Getting ‘ready’ for SWIFT for Corporates

SWIFT Operations Forum Americas

March 5, 2013

Agenda

Bank of America Merrill Lynch – Global landscape

Microsoft: Corporate Viewpoint

Bank Readiness

2

Panel discussion / Questions

Speaker Introductions

CGI Background

3

Speakers

•Pankaj Gudimella, Senior Cash Operations Manager,

Microsoft Corporation

•Tom Durkin, Bank of America Merrill Lynch, Managing

Director, GTS Global Integrated Channels

•Stacy Rosenthal, Senior Business Manager, Initiatives,

SWIFT

Key considerations

For Corporates implementing SWIFT globally

Bank Readiness

• What are the banks capabilities?

• Are the capabilities available across all regions?

• Do the banks have staff that are knowledgeable about SWIFT?

• Is there a dedicated implementation team?

Common Implementations

• What standards are supported?

• Can I implement the same standard across banks and regions?

• Why is my bank using their own ‘version’ of the standard?

• How do I prepare my teams for these variations?

4

Bank readiness certification programme in a

nutshell

• Online publication of banks ready to offer connectivity to Corporates

over SWIFT

• Assessment based on a set of criteria : 2 levels

– Mandatory criteria (to be met to be certified)

– Optional (additional capabilities can be published)

• 2 dimensions : operational and commercial criteria

• Granularity at country level (bank A ready in country X)

• Self-declaration from the bank

• Free of charge

• Link

5

20101005CAGmeeting_v2.pptx 6

Bank readiness certification programme :

Status

• Rolled out end 2010

• Certification started in January 2011

• So far 43 banking groups certified

(569 branches), covering 117 countries

• Very good feedback from banks : “gratified to be

listed”, “feeling the peer-pressure”

7

Bank readiness certification programme :

Barriers

• Main barriers for certification (among mandatory criteria):

– No commercial documentation available on the website (SWIFT

for Corporate bank’s offering)

– Lack of SWIFT for Corporates knowledge at the bank

– MT942 not supported

Banks working to lift these barriers

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• Provides a forum for financial institutions and non-financial institutions

to progress various corporate-to-bank implementation topics on the

use of ISO 20022 messages and other related activities in the

payments domain

• Promote wider acceptance of ISO20022 as the common XML

standard used between corporates and banks

• Agree one common global implementation for ISO20022 messages

– Common implementation templates for relevant ISO 20022 financial

message

• Simplify corporate implementations

9

CGI: mission and objective

“A corporate can use the same message structure for all their payments with

all of their transaction banks reaching any payment system across the globe”

Introducing SWIFT – dd month yyyy – Confidentiality: Public 10

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Visibility to cash via MT messages and other local statements Multiple Bank-specific VPN connections

~1,000 Bank Accounts

~500 managed daily

>100 global banking partners

>250

Subsidiaries ~85

currencies

Banking Infrastructure

Managing Global Cash with CGI

Global Risk Management Move from Visibility to Agility

Reduce

Costs Simplify

infrastructure

and process

Visibility

Mobility

Journey in Cash Management

FY 06

MT Format for bank statement reporting

MT format for bank statement reporting

FY11

ISO 20022 XML for bank statements via Swift

statements via SWIFT

FY12

MT101 & XML PAIN .001 for Payments via Swift

FY12

Gaining Insights SQL & Powerview

FY 13…

Initiate eBAM

Cash Visibility

Visibility to Mobility

Big Data to BI

Costs

• Implementation,

project management

& Operations

• Infrastructure

development of

messaging

• New monitoring

systems and

dashboards

Benefits

• Single Data Pipe

• Lower IT support costs

• Easier maintenance

and troubleshooting

• Increased STP and

visibility into cash

balances globally

• Enables mobility of

cash across banks and

regions

Costs and Benefits

Industry

Recognition - Pinnacle

- Alexander

Hamilton

First Ever ISO-XML 20022

v2 Implementation

Build

Partnerships

with Banks

and SWIFT

Prepare,

Plan, and

Plan again!

