Optimizing SWIFT eBAM

for Your Corporation

May 30, 2013

Christian Vega

Sales Director, SWIFT Solutions

Fundtech Corporation

Dan Gill

Product Line Director, Corporate Solutions

Weiland Financial / Open Solutions

NEW YORK CASH EXCHANGE 2013

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About the Company

Annual Revenue $225M

1,000+ financial institution clients

1,500+ Employees

HQ - Jersey City, NJ

Thousands of SME-Corporate relationships

US/Intn’l Payments, Cash Management, Mobile Payments, Financial Messaging (SWIFT), Compliance Filtering, etc.

About the Fundtech SWIFT Bureau Services

World’s largest SWIFT Service Bureau provider

In Service Bureau: 280+ FIs, and over 80 Corporations

– In-house + Service Bureau: 600+ clients

Data centers in North America, Switzerland, UK, and Singapore

About Fundtech

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About Weiland Financial

Part of Open Solutions

The Weiland Financial Group is the leading provider of bank

fee management and bank account management solutions

for more than 30 years.

More than 300 of the Fortune 1000 In house and hosted

Acquired by Open Solutions in 2010 and Fiserv in 2013

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A standardized system to maintain effective controls around

the inventory of bank accounts used by a corporation

– Establishing processes around the opening and closing of

accounts

– Maintaining accurate records of employees with authority

over those accounts

– Maintaining legal entity links for all accounts

Effective business processes to ensure compliance

Effective communication of changes with banks

What is Bank Account Management?

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Scenario

Policy?

HR reports?

Feedback?

Authority to remove?

Who else needs to know?

Approvals?

Policy?

HR reports?

Feedback?

Limits?

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A process to allow bank account changes to be communicated between a corporate and their banks through electronic means

– Eliminate errors

– Reduce delays

– Improve Controls

– Synchronize information

The problem with the term eBAM

– Defined in many different ways by many different banks

– No universal methodology

– Until now

What is eBAM?

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eBAM Automating the ‘Conversation’

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An industry-standard solution for electronic bank account

management

– Open, maintain, and close accounts at multiple banks from one interface

– Manage account mandates for signers and other authority holders

– Request and receive Account Report documents to track account and

mandate holder status

Fully integrated with the SWIFT network, allowing for easy,

secure, and reliable message transport

Be clear when talking to your banks

– SWIFT eBAM uses the ISO 20022 message formats to communicate bank

account administration information over SWIFT FileAct

What is SWIFT eBAM?

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Electronic Bank-Account Management

eBAM automates the communication process between a corporate and

a banking institution, reducing inaccuracy and inefficiency while

improving traceability

Replaces the current corporate–bank methods for communication, which

are often manual and paper-based

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About SWIFT

Slide 10

An industry owned co-operative organization

serving the financial services industry

A provider of highly secure financial

messaging services

A financial services standardization body

SWIFT provides secure financial messaging

SWIFT does NOT provide clearing or settlement services

SWIFT does not hold accounts or assets

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EBAM SWIFT Global Standards

1. Acmt.007.001.01 AccountOpeningRequest

2. Acmt.008.001.01 AccountOpeningAmendmentRequest

3. Acmt.009.001.01 AccountOpeningAdditionalInformationReq

4. Acmt.010.001.01 AccountRequestAcknowledgement

5. Acmt.011.001.01 AccountRequestReject

6. Acmt.012.001.01 AccountAdditionalInformationRequest

7. Acmt.013.001.01 AccountReportRequest

8. Acmt.014.001.01 AccountReport

9. Acmt.015.001.01 AccountExcludedMandateMaintenanceReq

10.Acmt.016.001.01 AccountExcludedMandateMaintenanceAmendment

11.Acmt.017.001.01 AccountMandateMaintenanceRequest

12.Acmt.018.001.01 AccountMandateMaintenanceAmendment

13.Acmt.019.001.01 AccountClosingRequest

14.Acmt.020.001.01 AccountClosingAmendment

15.Acmt.021.001.01 AccountClosingAdditionalInformationReq

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Secure Financial Messaging

Receiver Sender

Receipt Receipt

SWIFT system

Sending institution

Receiving institution

Sending customer

Receiving customer

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Secure Financial Messaging

SWIFTNet FIN

interface

SWIFTNet

FIN PKI PKI

PKI PKI

SWIFTNet FIN

interface

HSM HSM

PKI

RMA

PKI: FIN Access control

PKI: End-2-end security

RMA: Relationship mgt.

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Typical Corporate-to-Bank Connection Model

Corporate responsible for multiple protocols, standards & systems

Corporate Responsibility

Leased Line

Office Systems

Payment Processing & Settlement

Cash Management &

Reporting

Bank Acct. Mgt. Hedge Accounting

Other Strategic Operations

PSTN

Host to host

e-banking

e-banking

fax-banking

VAN

Internet

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SWIFT Connection Model

Access to SWIFT ‘s global financial network sets corporations on a path

to realizing a streamlined multi-bank communications strategy

Corporate Responsibility

SWIFT

Office Systems

Payment Processing & Settlement

Cash Management &

Reporting

Other Strategic Operations

Single Gateway

Bank Acct. Mgt. Hedge Accounting

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Single Bank Communications Gateway

SWIFT

Service Bureau

SWIFT FIN

Messaging

SWIFT FileAct

Messaging Routing and

Transformation

PROD + TEST + DR environments

24/7 Tech & CS Support

Internet

FTP Agent BAI, XML, EDI, NACHA, etc

Corporate Site

Site

ERP System (s)

Treasury Management

System

F

T

P

M

Q

Bank Relationship & Account Mgt.

