Corporate Onboarding made easy

Tom Alaerts, Head of Business Solutions, APAC

April 19, 2016 – Taipei

Why are corporates connecting to SWIFT?

Drivers for Corporate Banking Connectivity

• Aggregation of accounts worldwide• Intra-day / end of day balance• Cash forecasting for borrowing and investment activities

• Payment factories (A/P consolidation)• Treasury centralization • Consolidation of Bank relationships• ERP / TMS consolidation

• Secure and resilient connectivity to banks• ISO 20022 standards

Centralization and consolidation

Multibank cash reporting

Compliance and risk management

• Straight-through-processing

Automation

Evolution of Corporate groups on SWIFT

2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

200

400

600

800

1000

1200

1400

1600

1800

52 119232

407594

819962

1135

1380

1539

YoY Corporates Adoption

Why are banks getting ready to offer SWIFT for corporate connectivity?

4

Perceived as Innovator with new

efficient channelfor multi-bank

corporates

New opportunities of businessGROWTH AND RETENTION

“SWIFT connectivity has grown in popularity amongst corporates worldwide, and since CMB introduced corporate connectivity through SWIFT in 2008, China is no exception. There are two groups of customers that we find are most attracted to SWIFT: Chinese companies with an international growth trajectory, and foreign multinational corporations investing in China. By implementing this, these companies enjoy a consistent experience when communicating with their banks worldwide.”

5

Wang WeiXing, Product Manager &Zhou MuYang, Product Manager, Cash Management, China Merchants Bank

Most commonly used messages by CorporatesFIN

MT940 Customer Statement (3 million statements sent by AP banks in 2014)

MT942 Interim Transaction Report (4 million reports sent by AP banks in 2014)

MT101 Request for Transfer

MT300 FX Confirmation

MT320 Fixed Loan/Deposit Confirmation

MT910 Confirmation of Credit

MT900 Confirmation of Debit

FileAct 0.5 million files transferred in 2014 between AP banks and global corporates

MT101, MX pain Payment instruction

MX camt, MT940 Reporting

The Challenges of onboarding your corporates

Many challenges towards efficient corporate onboarding:- Can you support corporate-related MT and ISO 20022

standards? (MT940,941, pain.001…)- How efficiently can you create and share your

specifications?- How efficiently can your corporates implement the

SWIFT messaging and how muchsupport does it take?

- How rich is your trade services offering?- New MT798 functionality

- Do you need integration support?- Do you need project

management support?- How well am I doing versus other banks?

Your Bank

Your Corporate

Your Corporate

Your Corporate

Step 1

Your Bank Readiness certification

Is your bank ready for SWIFT for Corporates?

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

CORPBIC1

CORPBIC2

CORPBIC3 Your institution

SCOREStandardised Corporate Environment

Bank readiness certificationProgramme objectives

• 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

Payments

Cash management

Treasury

Today’s Entry and Advanced Certification Criteria

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 either dedicated SWIFT-page on the bank website OR a contact detail Yes Yes

*Bank should comply with FA implementation guideBank Readiness 11

Bank Readinesshttps://corporates.swift.com/en/certification/

“It is important to note that the Barclaysteam is certified by SWIFT under thestringent “Bank Readiness Program” andcorporates have a clear view of the extentof the SWIFT capabilities of the bank.”

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We can train both you and your corporate customers.

• One day training covering traditional messages like: MT 101 MT 940 MT 300On request also ISO 20022 messages, CGI guidelines, etc.

• Assistance with SWIFT onboarding process like: SWIFT-related Documentation Online application process Liaising with SWIFT Membership and Legal teams on behalf of the

Corporates.

SWIFT Onboarding – training and support

Step 2

Your Bank Readiness certification+Standards management tools+Integration support, standards consulting & training

Tackling the complexity of standards

A collaborative web platform

… to bettermanage standards and onboard customers

MyStandards Readiness Portal

Specifications and Testing for your customer

Machine specifications (schemas)

Your customer

Documentation (online + PDF)Analysts

Implementers& systems

Implementers& testers

Your Bank

ReadinessPortal

Publication

Test against specificationsover internet

All of your customers can test against your specific messaging formats on-

line at the click of a button!

Bank to Corporates segment

Customer testimonials: CITI

Source: Citi presentation, MyStandards User Group, La Hulpe, 18 November 2015

50% time saving !

Customer case study – British Council (Citi’s customer)

• Testing timelines were shortened by 50%• Citi implementation team was able to monitor testing progress and offer

timely advice to compress overall testing

“Citi’s support of SWIFT’s MyStandards proved to be highly efficient for us. With our developers having online access to Citi’s payment and formatting rules, development and testing was very rapid.”

Richard Symonds, Manager, Treasury Operations, British Council

Key Success Factors• Secured buy in from top down, ensured alignment of all key players• Started with small scope and demonstrated value. Then expanded• Use the kick-start package from SWIFT for a running start• Thoroughly tested the Usage Guidelines before opening up to clients

APR MAY JUN JUL AUG SEP OCT

Setup Governance Training and platform configuration Pilot with corporates Expansion to other markets

Live in UK

Customer case study: Barclays

5 months from licencing to live service

• “This removes the bottlenecks and streamlines the onboarding process to the point where we have enhanced the onboarding time for new clients from months to weeks” N̶ Nick Morrissey, Director, Cash Management Channels, Corporate Banking, Barclays

• MyStandards fully integrated in BAU processes• Significantly (70% +) faster implementation cycles• Onboard more clients quickly • Lighten the workload for subject matter experts

Summary: smooth onboarding experience

Fit for purpose yet consistent across the industry

• Dedicated portals for each onboarding project • Consistent industry approach• Intuitive platform • Applies across channels (SWIFT, host to host, e-banking) and formats

A discovery-based approach to understanding bank-specific formats

• Discover the specifications by testing against them• Easy to fix and re-test• If in doubt, go straight to the right place in the documentation• If needed, contact the bank support with very precise

SWIFT Services

– In-depth SWIFT technical knowledge

– Functional analysis from your infrastructure

– Solution design– End-to-end project

management– Development– Testing– Go live– Maintenance and customer

care

Full integration, standards consulting and trainingTailored implementation from design to implementation and support

Services

Integration

Standards

– Standards consulting– Expert assistance in all your

corporate to bank standards specifications, market practices, mapping and more.

Training

– Training– Training of your staff AND

your corporate customers in the use of MyStandards & Readiness Portal

– Training on the correc tuse of the standards.

Combining SWIFT services and SWIFT productsto offer a true end-to-end solution!

Summary