Business & Technology Solutions

Tom Alaerts, Head of Business Solutions, APAC

Melody Chua, Corporate Solutions Manager, APAC

7 April - Manila

Agenda

• Your corporate onboarding made easy

• Effective payments through correct reference

data

Corporate Onboardingmade easy

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

52119

232

407

594

819

962

1135

1380

1539

0

200

400

600

800

1000

1200

1400

1600

1800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

YoY Corporates Adoption

Why are banks getting ready to offer SWIFT for corporate

connectivity?

6

Perceived as

Innovator

with new

efficient channel

for multi-bank

corporates

New opportunities of business

GROWTH 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.”

7

Wang WeiXing, Product Manager &

Zhou MuYang, Product Manager, Cash Management,

China Merchants Bank

Most commonly used messages by Corporates

8

FIN

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 much

support 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

Melody Chua, Corporate Solutions Manager, APAC

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

SCORE

Standardised

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

12

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 detailYes Yes

*Bank should comply with FA implementation guideBank Readiness 13

14

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

“It is important to note that the Barclays

team is certified by SWIFT under the

stringent “Bank Readiness Program” and

corporates have a clear view of the extent

of the SWIFT capabilities of the bank.”

15

16

We can train both you and your corporate customers.

• One day training covering traditional messages like:

MT 101

MT 940

MT 300

On 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 better

manage standards and onboard customers

MyStandardsReadiness

Portal

Specifications and Testing for your customer

Machine specifications (schemas)

Your customer

Documentation (online + PDF)Analysts

Implementers

& systems

Implementers

& testers

Your Bank

Readiness

Portal

Publication

Test against specifications

over 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 !

22

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 GovernanceTraining and platform

configurationPilot 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” ̶ 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

25

MyStandards – Example of Usage Guidelines Content

Readiness portal: fit for purpose yet consistent across the industry

Your

brand and

description

Only the

relevant

guidelines

26

A discovery-based approach to understanding bank-specific formats

2.Easy to

fix and

re-test

1.Discover

format issues

27

A discovery-based approach to understanding bank-specific formats

3.Direct link to

Documentation

4.Contextual

questions

to support

Straight to field description

in the right guideline

document

One click: I don’t

understand this error when

I test this file against this

guideline.

Documentation is

second line of

support

28

Summary: smooth onboarding experience

29

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

Business applications not designed to

connect to SWIFTNet

Discrepancy between internal message

formats and SWIFT formats

Specialised SWIFT skills are hard to find

Complications are multiplied: multiple

systems, multiple internal and external teams

involved

SWIFT

Clients

Service

Providers

30

Your integration challenges ?

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 training

Tailored 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

products

to offer a true end-to-end

solution!

SWIFT Consulting ServicesDelivering an end-to-end solution

Analyse Design Implement Test Go-Live Care

• Bring SWIFT Skills & Experience & Approach

• So you are free to focus on running your business

Benefits of the Integration Platform

Validations and reference data usage

Equally applies to manually entered messages

Integrated in Access

No need to update your own systems

Less risk in implementing SWIFT

End-to-end SWIFT products and services offering

for end-to-end SWIFT communication

Footprint and TCO reduction

Exchange proprietary

messages with Access

One stop shop

solution model

Enhance existing flows

Communityenablement

Productized integration

package

Effective paymentsHigher efficiency & lower cost, through SWIFTRef

Who’s the AUD-correspondent of

China Everbright Bank?

What is the CHIPS id of Zion First

National BankIs this SWIFT BIC

still active?

Your needs..

Is it a bank holiday in Canada?

What is the national

clearing/sort code of Bank of

Thailand?

What is SWIFT BIC of Banco Real

in Argentina?

Where can I find the currency

code for

the Columbian Peso

What is the financial

situation and credit rating of

Oberbank in Austria?

Is this IBAN valid?

The paper BIC Directory is not sufficient !

Online access to the complete SWIFTRefdatabase for ad-hoc look-up and research :• All BIC- codes worldwide• 900.000 National bank identifiers from 160+

countries (clearing/sort codes) • 340.000 LEIs (Legal Entity Identifier)• SEPA/IBAN data from 64 countries, including BBAN-

IBAN conversion, IBAN validation, BIC-from-IBAN derivation,

• 830.000 Bank Standing Settlement Instructions (SSI) • Bank financials, credit ratings, shareholder &

ownership info.• Country, currency and holiday information

SWIFTRef Bankers World Online For trouble-free payments, regulatory reporting and exploring new correspondent

relationships

- IBAN Plus (IBAN validation)

- BIC Directory Download / BIC Plus (BIC validation)

- Bank Directory Plus (BICs, national ids & more)

Or, files for automation:

Institution details

Sample view for one institution

Payments data overview

Legal entity and regulatory info

EuropeAlbania France Kosovo Portugal

Andorra Georgia Latvia Romania

Austria Germany Liechtenstein San Marino

Belgium Gibraltar Lithuania Serbia

Bosnia and Herzegovina Greece Luxembourg Slovakia

Bulgaria Greenland Macedonia Slovenia

Croatia Guernsey Malta Spain

Cyprus Hungary Moldova Sweden

Czech Republic Iceland Monaco Switzerland

Denmark Ireland Montenegro United Kingdom

Estonia Isle of Man Netherlands

Faroe Islands Italy Norway

Finland Poland

Non European

countries and

territoriesAzerbaijan Mauritius

Bahrain Pakistan

Brazil Palestine, State of

Costa Rica Qatar

Dominican Republic Saudi Arabia

Guatemala Mauritania

Israel Mauritius

Jordan Timor-Leste

Kazakhstan Tunisia

Kuwait Turkey

Lebanon United Arab Emirates

Mauritania

Up to date IBAN info for correct payments to…

Sample view of IBAN Validator

SWIFTRef web site : swiftref.swift.com

Payments Plus (= all above file products and more)

