SWIFT for Corporates Unique solutions for global corporates. Mauritius, 20 th May 2016

Transcription

1 SWIFT for Corporates Unique solutions for global corporates Mauritius, 20 th May 2016

2 Agenda About SWIFT Setting the Scene Corporate Treasury Insights 2016 SWIFT for corporates - an overview How to connect to SWIFT easily? The Business Case Can you afford not to use SWIFT? Corporate Bank Readiness Next Steps SWIFT for Corporates Workshop, Mauritius 20th May

3 The global provider of secure financial messaging services SWIFT for Corporates Workshop, Mauritius 20th May

4 40 years serving the global financial community 1980: First Asian countries connect to SWIFT 1986: SWIFT launches value-added services 1987: SWIFT launches securities services 2001: SWIFTNet goes live 2004: ISO introduction 2008: SWIFT launches Alliance Lite 2009: SWIFT launches Innotribe 70s 80s 90s 00s 10s 1973: Swift is born 1976: First operating centre opens 1977: SWIFT goes live first message sent 1979: North America connects to SWIFT 2012: SWIFT launches Sanctions Screening and Testing 2013: SWIFT opens operating centre in Switzerland and corporate services centre in Kuala Lumpur 1992: Interbank File Transfer goes live 1994: Customer support centre opens in Hong Kong 1997: SWIFT technology centre opens in the United States SWIFT for Corporates Workshop, Mauritius 20th May

5 SWIFT in figures 25.8 million FIN messages peak day (2014) 5.6+billion 11% FIN messages per year (2014) Increase in FIN traffic (2014) 10, SWIFT users Countries and territories SWIFT for Corporates Workshop, Mauritius 20th May

6 Corporate Values Excellence Communities Innovation SWIFT for Corporates Workshop, Mauritius 20th May

7 SWIFT users Banks Fund Managers Central Counterparties Clearing & Settlement Systems Corporates Broker-Dealers ICSDs Central Banks Global Custodians CSDs Stock Exchanges Depositories Trade Depositories SWIFT for Corporates Workshop, Mauritius 20th May

8 Our offering to the Community Messaging Standards Platform Software Offering Shared Services SWIFT for Corporates Workshop, Mauritius 20th May

9 SWIFT s core messaging service Financial messaging, enabled by platform and standards FIN Messaging InterAct FileAct Standards Platform SWIFT for Corporates Workshop, Mauritius 20th May

10 SWIFT for Corporates Trouble-free payments and compliance Certainty and efficiency in the supply chain Secure financial connectivity Identity and mandate management SWIFT for Corporates Workshop, Mauritius 20th May

11 PowerPoint Toolkit 23 October 2008 Confidentiality: restricted Setting the Scene Corporate Treasury Insights

12 Corporate Treasury Insights 2016 A report from BCG and BNP PARIBAS A cross-industry survey 750 corporate treasurers and CFOs Around the world Builds on the findings of the 2015 Corporate Treasury Insights study SWIFT for Corporates Workshop, Mauritius 20th May

13 Low-interest rate environment has reduced the benefit of Cash Pooling SWIFT for Corporates Workshop, Mauritius 20 th May

14 A Call for platform flexibility Treasurer wants A consolidated view of their liquidity and financial positions detailed reporting Greater consistency across geographies Platforms to aggregate such as cash management, trade, working capital management and FX but they don t want to be tied to a single banking platform Source: BCG / BNP corporate treasurer insights survey, 2015 / 2016 SWIFT for Corporates Workshop, Mauritius 20th May

15 Channel adoption varies by company size and region SWIFT for Corporates Workshop, Mauritius 20th May

16 The Emergence of Fintechs Increasing fragmentation in the ecosystem Treasurers like the specialised value proposition and the often-cheaper pricing However, 90% indicated that fintechs are not yet capable of meeting the full array of corporte treasury needs It is expected, that fintechs and banks to partner with each other If banks don t react, they will get Uberized by fintechs Source: BCG / BNP corporate treasurer insights survey, 2015 / 2016 SWIFT for Corporates Workshop, Mauritius 20th May

17 Banks have an opportunity to serve as valued advisors We need expertise from banks in areas that TMS and nonbanking providers will never be able to provide Banks can extend that expertise in five ways Securing company funding Leveraging their knowledge to provide in-depth support and advanced advisory (e.g. improve FX activities) Helping treasurers better assess counterparty credit risks Helping treasurers navigate the complexities of the local regulatory requirements Source: BCG / BNP corporate treasurer insights survey, 2015 / 2016 SWIFT for Corporates Workshop, Mauritius 20th May

