A Progress Update

18 October 2018

Housekeeping

Agenda

Welcome Melanie Johnson, Chair, NPSO

NPSO Progress Update Paul Horlock, CEO, NPSO

New Payments Architecture 1 Matthew Hunt, COO, NPSO

Q&A

BREAK

New Payments Architecture 2 Matthew Hunt, COO, NPSO

RTGS Renewal Programme Sara Ward, Bank of England

Getting Ready Paul Horlock, CEO, NPSO

Q&A

Thank you Melanie Johnson, Chair, NPSO

Welcome Melanie Johnson Chair

Achievements

A Progress Update18 October 2018

TransformationPaul HorlockCEO

Services Innovation

Transformation

GuardianshipEcosystem of Culture of

Strategic Framework

Strategicobjectives

• Operations• Risk• People• Technology• Communications• Legal• Policy & regulatory• Strategy & standards

Strategy implementation

KPIs

PeopleCost/Value

RiskService

Services

Innovation

Guardianship

Vision

Culture Development

New Payments ArchitectureMatthew HuntCOO

New Payments ArchitectureProcurement Approach

OCT NOV DEC FEB APR AUG OCT JAN FEB Q2

2018 2019 2020

New Payments ArchitectureProcurement Timeline

Pay.UKPQQ

issued

Pay.UKstake-holderevent

Pay.UKRFI

issued

Pay.UKRFP

issued

Pay.UKBAFO

shortlistpublished

Pay.UKstrategicpartnerselected

Pay.UKBAFO

issued

VendorPQQ

response

VendorRFI

response

VendorRFP

response

VendorBAFO

response

New Payments ArchitecturePayment Ecosystem

New Payments ArchitecturePayment Ecosystem

IN THE MARKET

FOR THE MARKET

Q&A

Break

New Payments ArchitectureMatthew HuntCOO

New Payments Architecture Confirmation of Payee – Capability Enabled

Mar ‘18

Industry engagement and market research (200+ interactions across all groups)

Implementation approach planning with PSPs

Specifications (API) & design published

May‘18

Jul ‘18

Sep‘18

Nov‘18

Jan ‘19

Rules, standards & proposition available for PSPs

Proposition, definition &GDPR/ data privacy interpretations

Stakeholder Engagement Report published (today)

CoP capability enabled for the market

MatchingAccuracy

Customer Education

Market Network

Implementation planning is underway with participants

✗

New Payments Architecture Request to Pay

First revision of APIspecs published

v0.1

Q3 2018 Q4 2018 Q1 2019 Q2 2019

Early accesssandbox live

v0.2v0.3

v0.4

Februaryv1.0 API specs

published Request to Paystandards launched

Industry and sandbox user feedback

Iterate API specs based on feedbackImprove, add, streamline features

✓

New Payments Architecture Transaction Data Analytics

RecipientAccount

New Payments Architecture Enhanced Data

NEW PAYMENTS

ARCHITECTURE

Buyer SupplierPayer’s PSP Payee’s PSP Auto reconciliation

Buyer Payer’s PSP

PI

Remittance Advice

Buyer Payer’s PSP

PI

Remittance Advice

Buyer Payer’s PSP

PI

Remittance Advice

Buyer Payer’s PSP

PI

Remittance Advice

PI PI PI PI PI

Remittance Advice

Buyer Payer’s PSP

PI

Remittance Advice

Remittance Advice Remittance Advice Remittance Advice Remittance Advice

New Payments ArchitectureThree Horizons

1st Horizon 2nd Horizon 3rd Horizon

NowExisting schemes

Far FutureNew Payments

Architecture & Eco-system

Near FutureTransition

What does now look like?

How we get from as-is to to-be?

ISO20022

RTGS Renewal – Programme update & ISO 20022Pay.UK Stakeholder EventOctober 2018

Increased resilience

Greater access

Wider interoperability

Improved user functionality

Strengthened end to end risk management

May 2017Programme mobilised

March 2018Launch of synchronisation Proof of Concept (PoC)

March 2018Programme scope agreed at RTGS/CHAPS Board

Design & Source

Vision & Strategy Plan-Analyse-Design (PAD)

Our journey to date

July 2017External Advisory Body established

November 2017CHAPS moved to direct delivery model

June 2018Mansion house speechISO20022 consultation published

July 2018Target Operating Model and Solution Blueprint agreed

External touchpoints

Programme achievementsKey

I N D U S T R Y E N G A G E M E N T

August 2018Transition and Readiness Approach shared with Direct Participants

ISO 20022 – Consultation Update

As part of the RTGS Renewal Project in June 2018 the Bank launched a 6-week consultation paper on the adoption of a common global ‘language’ or messaging standard, known as ‘ISO 20022’, for payments in the UK. The consultation closed on 18th July 2018.

