Post on 05-Nov-2021
transcript
SWIFT for Corporates Unique solutions for global corporates
Mauritius, 20th May 2016
Agenda
• About SWIFT • Setting the Scene – Corporate Treasury Insights 2016 • SWIFT for corporates - an overview • How to connect to SWIFT easily? • The Business Case – Can you afford not to use SWIFT? • Corporate Bank Readiness • Next Steps
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 2
The global provider of secure financial messaging services
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 3
40 years serving the global financial community 70s 80s 90s 00s 10s
1973: Swift is born 1976: First operating centre opens 1977: SWIFT goes live – first message sent 1979: North America connects to SWIFT
1980: First Asian countries connect to SWIFT 1986: SWIFT launches value-added services 1987: SWIFT launches securities services
1992: Interbank File Transfer goes live 1994: Customer support centre opens in Hong Kong 1997: SWIFT technology centre opens in the United
States
2001: SWIFTNet goes live 2004: ISO 20022 introduction 2008: SWIFT launches Alliance Lite 2009: SWIFT launches Innotribe
2012: SWIFT launches Sanctions Screening and Testing
2013: SWIFT opens operating centre in Switzerland and corporate services centre in Kuala Lumpur
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 4
SWIFT in figures
5.6+billion FIN messages per year (2014)
10,800+ SWIFT users
200+ Countries and territories
25.8 million FIN messages peak day (2014)
11% Increase in FIN traffic (2014)
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 5
Corporate Values
Excellence Communities Innovation
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 6
Banks
Global Custodians
Corporates
Central Counterparties
Trade Depositories
Central Banks
Broker-Dealers
Fund Managers
Clearing & Settlement Systems
Depositories
Stock Exchanges CSDs
ICSDs
SWIFT users
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 7
Messaging
Software Offering
Shared Services
Standards Platform
Our offering to the Community
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 8
Standards
Platform
SWIFT’s core messaging service Financial messaging, enabled by platform and standards
Messaging FIN
InterAct FileAct
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 9
Secure financial connectivity
Trouble-free payments and compliance
Certainty and efficiency in the supply chain
Identity and mandate management
SWIFT for Corporates
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 10
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 11
Setting the Scene Corporate Treasury Insights 2016
Corporate Treasury Insights 2016 A report from BCG and BNP PARIBAS
• A cross-industry survey
• 750 corporate treasurers and CFOs
• Around the world
• Builds on the findings of the 2015 Corporate Treasury Insights study
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 12
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
Low-interest rate environment has reduced the benefit of Cash Pooling
13
A Call for platform flexibility
Treasurer wants
• A consolidated view of their liquidity and financial positions
• detailed reporting
• Greater consistency across geographies
• Platforms to aggregate such as cash management, trade, working capital management and FX
…but they don’t want to be tied to a single banking platform
Source: BCG / BNP corporate treasurer insights survey, 2015 / 2016
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 14
Channel adoption varies by company size and region
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 15
The Emergence of Fintechs Increasing fragmentation in the ecosystem
• Treasurers like the specialised value proposition and the often-cheaper pricing
• However, 90% indicated that fintechs are not yet capable of meeting the full array of corporte treasury needs
• It is expected, that fintechs and banks to partner with each other
“If banks don’t react, they will get ‘Uberized’ by fintechs”
Source: BCG / BNP corporate treasurer insights survey, 2015 / 2016
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 16
Banks have an opportunity to serve as valued advisors
Banks can extend that expertise in five ways
• Securing company funding
• Leveraging their knowledge to provide in-depth support and advanced advisory (e.g. improve FX activities)
• Helping treasurers better assess counterparty credit risks
• Helping treasurers navigate the complexities of the local regulatory requirements
“We need expertise from banks in areas that TMS and nonbanking providers will never be able to provide”
Source: BCG / BNP corporate treasurer insights survey, 2015 / 2016
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 17
Only a few corporates are using advanced analytic tools
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 18
SWIFT for corporates – An overview
Process landscape reflecting your current bank communication Global growth is important but results in a
challenge
SWIFT for Corporates
Domestic Formats Host2Host Fax Webservices eBanking Post Phone Email Intranet
Statements Payment instructions FX-confirmations Sanctions lists OTC-Reporting Guarantees Advise LCs
