The Power of Business Analytics Sibos 2010 Amsterdam

Bart Claeys, SWIFT

Neal Livingston, Standard Chartered Bank

26 October 2010

• Your challenge• Your solution• Business analytics at Standard Chartered• The power of business analytics• Q&A

Agenda

2009 Market volatility and events…

… which continues in 2010

Your challenge

?• Get insights to respond to mission critical questions

• To know where to get the insights and to trust these

• And even if you know

• It’s often

– Incomplete – Outdated – Time consuming – Expensive– Questionable quality-wise

Your Challenge

SWIFT has a solution for analysing and reporting your SWIFT messaging activity, with fast and direct access to business analytics about your company and the global

financial industry

SWIFT has a solution for analysing and reporting your SWIFT messaging activity, with fast and direct access to business analytics about your company and the global

financial industry

SWIFT has a UNIQUE solution for analysing and reporting your SWIFT messaging activity, with fast and direct access to business analytics about your company and the global

financial industry

SWIFT has a UNIQUE solution for analysing and reporting your SWIFT messaging activity, with fast and direct access to business analytics about your company and the global

financial industry

• Reliable• Actionable• Secure

• Global• Cross-market• Up-to-date

Our Solution

PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 6

The Power of Business Analytics: Getting Insights into the Financial Market

Importance of Business Analytics for Standard Chartered

Risk Mgt & Compliance

Performance Management

Balance Sheet &

Capital Management

SWIFT's Role in the Information Supply Chain

Consistent and reliable reportingConsistent and reliable reporting

Value creator across the information supply chainValue creator across the information supply chain

Indicator of economic and financial activityIndicator of economic and financial activity

Facilitate usage and adoption of standardsFacilitate usage and adoption of standards

Central source of dataCentral source of data

How Standard Chartered Uses Watch?

Group-wide Management

Client & Competition

Insights

Product & Network

Management

Benefits in More Granular Information

Business Flow Management Pricing & Value-Added Services

Credit Facility Management Continuous Improvement

Currency &

Value

The Bigger Picture

57A(Bene Bank)

56 (Intermediary Bank) 

Charge Type(Ben/SH/Our)

Source of image: mentalfloss.com

Watch helps you to:

• Monitor global trends and see how you evolve• Optimise your relationship network and reciprocity• Perform customer risk analysis• Identify business opportunities• Benchmark your operational performance• Target cost savings

Watch – Online Insights into Your Business

• On-demand analysis of data via SWIFT.com

• Monthly data updates including customer data and SWIFT totals

Watch Portfolio - AnalysersOnline insights into your business

Traffic Analyser – including your market share and all correspondents

Message Cost Analyser – helping you with cost allocation, savings & forecasting

Billing Analyser – defining your total cost of ownership in SWIFT

Market Analyser – providing your rankings and performance benchmarks

• Pre-defined reports downloaded from SWIFT.com • Monthly data updates

Watch Portfolio - ReportsOnline insights into your business

Today on SWIFT.com

• FIN traffic distibution by market / region

• FIN country market share

• FIN traffic costs

• FIN counterparties BIC11

More to come…

• Benchmarking reports

• Peer comparison

• Customised reporting

Watch Value AnalyserOnline insights into amount & currency

• Ordering possible NOW!

• First data publication planned for December 2010

Visit the Watch demo stand and see a glimp of your institution’s total value

Allowing you to: • Monitor your institution’s liquidity per market, per corridor and

currency• Cross-charge more effectively• Perform customer risk analysis and respond to compliance

requirements• Size the opportunity to develop multi-currency products• Identify your market share per currency and its related growth

vs the market

16

What is your focus?

THE INDUSTRY

YOUYOUR

NETWORK

Watch Value AnalyserCreating new insights

Value AnalyserMonitor your business

• What is the total European import/export vs China financed through LCs?

• What is the total value? For which currencies?

Source: Watch Market Analyser

European import/export vs China through LCs

Did you know?

• Perform a similar analysis for each business line, country, entity…

Transaction AmountsTransaction Volumes

Value AnalyserEvaluate customer reciprocity

• Who are my top counterparties? Is reciprocity respected?

“Reciprocity analysis can show different results when looking at currency or amount”

Source: Watch Traffic Analyser

Value AnalyserTrack performance of correspondent network

“We are now receiving GBP payments from our

counterpart. Why?”

Source: Watch Value Analyser

• How can we optimise our correspondent network?

• Can we consolidate our EUR clearing activity ?

• Is our correspondent compliant with bilateral currency agreements?

• Can we improve our messaging efficiency?

Did you know?

31%56%

Value AnalyserPerform customer/liquidity risk analysis

Transaction AmountsTransaction Volumes

Top 10 exposure

of 2010 Total

Source: Watch Traffic Analyser

• What is our top10 counterparty exposure? In which direction?

• Is our exposure increasing/decreasing from a value perspective?

• Perform a similar analysis for each business line, country, currency…

Value AnalyserBenchmark against the industry

Source: Watch Market Analyser

• What is the market exposure towards a specific country?

• How is it evolving? Do we have a similar exposure?

• Should we take any measures to manage the risk?

Transaction flow evolution vs Greece

Source: Watch Value Analyser

“Should we envisage developing multi-currency

products in Europe?”

…

“Should we adapt our pricing policy for USD

payments?”

Value AnalyserBenchmark against the industry

• What are the most common currency flows in specific corridors?

• Can we leverage this information for business development purposes?

Key features:

• SaaS model – Software as a Service

• Unique source

• From a neutral and trusted party

• Monthly updates of high-quality data

• Historical data (prior two years + current year-to-date)

• Under evaluation: daily, intra-day traffic analysis

Watch – Business Intelligence only from SWIFT

• Want to know more of Watch @ Sibos?– Ask your SWIFT relationship manager– Visit the Watch demo stand– Receive a sample of your institution’s currency & value data

• Want to follow-up after Sibos?– Ask your SWIFT relationship manager– Watch@swift.com

• Other Q&A?

More Information

Questions & answers

?

Thank you