Implementation May Vary due to different practices: - Market - Banks - Corporates

Win-win

Solution

for

Corporate

and Banks

Collaboration Drives Innovation

Getting 'ready' for SWIFT for Corporates

Tom Durkin, Bank of America Merrill Lynch,

Managing Director, GTS Global Integrated Channels

March 5, 2013

Key trends for discussion:

Global operating model

Standardization

Automating through technology

Working capital optimization

Risk management and mitigation

Global landscape

Transaction Services

Connectivity Options

Standard integration capabilities

Corporate Platforms

File Format Standards

Transfer Protocols

Network Options

H2H File Management Services

Not all network options and transfer protocol options are interoperable

CO

RP

OR

AT

E T

O B

AN

K C

ON

NE

CT

IVIT

Y

ISO 20022 (XML)

ANSI X12

ERP-specific

Bank (Proprietary)

Client (Proprietary)

FileAct

HTTPS

SWIFTNet (PKI)

Public Internet (PKI)

IP VPN (IPSec/PGP)

VAN (Secure+)

AS2

SFTP

FTP

Control

NDM

Validation

Translation

Distribution

Encryption

Leased Line/ Frame Relay

CMS, TMS, TWS, etc.

ERP (Payables,

Receivables, Payroll)

SSC / Payment Factory / IHB

Other

UN/EDIFACT

Other

Standard Interfacing Options

Reporting Advising

Wires & FX

ACH US & Global

Checks

Collections

Card

Other

Authentication

SWIFT Expertise at BAML

SWIFT Corporate Access The Bank of America Merrill Lynch Advantage

Pilot bank for SCORE model and ISO 20022 XML

standards

Senior leadership on SWIFT Corporate Access Strategy

Group (CAG)

Frequent sponsor of SWIFT Corporate Access educational

sessions and materials

Global leadership as facilitator of the Common Global

Implementation (CGI) payments message workgroup

eBAM standards workgroup

Bank “Readiness” Certification

40 accredited SWIFT for Corporate Specialists

Robust global product capabilities available through

SWIFTNet

SWIFT Corporate Access – offered since 2003 with

SWIFT readiness certified

Experienced technical implementation teams

Trained SWIFT service associates

Leadership within and commitment to SWIFT

Accredited SWIFT for Corporate

associates are positioned globally

to serve you

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FIN message

ISO XML 20022

SWIFT FileAct

1 Payments and Information Reporting through FileAct

Industry Collaboration

Forum for FI and Non-FI to progress usage of ISO 20022,

simplify implementation

Promotes acceptance of ISO20022 as common XML

standard between corporates/banks

Achieves – through consultation, collaboration and

agreement – common implementation templates for

relevant ISO 20022 financial messages

Increases customer demand for multibank coordination of

implementations

Global corporate, multi-banked, multi-payment type, multi-

country implementations (mixed payables)

Intended specifically for global, multi-country, multi-bank

and multi-instrument implementations the participating

banks can commonly accept

Can be published/endorsed from appropriate communities

Engages corporate partnership

Influences adoption by market infrastructures and

application vendors

Integrated architecture

Online Channels

Integration interface

H2H Connectivity

File flows via electronic file

direct link

Payment files

Statements/

reporting Direct

connection

Payables/

Receivables

Statements and

custom reports

FX and

Trade eBAM and

billing analysis

ERP or Treasury

applications

Flexible, scalable architecture encompassing ISO 20022

Corporates Banks

Upstream

solutions

and

clearing systems

Approach and design — Implementation

25

Technology Deployment Schedules

Clear Alignment between

Business and Technology

Testing and Pre-Production

Agreement with your bank

Retention and attraction of

best employees

Develop a robust

business plan

and focus on

objectives

Build robust

performance

management

Centralize data Take a phased approach,

prioritizing easy and most

impactful

Strong project

management clear

documentation

Executive sponsorship

CGI

For further information

• Co-Conveners:

– Harri Rantanen – harri.rantanen@seb.fi

– Stig Korsgaard – stkor@nets.eu

• Information available:

– www.swift.com/cgi

– www.swiftcommunity.net /cgi

– Support.CGI@swift.com

• Three Working Groups

– Credit Transfer /Status Report (Susan Colles – Bank of America

Merrill Lynch)

– Direct Debit (François Lemaire – UTSIT)

– Account Reporting (Harri Rantanen – SEB)

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Panel discussion

?

Thank you

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