Optimizing SWIFT eBAM for Your Corporationnyce.tmany.org/2013/wp-content/uploads/2013/04/...Rapid...
Transcript of Optimizing SWIFT eBAM for Your Corporationnyce.tmany.org/2013/wp-content/uploads/2013/04/...Rapid...
Optimizing SWIFT eBAM
for Your Corporation
May 30, 2013
Christian Vega
Sales Director, SWIFT Solutions
Fundtech Corporation
Dan Gill
Product Line Director, Corporate Solutions
Weiland Financial / Open Solutions
NEW YORK CASH EXCHANGE 2013
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About the Company
Annual Revenue $225M
1,000+ financial institution clients
1,500+ Employees
HQ - Jersey City, NJ
Thousands of SME-Corporate relationships
US/Intn’l Payments, Cash Management, Mobile Payments, Financial Messaging (SWIFT), Compliance Filtering, etc.
About the Fundtech SWIFT Bureau Services
World’s largest SWIFT Service Bureau provider
In Service Bureau: 280+ FIs, and over 80 Corporations
– In-house + Service Bureau: 600+ clients
Data centers in North America, Switzerland, UK, and Singapore
About Fundtech
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About Weiland Financial
Part of Open Solutions
The Weiland Financial Group is the leading provider of bank
fee management and bank account management solutions
for more than 30 years.
More than 300 of the Fortune 1000 In house and hosted
Acquired by Open Solutions in 2010 and Fiserv in 2013
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A standardized system to maintain effective controls around
the inventory of bank accounts used by a corporation
– Establishing processes around the opening and closing of
accounts
– Maintaining accurate records of employees with authority
over those accounts
– Maintaining legal entity links for all accounts
Effective business processes to ensure compliance
Effective communication of changes with banks
What is Bank Account Management?
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Scenario
Policy?
HR reports?
Feedback?
Authority to remove?
Who else needs to know?
Approvals?
Policy?
HR reports?
Feedback?
Limits?
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A process to allow bank account changes to be communicated between a corporate and their banks through electronic means
– Eliminate errors
– Reduce delays
– Improve Controls
– Synchronize information
The problem with the term eBAM
– Defined in many different ways by many different banks
– No universal methodology
– Until now
What is eBAM?
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eBAM Automating the ‘Conversation’
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An industry-standard solution for electronic bank account
management
– Open, maintain, and close accounts at multiple banks from one interface
– Manage account mandates for signers and other authority holders
– Request and receive Account Report documents to track account and
mandate holder status
Fully integrated with the SWIFT network, allowing for easy,
secure, and reliable message transport
Be clear when talking to your banks
– SWIFT eBAM uses the ISO 20022 message formats to communicate bank
account administration information over SWIFT FileAct
What is SWIFT eBAM?
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Electronic Bank-Account Management
eBAM automates the communication process between a corporate and
a banking institution, reducing inaccuracy and inefficiency while
improving traceability
Replaces the current corporate–bank methods for communication, which
are often manual and paper-based
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About SWIFT
Slide 10
An industry owned co-operative organization
serving the financial services industry
A provider of highly secure financial
messaging services
A financial services standardization body
SWIFT provides secure financial messaging
SWIFT does NOT provide clearing or settlement services
SWIFT does not hold accounts or assets
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EBAM SWIFT Global Standards
1. Acmt.007.001.01 AccountOpeningRequest
2. Acmt.008.001.01 AccountOpeningAmendmentRequest
3. Acmt.009.001.01 AccountOpeningAdditionalInformationReq
4. Acmt.010.001.01 AccountRequestAcknowledgement
5. Acmt.011.001.01 AccountRequestReject
6. Acmt.012.001.01 AccountAdditionalInformationRequest
7. Acmt.013.001.01 AccountReportRequest
8. Acmt.014.001.01 AccountReport
9. Acmt.015.001.01 AccountExcludedMandateMaintenanceReq
10.Acmt.016.001.01 AccountExcludedMandateMaintenanceAmendment
11.Acmt.017.001.01 AccountMandateMaintenanceRequest
12.Acmt.018.001.01 AccountMandateMaintenanceAmendment
13.Acmt.019.001.01 AccountClosingRequest
14.Acmt.020.001.01 AccountClosingAmendment
15.Acmt.021.001.01 AccountClosingAdditionalInformationReq
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Secure Financial Messaging
Receiver Sender
Receipt Receipt
SWIFT system
Sending institution
Receiving institution
Sending customer
Receiving customer
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Secure Financial Messaging
SWIFTNet FIN
interface
SWIFTNet
FIN PKI PKI
PKI PKI
SWIFTNet FIN
interface
HSM HSM
PKI
RMA
PKI: FIN Access control
PKI: End-2-end security
RMA: Relationship mgt.
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Typical Corporate-to-Bank Connection Model
Corporate responsible for multiple protocols, standards & systems
Corporate Responsibility
Leased Line
Office Systems
Payment Processing & Settlement
Cash Management &
Reporting
Bank Acct. Mgt. Hedge Accounting
Other Strategic Operations
PSTN
Host to host
e-banking
e-banking
fax-banking
VAN
Internet
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SWIFT Connection Model
Access to SWIFT ‘s global financial network sets corporations on a path
to realizing a streamlined multi-bank communications strategy
Corporate Responsibility
SWIFT
Office Systems
Payment Processing & Settlement
Cash Management &
Reporting
Other Strategic Operations
Single Gateway
Bank Acct. Mgt. Hedge Accounting
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Single Bank Communications Gateway
SWIFT
Service Bureau
SWIFT FIN
Messaging
SWIFT FileAct
Messaging Routing and
Transformation
PROD + TEST + DR environments
24/7 Tech & CS Support
Internet
FTP Agent BAI, XML, EDI, NACHA, etc
Corporate Site
Site
ERP System (s)
Treasury Management
System
F
T
P
M
Q
Bank Relationship & Account Mgt.
