Slide 1 Cartagena - Agosto 2005 Introdución a SWIFT: Facilitando ventajas competitivas a través de...

Cartagena - Agosto 2005

Introdución a SWIFT:Facilitando ventajas competitivas a través de estándares comunes y una plataforma compartida

Lambert Timmermans

Gerente América Latina, SWIFT sc

SWIFT Plenary - Agenda

The 2010 Strategy of SWIFT SWIFT in Latin America SWIFTNet solutions helping you building

competitive advantage

SWIFT - connecting the financial communityBanks

(Founding - 1973)

IMI's (1992)

Corporates (2001)

Insurance IMI's (2001)

Payments MI's(1998)

Securities MI's(2000)

Government institutions (2001)

Trustees(1990)

Broker-dealers (1987)

Paymentsystems (1987)

Clearing & Settlementsystems (1987)

Depositories (1987)

Stock Exchanges (1987)

Treasury Counter-parties

(1999)

Visión SWIFT2006

"Nuestra misión es ser la infraestructura de mensajería

de la comunidad financiera, aportando el menor riesgo

y los mayores niveles de contingencia."

Other Other Exchanges Exchanges

InvestmentInvestmentManagersManagers

Transfer Transfer AgentsAgents

ETC providersETC providersInfrastructuresInfrastructures

and VMUsand VMUs

Broker-Broker-dealersdealers

SWIFT

BanksBanks

Stock ExchangesStock Exchanges

User User Groups Groups

ICSDs & CSDsICSDs & CSDs

InsuranceInsurancecompanies companies

Single window connectivity for the industry

Creating STP momentum for the industry

PensionPensionFundsFunds

CorporatesCorporates

SWIFT2006

Making financial messaging safer and less costly

2005 Pricing initiatives

FIN Price reductions

Reporting Non-Reporting

Domestic 20% 5%

Intra-Bank 30% 18%

International 20% 7%

Average reduction = 8%

Rebate history

15 M

25 M

33 M

?0

10

20

30

2002 2003 2004 2005

EUR Millions

5%

8%

10%

Reducing total cost of ownership

Service bureaux

Introductory packages for small users

ISP local loop

Member concentrator model approved

SWIFTAlliance starter set ($ 4,750) fee waived

Pricing and traffic Harnessing economies of scale

5

10

15

20

25

30

35

40

45

50

0

500

1000

1500

2000

2500

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Price(EURcent/msg)

Traffic(Millions of messages)

Price

Traffic

SWIFT’s changing market mix

Share of SWIFT messaging revenues (EUR)

0%

20%

40%

60%

80%

100%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Securities MI

Securities

Banking MI

Banking

SWIFT: la red mundial en 20057,678 instituciones financieras7,678 instituciones financieras

203 paises203 paises

Dia pico: 10,958,655 Dia pico: 10,958,655

Disponibilidad : 99.999%Disponibilidad : 99.999%

Pagos/576 MM msgs

Comercio /19 MM msgs

Tresoreria/65 MM msgs

Valores/338 MM msgs

Crecimiento

Pagos 6%

Tresoreria 5%

Com. Ext 1%

Valores 11%

Banking market infrastructures in 1995 EBA Norway

Banking market infrastructures in 2005Albania France CRI SingaporeAngola Germany (RTGSplus) Slovenia (SIPS, GIRO) Australia Ghana South Africa (SAMOS) Austria (ARTIS) Greece South Africa (BOP, ZCL)Azerbaijan Hungary Spain (SLBE)Bahamas Guatemala Sri LankaBelgium Italy (BI-REL) Sweden (RIX, BGC)Barbados Ireland SwitzerlandBosnia Herzegovina Jordan TanzaniaBulgaria Kuwait ThailandCanada Latvia Trinidad & TobagoChile LCH TunisiaCLS Bank Luxembourg UgandaCroatia Malta UK NewCHAPSDenmark Mauritius VenezuelaEBA (EURO1) Namibia West African Monetary EBA (STEP1, STEP2) New Zealand UnionECB (TARGET) Netherlands (TOP) Egypt Netherlands (Interpay) USA (CHIPS, Fedwire)Eurogiro Norway ZambiaFinland Philippines Zimbabwe

Romania

Securities market infrastructures 1995

JP Morgan Cedel

Securities market infrastructures 2005

CREST

Euroclear Bank Clearstream

Strate

SISSIS X-clear

Euroclear NL

ECSDA

…and others!Johannesburg SE

Sydney Futures Exchange

Singapore SE

Omgeo

DTCCISCC

LCH.Clearnet

HKMA

Eurex

Euroclear FR

London Stock Exchange

Tokyo Stock Exchange

Iberclear JSCC

Increasing resilience - 4 Pillars II

Sec

uri

ty

Peo

ple

Cri

sis

mg

mt

Ser

vice

co

nti

nu

ity Physical and cyber security

Personnel processes Service continuity Crisis management

Visión SWIFT2010?

