Optimizing SWIFT ebam for Your Corporation

Transcription

1 Optimizing SWIFT ebam for Your Corporation May 30, 2013 Dan Gill Product Line Director, Corporate Solutions Weiland Financial / Open Solutions Christian Vega Sales Director, SWIFT Solutions Fundtech Corporation NEW YORK CASH EXCHANGE 2013

2 About Fundtech About the Company Annual Revenue $225M 1,000+ financial institution clients 1,500+ Employees HQ - Jersey City, NJ Thousands of SME-Corporate relationships US/Intn l Payments, Cash Management, Mobile Payments, Financial Messaging (SWIFT), Compliance Filtering, etc. About the Fundtech SWIFT Bureau Services World s largest SWIFT Service Bureau provider In Service Bureau: 280+ FIs, and over 80 Corporations In-house + Service Bureau: 600+ clients Data centers in North America, Switzerland, UK, and Singapore 2

3 About Weiland Financial Part of Open Solutions The Weiland Financial Group is the leading provider of bank fee management and bank account management solutions for more than 30 years. More than 300 of the Fortune 1000 In house and hosted Acquired by Open Solutions in 2010 and Fiserv in

4 What is Bank Account Management? A standardized system to maintain effective controls around the inventory of bank accounts used by a corporation Establishing processes around the opening and closing of accounts Maintaining accurate records of employees with authority over those accounts Maintaining legal entity links for all accounts Effective business processes to ensure compliance Effective communication of changes with banks 4

5 Scenario Policy? HR reports? Feedback? Policy? HR reports? Feedback? Limits? Authority to remove? Who else needs to know? Approvals? 5

6 What is ebam? A process to allow bank account changes to be communicated between a corporate and their banks through electronic means Eliminate errors Reduce delays Improve Controls Synchronize information The problem with the term ebam Defined in many different ways by many different banks No universal methodology Until now 6

7 ebam Automating the Conversation 7

8 What is SWIFT ebam? An industry-standard solution for electronic bank account management Open, maintain, and close accounts at multiple banks from one interface Manage account mandates for signers and other authority holders Request and receive Account Report documents to track account and mandate holder status Fully integrated with the SWIFT network, allowing for easy, secure, and reliable message transport Be clear when talking to your banks SWIFT ebam uses the ISO message formats to communicate bank account administration information over SWIFT FileAct 8

9 Electronic Bank-Account Management ebam automates the communication process between a corporate and a banking institution, reducing inaccuracy and inefficiency while improving traceability Replaces the current corporate bank methods for communication, which are often manual and paper-based 9

10 About SWIFT An industry owned co-operative organization serving the financial services industry A provider of highly secure financial messaging services A financial services standardization body SWIFT provides secure financial messaging SWIFT does NOT provide clearing or settlement services SWIFT does not hold accounts or assets Slide 10 10

11 EBAM SWIFT Global Standards 1. Acmt AccountOpeningRequest 2. Acmt AccountOpeningAmendmentRequest 3. Acmt AccountOpeningAdditionalInformationReq 4. Acmt AccountRequestAcknowledgement 5. Acmt AccountRequestReject 6. Acmt AccountAdditionalInformationRequest 7. Acmt AccountReportRequest 8. Acmt AccountReport 9. Acmt AccountExcludedMandateMaintenanceReq 10.Acmt AccountExcludedMandateMaintenanceAmendment 11.Acmt AccountMandateMaintenanceRequest 12.Acmt AccountMandateMaintenanceAmendment 13.Acmt AccountClosingRequest 14.Acmt AccountClosingAmendment 15.Acmt AccountClosingAdditionalInformationReq 11

12 Secure Financial Messaging SWIFT system Sender Receiver Sending customer Sending institution Receipt Receipt Receiving institution Receiving customer 12

13 Secure Financial Messaging PKI: FIN Access control PKI: End-2-end security RMA: Relationship mgt. PKI SWIFTNet PKI HSM SWIFTNet FIN interface PKI PKI RMA FIN PKI HSM SWIFTNet FIN interface 13

14 Typical Corporate-to-Bank Connection Model Corporate Responsibility Office Systems VAN Payment Processing & Settlement Cash Management & Reporting Host to host e-banking Leased Line Bank Acct. Mgt. Hedge Accounting Internet Other Strategic Operations e-banking fax-banking PSTN Corporate responsible for multiple protocols, standards & systems 14

15 SWIFT Connection Model Corporate Responsibility Office Systems Payment Processing & Settlement Cash Management & Reporting SWIFT Bank Acct. Mgt. Hedge Accounting Single Gateway Other Strategic Operations Access to SWIFT s global financial network sets corporations on a path to realizing a streamlined multi-bank communications strategy 15