Hedge Accounting Systems
A Service Bureau provides a single window for bank connectivity and can quickly
turn on the SWIFT services needed for eBAM and other treasury functions
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Rapid Deployment / Time-to-Benefit
– Existing expertise and infrastructure
– Corporation avoids steep SWIFT learning curve
Lower Total Cost of Ownership:
– Reduces labor and operations costs otherwise used to operate an in-house/direct connection
Unified Processing Architecture to all SWIFT network services and capabilities
– FIN, FileAct, Interact/MX, Browse services
– All SWIFT message types: MT101, MT940, etc., and non-SWIFT: EDI, BAI, XML, eBAM, etc.
SWIFT Expertise and Experience, including:
– General guidance, expert project management and implementation services
– Bank-specific best practices
Security, Reliability, Availability
– Ongoing support for disaster recovery, upgrades, standard changes and general maintenance
– Hosted in secure data centers with “always production ready”, redundant disaster recovery locations
Additional services readily available when/if needed:
– Message / format transformation
– Long-term Message Archival
– Compliance/OFAC Checking
– Direct Bank Connectivity to non-SWIFT Banks
SWIFT Service Bureau Model: Benefits
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eBAM Message Path
SWIFT banks
VPN/LL Corporation
(Web Access)
SWIFT System
(Service Bureau
Or In-House)
Request
eBAM
XML SWIFTNet
eBAM
File
Response
SWIFT
EBAM System
(ASP or In-House)
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What does an eBAM platform do?
– Provides an enterprise-wide inventory of bank accounts and their
relationships to your organization:
Banks
Accounts
Authorities
Subsidiaries
– Provides Business Process Management to establish controls around the
bank account management process
– Provides communications capabilities, including eBAM, between a
company and its banks for the management of bank accounts
What to Expect from an eBAM System?
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Managing eBAM messages using a conversation stream format
– Automatically consolidates various messages sent and received during a conversation within a single process tree
– Integrates with the Business Process Management module, connecting internal and external processes for managing accounts
Tracking ongoing eBAM conversations from a central location and understanding the conversation status:
– Awaiting Confirmation
– Confirmation Received
– More Information Required
– Additional Information Provided
– Awaiting Completion by User
– Completed Successfully
– Rejected
eBAM Conversations
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Five eBAM conversation types:
– Open Account
– Request Account Report
– Update Account
– Update Account (Signer Mandate Only)
– Close Account
Conversation Types
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Message Types
Outbound
Conversation Starters:
007 – Account Opening Request
013 – Account Report Request
015 – Account Maintenance Request
(no mandate)
017 – Account Maintenance Request
(mandate only)
019 – Account Closing Request
Conversation Responses:
008 – Account Opening Amendment
016 – Account Maintenance Amendment
(no mandate)
018 – Account Maintenance Amendment
(mandate only)
020 – Account Closing Amendment
Inbound
Conversation Responses:
010 – Account Request
Acknowledgement
009 – Account Opening Additional
Information Request
011 – Account Request Rejection
014 – Account Report
012 – Account Additional Information
Request
021 – Account Closing Additional
Information Request
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Conversation Example:
Open Account Conversation
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Conversation Example:
Request Mandate Change
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Individuals authorized to perform financial transactions on
designated accounts are known as Mandate Holders
Mandate Holder information is traditionally tracked on a paper
Signature Card
– Name
– Function
– Financial Limits
– Signature Image
eBAM replaces the paper signature card with the same
information stored and transmitted as an XML message (mandate
information)
SWIFT also manages their own digital identity solution, 3SKey
What is a Mandate Holder?
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eBAM Message Components
An eBAM messages contain the following components:
1. Header: Identifies the destination (by SWIFT code), conversation stream,
message type, and message contents
2. XML Message: The eBAM message itself
3. Attachments: Any number of attachments required by the bank
4. Encryption: The message and all attachments are packaged and encrypted by a
SWIFT service bureau for secure and reliable transportation
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Building Blocks for Efficient EBAM
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Finally Ready
– Pilot tests & rumors of Pilot tests
– SWIFT eBAM messages ISO 20022 certified
– Many banks making progress on eBAM at some level
“Watson, come here, I need you.”
– On February 12, 2013 a major US based insurance company became the first to complete full end to end testing of SWIFT eBAM messages through FileAct with one of their banks
– On February 25th, 2013, that same company went into production with eBAM over SWIFT to a major US bank
– Two other major US banks will be live in the next month or two
Reach out to your banks today and ask when they will be ready to communicate via SWIFT eBAM over FileAct.
Current Status
Thank you!
Christian Vega
Sales Director, SWIFT Solutions
Fundtech Corporation
T: 1-201-215-6576
Dan Gill
Product Line Director, Corporate Solutions
Open Solutions
T: 1-847-810-6112
NEW YORK CASH EXCHANGE 2013