"Nuestra visión es de llegar a ser la principal infraestructura

de la comunidad financiera global para la gestión de

transacciones con el menor riesgo y la mayor fiabilidad."

SWIFT en América Latina

8.2 MM msg (+ 17%)

699 usuarios activos

47 paises

Service Bureaus

Organisacion regional SWIFT

Migracion SWIFTNet

Sistemas de pagos

Conferencia Reg. 2005

Acceso corporativo/Ma-CUG

Pagos 20 %

Tresoreria -12 %

Valores 13 %

Com. exter 2 %

Total 18 %

Crecimiento

2. SWIFT Trafico en America Latina: por mercado (Mayo 2005)

% Cuota

Valores5% Com. Exter.

6%Tresoreria

3%

Pagos86%

Tot Msg(Sent)

8.7 mio

Traffic2004 Top 20 countries and Latin America

Latin America

0

50

100

150

200

250

300

350

400

450

GB US DE FR BE IT NL CH JP LU HK ES AU SE ZA CA AT SG DK FI

Millions

Growth2004 Top 20 countries, Latin America and "RIC's"

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

IT AT JP IN RU CN US GB FI HK AU BE CA SE ZA DE LU SG FR DK NL ES

CH

Latin America

Latin America traffic2004 Top 10 countries

4.1 4.1

2.0

1.51.3

0.8 0.7 0.6 0.6

2.6

0.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

MX BR VE CL AR CO EC PE PA AN Others

Millions

Latin America growth2004 Top 10 countries

44%

40%

29%

24%

18%

11% 10%8%

16%14%

-1%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

CL VE CO MX AR EC BR PE AN PA Others

Proprietary connections: IT Iceberg concept

hardwarehardware

softwaresoftware

lineslinesmaintenancemaintenance

supportsupport

releaserelease qualificationqualification

testingtesting

backupbackup

disaster take-overdisaster take-overexercisesexercises

legallegal

softwaresoftware maintenancemaintenance

project managementproject management

procurementprocurement

educationeducation

documentationdocumentation

SWIFTNet - main features SWIFTNet messaging product offering

BrowseBrowse Online information visualisationOnline information visualisation

FileActFileActReal-time file transfer forReal-time file transfer forbulk payments files and reportingbulk payments files and reporting

FINFIN Standard store-and-forwardStandard store-and-forwardmessaging for single instructionsmessaging for single instructions

InterActInterActReal-time messaging for Real-time messaging for query / response and transaction inputquery / response and transaction input

SWIFTNet: single window access to the financial world

Business solutions Customer solutions

SWIFTNet FIN Market infrastructures

SWIFTNet

Enabling thecommunity

More than 7,000 FIN correspondents in

more than 200 countries

FX-AccordFIXCash reportingProprietary reportingBulk paymentsSecurities reportFunds mngntBrowsing

Broader range ofbusiness solutions

Corporate access / MA CUG

Extended reach

RTGSplusCLSi-C&S (NYCH)Euroclear BankClearstreamChile LBTR …

Single windowaccess to MI’s

Example of FIN Use a single standard with all counter-parties

Request for Transfer (MT101)

Credit/debit advice (MT900/910)

Intra-day Statement (MT942)

End of day Statement (MT940)

Notice to receive (MT210)

A complete set of standard messages that allow end to end automation

FINFIN for treasury and liquidity management FINFIN for treasury and liquidity management

FIN for liquidity management Automate investment and borrowing activities

…. + an extensive set of standards to automate your collateral management and corporate actions

Order to buy/sell (MT502)

Statement of holdings (MT535)

Settlement instructions (MT540/1/2/3)

Confirm of purchase/sale (MT515)

Settlement confirmations (MT544/5/6/7)

FINFIN for liquidity management FINFIN for liquidity management

Financial risk managementAutomated matching with SWIFTNet Accord

SWIFT

AccordReal-time

Confirmation Matching

Accordsubscriber

Accordsubscriber or

non- subscriberCopies of

confirmationsReal-time interactive

Reporting and Exception handling

SWIFTNet Accord further reduces costs and operational risk

FINFIN and AccordAccord for financial risk managementFINFIN and AccordAccord for financial risk management




