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SWIFT Business Forum

Philippines

Trailblazing ASEAN with Inclusion,

Modernisation, and

Internationalisation

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WelcomeAlain Raes, Chief Executive, APAC & EMEA

SWIFT

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Trailblazing ASEAN with

Inclusion, Modernisation and

Internationalisation

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Inclusion &

Modernisation

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US/ UK NMGs - Business Intelligence Insights 6

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2020 Strategy - Grow the core, build the future 8

SWIFT 2020 – Strategic priorities

Messaging

Software

& Connectivity

Shared

Services

Many-to-ManyMarket

Infrastructures

CORE

COMPLIANCE

MIs

2020 Strategy - Grow the core, build the future 9

SWIFT 2020 – Strategic priorities

Messaging

Software

& Connectivity

Shared

Services

Many-to-ManyMarket

Infrastructures

Global & Key Clients

Small & Medium Banks

Investment Managers

Custodians & Investment Banks

Corporates

Funds ecosystem

RTGS and

Central Banks

Real-Time Payment

Systems

Central Securities

Depositories

Translating S2020 to SWIFT APAC Priorities

Trends

Renewal

• Fighting financial crime, monitoring & control, compliance

recommendations.

• FATF, Basel III, FATCA, FCPA, AML, Sanctions

• ASEAN Economic Community (AEC), CIPS, Pacific

payment system

• Increasing international connectivity of infrastructures

• ISO 20022 adoption

• Demand for safer and more reliable infrastructure

• Cyber threats increasing

• CPMI-IOSCO PFMI & Annex F for CSPs

• Real-time 24-7

• Convergence btw high & low value

Payments

• New systems: ISO 20022 messaging – rapidly growing

interest in XML messaging capabilities

• Multi-currency clearing, PvP

• Extended operating hours (e.g. HK RMB 20.5 hrs)

• CPMI-IOSCO Principles• Regulatory reporting• T+2

• ASEAN Economic Community (AEC)• Regional harmonization: ABMF, ASEAN Link, HK-CN,

TW-SG, CSIF cross-border DVP• ISO 20022 adoption

• CPMI-IOSCO & Annex F for CSPs

• Issuer to investor CA announcement

• Funds hub implementation

• Collateral management

• OTC clearing

Securities

• Aging technology

• New technology (distributed ledger)

• Regional ambition-collaboration

• ISO 20022

Regulation &

compliance

Regionalisation

Resiliency &

reliability

Real-time

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Reinventing

correspondent bankingMaking Real World Change

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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

Global payments innovation initiative – January 2016

Global payments innovation

initiative (gpii)

Global reach

provided by banks connected

to domestic payments systems

SLA rulebook

with customer at centre

of value proposition

Smart collaboration

(e.g. enhanced compliance practices,

optimised intraday liquidity flows)

Embrace innovation

(e.g. peer-to-peer messaging,

real time settlement mechanism)

Global payments innovation initiative – January 2016 13

Global payments innovation initiative (gpii)

Bank access channels

Domestic payment systems

SWIFT

Bank access channels

Domestic payment systems

SWIFT

Existing SWIFT messaging

Bank access channels

SWIFT for corporates

Bank access channels

SWIFT for corporates

Accessible by

any bank

Differentiate vs

non-gpii banks

Still reach

non-gpii banks

Reach any bank

Operational qualityOpen model

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• ABN AMRO Bank

• Australia and New Zealand Banking Group

• Banco Bilbao Vizcaya Argentaria

• Bank of America Merrill Lynch

• Bank of China

• Bank of New York Mellon

• Bank of Tokyo-Mitsubishi UFJ

• Natixis

• Banco Santander

• Bank of Philippine Island

• Barclays

• BNP Paribas

• Citibank

• Commerzbank

• Credit Suisse

• Danske Bank

• DBS Bank

• Deutsche Bank

• Ecobank

• FirstRand Bank

• HSBC

• Industrial and Commercial Bank of China

• ING Bank

• Intesa Sanpaolo

• JPMorgan Chase

• KBC Bank

• KEB Hana Bank

• Lloyds Banking Group

• Maybank

• Mizuho Bank

• National Australia Bank

• Nordea Bank

• Oversea-Chinese Banking Corporation

• Raiffeisen Bank International

• RBC Royal Bank

• Royal Bank of Scotland

• Sberbank

• Skandinaviska Enskilda Banken

• Société Générale

• Standard Chartered

• Sumitomo Mitsui Banking Corporation

• TD Bank

• UniCredit

• UBS

• United Overseas Bank

• Wells Fargo

51 leading banks sign up to SWIFT’s global payments innovation initiative

Key Highlights of Philippines

10+ millionFIN messages per year (2015)

45+ thousandFIN messages per day (Year to date Jan 2016)

+15%Increase in FIN traffic (Year to date Jan 2016)

15Philippines Traffic Insights - Jan 2016

Trade

Treasury

Securities

Payments

Growth rates based on Year to date January 2016 vs 2015 Average Daily Messages

EMEA Americas Asia PacificTotal

SWIFTPhilippines ASEAN

4.0% 5.3% 10.8% 5.2% 13.7% 6.1%

2.5% 9.0% 34.6% 7.0% 17.6% 24.6%

-2.4% 10.8% 15.6% 2.8% 9.3% -0.7%

-1.9% -22.2% -3.6% -5.8% 1.9% -2.1%

2.9% 7.0% 19.7% 5.9% 14.8% 12.4%

Year to date 2016 FIN Traffic growth at a glance

<-10% -10% to 0% >0%

16Philippines Traffic Insights - Jan 2016

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Trailblazing ASEAN with

Inclusion, Modernisation and

Internationalisation