bnl forum 2013
TRANSCRIPT
SWIFT Update ISO20022 | Driving efficiencies in
global funds distribution
Benelux Forum, April 17th 2013
High risk & slow manual ops
Reduced margins
Multi Asset - Open architecture
Multiple transaction types
Compliance Pressures
Client Dissatisfaction
Operational Threats Increase For Funds
Players
Benelux Forum | ISO20022: Driving efficiencies in global funds distribution 2
Introduction to SWIFT’s Funds Service Helping SWIFT’s global
financial community
increase fund automation
to better distribute
products & service its
client base whilst reducing
the cost & risk associated
with manual processing
Mutual Funds, Money Markets, Pensions, Alternatives
Benelux Forum | ISO20022: Driving efficiencies in global funds distribution 3
The Story in 2005 – Why Automate?
• Approximately 30% of Fund Manager costs are
spent on back-office administration, and accounting
functions
• A manual portfolio valuation via fax/phone costs on
average of €50.00 and just €1.50 if automated
• It costs 17 cents to process a US mutual fund order,
compared with approx €100 for a European fund
order
• Approximately 1-2% of all faxes are actually lost
• Across Europe, the direct cost of re-keying manual
orders (over 50% sent manually) is more than €1
billion per annum
4 Benelux Forum | ISO20022: Driving efficiencies in global funds distribution
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ISO20022
Acc Mgmt
Orders
NAV’s
Transfers
Switches
Cash Forecast
Statements,
Payments
Settlement
End To End Fund Distribution Automation
Benelux Forum | ISO20022: Driving efficiencies in global funds distribution
Institutional investors
Investors’ intermediary
Distributor
Transfer Agent Fund accounting
agent
End
investors
Cash agents
Distributor-side Cash agents
Fund -side
Other intermediaries &
platforms Portfolio managers
(I)CSD (when applicable)
1,000
players
80
countries
20%
Growth
In 2012
46%+
core market
share
10 Year
Success
Story
SWIFT
Strategic
Initiative
6
Benefits After Using SWIFT in the Funds Space
Reduced 3rd party FTP links
Increased speed – 3 days to 90 secs
Greater scale – 100% volume increase, no extra people
Reduced risk – don’t pay for counterparty mistakes
Reduced processing costs at TA
Happier clients – on-boarding & service
No more faxes - staff deal with clients not paper
SWIFT infrastructure now a profit not cost centre
Benelux Forum | ISO20022: Driving efficiencies in global funds distribution
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ISO20022 Funds Solution Exists
Automation business case exists
Per Message Cost = € 0.05
Entire Transaction Lifecycle
Comprehensive Market Uptake
Key Partners On board
No Barriers to Entry
“Everything is in place – let’s just
get on and do it!” – Client xxx
ISO20022 & SWIFT | Increasing Operational Alpha
Benelux Forum | ISO20022: Driving efficiencies in global funds distribution
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Fund Processing Standardization
EFAMA 2012 report preliminary results
+ 6.2 %
ISO Automation
- 4.5 %
Proprietary STP
- 1.7 %
Manual Processing
43.8 % 33.9 % 22.3 %
Traffic Trends: ISO20022 vs ISO15022
9
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
ISO20022 ISO15022
Benelux Forum | ISO20022: Driving efficiencies in global funds distribution
7%
growth
2%
growth
What will the future look like?
10 Benelux Forum | ISO20022: Driving efficiencies in global funds distribution
Source: Lipper European Fund Market Review
11
Thank You and Questions
Sean Sarginson Relationship Manager
Funds, EMEA
Phone : +32 (0)2 655 4725
Mobile : +32 (0)493 656 803
E-mail : [email protected]