cbf 2014 - iso 20022: ready for the present

SWIFT & ISO 20022

Ready for the future present

Pat Antonacci

Frank Van Driessche

CBF - Toronto, 7th April 2014

Africa

Angola

Algeria

Botswana

Central African States (BEAC)

Comesa EAPS (EAC)

Egypt

Gambia

Ghana

Kenya

Lesotho

Mauritius

Morocco

Namibia

Sierra Leone

SIRESS (ZA)

South Africa

Swaziland

Tanzania Tunisia

Uganda

West African States (BCEAO)

Zambia

Zimbabwe

Asia Pacific

Australia

Brunei

Fiji

Hong Kong

Macao

New Zealand

Philippines

Singapore

Sri Lanka

Taiwan

Thailand

Central & Eastern

Europe

Albania

Azerbaijan

Bosnia & Herzegovina

Bulgaria

Croatia

Hungary

Latvia

Poland

Romania

Russia North America

Canada

US (IPF)

Central & Latin America

Bahamas

Barbados

Chile

Colombia

Dominican Rep. & CMCA

ECCB

El Salvador

Guatemala

Honduras

Trinidad & Tobago

Venezuela

Western Europe

Denmark

Iceland

Norway

Sweden

Switzerland

UK

Eurozone

Target 2

EBA Clearing

Austria

Belgium

Germany

Greece

Ireland

Italy

Netherlands

Poland

Portugal

Spain

Middle East

Bahrain

Israel

Jordan

Kuwait

Lebanon

Palestine

Qatar

UAE (DIFC)

74 high-value PMIs

250+ million payments/year

27 retail PMIs

8+ billion payments/year

2000+ banks

90+ countries

Payment market infrastructures on SWIFT

SWIFT Business Forum Canada 2014 – SWIFT & ISO 20022

IPFA

SEPA,EU

BR

DK

CH

FED, US

CPA, CA

IPFA

T2, EU

AU

Zengin,

JP

CNAPS,

CN

IN

Low-

value

High-

value

BOJNet,

JP

CPA, CA

Live Live

Live

NZ

SG

CO

PE

Live

PG

CL

ZA

PL

BN

CNAPS,

CN

SADC

UK

Global ISO 20022 adoption by PMIs

ISO 20022 for high-value payments

ISO 20022 for retail payments

ISO 20022 and SWIFT services


Agenda

Standards

Platform

Migration enablers



Payments ecosystem gap analysis Standards

MT Name ISO 20022 Name

Payments Initiation

MT 101 Request for Transfer pain.001 Customer Credit Transfer Initiation

MT 104 Request for Direct Debit pain.008 Customer Direct Debit Initiation

MT 207 Request for Financial Institution Transfer pain.001 Covered by

Customer Credit Transfer Initiation

Payments Clearing & Settlement

MT 102 (+) Multiple Customer Credit Transfer pacs.008 FI To FI Customer Credit Transfer

MT 102 REJT Multiple Customer Credit Transfer - Reject pacs.002 FI To FI Payment Status Report

MT 102 RETN Multiple Customer Credit Transfer - Return pacs.004 Payment Return

MT 103 (+) Single Customer Credit Transfer pacs.008 FI To FI Customer Credit Transfer

MT 103 REJT Single Customer Credit Transfer - Reject pacs.002 FI To FI Payment Status Report

MT 103 RETN Single Customer Credit Transfer - Return pacs.004 Payment Return

MT 104 Direct Debit pacs.003 FI To FI Customer Direct Debit

MT 107 General Direct Debit pacs.003 FI To FI Customer Direct Debit

MT 200 Financial Institution Transfer for its Own Account pacs.009 Financial Institution Credit Transfer

MT 201 Multiple Financial Institution Transfer for its Own Account pacs.009 Financial Institution Credit Transfer

MT 202 (COV) General Financial Institution Transfer pacs.009 Financial Institution Credit Transfer

MT 203 Multiple General Financial Institution Transfer pacs.009 Financial Institution Credit Transfer

MT 204 Financial Markets Direct Debit Message pacs.010 Financial Institution Direct Debit

MT 205 (COV) Financial Institution Transfer Execution pacs.009 Financial Institution Credit Transfer

Cash management / reporting

MT 210 Notice to Receive camt.057 Notification To Receive

MT 900 Confirmation of Debit camt.054 Bank To Customer Debit Credit Notification

MT 910 Confirmation of Credit camt.054 Bank To Customer Debit Credit Notification