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 20
Connect all your banks globally
Global treasury powered by SWIFT
SWIFT for Corporates
SWIFT
Statements Payment instructions FX-confirmations Sanctions lists OTC-Reporting Guarantees Advise LCs
Your Corporate BIC
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 21
Business area Description Solution
Payments High-value & bulk payments FIN MT101 FileAct for all formats e.g. ISO 20022, DTA
Cash Management Intraday and end-of-day statements FIN MT9xx, MT210 FileAct for all formats e.g. ISO 20022
Foreign exchange Deal Confirmations and matching FIN MT3xx
Multi-asset class matching
FX/MM, Derivatives, Commodities, Securities
Matching (Accord) FIN MT3xx, MT5xx, MT6xx
Trade Finance LCs, Demand Guarantees FIN MT798 FileAct for documents
Supply Chain Finance
BPO based services (Payment on time, risk mitigation, financing) and approved payables financing FileAct for all formats e.g. ISO 20022
Regulatory requirements Trade reporting, clearing and collateral management FIN
FileAct
eStatements Statement dematerialisation FileAct e.g. PDF, …
EBAM Account management (opening, closing) and Mandate management (signatories, user entitlements)
ISO 20022 Documents e.g. PDF, …
Portfolio of Industry Standards supporting your various business flows*
SWIFT to cover your business flows
*Non-exhaustive list of business flows
Secure financial connectivity
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 22
In Figures
2,630 Banks reached
globally (with traffic in
Q1’16)
46% Fortune 500 companies on SWIFT
37% Less than
USD 1 billion turnover
25% Less than USD
0.5 billion turnover
53% Of corporates that
joined since 2015 went for Lite2
691 Corporates used ISO
20022 formatted messages
37 Of Top40 SCORE
banks are certified
19 Of Top20 SCORE
banks support 3SKey
1,585 Corporate groups
using SWIFT
A growing community since first inception in 1999
56 Corporates joined SWIFT in Q1 2016
Q1 2016 highlights
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 23
Current status Corporate segment – Q1 2016
Per corporate turnover & banking partners
14%
52%
5%
29% 29%
34%
12%
25%
> 10 Bn
1-10 Bn
0.5-1 Bn
< 0.5 Bn
Corporates by annual turnover (USD Billion)
Inner: joining in 2016
Outer: All
47% of corporates joining SWIFT in 2015 have a turnover < 1 Billion USD 31% of corporates joining SWIFT in 2015 have a turnover < 500 Million
USD
> 20 banks 23%
b/w 10 and 20 banks 23%
b/w 5 and 9 banks 24%
less than 5 banks 30%
Corporates by number of banking partners
Corporates with
traffic in Q1 2016
70% of SWIFT-connected corporates deal with 5 banks or more
(based on Live traffic in Q1 2015) 24
Corporate connectivity
Legend
• > 75
• 25 – 75
• 10 – 25
• < 10
• 0
Per country
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 25
Corporate connectivity
Corporate Traffic evolution in Africa
0
50000
100000
150000
200000
250000Sum of Traffic sent Sum of Traffic received
243 Corporates exchange messages with banks in Africa
2.6 million messages exchanged with African Banks
(2015)
• 82% of traffic is Statements • 14% of traffic is Payments • 4% of traffic is FX confirmations
• 44 Corporates domiciled in Africa • 23 Corporates domiciled in sub-Sahara
Africa
Africa facts and figures 2015
Corporates on SWIFT
7%
93%
FIN Traffic sentby corporates toAfrican Banks
FIN Trafficreceived bycorporates fromAfrican Banks
Traffic Analysis
27
How to connect to SWIFT easily?
Cloud-based connectivity via Alliance Lite2 Alliance Lite2 Lite2 membership
Corp Bank Lite2
HTTPS / VPN
In House SWIFT membership SWIFT Interface
Cloud-based connectivity via Alliance Lite2 Corp Bank SN
Service Bureau SWIFT membership SB provider
Cloud-based connectivity via Alliance Lite2 Corp Bank SB
FTP / VPN
SN
SWIFT for Corporate 3 Ways to connect
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 29
Secure financial connectivity
ERP
Alliance Lite2
Industry standards
Proprietary format
Batch payment preparation Payment validation File preparation
1 - Payment initiation
Overview - End-to-end workflow
TMS
SIL Payment validation Format Conversion File Transmission
2 - Payment Process
HTTPS / VPN
LAU
3 - Payment Routing Secure Automatic Transmission Automatic Routing Non Repudiation
SWIFTNet
4 - Payment Processing Delivery Notification Validation and Process Generate Bank Statements
Automatic import Cash Positions Update Accounting Reconciliation
5 - Bank Statements Reconciliation
Virtualization Pack (VPN) Personal Signature Securities and FX processing Trade Finance
6 - More options and services
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 30
Offering Alliance Lite 2
HTTPS/VPN
Alliance Lite2
Infrastructure hosted by SWIFT SWIFTNet
Simple set-up Low cost Full
SWIFT access
Own BIC
Cloud solution
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 31
Starter package Alliance Lite 2
Easiest way to connect to SWIFT via HTTPS and manual access using the Alliance Lite 2 GUI. Automated flows can be reflected by utilising the Alliance Lite 2 Autoclient that is part of the package already. Authorization is based on USB-token devices.
