Post on 03-Oct-2020
transcript
Media conference30 March 2017
Slide 30.03.20172
Streamlining systems
and procedures
Payments
Slide
Agenda
● Welcome address by Markus Beck
● Sébastien Kraenzlin: The significance of payment transactions and the role of
the SNB
● Markus Beck: Harmonization of payment traffic – background and challenges
● Christian Kleine: Payment traffic harmonization from an international
perspective
● Johannes Schlotmann: Study into the impact of payment traffic harmonization
in Switzerland
● Nicole Walker: Payment traffic harmonization – changes and benefits
● Questions and answers
30.03.20173
The significance of payment transactions and the
role of the SNB
Sébastien Kraenzlin, Head of Banking Operations Swiss National Bank
Board of Directors, SIX Interbank Clearing Ltd
Zurich, 30 March 2017
Slide 30.03.20175
PayeePayer
Phase 3
Phase 2
Phase 1
CHF 650 billion
Swiss GDP
60 times a year
in SIC
1.8 million transactions/day in SIC
BANKBANKSIC system
Cashless payments: reliable, efficient and future-proof
Harmonization of payment traffic
Background and challenges
Markus Beck, Head of Product Management Payments Corporate Customers, Raiffeisen Switzerland,
Member of the Board of Directors of SIX Interbank Clearing Ltd
Zurich, 30 March 2017
Slide
A driver of digitization
74% of client payments are electronic
The harmonization of payment traffic is helping drive the digitization of Switzerland
Practically all industries
are digitizing
their business models
Web-based applications and
apps are taking over in
standardized financial services
Private and corporate clients
are calling for digital processes
to boost organizational and personal
efficiency
7
• Paper-based payments are in decline
• The most commonly used channel is e-banking
• Mobile banking is gaining in importance in all client segments
30.03.2017
Slide
A driver of regulation
30.03.2017
New requirements
Financial Action Task
Force (FATF)-Recommendations
country evaluations
Anti-Money Laundering Act (AMLA) and
FINMA Anti-Money Laundering
Ordinance (AMLO-FINMA) revision (in
force since 2016)
Growing domestic and
international requirements
8
The challenge of one billion transfers a year and ever-tighter compliance requirements
can only be met if processes are automated end to end.
Slide
Many different systems have evolved over time
30.03.20179
Financial industry’s decision: harmonize payment traffic on the basis of ISO 20022
Challenges cannot be met in the current
complexity
Media breaks create manual work
Inadequate compliance because of a lack
of end-to-end data when payment slips
are used
Slide
Collaboration
30.03.201710
Integrated approach: broad-based planning and changeover
Constant dialog with
corporate and private
client representatives
Bring know-how and
client experience
Set down standards and
procedures
Slide
Roadmap for the harmonization of payment traffic
30.03.201711
Payment traffic harmonization from an
international perspective
Christian Kleine, Managing Director, UBS AG,
Representative of the Swiss banks on the European Payments Council (EPC)
Zurich, 30 March 2017
Slide
Significance of foreign payment traffic for Switzerland
30.03.201713
Statistic 1
Value of cross-border client payments as a percentage of total payments from
Switzerland's perspective (2015)In CHF billion
Source: Deloitte study
Cross-border
Domestic
Slide
Significance of cross-border payment traffic for
Switzerland
30.03.201714
Statistic 2
Development of domestic and cross-border payments(indexed in %, year-on-year)
Source: Deloitte study
0%
1%
2%
3%
4%
5%
6%
7%
2012 2013 2014 2015 2016
Inlandzahlungen AuslandzahlungenDomestic payments Cross-border payments
Slide
ISO 20022 payments: used in a growing number of
countries
30.03.201715
Slide
Benefits in terms of global trade
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End-to-end consistency of information Standardizes customer-bank and interbank communication
End-to-end consistency of data (all the relevant data get to the recipient, even with
cross-border credit transfers)
Complete data and uniform procedures
Automated reconciliation
Icrease transparency
Digitization of payment processes
Benefits for international clients with bank accounts in Switzerland and
abroad International corporate clients with different banking relationships in different countries
have a uniform interface to their banks
More information can be forwarded, and fewer payments will be rejected
High degree of automation will mean that funds are available more quickly