MT 920 Request Message camt.060 Account Reporting Request

MT 940 Customer Statement Message camt.053 Bank To Customer Statement

MT 941 Balance Report camt.052 Bank To Customer Account Report

MT 942 Interim Transaction Report camt.052 Bank To Customer Account Report

MT 950 Statement Message camt.053 Bank To Customer Statement

MT n92 Request for Cancellation camt.056 FI To FI Payment Cancellation Request


• What

– Agreement on how to use ISO 20022 for high-value clearing payments

with a cross-border leg

– To protect global players and global interoperability as markets adopt at

different speed

– Credit transfers, direct debits and reporting messages

• How

– In cooperation with the Payments Market Practice Group

• Approach

– Like-for-like approach i.e. reducing richer ISO 20022 to MT functionality

• Status

– Publicly available since November 2013 in MyStandards

– Maintenance process being established

– Used as a basis for implementation by many jurisdictions

Setting global implementation guidelines Standards

Standards

Platform

Migration enablers



MT 103(+)

202/205(COV)

204 SWIFT

Interface

SWIFT

Interface

• Closed user group

• Message validation

• PKI based security

• Archival and retrieval

• Copy services

• Support MT

MI

application

Authorisation

request Authorisation

response

MT 096

Payment

Instruction

Autorised/settled

Payment Instruction

Sender Notification

MT 103(+)

202/205(COV)

204

MT 012

MT 097

Abort Notification

MT 019

SWIFT’s solution for HVPS adopting ISO 20022 Today’s FIN Copy environment


pacs.008

pacs.009

pacs.010 SWIFT

Interface

SWIFT

Interface

• Closed user group

• Message validation


• Archival and retrieval

• Copy services

• Support ISO 20022

MI

application

Authorisation


response

pacs

008/009/010

(copy)

Payment

Instruction

Autorised/settled

Payment Instruction

Sender Notification

pacs.008

pacs.009

pacs.010

xsys.002

xsys.001

Abort Notification

xsys.003

SWIFT’s solution for HVPS adopting ISO 20022 Tomorrow’s SWIFTNet Copy environment


Standards

Platform

Migration enablers



Interface/Integration

SWIFT messaging

platform

Shield users from migration impact Interoperability at the edge

MT back-office

Send / receive MTs

to / from counterparties

Send / receive MXs to /

from counterparties

Transformation

MT to MX

and vice versa

Future route to

CPA/T2/EBA…


• User back offices can be shielded from the impact of migration through

– Transformation of business payload, enabled by the like-for-like

approach

Migration enablers



approach

– Transformation of business information, currently part of technical MT

header

Migration enablers

FIN (MT) Interact (MX)

Sender BIC BANKBEBBABC Requestor DN ou=abc,o=bankbebb,o=swift

Receiver BIC BANKDEFFXYZ Responder DN ou=xyz,o=bankdeff,o=swift

Message type 205 Request type pacs.009.001.04

Priority U/N Priority Urgent/Normal

Delivery notification 1/2/3 Delivery notification TRUE/FALSE

Obsolescence period 003 (fixed 15 mins) Overdue warning TRUE/FALSE

Overdue warning delay 5 mins to 24 hours

Field 103

FINCopy service code

CAD

Service name eg lvts.copy

Copy indicator TRUE/FALSE

Field 108

Message user reference Reference Request ref Reference

Field 119

Validation flag STP, COV Part of validation offering

Migration enablers Mapping MT header (business) information

• SWIFT will

– perform central validation of constraints and cross-element rules of

global ISO 20022 message standards

– validate compliance with global like-for-like implementation

guidelines for use of ISO 20022

• SWIFT will not

– validate community-specific implementations

Validation: what’s in, what’s not



approach

– Transformation of business information, currently part of technical MT

header

– Shielding from protocol changes: evaluation ongoing

Migration enablers





Agenda

SWIFT

Interface

SWIFT

Interface

• Closed user group based

• Validation


• Copy services


MI

application

Authorisation


response

File with

payment

instructions

Sender Notification

xsys.002

xsys.001

Abort Notification

xsys.003

SWIFT’s solution for RPS adopting ISO 20022 FileAct Copy


Autorised/settled

file with payment

instructions

SWIFT

Interface

SWIFT

Interface

• Closed user group based

• Validation


• Copy services


MI

application

Authorisation


response

File with

payment

instructions

Sender Notification

xsys.002

xsys.001

Abort Notification

xsys.003

SWIFT’s solution for RPS adopting ISO 20022 FileAct Header Copy


Autorised/settled

file with payment

instructions





Agenda

Training Support Consulting

S I M P L E , A C C E S S I B L E , C U S T O M I Z A B L E

E X P E R T I S E W H E N A N D W H E R E Y O U N E E D I T

B U I L D I N G O N 4 0 Y E A R S E X P E R I E N C E

SWIFT Services A unique offering around SWIFT’s core competences

S W I F T S E R V I C E S CLIENT CHALLENGES

S E R V I C E A R E A S CLIENT BENEFITS

Benchmark

Being at the heart of the financial industry and

building on 40 years of experience, a wide team of

SWIFT Services experts are at your service to

help you with your challenges and opportunities.

