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TRANSCRIPT
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SWIFT: Myths and Reality
Kemal Batu
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v07
Q&A
Myths versus Reality
Commons Business Objectives
Industry Needs
In Closing
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Industry Needs
Increased Security
Faster & Simpler payments
Immediate /Real time reporting
Reference Data for
Payments
Bank agnostic solutions
Automation/ STP
Technology driven solutions
Risk mitigation/ Tighter controls
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Common Business Objectives
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• Centralize information by building a single point bank
communication hub to provide:
– Gain global visibility of cash and messaging flows
– Achieve straight-through-processing of payments
– Mitigate risk / Enhance resiliency
– Maintain compliance / Strengthen controls
– Deliver operational efficiencies
– Rationalize systems
Flexible Bank
Connectivity
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The global provider of secure financial messaging services
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SWIFT in figures
6+billion FIN messages per year (2014)
12,500+ SWIFT users
212+ Countries and territories
23.32 million FIN messages April 21st 2015
10.52% 2015 Growth trend
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Common Challenges
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Treasury
Finance
Trade
ERP
• Multitude of systems to connect, maintain, control
• Lack of global visibility across systems
• Lack of scalability / standardization
Bank Connectivity
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TMS Core Processes
- Cash management
- Debt management
- Treasury accounting
- Cash forecasting
- Risk management
- In-House banking
Treasury Objectives & Scope
Bank Connectivity (ERP)
- Efficient payment process
- Efficient collections process
- Automated bank reconciliation
- Global cash visibility
- Internal control & SOX compliant
Standardized treasury processes
Expanded implementation of your TMS/ERP or Back Office Systems
Standardized, scalable bank connectivity infrastructure
Straight through processing (STP) of treasury transactions
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Benefits
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Treasury
ERP1
Corporate
Finance
Trade
Centralize and automate
Visibility and Control
Bank/Vendor Independence
Accelerate Decisions
Improve Compliance
Secure Bank
Connectivity
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Myths vs Reality
Myths Reality
The costs are high SWIFT offers flexible and cost effective solutions – including cloud and on premise
SWIFT is only used for international SWIFT is utilized for domestic and international bank connectivity and transaction flows
SWIFT’s cloud based solutions have limited adoption
SWIFT Cloud solutions have the most clients connected globally of any offering in the industry SWIFT has extended its AL2 cloud offering to business applications; 9 providers have connected thus far.
SWIFT doesn’t offer integration capabilities SWIFT supports integration and format transformation/conversion across connectivity options
Only supports SWIFT standards Carries SWIFT and non-SWIFT standards (e.g. BAI2, ACH, etc) securely
SWIFT doesn't support multiple time zones SWIFT has support centers across the globe with support packages that align with a client’s service requirements
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Corporate Adoption - Executive summary – Q3’2014 New Corporate groups: 55 (+8% 2013 Q3 vs 2014 Q3)
21%
10% 69%
Americas
Asia Pacific
EMEA
Traffic: FIN + 23% FileAct + 46% (2013 vs. 2014)
Bank adoption
1,720 banks (BIC8) offering SCORE corporate connectivity 53 banking groups certified
652 banks (BIC8) 120 countries
Corporate adoption (BIC8)
3SKey: 38 banking groups
BPO live: 15 banking groups
43%
FORTUNE Global 500
On SWIFT
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Benefits at a Glance
Cost Savings
Systems Retired Enabling Quicker SWIFT Adoption
Automation increases productivity
30% per Resource
67%
Cash Visibility Improvement
Average improvement
when using SWIFT
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$14mil net benefit
ROI of 326% over 5 years, payback in 24 months
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25
40
Lite2
Others
40% of corporates connected in 2013 via Cloud/Lite2
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SWIFT Reference Data
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• SWIFTref delivers a single source for all of the bank reference data you need
• Automate the data entry, validation, and maintenance processes across all payments
• Drastically reduce research time and costs associated with payment rejections
Comprehensive Bank Data Automate data validation & maintenance processes
Integrate with ERP master table
Corporate SWIFT Hub
Swiftref file
ERP1
Data Gathering
ABA#
SWIFT BIC
Bank / Branch Addresses
Global Banking Authorities
National IDs
Local ACHs
IBAN / SEPA
T2 ISO No SWIFT connectivity required.
SWIFT for Corporates
Accurate Reference
Data
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SWIFT and Standards
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• SWIFT Participates actively in the definition of financial messaging standards
• All messages ISO 20022 enabled
• SWIFT Released MyStandards as an industry utility to enable better communication of standards implementation
Corporate SWIFT Hub
Swiftref file
ERP1
Standards
MT and ISO 20022
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SWIFT Integration Platforms
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• SWIFT Integration Platforms allow automation of communication with all back-office systems
• Data parsing, validation, and format transformation at the SWIFT layer
• Allows all back-office systems to leverage same capabilities
• Insulate back-office systems from changes to banks / formats
Treasury
Finance
Trade
ERP
SWIFT Connectivity &
Integration
Effective Integration
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In Closing… Summary of Benefits to Corporations
Secure connectivity
with your banks
Payments Platform
Cash Management visualization
Accurate Reference
Data Standards
Effective Integration
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v07
Q&A