ERP/TMS
CORPDEXXX
Autoclient on
dedicated hardware
HTTPS
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 32
Enhanced package Alliance Lite 2
Using SWIFT-VPN-boxes will open the field to use software certificates instead ot the USB token device for the Alliance Lite 2 Autoclient. This enables you to work in an full virtualized server environment and helps to save costs and IT resources.
ERP/TMS
CORPDEXXX
Autoclient on
virtualizedservers
VPN
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 33
Managed package Alliance Lite 2
The Autoclient will be installed on the premises of the client via VPN connection. SWIFT is taking care of the Autoclient in case of upgrades, maintainence or failures.
ERP/TMS
CORPDEXXX
Autoclient on
virtualizedservers
and actively
managed by SWIFT
VPN
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 34
SWIFT implementation
SWIFT Training & GUI usage
Token implementation
Remote installation Autoclient
Solution design
Turnkey Implementation
Package for
Alliance LITE2
Start to use SWIFT as soon as possible and only with a minimalistic effort being support by the experts.
Be ready in no time One-stop shop
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
Alliance Lite 2 Bank on-boarding services to complete the SWIFT experience Consulting services
Consultancy Offering Description
Business Flow Analysis
(Package 1)
Review of business flows for payments, cash management and treasury in the framework of bank connectivity via SWIFT.
Advise on best practices in the areas of message and standards usage and the bank relationship model on SWIFT.
Bank Relationship
Onboarding (Package 2)
Facilitate engagement in conjunction with the customer and relationship bank(s) from initial kick-off discussions, message standards requirements and legal & commercial negotiations.
Provide SWIFT expertise during the project implementation to provide assistance for the onboarding of the customer’s bank(s).
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 36
Alliance Lite2 Integrate with your existing IT landscape SWIFT Integration Layer
Services
SWIFT Integration
Layer
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 37
Content - Check if a MT940 is single-page or multiple page and if
all of the pages of a multiple page MT940 are received - Process the MT940 and ensure that only complete
MT940 statement data per senders BIC, account, currency code and statement date is passed to Convertor (or IPLA).
- Transform the MT940’s into a single coherent unit that represents the total daily activity in a cash account that can be passed into a routine to further transform that daily activity into any statement format (e.g. BAI2, Excel).
Background The 2,000 character message size restriction on SWIFT requires many MT940 statements to be split among multiple statement pages, each sent across the SWIFT network as a separate message with a unique reference number. These pages may not be delivered to the recipient in the order that they are sent, and the delivery of each individual page is not guaranteed as pages can NAK on SWIFT. In order to correctly reconcile MT940 into a statement format, clients require the re-assembling of all pages of an MT940 into a single coherent unit.
MT940 aggregation
1
2
4
3
SIL
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
Available packages
38
Content - Parsing of MT940s into a database as provided by the
customer - Customer can access data directly from the database or
through a GUI they could develop themselves
Background Some customers, receiving MT940s would like to rely on Lite2 to offer a searchable archival of these statements. This may or may not be in combination with their requirements for aggregation of MT940s.
1
2
4
3
SIL
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
MT940 storage
Available packages
39
Content - Reading of MT940 data from the standard or customer
database (in case the customer also wants the MT940 storage package)
- Human readable presentation in pdf (based on customer specifications)
Background Some customers, receiving MT940s would like to also receive human readable statements through Lite2 (such functionality was available in the original Lite1). This may or may not be in combination with their requirements for aggregation of MT940s and/or database storage.
1
2
4
3
SIL
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
Human readable MT940 in pdf
Available packages
40
Content - Management of the typical FileAct flows (ingoing and
outgoing) between Corporates and their Correspondent banks
- Customization through configuration - Support for Multiple file formats towards different banks
(Routing) - Logging of all transactions (monitoring) - Optional components
- Validation of file content - Transformation of file content - MQ connectivity - Formatting of authorization info (i.e. Txs Count)
Background Corporates typically want to communicate with their Correspondent banks via FileAct. While doing so they need a number of functionalities such as calculation of transaction count, a processing results report and flow type selection based on MT, sender and Receiver BIC
Bank A
Bank B
Payments File
Acknow-ledgement
Report File
Bank A or B ?
