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TRANSCRIPT
A Progress Update
18 October 2018
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Housekeeping
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Agenda
Welcome Melanie Johnson, Chair, NPSO
NPSO Progress Update Paul Horlock, CEO, NPSO
New Payments Architecture 1 Matthew Hunt, COO, NPSO
Q&A
BREAK
New Payments Architecture 2 Matthew Hunt, COO, NPSO
RTGS Renewal Programme Sara Ward, Bank of England
Getting Ready Paul Horlock, CEO, NPSO
Q&A
Thank you Melanie Johnson, Chair, NPSO
Welcome
Melanie Johnson Chair
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Achievements
A Progress Update 18 October 2018
Transformation Paul Horlock CEO
Services Innovation
Transformation
Guardianship Ecosystem of Culture of
Strategic Framework
Strategic objectives
• Operations
• Risk
• People
• Technology
• Communications
• Legal
• Policy & regulatory
• Strategy & standards
Strategy implementation
KPIs
People Cost/Value
Risk Service
Services
Innovation
Guardianship
Vision
Culture Development
New Payments Architecture Matthew Hunt COO
New Payments Architecture Procurement Approach
OCT NOV DEC FEB APR AUG OCT JAN FEB Q2
2018 2019 2020
New Payments Architecture Procurement Timeline
Pay.UK PQQ
issued
Pay.UK stake- holder event
Pay.UK RFI
issued
Pay.UK RFP
issued
Pay.UK BAFO
shortlist published
Pay.UK strategic partner selected
Pay.UK BAFO
issued
Vendor PQQ
response
Vendor RFI
response
Vendor RFP
response
Vendor BAFO
response
New Payments Architecture Payment Ecosystem
New Payments Architecture Payment Ecosystem
IN THE MARKET
FOR THE MARKET
Q&A
Break
New Payments Architecture Matthew Hunt COO
New Payments Architecture Confirmation of Payee – Capability Enabled
Mar ‘18
Industry engagement and market research (200+ interactions across all groups)
Implementation approach planning with PSPs
Specifications (API) & design published
May ‘18
Jul ‘18
Sep ‘18
Nov ‘18
Jan ‘19
Rules, standards & proposition available for PSPs
Proposition, definition & GDPR/ data privacy interpretations
Stakeholder Engagement Report published (today)
CoP capability enabled for the market
Matching Accuracy
Customer Education
Market Network
Implementation planning is underway with participants
✗
New Payments Architecture Request to Pay
First revision of API specs published
v0.1
Q3 2018 Q4 2018 Q1 2019 Q2 2019
Early access sandbox live
v0.2 v0.3
v0.4
February v1.0 API specs
published Request to Pay standards launched
Industry and sandbox user feedback
Iterate API specs based on feedback Improve, add, streamline features
✓
New Payments Architecture Transaction Data Analytics
Recipient Account
New Payments Architecture Enhanced Data
NEW PAYMENTS
ARCHITECTURE
Buyer Supplier Payer’s PSP Payee’s PSP Auto reconciliation
Buyer Supplier
$
Payer’s PSP
$
Payee’s PSP
PI PI
New Payments
ArchitecturePI PI
Remittance Advice Remittance Advice Remittance Advice Remittance Advice Remittance Advice
Auto Reconciliation
Buyer Supplier
$
Payer’s PSP
$
Payee’s PSP
PI PI
New Payments
ArchitecturePI PI
Remittance Advice Remittance Advice Remittance Advice Remittance Advice Remittance Advice
Auto Reconciliation
Buyer Supplier
$
Payer’s PSP
$
Payee’s PSP
PI PI
New Payments
ArchitecturePI PI
Remittance Advice Remittance Advice Remittance Advice Remittance Advice Remittance Advice
Auto Reconciliation
Buyer Supplier
$
Payer’s PSP
$
Payee’s PSP
PI PI
New Payments
ArchitecturePI PI
Remittance Advice Remittance Advice Remittance Advice Remittance Advice Remittance Advice
Auto Reconciliation
PI PI PI PI PI
Remittance Advice
Buyer Supplier
$
Payer’s PSP
$
Payee’s PSP
PI PI
New Payments
ArchitecturePI PI
Remittance Advice Remittance Advice Remittance Advice Remittance Advice Remittance Advice
Auto Reconciliation
Remittance Advice Remittance Advice Remittance Advice Remittance Advice
New Payments Architecture Three Horizons
1st Horizon 2nd Horizon 3rd Horizon
Now Existing schemes
Far Future New Payments
Architecture & Eco-system
Near Future Transition
What does now look like?
