Slide 1
How SWIFT can help you How SWIFT can help you with SEPA?with SEPA?
Vincent QuestiauxSEPA Program Manager
3rd SEPA Conference, WarsawOctober 2007
Slide 2
Agenda
SEPA Testing ProgrammeSEPA Testing Programme
SWIFTNet Bulk Payments SolutionSWIFTNet Bulk Payments Solution
Be ready for SEPA – SWIFT TrainingBe ready for SEPA – SWIFT Training
Interoperability supportInteroperability support
Slide 3
SAL IBank internalCSM internal
SAL IIBank-to-Bank
SAL IIIBank-to-CSM
SAL IVBank-to-CSM-to-Bank
…
EPC Testing phases
SEPA Testing programmes for the EPC Testing phases
Note: SAL stands for Self Assessment Level in the EPC SEPA Testing Framework
…CSM specific business & operational testing programmesCSM specific business & operational testing programmesCSM specific business & operational testing programmes
…CSM specific business & operational testing programmesCSM specific business & operational testing programmesSpecific business & operational testing programmes bilaterally agreed
…CSM specific business & operational testing programmesCSM specific business & operational testing programmesEnd-to-end operational testing programmes within and across CSM communities
…CSM specific business & operational testing programmesCSM specific business & operational testing programmesBank or CSM internal Application testing programmes
Slide 4
SecetiSeceti
Dresdner BankDresdner Bank
Deutsche Bank Deutsche Bank FortisFortisHypo VereinsBankHypo VereinsBank
ING BankING Bank
JPMorgan ChaseJPMorgan Chase
Natixis Natixis
NordeaNordea
Intesa San PaoloIntesa San Paolo
SEBSEB
Société Générale Société Générale
UBSUBS
ABN AmroABN Amro
Bank of AmericaBank of America
Bank Austria CreditanstaltBank Austria Creditanstalt Banco Bilbao, Vizcaya Argentaria (BBVA)Banco Bilbao, Vizcaya Argentaria (BBVA)
Banco Popular EspañolBanco Popular Español
Banco Santander Central HispanoBanco Santander Central Hispano
Caisse Nationale des Caisses d’EpargneCaisse Nationale des Caisses d’Epargne
CitiGroupCitiGroup
CommerzbankCommerzbankCredit Mutuel (CIC)Credit Mutuel (CIC)
Created at SIBOS 06, the STAG provide advice and guidance to develop the SEPA Testing Programme
SEPA Testing programme is an initiative of the SEPA testing Advisory Group (STAG)
Slide 5
SAL IBank internalCSM internal
SAL IIBank-to-Bank
SAL IIIBank-to-CSM
SAL IVBank-to-CSM-to-Bank
EPC Testing phases
ISO Standard rules testing
A common SEPA Testing Programme to support SEPA Standards Compliance testing
Testing EPC rules
for SEPA
Testing CSM Market
Practices
File exchange headers Testing
…CSM specific business & operational testing programmesCSM specific business & operational testing programmesCSM specific business & operational testing programmes
…CSM specific business & operational testing programmesCSM specific business & operational testing programmesSpecific business & operational testing programmes bilaterally agreed
…CSM specific business & operational testing programmesCSM specific business & operational testing programmesEnd-to-end operational testing programmes within and across CSM communities
Slide 6
IberPayIberPay
DiasDias
SIBSSIBS
EquensEquens
STETSTET
VocaLinkVocaLink
EuroSICEuroSIC
Cooperation agreement between the CSMs and SWIFT
Reduce testing programmes overlap and promote interoperability with their members
SecetiSeceti
Slide 7
SAL IBank internalCSM internal
SAL II SAL III
Bank/CSM Testing with the CSMs and with theSEPA Testing Programme
File Exchange Headers
Core SEPA Standard
Non SEPA Service Messages
EPC SEPA Scheme rulebooks and Implementation Guidelines V2.3 (TVS)
Standards under discussion
Iber
pay
spec
ific
ST
ET
spec
ific
….