SIL
Monitoring
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
FileAct for Corporates
Available packages
41
Content - Management of the typical FIN flows (ingoing and
outgoing) between Corporates and their Correspondent banks
- De-bulking of payments batch file - Customization through configuration - Logging of all transactions (monitoring) - Optional components
- Validation of payload - MQ Connectivity - Transformation of payload, i.e.
- CSV to MT - MT mapping in line with individual bank’s
usage rules
Background For corporates that want to communicate with their Correspondent banks via FIN, a number of typical functionality such as de-bulking batch files with payments is required.
Payment (e.g. MT 103)
Acknow-ledgement
Report (e.g. MT199) Statements (e.g. 950)
Bank A
Bank B
Bank A or B ?
SIL
Monitoring
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
FIN for Corporates
Available packages
42
Content - Parsing of AutoClient log files - Generation of SNMP alerts in case of issues identified to
person monitoring the infrastructure in SWIFT
Background Very often, large corporates expect their systems suppliers to also manage their applications. In this context, SWIFT will develop a Managed Operations offering for Lite2 users, including AutoClient.
Lite2 AutoClient
Log files
SNMP alert
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
Autoclient alerting
Available packages
43
Can you afford not to use SWIFT?
100%
132%
162% 173%
195%
224% 239%
272%
297%
100% 103% 100% 95% 93% 86% 88% 87% 81%
100%
27%
0%
20%
40%
60%
80%
100%
120%
0%
50%
100%
150%
200%
250%
300%
350%
2006 2007 2008 2009 2010 2011 2012 2013 FYestimate
2014 FYEstimate
traffic evolution (Kchar) messaging revenue evolution unit cost evolution (2nd axis)2006 is used as base year (100%). 2013 full year estimation is a lineair projection based on the months available. Figures are after Fixed Fee, after discount for High Volume Connections (including estimate for 2013 and 2014) and before Rebate. Traffic is expressed in kilo characters, and is the combination of FIN, InterAct (including CREST) and FileAct (Kchar after compression).
Future proof investment 73% cost reduction
45
Alliance Lite2 Choose the package that fit your needs
Item Starter Enhanced Managed
One-time implementation fee 10.000 EUR 25.000 EUR 40.000 EUR
Monthly fees Starting at 450,00 EUR
Starting at 1.350,00 EUR
Starting at 3.200,00 EUR
Implementation service
Turnkey implementation with remote installation
Turnkey implementation with on-site installation
Turnkey implementation with on-site installation
Named contact during joining
phase No Yes Yes
Support after implementation Standard Dedicated Peace of Mind
support Pro-active support and
monitoring
Connectivity HTTPS & USB VPN & Channel Cert. VPN & Channel Cert.
One-time implementation fees
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 46
Band Traffic send (units per day) Price (EUR)
1 0 – 10 450,00*
2 10 - 30 750,00*
3 30 – 100 1.200,00
4 100 – 500 1.750,00
Alliance Lite2 Starter package
Monthly pricing excl. traffic
*Please note that if you receive over 500 units a day a 50% surcharge on the base fee in band 1 & 2 will apply.
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 47
Band Traffic send (units per day) Price (EUR)
1 0 – 10 1.350,00*
2 10 - 30 1.650,00*
3 30 - 100 2.100,00
4 100 - 500 2.650,00
Alliance Lite2 Enhanced package including VPN and peace of mind support Monthly pricing excl. traffic
*Please note that if you receive over 500 units a day a 50% surcharge on the base fee in band 1 & 2 will apply.
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 48
Band Traffic send (units per day) Price (EUR)
1 0 – 10 3.200,00*
2 10 - 30 3.500,00*
3 30 - 100 3.950,00
4 100 - 500 4.500,00
Alliance Lite2 Managed package incl. pro-active autoclient support Monthly pricing excl. traffic
*Please note that if you receive over 500 units a day a 50% surcharge on the base fee in band 1 & 2 will apply.
