SWIFT Welcome Address - Alain Raes

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1 Welcome Alain Raes Chief Executive, Asia Pacific & EMEA SWIFT

Transcript of SWIFT Welcome Address - Alain Raes

Page 1: SWIFT Welcome Address - Alain Raes

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Welcome Alain Raes

Chief Executive, Asia Pacific & EMEA

SWIFT

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Welcome Alain Raes

Chief Executive, Asia Pacific & EMEA

SWIFT

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The Era of Financial Inclusion and

Regional Integration

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An environment going through

fast transformation

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Inclusion &

Integration

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US/ UK NMGs - Business Intelligence Insights 7

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2020 Strategy - Grow the core, build the future 9

SWIFT 2020 – Strategic priorities

Messaging

Software

& Connectivity

Shared

Services

Many-to-Many Market

Infrastructures

CORE

COMPLIANCE

MIs

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Roles and responsibilities

NMG security briefing - May 2016

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Customer responsibilities

SWIFT

Mandated SWIFT

Network

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SWIFT Security program : main areas of activity

Improve information sharing amongst community

Enhance SWIFT-related tools for customers

Enhance guidelines and provide audit frameworks

Support increased payment pattern controls

Enhance support by 3rd party providers to banks of SWIFT-

related products and services

STREAMS

1

2

3

4

5

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2020 Strategy - Grow the core, build the future 12

SWIFT 2020 – Strategic priorities

Messaging

Software

& Connectivity

Shared

Services

Many-to-Many

Market

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

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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 banking Making 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

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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)

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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 quality Open model

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gpii Initiative banks

31. J.P. Morgan

32. Kasikornbank

33. KBC Bank

34. KEB Hana Bank

35. Lloyds Banking Group

36. Maybank

37. Mizuho Bank

38. National Australia Bank

39. Natixis

40. Nordea

41. Oversea-Chinese Banking Corporation

42. Raiffeisen Bank International

43. Royal Bank of Canada

44. Resona Bank

45. Royal Bank of Scotland

46. Sberbank

47. SEB

48. Société Générale

49. Standard Bank

50. Standard Chartered Bank

51. Sumitomo Mitsui Banking Corporation

52. Swedbank

53. Tadhamon International Islamic Bank

54. TD Bank

55. UBS

56. UniCredit

57. United Overseas Bank

58. Wells Fargo

1. ABN AMRO

2. Australia and New Zealand Banking Group

3. Banco Bilbao Vizcaya Argentaria

4. Bangkok Bank

5. Bank of America Merrill Lynch

6. Bank of China

7. Bank of New York Mellon

8. Bank of the Philippine Islands (BPI)

9. Bank of Tokyo-Mitsubishi UFJ

10. Banco Santander

11. Banco de Credito del Peru

12. Barclays

13. BNP Paribas

14. Caixa Bank

15. Citibank

16. Commerzbank

17. Credit Suisse

18. CTBC Bank

19. Danske Bank

20. DBS

21. Deutsche Bank

22. Ecobank

23. Fifth Third Bank

24. FirstRand Bank

25. HSBC

26. Industrial and Commercial Bank of China

27. ICICI Bank

28. ING

29. Intesa Sanpaolo

30. Investec

21 banks in Pilot

The global payments innovation initiative – May 2016

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Key Highlights

32+ million FIN messages per year (2015)

138+ thousand FIN messages per day (Year to date April 2016)

+14.3% Increase in FIN traffic (Year to date April 2016)

18 India Traffic Insights - YTD April 2016

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Trade

Treasury

Securities

Payments

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

EMEA Americas Asia Pacific Total SWIFT INDIA India and the subcontinent

4.2% 4.7% 3.0% 4.1% 16.1% 17.9%

2.7% 7.8% 26.5% 6.3% 13.4% 12.3%

2.2% 11.1% 9.8% 5.1% 9.9% 11.7%

-4.4% -16.7% -5.8% -6.8% 0.7% 3.4%

3.3% 6.2% 12.5% 5.1% 14.3% 14.8%

Year to date 2016 FIN Traffic growth at a glance

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

19 India Traffic Insights - YTD April 2016

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Versions

Market Practice

Communication flows

Release cycles

SWIFT – your partner to overcome fragmentation challenges

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The Era of Financial Inclusion and

Regional Integration