SWIFTNet







Extended reach



SWIFT provides a total solutionfor payments and settlement systems

Automated clearing houses

Bulk payments

Real-time gross settlement systems

Settlement instructions

FIN FIN Copy InterAct FileAct

Central securities depositories

DVP instructions

Real-time query/control

Reporting

Settlement instructions

Real-time query/control Real-time query/control

Reporting

Banking correspondents

Payments

Bulk payments

R-t cash reporting

Settlementinstructions

Example: the FED and CHIPS

Federal Reserve Bank

– Fedwire: as a contingency for large banks

– Fed ACH: as a contingency for large banks The Clearing House

– CHIPS: as primary messaging

– EPN ACH: payment channel - primary or contingency for large banks

Payments Markey Infrastructures (May 2005)

Angola (RTGS)ECB TARGET2Kenya (KPS)Singapore (MEPS+)

Austria (ARTIS)Bahamas (RTGS)Bahamas (RTGS)Barbados (RTGS)Barbados (RTGS)Belgium (ELLIPS)ECB (Target)Finland (BOF)Greece (HERMES)Kuwait (RTGS)Malta (RTGS)Netherlands (InterPay)Netherlands (TOP)South Africa (SAMOS)Switzerland (Remote Gate)Thailand (BAHTNET/2)Trinidad and Tobago (RTGS)Trinidad and Tobago (RTGS)Venezuela (PIBC)Venezuela (PIBC)W. African Monetary Union (BCEAO)

Austria (ARTIS)Chile (COMBANC)Chile (COMBANC)CLS BankEBA (STEP2)EurogiroGermany (RTGSplus)Italy (BIREL)Luxembourg (LIPS)South Africa (BOP)UK (EnquiryLink)

Algeria (RTGS)Bank of Central African States (BEAC)ECB TARGET2Guatemala (RTGS)Guatemala (RTGS)Oman (RTGS)Pakistan (RTGS)

SWIFTNetFIN

IrelandItalyJordan Latvia LuxembourgMauritiusNamibia New ZealandNorwayPhilippines SloveniaSpain (SPI)Sri LankaSwedenTanzaniaUK NewCHAPS (€ & £)Zimbabwe

CHIPS (TCH)EurogiroSlovenia (Giro)Sweden (BGC)UK (BACS) Georgia (ACH)Hungary (VIBER Monitor)Tanzania (ACH)UK (BACS)USA (EPN)

Dominican Republic (RTGS)Dominican Republic (RTGS)Fiji (RTGS)Russia (RTGS)

Discussion

Albania (RTGS)Australia (PDS)Azerbaijan (AZIPS)Bosnia Herzegovina (BIH)Bulgaria (RTGS)Canada (LVTS)Chile (LBTR)Chile (LBTR)CLS BankCroatia (HSVP)Denmark (KRONOS)EBA (EURO1 & STEP1)Egypt (CBE)France CRI (PNS/TBF)Germany (RTGSplus)Ghana (RTGS)Hungary (VIBER)Ireland (IRIS)Italy (BIREL)

FIN Copy

Albania (AECH)ECB TARGET2Netherlands (InterPay)Singapore (MEPS+)Slovenia (GIRO)Spain (NSLBE)Sweden (BGC)USA (CHIPS)USA (Fedwire)

Jordan (RTGS)Latvia (RTGS)Luxembourg (LIPS)Mauritius (RTGS)Namibia(RTGS)New Zealand (AVP)Norway (NICS)Philippines(RTGS)Romania (RTGS/CSD)Slovenia (SIPS)South Africa (ZCL)Sri Lanka (RTGS)Sweden (RIX)Tanzania (RTGS)Uganda (RTGS)UK (NewCHAPS)Zambia (RTGS)Zimbabwe (ZET)

Implementation

Planning

Live

US BanksUS Banks

SWIFT

Single payments

RTGS

FEDNET

FEDACH

FedWire

Ex. Contd: SWIFTNet expands the options for US banks

TCH

EPNACH

CHIPSFedWire CHIPS FI’s

Bulk payments / Files

FEDACH

ACHsEPN ACH

FI’s

Dedicated link

Dedicated link

New SWIFT flows (InterAct and FileAct)Existing SWIFT flows (FIN)

Single SWIFTNet connection




SWIFTNet







Extended reach



The Bulk Payments Solution is based onSWIFTNet FileAct

Authenticity, integrity, confidentiality, non-repudiation

Flexible central routing

Any type of file up to 250Mb, compression supported

File transfer initiation

Delivery notification (optional)

