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Transcript of Exceptions and Investigations Automate your payment enquiries to save cost and improve customer...
Exceptions and InvestigationsAutomate your payment enquiries to save cost and improve customer service
Agenda
• Your challenges, our solution• SWIFT Exceptions and Investigations• Community adoption and Task Force• Cost / benefit• Practical steps
2Exceptions and Investigations
Payment enquiries challenges
3
Save costs
Comply with
regulation
Reduce risk
Improvecustomer service
Only 5% automated
Labour intensive
Growing volumesdue to FAFT SR7
Payments under investigation
Long turn-around time
No transparency on enquiry status
Exceptions and Investigations
STP
SWIFT E&I value proposition
4
Today SWIFT E&I
• Cost savings
• Reduced risk
• Improved customer service
• Regulatory compliance
• High cost
• Payments pending investigation
• Customer complaints
Mainly unstructured MT
Fax, e-mail, letter, …
Structured MX
Labour intensive
Case
mgmt
appli-
cation
Exceptions and Investigations
E&I brings significant benefitsBenefits calculation at banks with enquiry automation of 0 to 15%, 25.000 – 85.000 enquiries/year
5
Staff cost savingsthanks to automation
Correspondent invoice savings
Cost saving: 10 - 17 EUR / enquiry
- 4 staff at Asian bank
- 8 staff at Austrian bank
- 14 staff at Scandinavian bank
Avoid higher charges on free format enquiries (up to 50%)
Exceptions and Investigations
The SWIFT E&I solution
6
Choice of case
management application
Rulebook
Standards
Messaging
• Easy E&I from SWIFT (service + application)
• SWIFTReady E&I applications from vendors
• E&I as a service from service bureaux
• Your own case management application
Service and standards usage
InterAct
16 XML messages
4 workflows (Claim Non Receipt, Unable To Apply, Modification, Cancellation)
Exceptions and Investigations
Example E&I workflow: Claim non receipt
Bank A Bank B Bank C
MT103
Data is correct.Re -assign to ‘B ’
CreditorDebtor
Claim Non Receipt
MT103
Payment?
Statement
Resolution
Resolution
Claim Non Receipt
Notification of caseassignment
7Exceptions and Investigations
Claim Non Receipt
Data is correct.Re-assign to C
Notification
Resolution
Payment stuck
E&I is easy to implement
Manual message creationAlliance Messenger
Case management applicationEasy E&I from SWIFTChoice from SWIFTReady vendors
• Connected via service bureau• No own case management application• Low enquiry volumes=> Choice from service bureaux Service bureau
Case Managementapplication
Case Managementapplication
“Try & buy” version available
E&I as a service
On-site
8Exceptions and Investigations
Easy E&I
9
Easy E&I
Subscription to E&I Case management application Access to e-training
End-to-end solution
Case management application
Off-the-shelf version, includes GUI Extended version, integrates with
payment application
SWIFTReady + extra functional qualification Self installable Runs in user or automated mode Handles MT and MX standards Integrates with Alliance Access and Entry
Start now, automate later
Powered by
Cost effective EUR 32,000 off-the-shelf version EUR 76,000 extended version
Exceptions and Investigations
Presentation title –
Client or event – dd
month yyyy
10
114 E&I adopters
Example of customer adoption
11Exceptions and Investigations - Q4 2009
E&I industry task force
Concept• Committed large banks to
drive community adoption
• Chaired by a member Bank
• Supported by SWIFT
• Monthly meetings/calls
Rationale• Strong concentration FIN
enquiry traffic: 22 banks do 50%
• Clear business case for large banks
• Small & medium banks need their large correspondents
Members
BNY Mellon, Citi, HSBC, ICBC, Standard Chartered, RZB
Goal• Align migration timeframes
between members
• Exchange experience to support each others go live
• Motivate missing counterparties to join
• Help increase industry awareness
On-boarding criteria
• Open to banks and corporates•Committed to be live and operational with E&I within year following on-boarding•Find Task Force member ready to exchange inquiry volumes with you and to support your application for discussion/approval by the Task Force
Exceptions and Investigations
Contact
B.Kirkpatrick – BNY Mellon: [email protected]
Cost / benefit considerations
13
Costs Benefits
• Save costs• Staff cost savings from automation
(# FTE * FTE cost) • Avoid correspondent invoicing
(# enquiries * current invoice cost * 50%)• Communication cost savings from
reduction of telephone and fax
• Comply with regulation and avoid cost by handling increase in volume, due to FATF VII, without need to add more staff
• Reduce risk by better control on cash positions, less pending payments, less processing mistakes
• Improve customer service from shorter case resolution time, transparency on case status
• SWIFT costs• Registration fee (EUR 2,000 one-time)
• Fee per enquiry message sent (InterAct real-time price)
• Case management application• Software (eg.: 32 KEUR - Easy E&I)• Integration with payment application
• Project cost• Project management • Training• Testing, go live, roll out
Exceptions and Investigations
Practical steps
14
Exploreopportunity to use SWIFT’s
solution
Time
Actively use SWIFT as channel
5
PrepareOperations and Product
teams
4
Enableconnectivity, applications, on-boarding,
legal contracts
3
Defineproduct
proposition and obtain approval
21
SWIFT to explain impact, framework, market evolution
SWIFT to help with business case and ROI calculation
SWIFT can do business assessment
SWIFT can support with choice case management application
Put case management application in place
Subscribe to E&I
Internal and counterparty testing
Prepare correspondent roll-out team
Document new processes, train staff
SWIFT can help with test, go-live and roll-out
Exceptions and Investigations
More information?
• Contact your SWIFT relationship manager
• Contact us at [email protected]
• Check out www.swift.com
15Exceptions and Investigations