18 Only a few corporates are using advanced analytic tools SWIFT for Corporates Workshop, Mauritius 20th May

19 SWIFT for corporates An overview

20 SWIFT for Corporates Global growth is important but results in a challenge Process landscape reflecting your current bank communication Statements Payment instructions FX-confirmations Sanctions lists OTC-Reporting Guarantees Advise LCs Domestic Formats Host2Host Fax Webservices ebanking Post Phone Intranet SWIFT for Corporates Workshop, Mauritius 20th May

21 SWIFT for Corporates Global treasury powered by SWIFT Connect all your banks globally Your Corporate BIC Statements Payment instructions FX-confirmations Sanctions lists OTC-Reporting Guarantees Advise LCs SWIFT SWIFT for Corporates Workshop, Mauritius 20th May

22 Secure financial connectivity Portfolio of Industry Standards supporting your various business flows* SWIFT to cover your business flows Business area Description Solution Payments Cash Management High-value & bulk payments Intraday and end-of-day statements FIN MT101 FileAct for all formats e.g. ISO 20022, DTA FIN MT9xx, MT210 FileAct for all formats e.g. ISO Foreign exchange Deal Confirmations and matching FIN MT3xx Multi-asset class matching Trade Finance FX/MM, Derivatives, Commodities, Securities LCs, Demand Guarantees Matching (Accord) FIN MT3xx, MT5xx, MT6xx FIN MT798 FileAct for documents Supply Chain Finance BPO based services (Payment on time, risk mitigation, financing) and approved payables financing FileAct for all formats e.g. ISO Regulatory requirements Trade reporting, clearing and collateral management FIN FileAct estatements Statement dematerialisation FileAct e.g. PDF, EBAM Account management (opening, closing) and Mandate management (signatories, user entitlements) ISO Documents e.g. PDF, *Non-exhaustive list of business flows SWIFT for Corporates Workshop, Mauritius 20th May

23 Current status Corporate segment Q In Figures A growing community since first inception in ,585 2,630 46% 37% 25% Corporate groups using SWIFT Banks reached globally (with traffic in Q1 16) Fortune 500 companies on SWIFT Less than USD 1 billion turnover Less than USD 0.5 billion turnover Q highlights 56 53% Corporates joined Of corporates that SWIFT in Q joined since 2015 went for Lite2 Corporates used ISO formatted messages Of Top40 SCORE banks are certified Of Top20 SCORE banks support 3SKey SWIFT for Corporates Workshop, Mauritius 20th May

24 Corporate connectivity Per corporate turnover & banking partners Corporates by annual turnover (USD Billion) Corporates by number of banking partners 12% 25% 14% 29% Inner: joining in 2016 Outer: All 5% 52% 34% 29% > 10 Bn 1-10 Bn Bn < 0.5 Bn less than 5 banks 30% Corporates with traffic in Q b/w 5 and 9 banks 24% > 20 banks 23% b/w 10 and 20 banks 23% 47% of corporates joining SWIFT in 2015 have a turnover < 1 Billion USD 31% of corporates joining SWIFT in 2015 have a turnover < 500 Million USD 70% of SWIFT-connected corporates deal with 5 banks or more (based on Live traffic in Q1 2015) 24

25 Corporate connectivity Per country Legend > < 10 0 SWIFT for Corporates Workshop, Mauritius 20th May

26 Corporate Traffic evolution in Africa Sum of Traffic sent Sum of Traffic received

27 Corporates on SWIFT Traffic Analysis Africa facts and figures Corporates exchange messages with banks in Africa 93% 7% FIN Traffic sent by corporates to African Banks FIN Traffic received by corporates from African Banks 2.6 million messages exchanged with African Banks (2015) 82% of traffic is Statements 14% of traffic is Payments 4% of traffic is FX confirmations 44 Corporates domiciled in Africa 23 Corporates domiciled in sub-sahara Africa 27

28 How to connect to SWIFT easily?

29 SWIFT for Corporate 3 Ways to connect Alliance Lite2 Lite2 membership Corp Lite2 Cloud-based connectivity via Alliance Lite2 Bank HTTPS / VPN Service Bureau SWIFT membership SB provider Corp SB SN Cloud-based connectivity via Alliance Lite2 Bank FTP / VPN In House SWIFT membership SWIFT Interface Corp SN Cloud-based connectivity via Alliance Lite2 Bank SWIFT for Corporates Workshop, Mauritius 20th May

