SWIFT gpi for corporates A new standard in cross-border payments

10 May, 2017

SWIFT gpi - Corporates workshop

The future of cross-border payments Watch the video

SWIFT gpi - SWIFT for Corporates user conference - May 2017

Speakers

François Masquelier Honorary Chairman EACT,

Treasurer RTL group

Philip Hong Head of Channel Services EMEA,

Citi

Sebastian Rojas Corporate engagement,

SWIFT gpi

The correspondent banking model is under pressure

Customers and regulators push for better payments service

Banks rationalize their correspondent banking networks

Digital innovators offer new disruptive solutions

End customers increasingly demanding

Domestic payments going real-time

Regulatory intensity and increasing costs

Network rationalization

Enhanced value proposition

Disintermediation

SWIFT gpi - Corporates workshop - 25 January 2017 - Confidentiality: RESTRICTED

Corporate challenges with cross-border payments

SWIFT gpi - SWIFT for Corporates user conference - May 2017

Uncertainty Predictability

Inconsistencies

Exceptions and investigation

Traceability Automation

Incomplete Where is my payment?

Remittance information Deductions OUR

SHA BEN

SWIFT gpi - SWIFT for Corporates user conference - May 2017

Cross-border payments are still too slow !

Sending a cross-border payment can take up to 1 week… While manufacturing a Toyota car takes only 18 hours…

Instructing bank

Intermediary bank Ordering Customer

MT 103 MT 103

Beneficiary Customer

Beneficiary bank

* BICs for illustration purposes only SWIFT gpi - SWIFT for Corporates user conference - May 2017

Where is my payment?

? ?

Impact on the daily business of an international company

SWIFT gpi for corporates

SWIFT gpi - SWIFT for Corporates user conference - May 2017

SWIFT gpi: secure, faster, traceable & transparent cross-border payments

1 Faster payments Same day use of funds*

Traceable End-to-end payment tracking

2

3 Transparent fees Deducts and FX 4 Full remittance data

Unaltered reconciliation info

Your company

Beneficiary

gpi

Intermediary bank

Beneficiary’s bank

Your bank

*Within the time zone of the receiving gpi member

SWIFTgpi Rulebook $

Invoice

a1700db1-90b2-4948-83d8-6309c5c34a3d

Key feature: The SWIFT gpi Tracker

Transparency of total fees and time

Unique, end-end tracking number

SWIFT gpi - SWIFT for Corporates user conference - May 2017

Value for corporates

Reduced settlement time Leverage investment opportunities Higher visibility for capital and credit management Reduced FX risk

Treasury & Cash Management

Enhanced predictability and traceability Greater planning and decision making Improved reconciliation and forecast reporting

Budgeting, planning and forecasting

Better cash flow management Speed and visibility on critical payments Certainty for buyers and sellers Transparency on bank fees Reduced exception handling & investigations

Accounting & core functions

SWIFT gpi - March 2017

Member banks

AMERICAS EMEA APAC

20% 52% 28% Close to 100 member banks sending payments into more than 224 countries and territories; representing over 75% of all SWIFT cross-border payments

- ABN AMRO Bank - ABSA Bank - Agricultural Bank of China - Alfa-Bank - Australia and New Zealand

Banking Group - Axis Bank - Banco Bilbao Vizcaya

Argentaria - Bangkok Bank - Bank of America Merrill Lynch - Bank of China - Bank of Communications - Bank of New York Mellon - Bank of Nova Scotia - Bank of the Philippine Islands - Bank of Tokyo-Mitsubishi UFJ - Banco Bradesco - Banco Santander - Banco de Crédito del Peru - Banco do Brasil - Banorte - Banque Européenne

d’Investissement - Barclays - Bidvest Bank - BNP Paribas

- Budapest Bank - CaixaBank - Canadian Imperial Bank of

Commerce - China Construction Bank - China Merchants Bank - Citibank - Commonwealth Bank of Australia - Commerzbank - Crédit Agricole - Crédit Mutuel-CIC Banques - Credit Suisse - CTBC Bank - Danske Bank - DBS Bank - Deutsche Bank - DNB Bank - Ecobank - E.Sun Commercial Bank - Erste Group Bank - Fifth Third Bank - FirstRand Bank - Handelsbanken - Helaba Landesbank Hessen-

Thüringen - HSBC Bank - ICICI Bank

- IndusInd Bank - Industrial and Commercial

Bank of China - ING Bank - Intesa Sanpaolo - Intl. FCStone - Investec - Itaù Unibanco - JPMorgan Chase Bank - Kasikornbank - KBC Bank - KEB Hana Bank - Lloyds Bank - Mashreq Bank - Maybank - Mizuho Bank - National Australia Bank - Natixis - Nedbank - Nordea Bank - Oversea-Chinese Banking

Corporation - Piraeus bank - PKO Bank Polski - Promsvyazbank - Rabobank - Raiffeisen Bank International

- Resona Bank - Royal Bank of Canada - Royal Bank of Scotland - Sberbank - Siam Commercial Bank - Silicon Valley Bank - Skandinaviska Enskilda Banken - Société Générale - SpareBank 1 - Standard Bank of South Africa - Standard Chartered Bank - Sumitomo Mitsui Banking

Corporation - Swedbank - Tadhamon International Islamic

Bank - TMB Bank - Toronto-Dominion Bank - UBS - U.S. Bank - UniCredit - United Overseas Bank - Wells Fargo - Westpac Banking Corporation

live on gpi SWIFT gpi - SWIFT for Corporates user conference - May 2017

SWIFT gpi for Corporates - Workshop - 11 May 2017

SWIFT gpi: Three phases running in parallel

Phase 1

Delivering a New standard

Phase 2

Designing Digital transformation

Phase 3

Exploring Technological innovation

Live in Feb 2017 Q4 2017 - 2018 Q1 2017 – 2019?

Phase 2: designing digital transformation

Rich payment data Request for cancellation International Payment Assistant

SWIFTgpi

Rich remittance information, invoices, compliance documents, etc.

Stopping unsolicited payments (double payment, manual errors, fraud)

STOP

SWIFTgpi

Validation of payments before execution

SWIFTgpi

Account number ? BIC ? Passport required ? Beneficiary ?

v2 – Q4 2017 - 2018

SWIFT gpi for Corporates - Workshop - 11 May 2017

How to get started with SWIFT gpi?

SWIFT gpi - Corporates workshop - 25 January 2017 - Confidentiality: RESTRICTED

1

Contact your bank and ask about SWIFT gpi

2

Include gpi (payments and tracker) in your RFP

3

Identify your key corridors and needs

Q&A

SWIFT gpi - SWIFT for Corporates user conference - May 2017

www.swift.com

SWIFT gpi - SWIFT for Corporates user conference - May 2017

Questions? Contact: swiftforbanks@swift.com

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