getting ready for swift for corporates
DESCRIPTION
SOFA 2013TRANSCRIPT
Getting ‘ready’ for SWIFT for Corporates
SWIFT Operations Forum Americas
March 5, 2013
Agenda
Bank of America Merrill Lynch – Global landscape
Microsoft: Corporate Viewpoint
Bank Readiness
2
Panel discussion / Questions
Speaker Introductions
CGI Background
3
Speakers
•Pankaj Gudimella, Senior Cash Operations Manager,
Microsoft Corporation
•Tom Durkin, Bank of America Merrill Lynch, Managing
Director, GTS Global Integrated Channels
•Stacy Rosenthal, Senior Business Manager, Initiatives,
SWIFT
Key considerations
For Corporates implementing SWIFT globally
Bank Readiness
• What are the banks capabilities?
• Are the capabilities available across all regions?
• Do the banks have staff that are knowledgeable about SWIFT?
• Is there a dedicated implementation team?
Common Implementations
• What standards are supported?
• Can I implement the same standard across banks and regions?
• Why is my bank using their own ‘version’ of the standard?
• How do I prepare my teams for these variations?
4
Bank readiness certification programme in a
nutshell
• Online publication of banks ready to offer connectivity to Corporates
over SWIFT
• Assessment based on a set of criteria : 2 levels
– Mandatory criteria (to be met to be certified)
– Optional (additional capabilities can be published)
• 2 dimensions : operational and commercial criteria
• Granularity at country level (bank A ready in country X)
• Self-declaration from the bank
• Free of charge
• Link
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20101005CAGmeeting_v2.pptx 6
Bank readiness certification programme :
Status
• Rolled out end 2010
• Certification started in January 2011
• So far 43 banking groups certified
(569 branches), covering 117 countries
• Very good feedback from banks : “gratified to be
listed”, “feeling the peer-pressure”
7
Bank readiness certification programme :
Barriers
• Main barriers for certification (among mandatory criteria):
– No commercial documentation available on the website (SWIFT
for Corporate bank’s offering)
– Lack of SWIFT for Corporates knowledge at the bank
– MT942 not supported
Banks working to lift these barriers
8
• Provides a forum for financial institutions and non-financial institutions
to progress various corporate-to-bank implementation topics on the
use of ISO 20022 messages and other related activities in the
payments domain
• Promote wider acceptance of ISO20022 as the common XML
standard used between corporates and banks
• Agree one common global implementation for ISO20022 messages
– Common implementation templates for relevant ISO 20022 financial
message
• Simplify corporate implementations
9
CGI: mission and objective
“A corporate can use the same message structure for all their payments with
all of their transaction banks reaching any payment system across the globe”
Introducing SWIFT – dd month yyyy – Confidentiality: Public 10
11
Visibility to cash via MT messages and other local statements Multiple Bank-specific VPN connections
~1,000 Bank Accounts
~500 managed daily
>100 global banking partners
>250
Subsidiaries ~85
currencies
Banking Infrastructure
Managing Global Cash with CGI
Global Risk Management Move from Visibility to Agility
Reduce
Costs Simplify
infrastructure
and process
Visibility
Mobility
Journey in Cash Management
FY 06
MT Format for bank statement reporting
MT format for bank statement reporting
FY11
ISO 20022 XML for bank statements via Swift
statements via SWIFT
FY12
MT101 & XML PAIN .001 for Payments via Swift
FY12
Gaining Insights SQL & Powerview
FY 13…
Initiate eBAM
Cash Visibility
Visibility to Mobility
Big Data to BI
Costs
• Implementation,
project management
& Operations
• Infrastructure
development of
messaging
• New monitoring
systems and
dashboards
Benefits
• Single Data Pipe
• Lower IT support costs
• Easier maintenance
and troubleshooting
• Increased STP and
visibility into cash
balances globally
• Enables mobility of
cash across banks and
regions
Costs and Benefits
Industry
Recognition - Pinnacle
- Alexander
Hamilton
First Ever ISO-XML 20022
v2 Implementation
Build
Partnerships
with Banks
and SWIFT
Prepare,
Plan, and
Plan again!