30 Secure financial connectivity Overview - End-to-end workflow 1 - Payment initiation Batch payment preparation Payment validation File preparation 2 - Payment Process Payment validation Format Conversion File Transmission 3 - Payment Routing Secure Automatic Transmission Automatic Routing Non Repudiation ERP Proprietary format SIL LAU Alliance Lite2 HTTPS / VPN SWIFTNet TMS Industry standards 5 - Bank Statements Reconciliation Automatic import Cash Positions Update Accounting Reconciliation 6 - More options and services Virtualization Pack (VPN) Personal Signature Securities and FX processing Trade Finance 4 - Payment Processing Delivery Notification Validation and Process Generate Bank Statements SWIFT for Corporates Workshop, Mauritius 20th May

31 Alliance Lite 2 Offering Alliance Lite2 Infrastructure hosted by SWIFT SWIFTNet HTTPS/VPN Cloud solution Simple set-up Full SWIFT access Low cost Own BIC SWIFT for Corporates Workshop, Mauritius 20th May

32 Alliance Lite 2 Starter package Easiest way to connect to SWIFT via HTTPS and manual access using the Alliance Lite 2 GUI. Automated flows can be reflected by utilising the Alliance Lite 2 Autoclient that is part of the package already. Authorization is based on USBtoken devices. CORPDEXXX HTTPS ERP/TMS Autoclient on dedicated hardware SWIFT for Corporates Workshop, Mauritius 20th May

33 Alliance Lite 2 Enhanced package Using SWIFT-VPN-boxes will open the field to use software certificates instead ot the USB token device for the Alliance Lite 2 Autoclient. This enables you to work in an full virtualized server environment and helps to save costs and IT resources. CORPDEXXX VPN ERP/TMS Autoclient on virtualized servers SWIFT for Corporates Workshop, Mauritius 20th May

34 Alliance Lite 2 Managed package The Autoclient will be installed on the premises of the client via VPN connection. SWIFT is taking care of the Autoclient in case of upgrades, maintainence or failures. CORPDEXXX VPN ERP/TMS Autoclient on virtualized servers and actively managed by SWIFT SWIFT for Corporates Workshop, Mauritius 20th May

35 One-stop shop Be ready in no time Solution design Turnkey Implementation Package for Alliance LITE2 SWIFT implementation Remote installation Autoclient Token implementation SWIFT Training & GUI usage Start to use SWIFT as soon as possible and only with a minimalistic effort being support by the experts. SWIFT for Corporates Workshop, Mauritius 20th May 2016

36 Alliance Lite 2 Consulting services Bank on-boarding services to complete the SWIFT experience Consultancy Offering Business Flow Analysis (Package 1) Bank Relationship Onboarding (Package 2) Description Review of business flows for payments, cash management and treasury in the framework of bank connectivity via SWIFT. Advise on best practices in the areas of message and standards usage and the bank relationship model on SWIFT. Facilitate engagement in conjunction with the customer and relationship bank(s) from initial kickoff discussions, message standards requirements and legal & commercial negotiations. Provide SWIFT expertise during the project implementation to provide assistance for the onboarding of the customer s bank(s). SWIFT for Corporates Workshop, Mauritius 20th May

37 Alliance Lite2 SWIFT Integration Layer Integrate with your existing IT landscape SWIFT Integration Layer Services SWIFT for Corporates Workshop, Mauritius 20th May

38 Available packages MT940 aggregation Background The 2,000 character message size restriction on SWIFT requires many MT940 statements to be split among multiple statement pages, each sent across the SWIFT network as a separate message with a unique reference number. These pages may not be delivered to the recipient in the order that they are sent, and the delivery of each individual page is not guaranteed as pages can NAK on SWIFT. In order to correctly reconcile MT940 into a statement format, clients require the re-assembling of all pages of an MT940 into a single coherent unit. Content - Check if a MT940 is single-page or multiple page and if all of the pages of a multiple page MT940 are received - Process the MT940 and ensure that only complete MT940 statement data per senders BIC, account, currency code and statement date is passed to Convertor (or IPLA). - Transform the MT940 s into a single coherent unit that represents the total daily activity in a cash account that can be passed into a routine to further transform that daily activity into any statement format (e.g. BAI2, Excel) SIL SWIFT for Corporates Workshop, Mauritius 20th May

39 Available packages MT940 storage Background Some customers, receiving MT940s would like to rely on Lite2 to offer a searchable archival of these statements. This may or may not be in combination with their requirements for aggregation of MT940s. 1 Content - Parsing of MT940s into a database as provided by the customer - Customer can access data directly from the database or through a GUI they could develop themselves SIL SWIFT for Corporates Workshop, Mauritius 20th May

