Business Intelligence SWIFT Operations Forum - EMEA

Julia Nevolina

Arnaud Lejeune 27-29 November 2013

Amsterdam

Agenda

Introduction

BI portfolio today

BI Initiatives

New Watch &

Data Enrichment

What’s next

BI portfolio 2014

2 SOFE 2013

3

-6

-4

-2

0

2

4GDP growth (yoy, %)

-6

-4

-2

0

2

4GDP growth (yoy, %)

2008 2009 2010 2011 2012 2013

Q3 2013 (f): +1.1%

Q4 2013 (f): +1.5%

Q3 2013 (f): +0.1%

2008 2009 2010 2011 2011 2013

Q4 2013 (f): +0.7%

SWIFT Index captures the variations in SWIFT traffic and can be used to anticipate the economic activity evolution

SWIFT Index OECD SWIFT Index EU27

SWIFT Index is available upon registration on www.swift.com/SWIFTIndex

Why SWIFT BI?

Consulting services helping you to leverage the full potential of WATCH products Consulting services providing more information – e.g. peer benchmarking

SWIFT Business Intelligence portfolio

WATCH Insights

WATCH Analytics

Business Intelligence Services

Reports focusing on four specific business domains: Trade Finance, Payments, Network management Subset of data

Interactive database with possibility to build customized reports Complete set of data with value and currency or only number of transactions

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What does SWIFT BI bring to you?

Switzerland, 10%, 16%, 410,214

United States, 1%, 24%, 385,075

China, 15%, 10%,

165,789

Sweden, -1%, 78%, 145,023

-50%

0%

50%

100%

-15% -10% -5% 0% 5% 10% 15% 20%

Clients

Reciprocity

0% 20% 40% 60% 80% 100%201010

201012

201102

201104

201106

201108Sum of # Messages sent Sum of # Messages received

Counterparty evolution

Cross-selling

Customer Credit Transfers Fin. Inst. Transaction Documentary CreditsCollections Foreign exchange

0

50

Thou

sand

s

Customer Credit Transfers Fin. Inst. TransactionTreasury Trade finance

Market insights

Activity share

Peer benchmarking

51%

25%

7% 4%

13% EUR

USD

GBP

CHF

Others

Market

0

5,000,000

10,000,000

15,000,000 Bank 1

Bank 2

You

Bank 4

Bank 5

Bank 6

Bank 7

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Do you know how efficiently you operate ?

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Sample Data

Operational efficiency NAK rate of your entities and Market

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0.80%

0.20%

0.09% 0.08% 0.04%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

Entity C Entity D Entity B Entity A Market

Do you have an easy access to your business insights?

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Business Insights Reciprocity: USD denominated payments with US counterparties

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Counterparty 1

Counterparty 2

Counterparty 3

Counterparty 4

Counterparty 5

Your Entity in US

Counterparty 7

Counterparty 8

Counterparty 9

Counterparty 10

# of msg Sent # of msg ReceivedSample Data

Business Insights Trade Finance: Top 5 countries of LCs sent to from Europe + your Market Share

1%

10%

1%

14%

2%

0

200

400

600

800

1000

1200

1400

1600

China Brazil United States France Germany

Mill

ions

Market Total LCs sent Market Share of Bank A LCs sent

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Sample Data

Do you know your market position?

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Sample Data

Peers Benchmark Position of Bank A and its peers in LCs sent from Europe to Asia

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Business Intelligence Services

0

50

100

150

200

250

300

350

400

450

500

201211 201212 201301 201302 201303 201304 201305 201306 201307 201308 201309 201310

Bank A Peer 2 Peer 3 Peer 4 Peer 5 Peer 6

Introduction

BI portfolio today

BI Initiatives

New Watch &

Data Enrichment

What’s next

BI portfolio 2014

Agenda

15 SOFE 2013

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Did you say next gen?