16 Single Bank Communications Gateway Corporate Site ERP System Site (s) Service Bureau SWIFT FIN Messaging SWIFT Treasury Management System F T P Routing and Transformation SWIFT FileAct Messaging Bank Relationship & Account Mgt. Hedge Accounting Systems M Q FTP Agent PROD + TEST + DR environments 24/7 Tech & CS Support BAI, XML, EDI, NACHA, etc Internet A Service Bureau provides a single window for bank connectivity and can quickly turn on the SWIFT services needed for ebam and other treasury functions 16

17 SWIFT Service Bureau Model: Benefits Rapid Deployment / Time-to-Benefit Existing expertise and infrastructure Corporation avoids steep SWIFT learning curve Lower Total Cost of Ownership: Reduces labor and operations costs otherwise used to operate an in-house/direct connection Unified Processing Architecture to all SWIFT network services and capabilities FIN, FileAct, Interact/MX, Browse services All SWIFT message types: MT101, MT940, etc., and non-swift: EDI, BAI, XML, ebam, etc. SWIFT Expertise and Experience, including: General guidance, expert project management and implementation services Bank-specific best practices Security, Reliability, Availability Ongoing support for disaster recovery, upgrades, standard changes and general maintenance Hosted in secure data centers with always production ready, redundant disaster recovery locations Additional services readily available when/if needed: Message / format transformation Long-term Message Archival Compliance/OFAC Checking Direct Bank Connectivity to non-swift Banks 17

18 ebam Message Path Corporation (Web Access) VPN/LL EBAM System (ASP or In-House) SWIFT System (Service Bureau Or In-House) SWIFT SWIFT banks Response Request ebam XML SWIFTNet ebam File 18

19 What to Expect from an ebam System? What does an ebam platform do? Provides an enterprise-wide inventory of bank accounts and their relationships to your organization: Banks Accounts Authorities Subsidiaries Provides Business Process Management to establish controls around the bank account management process Provides communications capabilities, including ebam, between a company and its banks for the management of bank accounts 19

20 ebam Conversations Managing ebam messages using a conversation stream format Automatically consolidates various messages sent and received during a conversation within a single process tree Integrates with the Business Process Management module, connecting internal and external processes for managing accounts Tracking ongoing ebam conversations from a central location and understanding the conversation status: Awaiting Confirmation Confirmation Received More Information Required Additional Information Provided Awaiting Completion by User Completed Successfully Rejected 20

21 Conversation Types Five ebam conversation types: Open Account Request Account Report Update Account Update Account (Signer Mandate Only) Close Account 21

22 Message Types Outbound Inbound Conversation Starters: 007 Account Opening Request 013 Account Report Request 015 Account Maintenance Request (no mandate) 017 Account Maintenance Request (mandate only) 019 Account Closing Request Conversation Responses: 008 Account Opening Amendment 016 Account Maintenance Amendment (no mandate) 018 Account Maintenance Amendment (mandate only) 020 Account Closing Amendment Conversation Responses: 010 Account Request Acknowledgement 009 Account Opening Additional Information Request 011 Account Request Rejection 014 Account Report 012 Account Additional Information Request 021 Account Closing Additional Information Request 22

23 Conversation Example: Open Account Conversation 23

24 Conversation Example: Request Mandate Change 24

25 What is a Mandate Holder? Individuals authorized to perform financial transactions on designated accounts are known as Mandate Holders Mandate Holder information is traditionally tracked on a paper Signature Card Name Function Financial Limits Signature Image ebam replaces the paper signature card with the same information stored and transmitted as an XML message (mandate information) SWIFT also manages their own digital identity solution, 3SKey 25

26 ebam Message Components An ebam messages contain the following components: 1. Header: Identifies the destination (by SWIFT code), conversation stream, message type, and message contents 2. XML Message: The ebam message itself 3. Attachments: Any number of attachments required by the bank 4. Encryption: The message and all attachments are packaged and encrypted by a SWIFT service bureau for secure and reliable transportation 26

27 Building Blocks for Efficient EBAM 27

28 Current Status Finally Ready Pilot tests & rumors of Pilot tests SWIFT ebam messages ISO certified Many banks making progress on ebam at some level Watson, come here, I need you. On February 12, 2013 a major US based insurance company became the first to complete full end to end testing of SWIFT ebam messages through FileAct with one of their banks On February 25 th, 2013, that same company went into production with ebam over SWIFT to a major US bank Two other major US banks will be live in the next month or two Reach out to your banks today and ask when they will be ready to communicate via SWIFT ebam over FileAct. 28

29 Thank you! Dan Gill Product Line Director, Corporate Solutions Open Solutions E: T: Christian Vega Sales Director, SWIFT Solutions Fundtech Corporation E: T: NEW YORK CASH EXCHANGE 2013