IBAN DATA• Validate IBANs and BIC codes

• Find BICs from IBANs

• Construct IBANs from BBANs

BANK DATA• Identify Financial Institutions via

BICs, national IDs, LEIs,…

• Find or cross-reference identifiers

• Validate bank details

• Understand bank hierarchy

SWIFTRef files-portfolio

Bank Directory Plus

BIC Directory

IBAN PlusSSI Retail

SSI Wholesale

SSI Plus (all SSIs)

SSI DATA• Find the correspondent bank and

associated accounts

• Find the intermediary bank

(*) not included in Payments Plus

What’s in Bank

Directory Plus?

Service ID Service Name

BACS ( UK) BACS Clearing

CCCC(UK) Cheque Clearing

CHAPS (UK) CHAPS Sterling

FPS (UK) Faster Payments Service

COMPE(BRAZIL) BR Cheque Clearing

E1S1 (Europe Euro1/Step1 (EBA Clearing)

FEDACH(US) FedACH

FEDWIRE (US) Fedwire

HKIC ( Hong Kong) HKD, USD, CNY, EUR Clearing

SIC( Switzerland) SIC (CHF) and EuroSIC (SI Payment Services)

STR(Brazil) BR Transferencia de Reservas

T2 Target 2

Basic bank details (name and address)

National bank codes (incl FEDWIRE)

BICs

CHIPS

FIN service codes

Institution hierarchy information

Azerbaijan, Belarus, China CNAPS, Japan Zengin, Korea (Republic), Russian

Federation, Taiwan, Thailand, Ukraine, Vietnam

Bank Directory

Plus record

sample

Name: RBTT BANK ARUBA N.V.

Address: Italiestraat 36, Oranjestad, Aruba

SWIFT subtype, status: SUPE, BANK

Office type, legal type: HO, Legal

Group key: RBTT (linking with other SWIFTRef files)

National ID: 100001080

CHIPS UID: 315440

BIC: RBTTAWAW XXX

LEI: 00265873382965200176

Bank hierarchy

in Bank

Directory PlusHead Office (HO)

Foreign Branch (FB)

Sub Foreign Branch (SF)

RECORD KEYOFFICE TYPE

PARENT OFFICE KEY HEAD OFFICE KEYLEGAL TYPE

LEGAL PARENT KEY BIC INSTITUTION NAME CITY COUNTRY NAME

BD000000DBH6 SF BD000000DBH7 BD000000DBH8 B BD000000DBH8 RBTTBQBNXXX RBTT BANK N.V. BONAIREBONAIRE, SAINT EUSTATIUS AND SABA

BD000000DBH7 FB BD000000DBH8 BD000000DBH8 B BD000000DBH8 RBTTBQSAXXX RBTT BANK N.V. SABABONAIRE, SAINT EUSTATIUS AND SABA

BD000000DBH8 HO BD000000DBH8 BD000000DBH8 L BD000000DBH8 RBTTCWCUXXX RBTT BANK N.V. WILLEMSTAD CURACAO

Domestic Branch (DB)

Sub Domestic Branch (SB)

IBAN Structure

file

country name: ITALY

IBAN country code: IT

bank identifier – position & length: 6, 5

branch identifier – position & length: 11, 5

account number – position & length: 16, 12

IBAN total length: 27

IBAN: IT35Z0200809429000060010264

IBAN Plus

record sample

institution name: UNICREDIT PRIVATE BANKING

city: MILANO

country: ITALY

IBAN NATIONAL ID: 0200809429

IBAN BIC: UNCRITMM

SCT: Y

SDD CORE: N

SDD B2B: N

IBAN: IT35Z0200809429000060010264

BIC: UNCRITMM

SSI Plus purpose

•correspondent bank/intermediary look

• per currency

• per payment type (retail, FX, MM)

SWIFTRef Delivery channels

Manual file

download

internet

Manual query tool

(BWO)

internet

APIs

(web

services)

internet

FileAct

(automated)

SWIFTNet

Automated file

download

(API)

internet

TXT

XML

Formatting Monthly

Daily

Frequency

“Since we are on SWIFT, we have reduced

25% of our time on investigation and message

repairs. We can now more focus on further

Business development.”

FULLY RELATIONAL

• All data are interlinked for easy integration in

B.O systems and applications

FLEXIBLE• Any delivery channel

(online, manual or automated file download,

FileAct, API webservices)

• Any syntax (TXT, XML)

• ERP/SAP compatible

• Packaged in function of your

needs and budget

WORLDWIDE• All BICs worldwide

• Bank identification codes

(152+ countries)

• IBAN/SEPA data (+64 countries)

• LEIs

• SSIs

SWIFTRef in a nutshell

ACCURATE• From authorised data-originators only

• Maintained directly by the data providers

• Daily or Monthly updates available

• No manual maintenance needed

Summary

Q&A?