Slide
Longer-term opportunities emerging from migration to
the ISO 20022 standard
30.03.201717
Global trend to ISO 20022 USD clearing in the US: FED/CHIPS
TARGET2/EBA
Implementation of new products and initiatives SEPA Instant Payments
SWIFT gpi (Global Payments Innovation)
Automation of inquiries
Thanks to a very high degree of automation, efforts will increasingly shift to processes for
handling exceptions and inquiries, most of which are currently done manually on an
unstructured basis
Easier implementation of future regulatory requirements
Obligatory requirement for structured addresses for initiating parties and beneficiaries from
November 2020 for credit transfers via SWIFT and other market infrastructures
Any future requirements in relation to additional data fields or more data in payment transfers
(e.g. legal entity identifier)
Payment traffic harmonization
Changes and benefits
Nicole Walker, Head of Product Management Payment Solutions, PostFinance Ltd
Member of the Swiss Payments Council
Zurich, 30 March 2017
Slide 19
ISO 20022: digital payment processes
• Banks align their credit transfer schemes to
ISO 20022
• Banks use ISO 20022 for direct debits
• IBAN replaces all bank and postal account
numbers
• QR code replaces 7 payment slips
30.03.2017
Slide
Harmonization makes things simpler
30.03.201720
Credit
transfers
Direct debits
Notification &
reporting
Payment slips
One standard for all credit
transfer schemes
Standardized, end-to-end direct debit
procedure throughout Switzerland
Automated intraday account statements
and standardized day-end statements
End-to-end IBAN format for CHF
and EUR billing
Individuel submission and delivery
formats at banks
Banks and PostFinance work with
different direct debit procedures
Complicated reconciliation of account
and booking information
Transactions processing only semi-
automated
Account numbers with different
structures and IBAN
7 different payment slips
for CHF and EUR
Coded payment slips
(manual or reader device)
IBAN consistently replaces all account
numbers
Automated transactions processing
virtually end to end
Integration of QR code with structured
payment information
Before After
Slide
The benefits of ISO 20022
Business customers
Seamlessly integrated and
therefore efficient payment
and control processes
Unambiguous identification
automated end to end
(initiating party/recipient)
Better
data quality,
less prone
to error
Simplified
cash management
and lower
costs of capital
Development &
maintenance costs
minimized
(security of investment)
30.03.201721
Slide
The QR-bill
22
Free choice of paper, no payment slips in
color
Can be printed out on any standard label,
inkjet, or laser printer
Placement prescribed: bottom right
(on the bill or on a neutral subsequent
page), in A6 format
More flexible, easy to use
All information relevant to the payment can be
read by eye and entered manually
Payments still possible at the post office counter
or by mail
Slide
The QR invoice
30.03.201723
The new QR-bill can only be implemented after the complete changeover to ISO 20022.
1
2
3
Technological requirement: ISO 20022
Slide
Financial institutions
Test environments, training, advice, information
e-banking, smartphone apps
Payment traffic harmonization
30.03.201724
Situational need for adaptation
Bill recipients only
• Use IBAN
• Pay by QR code
No software for financial and operational processes
• Use IBAN, client information
• Implement the QR-bill
Low degree of integration with financial and operational processes
• Update standard software (comparable with Windows update)
• Cloud solution: no local adaptation
High degree of integration (standard software or own IT environment)
• Work involved depends on how complex and current software is
Organizations:
initiate project
Slide
The benefits of digital transformation
More cost-efficient processes,
easier cash management
and billing, and lower
costs of capital
Simplifies implementation of due
diligence and compliance
requirements
Time-saving credit transfers
with any smartphone
and reader device
30.03.201725
Slide
Questions and answers
30.03.201726
Slide
Payment traffic harmonization
More cost-efficient processes,
easier cash management
and lower costs of capital
Easier implementation of
due diligence and compliance
requirements
Time-saving credit transfers
with any smartphone
and reader device
30.03.201727
Initiate project now,
assess requirements,
and plan changeover
Contributes to entire
economy and helps boost
attractiveness for business
Many thanks!