Sender Receiver

Actual file transfer

File transfer status

File transfer status

1

2

3

FileActFileActFileActFileAct

SWIFTNet FileAct addressesyour present end-to-end bulk payment needs

FinancialInstitution

Customer Customer

FinancialInstitution

AutomatedClearingHouse

Standardised file transfer platform

Support of existing file formats

Global reach Highly secure and

cost effective

SWIFTNet FileAct

SWIFTNet FileAct

SWIFTNet FileAct

FIN MT 103 / MT 202

Intraday FIN MT 900/910/942

End of day FIN MT 950

Account servicinginstitution

Account owner

1. What is SWIFTNet Cash Reporting?

SWIFTNet Cash Reporting

-Time payments are more common -Timed liquidity needed: RTGS’s, PvP, DvP’s-Longer settlement days-Interdependencies between payment systems

-Globally connected world-Increasing regulatory pressure -Time = money

Market infrastructure cash management

SWIFTNet Cash Reporting supports your real-time information needs

Real-time Nostroaccount information

Real-time cash reporting for corporates

SWIFTStandards XMLSWIFTStandards XML

Service User person to application possible configurations

SA WebStation

Admin GUI

Messenger GUI

SWIFTNet RTNAI service

SNJ SAG

SNL

SA Starter SetSA Access

RAHA

SA WebStation

Admin GUI

Messen

ger GUI


SAG

SNL

SA GatewayRAHA

SA WebStation

Admin GUI

Messenger GUI


a) Stand alone: SAB + GUI connected directly to SWIFTNet (via a dial-up/leased line)

b) SAB + GUI concentrated behind the SWIFTAlliance Starter Set

c) SAB + GUI concentrated behind the SWIFTAlliance Gateway

SWIFTAlliance Starter Set

File transfer

GUI

SWIFTNet Link

The SWIFTAlliance Starter Set

SWIFTAlliance Entry

or Access

Customer Solutions

SWIFT BusinessSolutions

SWIFTNet FINMarketinfrastructures

Financial institution

Generic SWIFTNet messaging services

InterAct FileAct Browse

The SWIFTNet single window:

The SWIFTAlliance Starter Set opensthe single window




SWIFTNet







Extended reach



e-banking Y

host to host X

e-banking Z

VAN

“fax-banking”

Internet

Leased line

PSTN

Corporate client

Accountspayable

Accountsreceivable

Treasury

Other

Streamlining with heterogeneous systems is a challenge

How can banks help ?How can banks help ?

One platform Full STP Highest level of

security and resiliency

Lower costs Reduced risk Improved control

SWIFTNet

Corporate client

Accountspayable

Accountsreceivable

Treasury

Other

SWIFTNet interface

Banks can help by offering access over a secure standardised channel

Banks offering corporate access over SWIFTNet Americas

Royal Bank of Canada Laurentian Bank of Canada Caisse Centrale Desjardins Banque Nationale du Canada

Canada (CA)

Mexico (MX)

BBVA Bancomer, S.A. American Express Bank Ltd Bank of America N.A. Citibank NA Deutsche Bank Trust Co. Americas JPMorgan Chase Bank Mellon Bank NA The Bank of New York Wachovia Bank Wells Fargo State Street and Trust Cy

United States (US)

Brazil (BR)

Banco do Brasil

Banks offering corporate access over SWIFTNet ES PT

Banco Bilbao Vizcaya Argentaria, S.A. Banco Cooperativo Espanol, S.A. Banco Espanol de Credito S.A. Banco Popular Espanol Caixa d'Estalvis i Pensions de Barcelona "La Caixa“ Santander Central Hispano Investment S.A. Bankinter, S.A.

Spain (ES)

Banco Comercial Portugues, S.A.

Caixa Geral de Depositos, Lisboa

Portugal (PT)

Corporates on SWIFTIndustry sectors

Corporates on SWIFT by industry sector (3/6)

Citco FINClear FZ-LLC HIFX PLC Korean Exchange Bank (3 entities) Travelex Mastercard Moravski Penezni Ustav Nyenburgh Beheer N.V. RZB financial services (US) Thomas Cook Al Rostamani

Financial Services

Cargill Danone Nestle Espana Kraft

Food Products

Aegon Legal and Finance Rural Grupo Asegurador

Insurance


Aramco BP Shell Sonatrach Lukoil Total Yara International

Oil and Gas

Yves Rocher

Personal Care

Johnson and Johnson

Pharmaceuticals

Hertz

Rental and Leasing


Software

SAP Synergex

Telecom Services France Telecom Telkom UNI 2

The guiding principles of SWIFT are clearThe guiding principles of SWIFT are clear

To offer the financial services industry a To offer the financial services industry a common platform of advanced technology common platform of advanced technology

and access to shared solutions through and access to shared solutions through which each member can build its which each member can build its

competitive edge.competitive edge.

Questions and answers

Thank you!

Slide 1 Cartagena - Agosto 2005 Introdución a SWIFT: Facilitando ventajas competitivas a través de...

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