The Presenter: Damien Dugauquier

Transcription

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2 The Presenter: Damien Dugauquier As the Commercial Director (Corporates) for ASEAN, Damien is based in Singapore and is responsible for SWIFT commercial activities for nonfinancial institutions in the ASEAN region. Damien represents SWIFT at various Conferences on Treasury, Cash Management and Trade Finance.

3 Corporate-to-Bank SWIFT Integration CS Lucas Webinar Damien Dugauquier, Commercial Director Corporates June 2016

4 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

5 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

6 Who is SWIFT

7 SWIFT for Corporates Correspondent banks Correspondent banks Cash management Treasury management Trade Finance Cash management Treasury management Trade Finance

8 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

9 SWIFT versus multiple bank channels Multiple bank channels Corporate Single, standardised gateway Corporate Accounts payable Accounts receivable Treasury Other host to host X e-banking Y VAN Leased line Internet Accounts payable Accounts receivable Treasury Other Standardised gateway e-banking Z Multiple File Formats Multiple Channels Multiple Banking Relationships Expensive and Complex Single File Format Single channel Flexibility to select banking partners Scalable and Interoperable

10 Benefits of SWIFT Cash visibility Control of cash Consistent payment processes Know where your cash is Central control to move cash Same process and controls globally Standardized bank comms Single interface to banks Single interface to G/L Global coverage Easier to connect banks Reduce IT risk and cost Reduce IT costs SWIFT standards used globally and across Asia

11 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

12 Trends in treasury operations C h a l l e n g e s Cash visibility ranked as #1 priority Operational efficiency and costs M o d e l s Risk management T a r g e t s Centralization of treasury and operations Automation of processing and reconciliation E n a b l e r s ERP and TMS investments Consolidation of connectivity channels Harmonisation of file formats

13 13 How does it work Corporate back-office SWIFT interface (e.g. Lite2) ERP AutoClient VPN AllianceLite2 Server SWIFTNet Standardized formats for: Payroll, ACH payments, telegraphic transfer, Reconciliation (bank statements) TMS /emission /reception /archive /error Standardized formats for: Fund transfers (payments) Confirmations (FX, placements) Cash positions (bank statements)

14 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

15 Corporate-tobank connectivity options E-banking/Letters Host-to-Host SWIFT Automation/manual Manual Partial automation Full automation Formats Cost Bank interface / bank template Internal cost (manual work) Channel No integration between ERP/TMS and banks Banks proprietary formats Standardized SWIFT formats IT cost to develop format and H2H with each banks Multiple channels between SAP/TMS and banks SWIFT cost One channel to all banks Flexibility Risk Additional tokens / templates per bank Operational risks Downtime No flexibility Can reuse single channel and standardized formats with all banks Operational risks (control and IT) Downtime Reduce operational risks

16 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

17 Time spent on e-banking Time spent on manual reconciliation Time spent on investigation/fixing of rejected payments Time spent on Excel Time spent creating payment files, s, paper instructions Cost of developing and maintaining Host-to-Host or semiautomated systems, e.g. macro in Excel Operational savings IT savings Avoidance of fraud, Less control points, Less documentation, Flexibility to change banks Additional benefits Financial benefits Working capital optimization and growth avoidance # basis points improvement, % slow down in growth, Use uninvested cash, Reduce overdraft and borrowing cost Interest on payments released later # days * overnight interest Transaction efficiencies Fees for rejected payments, savings on new cash management mandate, savings on TTs

18 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

19 Typical project milestones Joining Process 1-2 months Implementation 3-9 months 1. Submit join SWIFT request 2. Provide documents required for KYC:. Certificate of incorporation (with copy in English if original document in local language), The Latest annual report with external financial auditor's opinion The copy of the identity cards (passport) or driver's license of the two security officers The list of authorised signatures having the authority to sign on behalf of the company, The original Technical Configuration form (Undertaking e-form) duly signed, The recommendation letter from a SCORE Financial institution located in a FATF member country 3. SWIFT code attribution 1. Deployment of SWIFT Alliance 2. Back-office enhancement & Discussion with banks 3. Test and go live

20 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

21 Typical Corporate Journey on SWIFT Cash visibility and reconciliation Standardization and automation of Payments Treasury operational excellence MT940 (& MT101) MT101 and ISO20022 MT300, MT320, MT798 Automate the reception of bank statements & potentially centralize treasury payments Benefits Consolidated and reliable view on cash positions Enables auto-reconciliation Systems TMS, ERP, dashboards Automate and standardize the processes for all payments Benefits Scalability and bank agnostic Reduce operational risks Reduce costs Systems ERP Automate and digitize the communication with banks for other treasury activities Benefits Reduce operational risks Reduce costs Better control and visibility Systems ERP, TMS, other systems

22 Agenda 1. Who is SWIFT 2. Advantages of using SWIFT over e-banking 3. Treasury trends, integration with Treasury Management system and functionalities 4. Pros and Cons 5. Building your business case 6. On-boarding process and timeframe 7. Typical journey of a corporate on SWIFT 8. Q&A

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24 CS LUCAS SOLUTION A 360 solution for treasury, hedging and investment activities of a company.

25 ABOUT CS LUCAS Established 1996 Intuitive Workable Exceptional Value In-depth multi-industry experience

26 CLIENT AND INDUSTRY Clients include public sector agencies and wellestablished companies from different industry sectors. Client SMRT Corporation ComfortDelGro Corporation Limited CapitaMalls Asia Limited Ascendas Land Singapore Pte Ltd Singapore Deposit Insurance Corporation Ltd British Malayan Trustee Limited Crown Rising International Limited Sembcorp Financial Services Pte Ltd MOH Holdings Pte Ltd Singapore Petroleum Company Limited Tata NYK Shipping Pte Ltd RGE Pte Ltd Natsteel Holdings Pte Ltd International Container Terminal Services, Inc. Metro Pacific Investments Corporation Industry Transportation Transportation Real Estate/REITs Real Estate/REITs and Public Sector Financial Services/Public Sector Financial Services/Trusts Financial Services/Fund Management Financial Services Public Sector Oil & Gas Shipping Commodities Construction Transportation/Logistics Holdings/Investment Firm

27 KEY FEATURES Designed to centralise and facilitate collaborative work, increases the productivity. Straightthrough processing Accounting system integration Real-time connectivity E-banking platform integration Online collaboration Multicurrency support Auditable trail Institutional grade security Scalability

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