• Improved time-to-market • Exportability and performance • Visuals and ease of use • Agility to release new features • Collaboration • Enrichments – new MTs in VA • Wizard to ease report generation

• Value buckets • Intraday granularity (own institution only) • Initial ordering & end beneficiary country • Details of charges • Confirmations and tenor of Letters of Credit

17

PRODUCTS

SERVICES

Show time!

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Overview of current transaction flows

Where are commercial payments from Africa going to?

Which payment routes are being used?

Key highlights • The importance of intra-Africa commercial

flows, and between Africa and Asia Pacific is not reflected in the transaction routes

• The dominance of USD as currency for international trade places banks in the United States in a unique position to intermediate flows with clearing services

USD 49%

EUR 27%

ZAR 7%

GBP 6%

Others 11%

Currency distribution for outgoing commercial payments from Africa

Source: SWIFT (number of cross-border MT103 sent from Africa to end-beneficiary country/region, April 2013)

Source: SWIFT (number of cross-border MT103 sent from Africa to counterparty country/region, April 2013)

Source: SWIFT (number of cross-border MT103 sent from Africa in 2012)

23%

22%

1%

26%

15%

4%

9%

Africa

Asia-Pacific

Central & LatinAmerica

Europe - EuroZone

Europe - NonEuro Zone

Middle East

North America

14%

5%

0%

28%

13%

1%

39%

Africa

Asia-Pacific

Central & LatinAmerica

Europe - EuroZone

Europe - NonEuro Zone

Middle East

North America

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Business Intelligence Services

Current View Additional View

Business Intelligence Services

Beneficiary country of payments sent (market) Where are USD denominated 103s sent to (from FR)

Current view – direct counterparty-country Beneficiary country for payments sent from France

United States 63%

France 9%

China 6%

Hong Kong 4%

United Kingdom

3%

Taiwan 1%

Germany 1%

Korea 1% Belgium

1%

Other 9%

United States 47%

China 7%

Hong Kong 6%

France 6%

United Kingdom

5%

Taiwan 2%

India 2%

Germany 1%

Switzerland 1%

Canada 1%

Singapore 1%

Other 21%

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Revenue drivers in the payments-space

• Field 71a which defines the charging codes – BEN / OUR / SHA

• Field 33b – Currency / Instructed amount – Indicating if an FX was done in the chain

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Worldwide EUR

SHA

OUR

BEN

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Business Intelligence Services

Identifying types of Letters of Credit

• Field 31c and 31d – Date of issue and date of expiry – Defined in buckets of number of days

• Field 41

– Available with …. By …

• Field 49 – Type of confirmation required

• Confirm/Without/May add

9% 3%

88%

CONFIRM

MAY ADD

WITHOUT

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Business Intelligence Services

Type of confirmation

Agenda

Introduction

BI portfolio today

BI Initiatives

New Watch &

Data Enrichment

What’s next

BI portfolio 2014

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SOFE - BI for Compliance 24

RISK MONITORING

• Identification of anomalies in Payments and Trade traffic patterns

• Relevant for multiple audiences: AML, Sanctions, Audit and Risk

• Based on monthly aggregated messaging information (possibly daily) in comparison with totals on SWIFT where relevant

• Embedding multiple risk classifications (AML, fiscal havens, corruption, financial transparency risks,…)

BI for Compliance Risk monitoring leveraging SWIFT traffic and message data

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Liquidity @ SWIFT

Sample Data

Questions & answers

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Key take-aways

• Business Intelligence portfolio is growing with more tailored services at your disposal next to the products

• Big investment ongoing on the new Watch platform for more granularity, ease of use, collaboration and data enrichment – Live next week!

• More to come with new products offering around Liquidity, Securities or Compliance

Contacts

For more information, please visit the following website: http://www.swift.com/business_intelligence For additional questions: Arnaud LEJEUNE Julia NEVOLINA Product Manager, SWIFT BI Services, EMEA arnaud.lejeune@swift.com julia.nevolina@swift.com

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#SWIFTBI BI Transaction Banking