Download - SWIFT Payments Forum Korea - Opening Remarks
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Opening Remarks
Youngsu Sung
NMG/NUG Chair, KEB Hana
Michael Cheung,
Head of North Asia, Asia Pacific, SWIFT
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SWIFT 2020 – Strategic priorities
Messaging
Software & Connectivity
Shared
Services
Many-to-Many Market
Infrastructures
CORE
COMPLIANCE
MIs
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SWIFT 2020 – Strategic priorities
Messaging
Software & Connectivity
Shared
Services
Many-to-Many
Market
Infrastructures
Global & Key Clients
Small & Medium Banks
Investment Managers
Custodians & Investment Banks
Corporates
Funds ecosystem
RTGS and
Central Banks
Real-Time Payment
Systems
Central Securities
Depositories
FCC Roadmap : Toward three inter-connected Utilities
Sanctions Analytics/AML KYC
Interconnected Utilities leveraging commonalities and data between the products & services
Financial Crime Compliance Utility
Comprehensive
Service offering
e.g. • Transaction
screening • Sanctions Testing • List Management • Name/Client
Screening
e.g. • KYC Registry • KYC Market Place
e.g. • Compliance Analytics
(evolving toward Bank-to-bank monitoring)
• FATF 16
Hosted services Modular : No big-bang No shift of liabilities
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Translating S2020 to SWIFT APAC Priorities
Trends
Renewal
• Fighting financial crime, monitoring & control, compliance
recommendations. • FATF, Basel III, FATCA, FCPA, AML, Sanctions
• ASEAN Economic Community (AEC), CIPS, Pacific
payment system • Increasing international connectivity of infrastructures
• ISO 20022 adoption
• Demand for safer and more reliable infrastructure
• Cyber threats increasing • CPMI-IOSCO PFMI & Annex F for CSPs
• Real-time 24-7
• Convergence btw high & low value
Payments
• New systems: ISO 20022 messaging – rapidly growing
interest in XML messaging capabilities • Multi-currency clearing, PvP
• Extended operating hours (e.g. HK RMB 20.5 hrs)
• CPMI-IOSCO Principles • Regulatory reporting • T+2
• ASEAN Economic Community (AEC) • Regional harmonization: ABMF, ASEAN Link, HK-CN,
TW-SG, CSIF cross-border DVP • ISO 20022 adoption
• CPMI-IOSCO & Annex F for CSPs
• Issuer to investor CA announcement
• Funds hub implementation • Collateral management
• OTC clearing
Securities
• Aging technology
• New technology (distributed ledger) • Regional ambition-collaboration
• ISO 20022
Regulation &
compliance
Regionalisation
Resiliency &
reliability
Real-time
10
Translating S2020 to SWIFT APAC Priorities
Trends
Renewal
• Fighting financial crime, monitoring & control, compliance
recommendations. • FATF, Basel III, FATCA, FCPA, AML, Sanctions
• ASEAN Economic Community (AEC), CIPS, Pacific
payment system • Increasing international connectivity of infrastructures
• ISO 20022 adoption
• Demand for safer and more reliable infrastructure
• Cyber threats increasing • CPMI-IOSCO PFMI & Annex F for CSPs
• Real-time 24-7
• Convergence btw high & low value
Payments
• New systems: ISO 20022 messaging – rapidly growing
interest in XML messaging capabilities • Multi-currency clearing, PvP
• Extended operating hours (e.g. HK RMB 20.5 hrs)