SWIFT Services experts offer you the highest

quality of training, consulting and support, tailored

to your needs. They keep you going, resolve your

issues and propose improvements where seen.

Regulation

Efficiency

Improving their customer’s

experience

New initiatives

Reduced costs

Enable growth

Enable compliance

Reduced risk Advice

Train Implement

Operate

Support

Changing landscapes

Cost reduction

Performance

In-house expertise

Happy customers

Streamlined operations

Risk management

More choice!

Adapting our offering to your

changing learning trends &

preferences

SWIFT Training today

4 learning channels: classroom, on-site, web class

and eTraining

Community

training

Specialised

training

Tailored training

Tailored training

+10.000 users

trained per year

Business analysts,

implementers, operators,

administrators, sales staff,

security officers, etc.

Using SWIFT – Certification Programme

Essential knowledge to get

started with SWIFT

Classroom courses &

eTraining modules

Specialised or advanced

knowledge & skills

Classroom courses, Web

classes & Certification

Customised to an individual

institution

Private classroom courses,

Web classes, eTraining

modules & Certification

8.8/10

customer

satisfaction

Entr

y level sessio

n

New &

wanted!

Be inspired…

Business & Standards

ISO 20022 for T2S

Connectivity

Deploying Alliance Access

Using SWIFT –

Certification Programme

Introduction to Financial Sanctions

TSU and BPO in 90 minutes

Alliance Access Administrator Optimising your Alliance

resilience

Creating SWIFT messages

SEPA – Are you ready?

ISO 20022 for JASDEC

Understanding Alliance Lite2

Alliance Access/Entry

Operator

SWIFTNet Security Officer

SWIFT for Corporates Specialist

Operating HSM

Operating RMA

Entr

y level sessio

n

More flexible approach… ISO 20022 for

Canadian

payments

Traffic data and

intelligence

Industry and initiatives

Business Operations

Advice

Technical Design and

Infrastructure Advice

Implementation

• New or changing MI

specs (T2S, DTCC,

SGX, CLS, CPA…)

• Regulation and

Compliance

• Cyber threat

• Operational excellence

• Care

Services

• Integration

services

• Installation

services

• Solution design

• Resilience

• Testing

• Cloud Services

• Landscape analysis

• Business Intelligence

• Governance

• TCO analysis and

benchmarking

• Operations

benchmarking

• Business Operations

review

• Market practice

implementation

• Standards

implementation

• SWIFT Ref

Strategy Design Internal

preparation Testing Go Live Operate

Impact

assessment

(Business

&Technical)

Solution

design

Integration

Services

Go Live

assistanc

e

Canadian payments ISO 20022

initiative

How can SWIFT help?

Implement

Testing

assistance

Support

Services

End-to-end

Project Management

Training and knowledge transfer

Generic ISO 20022 courses

Initiative specific training

NEW Q3 - ISO 20022 for Canadian payments

Standards

Comparison

& Mapping

Standards

Gap analysis

Introduction to

Canadian – ISO

20022 initiative

Standard schemas/

specifications?

Implementation

Integration services

• Details of the Canadian Payments ISO 20022 specific Schemas and

specifications will be published to the community by CPA via

MyStandards

Business impact

assessment

• Complete review of all impacted business flows and messages,

including comparison, mapping and gap analysis (using MyStandards).

• New messages impact assessment and recommendations

Canadian payments ISO 20022 initiative Services offering proposal for the community

• Workshops giving an overview of the Canadian Payments ISO

20022 project, timeline and likely impact on the community

• General training on ISO 20022 and specific training on implications

of the Canadian Payments ISO20022 project

Technical

infrastructure review

Solution design

• Review current infrastructure impact and capacity against future needs

• Assess technical changes to be implemented (effort and roadmap)

• Evaluate Back-Office integration possibilities

Testing / Go-Live

Project Management • Single point of contact at SWIFT throughout the whole project

• Implement new flows, patches, configurations or upgrades on impacted

SWIFT infrastructure elements

• Develop, test and implement Integration solution

• Testing services to ensure readiness and compliance

• Assist during and after go-live

Where to find more info….

35