• Most major banks and a number of technology providers also provided detailed responses.

• The FCA expressed support for the direction of travel.

• The responses demonstrate that the significance of ISO 20022 is understood.

ISO 20022 Consultation

ISO 20022 | consultation update

Increasing resilience and reducing risk

Enabling organisations,

households and policy makers to

take more informed and effective

decisions

Improving UK productivity and

outcomes for users of payments

Operational Resilience

Risk management

Fraud and financial crime

Competition and innovation

International harmonisation

Efficiencies in processing

Richer Data

• Strong support for the proposed CCM and the suggested CHAPS implementation.• A clear emphasis that the Bank and Pay.UK need to remain aligned.

ISO consultation: CHAPS thematic findings

Common Credit Message ( CCM)

• Universal support for the proposed ongoing governance of the CCM. Agree with creation of a senior strategic advisory panel.

Governance

• Strong support for planned interoperability. • Industry awareness of the potential benefits of richer data is fast-developing.

Benefits

ISO consultation: CHAPS thematic findings

• Hard to estimate detailed costs of implementing ISO 20022 messaging. • Considerable variations in estimates.

Costs

• Majority support LEIs, but some unfamiliarity & uncertainty.• Strong support for purpose codes, but views varied on level of granularity with an appetite for global

standardisation.• Strong support for removal of free-format fields; some respondents wanted more time to remove

these.• Challenges around extended character sets.

Use of New FieldsIn CHAPS

ISO timeline

ANALYSIS

Detailed analysis of consultation, decisions on

outcomes and drafting of response

PUBLICATION

Consultation Response Document

INDUSTRY EVENT

Presentation and discussion of

response and lesson from other

jurisdictions

GUIDANCE

Publication of draft CCM and industry guidelines

GOVERNANCE

Creation of senior strategic change advisory

panel

INTRODUCTORY PHASE

Like-for-like migration first

Aug-Nov 2018 Nov/Dec 2018 06 Dec 2018 early 2019 late 2019 not before 2021

Find out more

If you would like to attend any of our upcoming events please email the RTGS Engagement Team. • 03 December – Design & Source • 06 December – ISO 20022

To join our mailing list and receive the latest programme updates contact RTGSEngagement@bankofengland.co.uk

Visit our website www.bankofengland.co.uk

mailto:RTGSEngagement@bankofengland.co.ukhttp://www.bankofengland.co.uk/

Get ReadyPaul HorlockCEO

Get Ready

Get Ready

Fintechs and Suppliers

Payment ServiceProviders

Trade Associations

Professional Services

Corporates

End Users

Other Payment System Operators

Regulators

International Partners

Q&A

Thank you Melanie JohnsonChair

If you have any questions or would like to find out how to get involved,email us at enquiries@wearepay.uk and visit us at www.wearepay.uk.

If you would like to know more about the NPA Programme and how to get involved, email us at npaenquiries@weareapay.uk.

© Pay.UK Limited 2018. All Rights Reserved.

The information contained in the presentation is proprietary and confidential to Pay.UK Limited.This presentation may not be reproduced, copied, stored or transmitted in any form or by any means without the prior written permission of Pay.UK Limited.

The Pay.UK name and logo are trade marks of Pay.UK Limited in the UK and EU.

mailto:enquiries@wearepay.ukhttp://www.wearepay.uk/mailto:npaenquiries@weareapay.uk

A Progress UpdateHousekeeping AgendaWelcome AchievementsSlide Number 6A Progress Update�TransformationTransformationStrategic FrameworkCulture Development �New Payments ArchitectureNew Payments Architecture�Procurement Approach New Payments Architecture�Procurement Timeline New Payments Architecture�Payment EcosystemNew Payments Architecture�Payment Ecosystem�Q&A��Break�New Payments ArchitectureNew Payments Architecture �Confirmation of Payee – Capability EnabledNew Payments Architecture �Request to PayNew Payments Architecture �Transaction Data AnalyticsNew Payments Architecture �Enhanced DataNew Payments Architecture�Three HorizonsSlide Number 25Slide Number 26Our journey to dateSlide Number 28ISO 20022 ConsultationISO 20022 | consultation updateISO consultation: CHAPS thematic findingsISO consultation: CHAPS thematic findingsISO timelineFind out more�Get Ready��Paul Horlock�CEOGet ReadyGet Ready�Q&A�Thank you ��Melanie Johnson�ChairSlide Number 40