• CPMI-IOSCO Principles • Regulatory reporting • T+2
• ASEAN Economic Community (AEC) • Regional harmonization: ABMF, ASEAN Link, HK-CN,
TW-SG, CSIF cross-border DVP • ISO 20022 adoption
• CPMI-IOSCO & Annex F for CSPs
• Issuer to investor CA announcement
• Funds hub implementation • Collateral management
• OTC clearing
Securities
• Aging technology
• New technology (distributed ledger) • Regional ambition-collaboration
• ISO 20022
Regulation &
compliance
Regionalisation
Resiliency &
reliability
Real-time
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Key Highlights
64+ million FIN messages per year (2015)
257+ thousand FIN messages per day (Year to date April 2016)
14 Korea Traffic Insights - YTD April 2016
-0.6% Decrease in FIN traffic (Year to date April 2016)
Trade
Treasury
Securities
Payments
Growth rates based on Year to date April 2016 vs 2015 Average Daily Messages
EMEA Americas Asia Pacific Total SWIFT KOREA North Asia
4.2% 4.7% 3.0% 4.1% -7.2% 4.4%
2.7% 7.8% 26.5% 6.3% 6.6% 12.9%
2.2% 11.1% 9.8% 5.1% 3.2% 9.4%
-4.4% -16.7% -5.8% -6.8% -7.1% -9.7%
3.3% 6.2% 12.5% 5.1% -0.6% 8.2%
Year to date 2016 FIN Traffic growth at a glance
<-10% -10% to 0% >0%
15 Korea Traffic Insights - YTD April 2016
Growth of Full year 2012
Full year 2013 Full year 2014 Full year 2015 Year to date 2016
Korea 3.6% 11.2% 13.2% 31.0% -0.6%
Total SWIFT 3.5% 10.8% 11.0% 8.4% 5.1%
0
50,000
100,000
150,000
200,000
250,000
300,000
Ave
rag
e D
ail
y M
essa
ges
FIN traffic evolution over the years
All markets
+70% vs. SWIFT +47%
Payments
+61% vs. SWIFT +45%
Securities
+87% vs. SWIFT +54%
Treasury
89% vs. SWIFT +24%
5-year Growth Comparison based on Year to date Apr 2016 vs 2011 Average Daily Messages
Growth rates based on Average Daily Messages
16 Korea Traffic Insights - YTD April 2016
Korea ranked 5th in APAC region for Traffic Sent Ranked 19th in worldwide
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*contribution to growth
Korea Traffic Insights - YTD April 2016
Table shows only the Top 15 APAC countries
Rank YTD traffic Growth CTG* Share Rank YTD traffic Growth CTG* Share
HK Hong Kong 7 775,860 10.1% 5.7% 3.0% 8 744,026 9.6% 5.3% 2.9%
JP Japan 10 644,664 40.2% 14.9% 2.5% 10 435,480 11.8% 3.7% 1.7%
AU Australia 12 529,572 2.1% 0.9% 2.1% 12 422,450 -0.7% -0.2% 1.7%
SG Singapore 15 356,056 6.8% 1.8% 1.4% 14 356,725 3.8% 1.1% 1.4%
KR Korea, Republic of 19 257,831 -0.6% -0.1% 1.0% 22 154,468 6.4% 0.8% 0.6%
CN China 24 187,276 3.9% 0.6% 0.7% 16 275,530 1.5% 0.3% 1.1%
IN India 27 138,087 14.3% 1.4% 0.5% 23 139,840 9.2% 0.9% 0.5%
TH Thailand 28 128,097 29.7% 2.4% 0.5% 28 100,036 23.7% 1.5% 0.4%
TW Taiwan 29 122,539 16.4% 1.4% 0.5% 29 90,326 6.1% 0.4% 0.4%
ID Indonesia 32 89,431 0.3% 0.0% 0.4% 42 40,799 -17.1% -0.7% 0.2%
MY Malaysia 33 88,623 14.3% 0.9% 0.3% 39 43,899 12.6% 0.4% 0.2%
NZ New Zealand 41 67,535 8.2% 0.4% 0.3% 36 57,008 8.9% 0.4% 0.2%
PH Philippines 45 47,983 12.1% 0.4% 0.2% 47 32,423 7.1% 0.2% 0.1%
VN Vietnam 55 22,583 15.3% 0.2% 0.1% 56 24,279 8.5% 0.2% 0.1%
BD Bangladesh 58 22,106 21.0% 0.3% 0.1% 50 28,518 11.1% 0.2% 0.1%
Traffic receivedTraffic sent
Countries ranked by Traffic Sent - April 2016 YTD - Average Daily Volumes
Country Code Country name