1COPYRIGHT NAME OF COMPANY
TMS + SWIFT= 3Presented by
Mike Lewis, SWIFT
Bob Stark, Kyriba
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Today’s Discussion
How TMS + SWIFT = 3:
1) Improved visibility – cash, liquidity, exposures
2) Standardized controls – bank accounts, payments
3) Risk reduction – fraud, FX hedging
4) Lower costs – IT, multiple systems, increased productivity
Improved Visibility
5 Benefits to Visibility
1) Know where your cash is
2) Understand (and mitigate) risks cash is exposed to
3) Optimize use of cash
4) Reduced risk of fraud
5) More accurate cash flow forecasts (less variance)
Questions to ask
Does your organization have a good Global Cash Position worksheet readily available?
Is your process for obtaining your Global Cash Position automated?
If your processes are manual, what are the risks associated with errors?
How much time and money is being spent to maintain multiple connection points to your counterparties – not only for internal systems/personnel but also in banking fees?
Could your personnel be repurposed if you automated your processes with a single point of connectivity to your counterparties?
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Solution: TMS + SWIFT = 3
TMS + SWIFT gives ability to cost effectively reach any bank to download any format for daily reporting
- MT9xx, XML CAMT, BAI2, etc.
Hidden benefit: Many organizations struggle with automating the “final 20%”
- Banks “with only an account or two” can also be connected with limited cost and effort
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Solution: TMS + SWIFT = 3
Hidden pockets of liquidity are valuable:
1) Complete cash picture (value in aggregation)
2) Allow full risk analysis for liquidity/operational/financial risk management
3) Enable accurate cash forecasting
Cannot reconcile what you can’t see
Without 100% visibility, do you NOT forecast for those geographies/businesses?
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Solution: TMS + SWIFT = 3
Visibility also extends to payments:
1) SWIFTNet offers (4) levels of payment acknowledgement
2) SWIFT GPI gives additional transparency (beyond the ACKs) into status of the payment
Visibility certainty that payments have goneability to position cash more quickly
Standardized Controls
Bank Connectivity (the inefficient way)
Does this look familiar?
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Standardized Controls
Multiple banking portals is inefficient
- Wasted time, finding your key fob, slightly different workflows, etc.
Bigger issue is inconsistent controls
- Each bank portal will have different security and ways of entering/approving payments
- Unlikely to align with your payment policy
Consistency is the key: standardize controls across all payments, in all geographies, by all people, within all payment systems
One of the reasons why organizations choose payment factories
You Your banks
Payment Initiation
Payment Approval
Payment Documentation
Payment Transmission
Payment Request
Standardized Controls
Standardized Controls
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TMSERP
Standardized Controls
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TMSERP
Document Attachment
Single Source of
Record
Automated Confirmations
One Set of Approvals
Consistent Security Protocol
One Set of Limits
Real-time Visibility
Encrypted Transfer
Risk Reduction
Risk Reduction
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TMSERP
Less systems minimizes opportunity for internal/external fraud Fraud preys upon weaknesses in controls and visibility
Increases ability to screen payments: internally and externally
Risk Reduction
Screening payments is as much about compliance with internal policies as it is about preventing fraud
What you should be screening:
1) Sanctions Lists (e.g. OFAC)
2) BIC Verification – ensuring BIC you’re paying is who you think it is
3) Payment Policies – payments to North Korea, 1st
payment to a new bank account, irregular amounts
Reduced Costs
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How to reduce connectivity costs
1) Don’t DIY – TMS + SWIFT offers pre-built integration to banks and pre-build formats
2) Reduce systems – TMS + SWIFT can support payment factories & payment centralization (ERP to TMS to SWIFT)
3) Increased productivity – re-direct time spent on connectivity monitoring, manually connecting to banks, screening for fraud
4) Centralize visibility through TMS (reduce portal users)
Tips and Tricks to be successful
Getting your ducks, errr, banks in a row!Develop a strategy
Tier your bank structure between big banks and small banks
Contacts banks in order of the bank on-boarding plan
Start Communication Early
Have a kick-off call with each bank
Complete SOWs, as required
Identify Bank Implementation Team
Open a SWIFT test pilot connection
Discuss files naming convention and hierarchy
Meet regularly with the banks
Set a regular meeting schedule, depending on phase
Corporate PM and Bank PM should meet separately
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Conclusions
Visibility is more achievable with TMS + SWIFT
Payment controls can be strengthened through standardization and consistency
Screening for unauthorized payments is easier with centralized technology
There is an opportunity to reduce costs
Thank you!Presented by
Mike Lewis, SWIFT
Bob Stark, Kyriba