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Corporate Access to SWIFT Stephan Kraft, Senior Account Director, SWIFT.

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Presentation on theme: "Corporate Access to SWIFT Stephan Kraft, Senior Account Director, SWIFT."— Presentation transcript:

1 Corporate Access to SWIFT Stephan Kraft, Senior Account Director, SWIFT

2 2 Agenda What is SWIFT? What's in it for a corporate? How to connect and what do you pay? What need banks to do to get ready? Case studies?

3 3 Agenda What is SWIFT? What's in it for a corporate? How to connect and what do you pay? What need banks to do to get ready? Case studies?

4 4 What is SWIFT? A co-operative organisation serving the financial industry A provider of highly secure financial messaging services The financial standardisation body

5 5 Country Coverage 4 billion messages/year customers 209 countries 19 Mio messages peak day (Feb2011)

6 6 Agenda What is SWIFT? What's in it for a corporate? How to connect and what do you pay? What need banks to do to get ready? Case studies?

7 What corporates say on SWIFT value “… reach all our banks directly, with the highest security” Head of Treasury Control and Reporting, Novartis “… achieve all objectives of our treasury centralization project” Head of Treasury and Risk Management, Iberia “… run a central platform with a single standard for every country and every bank” VP Finance & Treasury, T-Mobile International “… build one central ‘source of truth’ for banking data” Group Manager, Treasury, Microsoft “We took SWIFT to … “… have a standard and reliable process with all our banks” Group Treasury, Petronas

8 8 Sub heading if required Corporate Treasury Drivers Automation Standardisation Centralisation COSTS FTE Infrastructure RISK Operational Security COMPLIANCE Regulators (SOX, SEPA) Internal controls LIQUIDITY MANAGEMENT Where is my cash?

9 9 e-banking Y host to host X e-banking Z VAN “fax-banking” Internet leased line PSTN Corporate Accounts payable Accounts receivable Treasury Other Typical corporate-to-bank messaging landscape Today’s situation

10 10 SWIFT: A secure, standardised global single window to the financial industry Accounts payable Accounts receivable Treasury Other CORPHUHB Middleware SWIFTNet

11 11 SWIFTNet messaging services offering InterAct: Real-time or S&F messaging for query / response and transaction input Browse: Online information visualisation FileAct: Real-time or S&F file transfer for structured or free format files FIN: Store & Forward messaging (e.g. MT101, MT940)

12 Banking services Cash Management High value/urgent payments and reporting High value payments are carried over FIN, using MT101 (Request for Transfer) and reporting on transactions or on cash positions can be done using MT942 (Interim Transaction Report) or the end of day MT940 (Customer Statement) Low value/non urgent payments and reporting Low value payments are typically bulked and are carried in files using FileAct. Reporting on such payments can also be done over FileAct as well as disbursement files, check files … Payments files (e.g. ISO 20022, EDIFACT) Reporting files (e.g. ISO 20022, EDIFACT)

13 Banking services Treasury Management Liquidity Management Liquidity Management (e.g. pooling of account) involves payments which are urgent and of high value. Such payments are carried over FIN using the MT101 (Request for Transfer) Financial Risk Management Foreign exchange deals (e.g. spots, forwards) are confirmed with MT300 (FX confirmation), for money market deals, use the MT 320 (Fixed Load/Deposit Confirmation)

14 Banking services Trade Finance Import Letter of Credit Applicant can use the MT 798 (Trade Envelope) over FIN to apply for a L/C, Guarantees and Standby Letters or amend information. Bank can advise applicant about the issuance or amendment of a L/C Export Letter of Credit For export L/C, as the advising bank to the beneficiary you can offer FIN to exchange trade data using the MT 798 (Trade Envelope)

15 Electronic bank account management (eBAM) Fax Paper Yesterday SlowLow integration ExpensiveLow satisfaction Today Faster/cheaperStandardised DematerialisedAutomated Scope: account opening, maintenance, closing + reporting on account features (e.g. auditor requests). Key benefits: time and cost savings from improved control, reduced errors and increased STP; improved customer satisfaction (for banks) Timeline: SWIFT solution and ISO since end 2009 XML messages Supporting documents

16 1st presentation - date16 Exceptions and investigations Reconciliation Settlement Payment initiation Payment Processing Beneficiary claims non receipt Cannot apply payment Missing information on Beneficiary Scope: modification/cancellation, claim non receipt, unable to apply Key components: ISO standards on InterAct Key benefits: reduced enquiry cost, improved STP, faster reconciliation, improved treasury management Exceptions & Investigations

17 Homogenous authentication beyond SWIFT channel – 3SKey solution No uniform mechanism Different system per bank Costly & difficult to maintain 17 ALL BANKS Multi-Bank Multi-Application Multi-Network Multi-Country

18 The 3SKey solution in detail 18 John John = Token associated (registered) with several banks (3) (4) 2 User activates the token on 3SKey portal (2) Operates PKI and portal, issues certificates Activates token, associates with bank, signs Distributes token, associates user, verifies signatures 5 CRL check Token used to sign messages – bank verifies signature and revocation status (5)(6) 6 (1a+b) 1a Corporate user obtains an inactive token from a bank

19 19 Agenda What is SWIFT? What's in it for a corporate? How to connect and what do you pay? What need banks to do to get ready? Case studies?