Equ
ens
spec
ific
AOS StandardEPC SEPA Scheme rulebooks
and Implementation Guidelines V2.3 (TVS)
Business and Operational Testing
CSM Market Practices Standards submitted to the EPC for endorsement
Slide 8
SWIFT SEPA Testing Programme value proposition
Standards
Proprietary messaging
Proprietary protocol
Value
Bulking SEPAMessages
EPC SEPA Additional Optional
Services (AOS)
Core SEPACompliance
StandardisedCSM
topologies
SEPA AOS
compliance
MessagingInteroperability
Additional Optional Services (AOS) (White Fields)
Non SEPA Service reports CSM specific fields
CSM specific fields
Value added services
Standardised File exchange header
Core EPC SEPASchemes
SEPA CSM market practice CSM market practices
Core SEPA (Yellow Fields)
Release 1.x
Future
Slide 9
Pragmatic testing approach with proven testing methodology
Testing strategy Testing strategy – Extensive coverage of EPC rules for SEPA – Testing the ability of the application to generate valid SEPA
messages
– Testing the robustness of the application to receive messages
– Validation of more than one rule per test case, if possible
– Specific CSM test cases roadmap Structured testing methodologyStructured testing methodology
– Identification of logical and physical Test Cases (Word/XML files)– Decision tables and equivalence patitioning techniques, with
value boundaries analysis
Optimised test cases to reduce the effort while offering the coverage required for the SEPA compliance certification
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Internal Internal Application Application
Testing Testing
Standards Standards Compliance Compliance
Testing Testing
Operational Operational Readiness Readiness
TestingTesting ACHACH
BilateralBilateral
Simulation Test and Qualification Service for SEPA (STaQS)
SWIFTStandards Smart Test Messages
A comprehensive and practical set of testing tools and services
SEPA BICPlusIBAN & Routing directories
Slide 11
Positioning the testing tools of the SEPA Testing Programme
Basic SEPA workflow (in & out) Free/scripted test cases Customisable test data Scheduling test execution Test results reporting Connectivity (SN FileAct) Hand-Holding Support +350 Test Cases EPC and CSM market practices EBA file headers support
Mandatory set of test cases Mandatory set of test cases for SEPA compliancefor SEPA compliance
Inbound message test only Free self testing only Customisable test data Manual test execution Test validation document No connection needed Hand-holdimg support 300+ messages EPC Core Standard only No file headers support
Useful test messages Useful test messages for SEPA testingfor SEPA testing
Simulation Test & QualificationSimulation Test & QualificationSmart Test MessagesSmart Test Messages
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SEPA Testing Programme benefits The industry reference for testing SEPA core standards
Mitigate operational risk through extensive and optimised testing with high risk coverage level
Ensure “standard” interoperability by testing strictly the SEPA core standard with SWIFT as a neutral 3rd party, independent from any clearing channel.
Reduce the testing costs by testing the SEPA Standards compliance once with a programme that does not overlap with the CSM tests
Leverage existing investment with integrated testing tools that are easy to use
Test at your own pace thanks to services available 24/7d that allow standalone testing
Slide 13
Release 1.1.1 SCTCSM Market Practices
EBA File Headers support = completed
= to be completed
Release 1.0/1.1 SCTbank-to-bankTVS and ISODirectories
specifications
Release 1.1.2EBA File Headers Enh.
