement
Productized integration
package
Effective paymentsHigher efficiency & lower cost, through SWIFTRef
Who’s the AUD-correspondent of
China Everbright Bank?
What is the CHIPS id of Zion First
National BankIs this SWIFT BIC
still active?
Your needs..
Is it a bank holiday in Canada?
What is the national
clearing/sort code of Bank of
Thailand?
What is SWIFT BIC of Banco Real
in Argentina?
Where can I find the currency
code for
the Columbian Peso
What is the financial
situation and credit rating of
Oberbank in Austria?
Is this IBAN valid?
The paper BIC Directory is not sufficient !
Online access to the complete SWIFTRefdatabase for ad-hoc look-up and research :• All BIC- codes worldwide• 900.000 National bank identifiers from 160+
countries (clearing/sort codes) • 340.000 LEIs (Legal Entity Identifier)• SEPA/IBAN data from 64 countries, including BBAN-
IBAN conversion, IBAN validation, BIC-from-IBAN derivation,
• 830.000 Bank Standing Settlement Instructions (SSI) • Bank financials, credit ratings, shareholder &
ownership info.• Country, currency and holiday information
SWIFTRef Bankers World Online For trouble-free payments, regulatory reporting and exploring new correspondent
relationships
- IBAN Plus (IBAN validation)
- BIC Directory Download / BIC Plus (BIC validation)
- Bank Directory Plus (BICs, national ids & more)
Or, files for automation:
Institution details
Sample view for one institution
Payments data overview
Legal entity and regulatory info
EuropeAlbania France Kosovo Portugal
Andorra Georgia Latvia Romania
Austria Germany Liechtenstein San Marino
Belgium Gibraltar Lithuania Serbia
Bosnia and Herzegovina Greece Luxembourg Slovakia
Bulgaria Greenland Macedonia Slovenia
Croatia Guernsey Malta Spain
Cyprus Hungary Moldova Sweden
Czech Republic Iceland Monaco Switzerland
Denmark Ireland Montenegro United Kingdom
Estonia Isle of Man Netherlands
Faroe Islands Italy Norway
Finland Poland
Non European
countries and
territoriesAzerbaijan Mauritius
Bahrain Pakistan
Brazil Palestine, State of
Costa Rica Qatar
Dominican Republic Saudi Arabia
Guatemala Mauritania
Israel Mauritius
Jordan Timor-Leste
Kazakhstan Tunisia
Kuwait Turkey
Lebanon United Arab Emirates
Mauritania
Up to date IBAN info for correct payments to…
Sample view of IBAN Validator
SWIFTRef web site : swiftref.swift.com
Payments Plus (= all above file products and more)
IBAN DATA• Validate IBANs and BIC codes
• Find BICs from IBANs
• Construct IBANs from BBANs
BANK DATA• Identify Financial Institutions via
BICs, national IDs, LEIs,…
• Find or cross-reference identifiers
• Validate bank details
• Understand bank hierarchy
SWIFTRef files-portfolio
Bank Directory Plus
BIC Directory
IBAN PlusSSI Retail
SSI Wholesale
SSI Plus (all SSIs)
SSI DATA• Find the correspondent bank and
associated accounts
• Find the intermediary bank
(*) not included in Payments Plus
What’s in Bank
Directory Plus?
Service ID Service Name
BACS ( UK) BACS Clearing
CCCC(UK) Cheque Clearing
CHAPS (UK) CHAPS Sterling
FPS (UK) Faster Payments Service
COMPE(BRAZIL) BR Cheque Clearing
E1S1 (Europe Euro1/Step1 (EBA Clearing)
FEDACH(US) FedACH
FEDWIRE (US) Fedwire
HKIC ( Hong Kong) HKD, USD, CNY, EUR Clearing
SIC( Switzerland) SIC (CHF) and EuroSIC (SI Payment Services)
STR(Brazil) BR Transferencia de Reservas
T2 Target 2
Basic bank details (name and address)
National bank codes (incl FEDWIRE)
BICs
CHIPS
FIN service codes
Institution hierarchy information
Azerbaijan, Belarus, China CNAPS, Japan Zengin, Korea (Republic), Russian
Federation, Taiwan, Thailand, Ukraine, Vietnam
Bank Directory
Plus record
sample
Name: RBTT BANK ARUBA N.V.
Address: Italiestraat 36, Oranjestad, Aruba
SWIFT subtype, status: SUPE, BANK
Office type, legal type: HO, Legal
Group key: RBTT (linking with other SWIFTRef files)
National ID: 100001080
CHIPS UID: 315440
BIC: RBTTAWAW XXX
LEI: 00265873382965200176
Bank hierarchy
in Bank
Directory PlusHead Office (HO)
Foreign Branch (FB)
Sub Foreign Branch (SF)
RECORD KEYOFFICE TYPE
PARENT OFFICE KEY HEAD OFFICE KEYLEGAL TYPE
LEGAL PARENT KEY BIC INSTITUTION NAME CITY COUNTRY NAME
BD000000DBH6 SF BD000000DBH7 BD000000DBH8 B BD000000DBH8 RBTTBQBNXXX RBTT BANK N.V. BONAIREBONAIRE, SAINT EUSTATIUS AND SABA
BD000000DBH7 FB BD000000DBH8 BD000000DBH8 B BD000000DBH8 RBTTBQSAXXX RBTT BANK N.V. SABABONAIRE, SAINT EUSTATIUS AND SABA
BD000000DBH8 HO BD000000DBH8 BD000000DBH8 L BD000000DBH8 RBTTCWCUXXX RBTT BANK N.V. WILLEMSTAD CURACAO
Domestic Branch (DB)
Sub Domestic Branch (SB)
IBAN Structure
file
country name: ITALY
IBAN country code: IT
bank identifier – position & length: 6, 5
branch identifier – position & length: 11, 5
account number – position & length: 16, 12
IBAN total length: 27
IBAN: IT35Z0200809429000060010264
IBAN Plus
record sample
institution name: UNICREDIT PRIVATE BANKING
city: MILANO
country: ITALY
IBAN NATIONAL ID: 0200809429
IBAN BIC: UNCRITMM
SCT: Y
SDD CORE: N
SDD B2B: N
IBAN: IT35Z0200809429000060010264
BIC: UNCRITMM
SSI Plus purpose
•correspondent bank/intermediary look
• per currency
• per payment type (retail, FX, MM)
SWIFTRef Delivery channels
Manual file
download
internet
Manual query tool
(BWO)
internet
APIs
(web
services)
internet
FileAct
(automated)
SWIFTNet
Automated file
download
(API)
internet
TXT
XML
Formatting Monthly
Daily
Frequency
“Since we are on SWIFT, we have reduced
25% of our time on investigation and message
repairs. We can now more focus on further
Business development.”
FULLY RELATIONAL
• All data are interlinked for easy integration in
B.O systems and applications
FLEXIBLE• Any delivery channel
(online, manual or automated file download,
FileAct, API webservices)
• Any syntax (TXT, XML)
• ERP/SAP compatible
• Packaged in function of your
needs and budget
WORLDWIDE• All BICs worldwide
• Bank identification codes
(152+ countries)
• IBAN/SEPA data (+64 countries)
• LEIs
• SSIs
SWIFTRef in a nutshell
ACCURATE• From authorised data-originators only
• Maintained directly by the data providers
• Daily or Monthly updates available
• No manual maintenance needed
Summary
Q&A?