20 20 SWIFT Connecting the financial community Banks (Founding ) IMI's (1992) MA-CUG (2001) Insurance IMI's (2001) Government institutions (2001) Trustees(1990) Broker-dealers (1987) Payment systems (1987) Clearing &Settlement systems (1987) Depositories (1987) Securities MI's (2000) Treasury Counterparties (1998) Payments MI's (1998) SCORE (2007) Stock Exchanges (1987)

21 21 Alliance Lite SWIFTNet connectivity infrastructure owned and operated by SWIFT Apps SWIFTNet Users Internet Private infrastructure SWIFTNet connectivity infrastructure owned and operated by the customer Apps SWIFTNet Users VPN Shared infrastructure SWIFTNet connectivity infrastructure owned and operated by third party Apps SWIFTNet Users Service Bureau VPN How to connect to SWIFTNet? Overview of Options

22 22 Infrastructure: SWIFT Entry Kit (One-time EUR, recurring EUR/year) Registration Fees: 1,250 EUR for BIC EUR for SWIFT Closed User Groups  MA- Traffic: -FIN: between (reporting) and EUR (international, non-reporting) per chargeable unit §File Transfer: max EUR per payment §minimum traffic fee = 166 EUR / month Private infrastructure SWIFTNet connectivity infrastructure owned and operated by the customer Apps SWIFTNet Users VPN How to connect to SWIFTNet? 1) Private Infrastructure

23 23 Shared infrastructure SWIFTNet connectivity infrastructure owned and operated by third party Apps SWIFTNet Users Service Bureau VPN How to connect to SWIFTNet? 2) Shared Infrastructure (via Service Bureau) Infrastructure: SWIFT Essential Kit (One-time EUR, recurring EUR/year) Costs for 3 rd party connectivity Registration Fees: 1,250 EUR for BIC EUR for SWIFT Closed User Groups MA - Traffic: -FIN: between (reporting) and EUR (international, non-reporting) per chargeable unit §File Transfer: max EUR per payment §minimum traffic fee = 166 EUR / month

24 24 VPN Alliance Lite SWIFTNet connectivity infrastructure owned and operated by SWIFT Apps SWIFTNet Users Internet Infrastructure, Registration and Traffic combined 2 available Pricing models: –Flat fee:850 EUR/month (including 4000 msg.*/month sent & received) 1 EUR/additional message –Pay as you go:200 EUR/month 1 EUR/message * 1 message = 1 FIN MT or 1 FileAct chunk of 100 Kb How to connect to SWIFTNet? 3) Alliance Lite

25 25 Agenda What is SWIFT? What's in it for a corporate? How to connect and what do you pay? What need banks to do to get ready? Case studies?

26 Bank Readiness - Internal Bank Operational Readiness Guide: ORP_Bank_Operational_Readiness_Guide_ _v2.3.pdf 26

27 Bank Readiness Certification Programme 27

28 28 Agenda What is SWIFT? What's in it for a corporate? How to connect and what do you pay? What need banks to do to get ready? Case studies?

29 Making your business case Costs Operational benefits Project typically paid back 2 x by operational benefits ? Additional benefits Better security, more control, … difficult to quantify but can be key driver Busine ss case Financial benefits

30 Business Case: SWIFT can support 30 SAMPLE!!!

31 31 Corporates on SWIFT Where do we stand today ? # registered corporate entities Geographical split EMEA Americas 72% 18% Asia Pacific 10%

32 32 # Mbytes exchanged over FileAct (live and pilot) Sent by corporates Received by corporates Annual growth 75% 21,166 26, % 15, ,5% + 10% 16, % 18,484

33 Breakdown by region and annual revenues 500M-1B <500M CAGmeeting_v4.pptx

34 Corporates on SWIFT Breakdown by industry sector* industry sectors 22 Connected subsidiaries are counted individually (*) Using the Industry Classification Benchmark (ICB) CAGmeeting_v4.pptx

35 35 German corporates connected to SWIFT

36 36 Austrian corporates on SWIFT

37 37

38 38 Your Contacts Judit Baracs Country Manager Hungary SWIFT Fischhof 3/6 A-1010 Vienna Austria swift.com T F M W E Stephan Kraft Corporate Access Specialist SWIFT Fischhof 3/6 A-1010 Vienna Austria swift.com T F M W E


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