How we get from as-is to to-be?
ISO20022
RTGS Renewal – Programme update & ISO 20022
Pay.UK Stakeholder Event October 2018
Increased
resilience
Greater
access
Wider
interoperability
Improved user
functionality
Strengthened
end to end risk
management
May 2017
Programme mobilised
March 2018
Launch of synchronisation
Proof of Concept (PoC)
March 2018
Programme scope
agreed at
RTGS/CHAPS Board
Design &
Source
Vision &
Strategy Plan-Analyse-Design (PAD)
Our journey to date
July 2017
External Advisory Body established
November 2017
CHAPS moved to direct delivery model
June 2018
Mansion house speech
ISO20022 consultation published
July 2018
Target Operating Model
and Solution Blueprint
agreed
External
touchpoints
Programme
achievements Key
I N D U S T R Y E N G A G E M E N T
August 2018
Transition and Readiness
Approach shared with Direct
Participants
ISO 20022 – Consultation Update
As part of the RTGS Renewal Project in June 2018 the Bank launched a 6-week
consultation paper on the adoption of a common global ‘language’ or messaging standard,
known as ‘ISO 20022’, for payments in the UK. The consultation closed on 18th July 2018.
• Most major banks and a number of
technology providers also provided
detailed responses.
• The FCA expressed support for the
direction of travel.
• The responses demonstrate that the
significance of ISO 20022 is
understood.
ISO 20022 Consultation
ISO 20022 | consultation update
Increasing resilience
and reducing risk
Enabling
organisations,
households and
policy makers to
take more informed
and effective
decisions
Improving UK
productivity and
outcomes for users
of payments
Operational
Resilience
Risk
management
Fraud and
financial crime
Competition and
innovation
International
harmonisation
Efficiencies
in processing
Richer Data
• Strong support for the proposed CCM and the suggested CHAPS implementation.
• A clear emphasis that the Bank and Pay.UK need to remain aligned.
ISO consultation: CHAPS thematic findings
Common Credit
Message ( CCM)
• Universal support for the proposed ongoing governance of the CCM. Agree with creation of a
senior strategic advisory panel.
Governance
• Strong support for planned interoperability.
• Industry awareness of the potential benefits of richer data is fast-developing.
Benefits
ISO consultation: CHAPS thematic findings
• Hard to estimate detailed costs of implementing ISO 20022 messaging.
• Considerable variations in estimates.
Costs
• Majority support LEIs, but some unfamiliarity & uncertainty.
• Strong support for purpose codes, but views varied on level of granularity with an appetite for global
standardisation.
• Strong support for removal of free-format fields; some respondents wanted more time to remove
these.
• Challenges around extended character sets.
Use of
New Fields
In CHAPS
ISO timeline
ANALYSIS
Detailed analysis
of consultation, decisions on
outcomes and drafting of
response
PUBLICATION
Consultation
Response Document
INDUSTRY EVENT
Presentation and
discussion of
response and lesson
from other
jurisdictions
GUIDANCE
Publication of draft CCM
and industry guidelines
GOVERNANCE
Creation of senior
strategic change advisory
panel
INTRODUCTORY PHASE
Like-for-like migration first
Aug-Nov 2018 Nov/Dec 2018 06 Dec 2018 early 2019 late 2019 not before 2021
Find out more
If you would like to attend any of our upcoming events
please email the RTGS Engagement Team.
• 03 December – Design & Source
• 06 December – ISO 20022
To join our mailing list and receive the latest programme
updates contact
Visit our website www.bankofengland.co.uk
Get Ready Paul Horlock CEO
Get Ready
Get Ready
Fintechs and Suppliers
Payment Service Providers
Trade Associations
Professional Services
Corporates
End Users
Other Payment System Operators
Regulators
International Partners
Q&A
Thank you Melanie Johnson Chair
If you have any questions or would like to find out how to get involved, email us at [email protected] and visit us at www.wearepay.uk. If you would like to know more about the NPA Programme and how to get involved, email us at [email protected]. © Pay.UK Limited 2018. All Rights Reserved. The information contained in the presentation is proprietary and confidential to Pay.UK Limited. This presentation may not be reproduced, copied, stored or transmitted in any form or by any means without the prior written permission of Pay.UK Limited. The Pay.UK name and logo are registered trade marks of Pay.UK Limited in the UK and EU.