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 49
Alliance Lite2 How to calculate your units and Alliance Lite 2 fees Pricing guideline
One Unit FIN: 1 message (size does not matter) InterAct: 1 message (size does not matter) FileAct: 1 chunk of 10kChar (after
compression) Only live billable traffic is taken into account
Billing starts New SWIFT customers:
• 30 days after token shipment date
Band upgrade/downgrade Review: every 6 months First band: always as per quotation First review: 6 months after first invoice Traffic: sum of the live traffic over the last 6
months divided by 128 Note FileAct: total #kchar / 10 / 128
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 50
You want even more SWIFT? Discover our full portfolio!
Solutions beyond connectivity SWIFTRef Bank Master Data – The challenge
SWIFT for Corporates
Local banks SEPA-country
Local banks non-SEPA country
Local suppliers
To keep the bank master data up to date in a global world the corporate needs to consult different sources. With SEPA this becomes even more difficult as there are country- & bank-specific rules to be followed like central BICs that needs to used for SEPA payments.
Local repositories like Bundesbank
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 52
Three reason why to go with SWIFT
SWIFT for Corporates Solutions beyond connectivity SWIFTRef
Global footprint with excellent contacts to the local authorities and to the banking
community
SWIFT is the official BIC registration
authority
Solid track record with over 300
corporate customers globally so far
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 53
Corporate Pack 2 File-based BIC codes
National Bank codes (160+ countries) IBAN data (All countries)
Bankers World Online included Monthly updates SAP compatible
Pricing (per year)
Bankers World online: Corporate Pack 1: Corporate Pack 2:
Options Automation: 10% Group licence: on request
Bankers World Online Easy online access
BIC codes & bank hierarchy Bank codes (160+ countries)
IBAN data (All countries) SEPA Routing
SSIs
Corporate Pack 1 File-based
IBAN data (All countries) Bankers World Online included
Monthly updates
Bank Master Data – Go for best in class data quality
SWIFT for Corporates Solutions beyond connectivity SWIFTRef
2.500 USD 4.000 USD
10.000 USD
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 55
Corporate Bank Readiness
Achieving Operational Readiness
Messaging • Correctly support a minimum set of MTs: MT101, MT940 • Comply with FileAct Implementation Guide
• Test environment available • Scripts for testing connections and applications
Testing Capabilities
Documentation • On boarding Guide • Contractual information
Support • Implementation Support - at least one identified individual to provide 1st line customer support
Subscription • SCORE - Standardised Corporate Environment on SWIFTNet
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 56
Is your bank ready for SWIFT for Corporates?
• It is a standardised corporate environment on SWIFTNet
• It is based on a closed user group
• It is administered by SWIFT
• Corporates can interact with all banks registered in SCORE
• Banks can interact with all corporates registered in SCORE
CORPBIC1
CORPBIC2
CORPBIC3 Your institution
SCORE Standardised Corporate Environment
SWIFT for Corporates Workshop, Mauritius – 20th May 2016 57
SCORE registration
Financial institutions (shareholders and sub-members*) can register to SCORE free of charge
Subscribe to SCORE on swift.com Test services Live services
FIN FIN
FileAct (real-time) FileAct (real-time)
FileAct (store-and-forward) FileAct (store-and-forward)
*Sub-members register by their SWIFT shareholder SWIFT for Corporates Workshop, Mauritius – 20th May 2016 58
Bank readiness certification Programme objectives
• Publish bank business capabilities over SWIFT
• Facilitate corporate reach for banks over SWIFT
• Enable corporates to increase their bank reach globally using
SWIFT
• Promote the operational and commercial capabilities across banks
• Endorse bank’s best practices for corporates over SWIFT
Payments
Cash management
Treasury
59 SWIFT for Corporates Workshop, Mauritius – 20th May 2016
Bank readiness certification Entry & Advanced comparison
Criteria Advanced certification Entry certification
Participate in SCORE Yes Yes
Receive FIN MT 101 and send MT 940 Yes Yes
Send MT 942 Yes No
Send/Receive files over FileAct* Yes* Yes*
Testing facilities & scripts Yes Yes
Operational documentation Yes Yes
Have SWIFT-knowledge and trained sales staff Yes Yes
Offer Basic commercial documentation Yes Yes
Provide a dedicated SWIFT-page on website or contact details Yes Yes
*Bank should comply with FA implementation guide SWIFT for Corporates Workshop, Mauritius – 20th May 2016 60
61
Bank Readiness https://corporates.swift.com/en/certification/
SWIFT for Corporates Workshop, Mauritius – 20th May 2016
www.swift.com
Power Point template - You can edit footer content by going into 'Insert' tab > 'Header & Footer' 62