40 Available packages Human readable MT940 in pdf Background Some customers, receiving MT940s would like to also receive human readable statements through Lite2 (such functionality was available in the original Lite1). This may or may not be in combination with their requirements for aggregation of MT940s and/or database storage. 1 Content - Reading of MT940 data from the standard or customer database (in case the customer also wants the MT940 storage package) - Human readable presentation in pdf (based on customer specifications) SIL SWIFT for Corporates Workshop, Mauritius 20th May

41 Available packages FileAct for Corporates Background Corporates typically want to communicate with their Correspondent banks via FileAct. While doing so they need a number of functionalities such as calculation of transaction count, a processing results report and flow type selection based on MT, sender and Receiver BIC Payments File Bank A or B? Bank A Content - Management of the typical FileAct flows (ingoing and outgoing) between Corporates and their Correspondent banks - Customization through configuration - Support for Multiple file formats towards different banks (Routing) - Logging of all transactions (monitoring) - Optional components - Validation of file content - Transformation of file content - MQ connectivity - Formatting of authorization info (i.e. Txs Count) Acknowledgement Report File SIL Monitoring Bank B SWIFT for Corporates Workshop, Mauritius 20th May

42 Available packages FIN for Corporates Background For corporates that want to communicate with their Correspondent banks via FIN, a number of typical functionality such as de-bulking batch files with payments is required. Payment (e.g. MT 103) Bank A or B? Bank A Content - Management of the typical FIN flows (ingoing and outgoing) between Corporates and their Correspondent banks - De-bulking of payments batch file - Customization through configuration - Logging of all transactions (monitoring) - Optional components - Validation of payload - MQ Connectivity - Transformation of payload, i.e. - CSV to MT - MT mapping in line with individual bank s usage rules Acknowledgement Report (e.g. MT199) Statements (e.g. 950) SIL Monitoring Bank B SWIFT for Corporates Workshop, Mauritius 20th May

43 Available packages Autoclient alerting Background Very often, large corporates expect their systems suppliers to also manage their applications. In this context, SWIFT will develop a Managed Operations offering for Lite2 users, including AutoClient. Log files SNMP alert Content - Parsing of AutoClient log files - Generation of SNMP alerts in case of issues identified to person monitoring the infrastructure in SWIFT Lite2 AutoClient SWIFT for Corporates Workshop, Mauritius 20th May

44 Can you afford not to use SWIFT?

45 73% cost reduction Future proof investment 350% 120% 300% 100% 272% 297% 100% 250% 224% 239% 80% 200% 162% 173% 195% 60% 150% 132% 100% 50% 100% 100% 103% 100% 95% 93% 86% 88% 87% 27% 81% 40% 20% 0% FY estimate 2014 FY Estimate 0% traffic evolution (Kchar) messaging revenue evolution unit cost evolution (2nd axis) 2006 is used as base year (100%) full year estimation is a lineair projection based on the months available. Figures are after Fixed Fee, after discount for High Volume Connections (including estimate for 2013 and 2014) and before Rebate. Traffic is expressed in kilo characters, and is the combination of FIN, InterAct (including CREST) and FileAct (Kchar after compression). 45

46 Alliance Lite2 One-time implementation fees Choose the package that fit your needs Item Starter Enhanced Managed One-time implementation fee Monthly fees Implementation service Named contact during joining phase EUR EUR EUR Starting at 450,00 EUR Turnkey implementation with remote installation Starting at 1.350,00 EUR Turnkey implementation with on-site installation Starting at 3.200,00 EUR Turnkey implementation with on-site installation No Yes Yes Support after implementation Standard Dedicated Peace of Mind support Pro-active support and monitoring Connectivity HTTPS & USB VPN & Channel Cert. VPN & Channel Cert. SWIFT for Corporates Workshop, Mauritius 20th May

47 Alliance Lite2 Monthly pricing excl. traffic Starter package Band Traffic send (units per day) Price (EUR) ,00* ,00* , ,00 *Please note that if you receive over 500 units a day a 50% surcharge on the base fee in band 1 & 2 will apply. SWIFT for Corporates Workshop, Mauritius 20th May

48 Alliance Lite2 Monthly pricing excl. traffic Enhanced package including VPN and peace of mind support Band Traffic send (units per day) Price (EUR) ,00* ,00* , ,00 *Please note that if you receive over 500 units a day a 50% surcharge on the base fee in band 1 & 2 will apply. SWIFT for Corporates Workshop, Mauritius 20th May

49 Alliance Lite2 Monthly pricing excl. traffic Managed package incl. pro-active autoclient support Band Traffic send (units per day) Price (EUR) ,00* ,00* , ,00 *Please note that if you receive over 500 units a day a 50% surcharge on the base fee in band 1 & 2 will apply. SWIFT for Corporates Workshop, Mauritius 20th May