Implementation May Vary due to different practices: - Market - Banks - Corporates
Win-win
Solution
for
Corporate
and Banks
Collaboration Drives Innovation
Getting 'ready' for SWIFT for Corporates
Tom Durkin, Bank of America Merrill Lynch,
Managing Director, GTS Global Integrated Channels
March 5, 2013
Key trends for discussion:
Global operating model
Standardization
Automating through technology
Working capital optimization
Risk management and mitigation
Global landscape
Transaction Services
Connectivity Options
Standard integration capabilities
Corporate Platforms
File Format Standards
Transfer Protocols
Network Options
H2H File Management Services
Not all network options and transfer protocol options are interoperable
CO
RP
OR
AT
E T
O B
AN
K C
ON
NE
CT
IVIT
Y
ISO 20022 (XML)
ANSI X12
ERP-specific
Bank (Proprietary)
Client (Proprietary)
FileAct
HTTPS
SWIFTNet (PKI)
Public Internet (PKI)
IP VPN (IPSec/PGP)
VAN (Secure+)
AS2
SFTP
FTP
Control
NDM
Validation
Translation
Distribution
Encryption
Leased Line/ Frame Relay
CMS, TMS, TWS, etc.
ERP (Payables,
Receivables, Payroll)
SSC / Payment Factory / IHB
Other
UN/EDIFACT
Other
Standard Interfacing Options
Reporting Advising
Wires & FX
ACH US & Global
Checks
Collections
Card
Other
Authentication
SWIFT Expertise at BAML
SWIFT Corporate Access The Bank of America Merrill Lynch Advantage
Pilot bank for SCORE model and ISO 20022 XML
standards
Senior leadership on SWIFT Corporate Access Strategy
Group (CAG)
Frequent sponsor of SWIFT Corporate Access educational
sessions and materials
Global leadership as facilitator of the Common Global
Implementation (CGI) payments message workgroup
eBAM standards workgroup
Bank “Readiness” Certification
40 accredited SWIFT for Corporate Specialists
Robust global product capabilities available through
SWIFTNet
SWIFT Corporate Access – offered since 2003 with
SWIFT readiness certified
Experienced technical implementation teams
Trained SWIFT service associates
Leadership within and commitment to SWIFT
Accredited SWIFT for Corporate
associates are positioned globally
to serve you
22
FIN message
ISO XML 20022
SWIFT FileAct
1 Payments and Information Reporting through FileAct
Industry Collaboration
Forum for FI and Non-FI to progress usage of ISO 20022,
simplify implementation
Promotes acceptance of ISO20022 as common XML
standard between corporates/banks
Achieves – through consultation, collaboration and
agreement – common implementation templates for
relevant ISO 20022 financial messages
Increases customer demand for multibank coordination of
implementations
Global corporate, multi-banked, multi-payment type, multi-
country implementations (mixed payables)
Intended specifically for global, multi-country, multi-bank
and multi-instrument implementations the participating
banks can commonly accept
Can be published/endorsed from appropriate communities
Engages corporate partnership
Influences adoption by market infrastructures and
application vendors
Integrated architecture
Online Channels
Integration interface
H2H Connectivity
File flows via electronic file
direct link
Payment files
Statements/
reporting Direct
connection
Payables/
Receivables
Statements and
custom reports
FX and
Trade eBAM and
billing analysis
ERP or Treasury
applications
Flexible, scalable architecture encompassing ISO 20022
Corporates Banks
Upstream
solutions
and
clearing systems
Approach and design — Implementation
25
Technology Deployment Schedules
Clear Alignment between
Business and Technology
Testing and Pre-Production
Agreement with your bank
Retention and attraction of
best employees
Develop a robust
business plan
and focus on
objectives
Build robust
performance
management
Centralize data Take a phased approach,
prioritizing easy and most
impactful
Strong project
management clear
documentation
Executive sponsorship
CGI
For further information
• Co-Conveners:
– Harri Rantanen – [email protected]
– Stig Korsgaard – [email protected]
• Information available:
– www.swift.com/cgi
– www.swiftcommunity.net /cgi
• Three Working Groups
– Credit Transfer /Status Report (Susan Colles – Bank of America
Merrill Lynch)
– Direct Debit (François Lemaire – UTSIT)
– Account Reporting (Harri Rantanen – SEB)
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Confidential
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Panel discussion
?
Thank you
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