ITB for Partners
Release forSDD
SN FileAct 6.1
Corporate-to-bankAOS fields
File HeadersEPC rules
SEPA Testing Programme Deliverables timeline
July 07 July 07 Aug-Sep 07 Aug-Sep 07 2007-2008 2007-2008 Future Future Oct 07 Oct 07
157 early adopters registered (512 destinations) incl. 8 ACHs and 11 users start testing (Oct 07)
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Agenda
SEPA Testing ProgrammeSEPA Testing Programme
SWIFTNet Bulk Payments SolutionSWIFTNet Bulk Payments Solution
Be ready for SEPA – SWIFT TrainingBe ready for SEPA – SWIFT Training
Interoperability supportInteroperability support
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The SWIFTNet Bulk Payments solution
Promoting market best practices and increased harmonisation
UNIFI ISO 20022 standards
SWIFTNet FileAct SWIFTNet InterAct for single/urgent messages
Standards1
Messaging2
Rulebook 3
SWIFTNet Bulk Payments is aiming at harmonising exchange of bulk payments, in order to decrease development costs and
facilitate interoperability between payments systems
SWIFTNet Bulk Payments is aiming at harmonising exchange of bulk payments, in order to decrease development costs and
facilitate interoperability between payments systems
Price per payment leg Pricing 4
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The SWIFTNet Bulk Payments solution - pricing
Price per payment instruction Between 0.02 and 0.07 eurocent per payment instruction transported, which
means between 1,430 and 5,000 payments for 1 Euro Supporting different message formats without impact on prices Independent from compression level, payment length and file size
(min 100 payments/file) Close to actual payment business model
Determined by The annual volume of the community, closed user group of entities
encompassing the same set of business rules and common standards to clear a single currency
The annual volume of the institution within the closed user group
Contributing to the calculation of the global tier of the financial institution
Slide 17
Agenda
SEPA Testing ProgrammeSEPA Testing Programme
SWIFTNet Bulk Payments SolutionSWIFTNet Bulk Payments Solution
Be ready for SEPA – SWIFT TrainingBe ready for SEPA – SWIFT Training
Interoperability supportInteroperability support
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Interoperability - components and issues
Business rulesBusiness rules
StandardsStandards
InfrastructureInfrastructure Transport mechanisms and protocols File header and structure
Instrument def. Rulebook
Chosen syntax and version Opt. Implementation Guidelines
“Competitive” space = implementation considerations
Cooperative space = business rules and standards
Exchange Payload Header
CSM Market Practices
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STAG identified interoperability enabler
Provides topology based expected layout of defined SEPA XML core messages
Supplements the EPC Implementation Guidelines
Endorsed by and published as an EPC document
Slide 19
CSM Market Practices – status
Slide 20
Exchange Payload Header - Status
Provides a generic solution and messaging layer-independent way of declaring the content of an exchange between parties and the structure of the exchange payload.
CommonHeadersRequirements
CommonLogicalModel
Service ProfilesGiovannini,
SEPA, ETC…
Specifications Service Profiles
Published on www.swift.com for public consultation. Next version available soon
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published on www.swift.com for public consultation
deadline for comments set for 14th Sept little feedback to date except from STET and
EBA Requests for further information received from
inside SWIFT and some committed customers.
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Exchange payload headers – Status
Next version will be issued based on the received feedback.
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SWIFTNet FileAct – Header Info implementation
To date, two profiles are defined…
– Transaction count: allows automated pricing for Bulk Payments solution
– Payment file summary: allows for confidentiality, authorisation, based on summary (risk management), audit trail, etc…
… but the solution remains flexible: additional fields can be added (and usually taken from the logical Exchange payload header model).
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Agenda
SEPA Testing ProgrammeSEPA Testing Programme
SWIFTNet Bulk Payments SolutionSWIFTNet Bulk Payments Solution
Be ready for SEPA – SWIFT TrainingBe ready for SEPA – SWIFT Training
Interoperability support Interoperability support
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Be ready for SEPA – what you need to know
How does SEPA impact your institution? What is this new ISO 20022 XML standard? How do I populate the SEPA XML credit
transfer and direct debit messages? What are the EPC implementation guidelines
and rules relating to these messages? How do these XML elements relate to the
MT 103? ….
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SWIFT Training offeringOpen classroom and customised, on-site courses
Receive a good general understanding about SEPA and what it means for your financial institution
Learn about SWIFT's several new offerings in the context of SEPA
Understanding SEPA
AvailableUsing ISO 20022 standards for SEPA credit transfers
Receive detailed information on the ISO 20022 messages, flows, rules and guidelines
Learn how to correctly process the XML messages for
SEPA credit transfers
Using ISO 20022 standards for SEPA direct debits
Receive detailed information on the ISO 20022 messages, flows, rules and guidelines
Learn how to correctly process the XML messages for
SEPA direct debits
For information and registration: www.swift.com/training
AvailableJan 2008