Hedge Accounting Systems

A Service Bureau provides a single window for bank connectivity and can quickly

turn on the SWIFT services needed for eBAM and other treasury functions

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Rapid Deployment / Time-to-Benefit

– Existing expertise and infrastructure

– Corporation avoids steep SWIFT learning curve

Lower Total Cost of Ownership:

– Reduces labor and operations costs otherwise used to operate an in-house/direct connection

Unified Processing Architecture to all SWIFT network services and capabilities

– FIN, FileAct, Interact/MX, Browse services

– All SWIFT message types: MT101, MT940, etc., and non-SWIFT: EDI, BAI, XML, eBAM, etc.

SWIFT Expertise and Experience, including:

– General guidance, expert project management and implementation services

– Bank-specific best practices

Security, Reliability, Availability

– Ongoing support for disaster recovery, upgrades, standard changes and general maintenance

– Hosted in secure data centers with “always production ready”, redundant disaster recovery locations

Additional services readily available when/if needed:

– Message / format transformation

– Long-term Message Archival

– Compliance/OFAC Checking

– Direct Bank Connectivity to non-SWIFT Banks

SWIFT Service Bureau Model: Benefits

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eBAM Message Path

SWIFT banks

VPN/LL Corporation

(Web Access)

SWIFT System

(Service Bureau

Or In-House)

Request

eBAM

XML SWIFTNet

eBAM

File

Response

SWIFT

EBAM System

(ASP or In-House)

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What does an eBAM platform do?

– Provides an enterprise-wide inventory of bank accounts and their

relationships to your organization:

Banks

Accounts

Authorities

Subsidiaries

– Provides Business Process Management to establish controls around the

bank account management process

– Provides communications capabilities, including eBAM, between a

company and its banks for the management of bank accounts

What to Expect from an eBAM System?

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Managing eBAM messages using a conversation stream format

– Automatically consolidates various messages sent and received during a conversation within a single process tree

– Integrates with the Business Process Management module, connecting internal and external processes for managing accounts

Tracking ongoing eBAM conversations from a central location and understanding the conversation status:

– Awaiting Confirmation

– Confirmation Received

– More Information Required

– Additional Information Provided

– Awaiting Completion by User

– Completed Successfully

– Rejected

eBAM Conversations

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Five eBAM conversation types:

– Open Account

– Request Account Report

– Update Account

– Update Account (Signer Mandate Only)

– Close Account

Conversation Types

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Message Types

Outbound

Conversation Starters:

007 – Account Opening Request

013 – Account Report Request

015 – Account Maintenance Request

(no mandate)

017 – Account Maintenance Request

(mandate only)

019 – Account Closing Request

Conversation Responses:

008 – Account Opening Amendment

016 – Account Maintenance Amendment

(no mandate)

018 – Account Maintenance Amendment

(mandate only)

020 – Account Closing Amendment

Inbound

Conversation Responses:

010 – Account Request

Acknowledgement

009 – Account Opening Additional

Information Request

011 – Account Request Rejection

014 – Account Report

012 – Account Additional Information

Request

021 – Account Closing Additional

Information Request

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Conversation Example:

Open Account Conversation

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Conversation Example:

Request Mandate Change

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Individuals authorized to perform financial transactions on

designated accounts are known as Mandate Holders

Mandate Holder information is traditionally tracked on a paper

Signature Card

– Name

– Function

– Financial Limits

– Signature Image

eBAM replaces the paper signature card with the same

information stored and transmitted as an XML message (mandate

information)

SWIFT also manages their own digital identity solution, 3SKey

What is a Mandate Holder?

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eBAM Message Components

An eBAM messages contain the following components:

1. Header: Identifies the destination (by SWIFT code), conversation stream,

message type, and message contents

2. XML Message: The eBAM message itself

3. Attachments: Any number of attachments required by the bank

4. Encryption: The message and all attachments are packaged and encrypted by a

SWIFT service bureau for secure and reliable transportation

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Building Blocks for Efficient EBAM

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Finally Ready

– Pilot tests & rumors of Pilot tests

– SWIFT eBAM messages ISO 20022 certified

– Many banks making progress on eBAM at some level

“Watson, come here, I need you.”

– On February 12, 2013 a major US based insurance company became the first to complete full end to end testing of SWIFT eBAM messages through FileAct with one of their banks

– On February 25th, 2013, that same company went into production with eBAM over SWIFT to a major US bank

– Two other major US banks will be live in the next month or two

Reach out to your banks today and ask when they will be ready to communicate via SWIFT eBAM over FileAct.

Current Status

Thank you!

Christian Vega

Sales Director, SWIFT Solutions

Fundtech Corporation

E: christian.vega@fundtech.com

T: 1-201-215-6576

Dan Gill

Product Line Director, Corporate Solutions

Open Solutions

E: dan.gill@opensolutions.com

T: 1-847-810-6112

NEW YORK CASH EXCHANGE 2013