50 Alliance Lite2 Pricing guideline One Unit FIN: 1 message (size does not matter) InterAct: 1 message (size does not matter) FileAct: 1 chunk of 10kChar (after compression) Only live billable traffic is taken into account How to calculate your units and Alliance Lite 2 fees Billing starts New SWIFT customers: 30 days after token shipment date Band upgrade/downgrade Review: every 6 months First band: always as per quotation First review: 6 months after first invoice Traffic: sum of the live traffic over the last 6 months divided by 128 Note FileAct: total #kchar / 10 / 128 SWIFT for Corporates Workshop, Mauritius 20th May

51 You want even more SWIFT? Discover our full portfolio!

52 SWIFT for Corporates Bank Master Data The challenge Solutions beyond connectivity SWIFTRef To keep the bank master data up to date in a global world the corporate needs to consult different sources. With SEPA this becomes even more difficult as there are country- & bank-specific rules to be followed like central BICs that needs to used for SEPA payments. Local banks non-sepa country Local banks SEPA-country Local suppliers Local repositories like Bundesbank SWIFT for Corporates Workshop, Mauritius 20th May

53 SWIFT for Corporates Three reason why to go with SWIFT Solutions beyond connectivity SWIFTRef Global footprint with excellent contacts to the local authorities and to the banking community SWIFT is the official BIC registration authority Solid track record with over 300 corporate customers globally so far SWIFT for Corporates Workshop, Mauritius 20th May

54 SWIFT for Corporates Bank Master Data Go for best in class data quality Corporate Pack 1 File-based IBAN data (All countries) Bankers World Online included Monthly updates Solutions beyond connectivity SWIFTRef Corporate Pack 2 File-based BIC codes National Bank codes (160+ countries) IBAN data (All countries) Bankers World Online included Monthly updates SAP compatible Bankers World Online Easy online access BIC codes & bank hierarchy Bank codes (160+ countries) IBAN data (All countries) SEPA Routing SSIs Pricing (per year) Bankers World online: Corporate Pack 1: Corporate Pack 2: Options USD USD USD Automation: 10% Group licence: on request SWIFT for Corporates Workshop, Mauritius 20th May 2016

55 Corporate Bank Readiness PowerPoint Toolkit 23 October 2008 Confidentiality: restricted 55

56 Achieving Operational Readiness Messaging Testing Capabilities Documentation Support Subscription Correctly support a minimum set of MTs: MT101, MT940 Comply with FileAct Implementation Guide Test environment available Scripts for testing connections and applications On boarding Guide Contractual information Implementation Support - at least one identified individual to provide 1st line customer support SCORE - Standardised Corporate Environment on SWIFTNet SWIFT for Corporates Workshop, Mauritius 20th May

57 Is your bank ready for SWIFT for Corporates? CORPBIC1 CORPBIC2 CORPBIC3 Your institution SCORE Standardised Corporate Environment It is a standardised corporate environment on SWIFTNet It is based on a closed user group It is administered by SWIFT Corporates can interact with all banks registered in SCORE Banks can interact with all corporates registered in SCORE SWIFT for Corporates Workshop, Mauritius 20th May

58 SCORE registration Financial institutions (shareholders and sub-members*) can register to SCORE free of charge Test services FIN FileAct (real-time) Subscribe to SCORE on swift.com Live services FIN FileAct (real-time) FileAct (store-and-forward) FileAct (store-and-forward) SWIFT for Corporates Workshop, Mauritius 20th May *Sub-members register by their SWIFT shareholder

59 Bank readiness certification Programme objectives Payments Cash management Treasury Publish bank business capabilities over SWIFT Facilitate corporate reach for banks over SWIFT Enable corporates to increase their bank reach globally using SWIFT Promote the operational and commercial capabilities across banks Endorse bank s best practices for corporates over SWIFT SWIFT for Corporates Workshop, Mauritius 20th May

60 Bank readiness certification Entry & Advanced comparison Criteria Advanced certification Entry certification Participate in SCORE Yes Yes Receive FIN MT 101 and send MT 940 Yes Yes Send MT 942 Yes No Send/Receive files over FileAct* Yes* Yes* Testing facilities & scripts Yes Yes Operational documentation Yes Yes Have SWIFT-knowledge and trained sales staff Yes Yes Offer Basic commercial documentation Yes Yes Provide a dedicated SWIFT-page on website or contact details Yes Yes *Bank should comply with FA implementation guide SWIFT for Corporates Workshop, Mauritius 20th May

61 Bank Readiness SWIFT for Corporates Workshop, Mauritius 20th May

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