SWIFT welcome address by Alain Raes

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WelcomeAlain Raes, Chief Executive, APAC & EMEA SWIFT

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Malaysia: Leading ASEAN with digital transformation and standardisation

Malaysia Traffic Insights - 2015

Key Highlights of Malaysia

20+ millionFIN messages per year (2015)

79+ thousandFIN messages per day (Year to date Dec 2015)

+5%Increase in FIN traffic (Year to date Dec 2015)

Malaysia Traffic Insights - 2015

Trade

Treasury

Securities

Payments

Growth rates based on Year to date December 2015 vs 2014 Average Daily Messages

EMEA Americas Asia Pacific

Total SWIFT Malaysia ASEAN

5.3% 8.9% 9.3% 6.6% 3.9% 5.8%

8.6% 10.5% 24.7% 10.7% 5.8% 16.7%

3.2% 7.5% 17.8% 6.3% 11.5% 1.2%

-5.0% -6.1% -3.2% -4.4% -6.8% -4.4%

6.7% 9.4% 15.4% 8.4% 5.0% 9.5%

Full year 2015 FIN Traffic growth at a glance

<-10% -10% to 0% >0%

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US/ UK NMGs - Business Intelligence Insights 13

2020 Strategy - Grow the core, build the future 16

SWIFT 2020 – Strategic priorities

Messaging

Software& Connectivity

Shared Services

Many-to-ManyMarket Infrastructures

CORE

COMPLIANCE

MIs

2020 Strategy - Grow the core, build the future 17

SWIFT 2020 – Strategic priorities

Messaging

Software& Connectivity

Shared Services

Many-to-Many

Market Infrastructures

Global & Key Clients

Small & Medium Banks

Investment Managers

Custodians & Investment Banks

Corporates

Funds ecosystem

RTGS and Central Banks

Real-Time Payment Systems

Central SecuritiesDepositories

Translating S2020 to SWIFT APAC Priorities

Trends

Renewal

• Fighting financial crime, monitoring & control, compliance recommendations.

• FATF, Basel III, FATCA, FCPA, AML, Sanctions

• ASEAN Economic Community (AEC), CIPS, Pacific payment system

• Increasing international connectivity of infrastructures• ISO 20022 adoption

• Demand for safer and more reliable infrastructure• Cyber threats increasing• CPMI-IOSCO PFMI & Annex F for CSPs

• Real-time 24-7• Convergence btw high & low value

Payments

• New systems: ISO 20022 messaging – rapidly growing interest in XML messaging capabilities

• Multi-currency clearing, PvP• Extended operating hours (e.g. HK RMB 20.5 hrs)

• CPMI-IOSCO Principles• Regulatory reporting• T+2

• ASEAN Economic Community (AEC)• Regional harmonization: ABMF, ASEAN Link, HK-CN,

TW-SG, CSIF cross-border DVP• ISO 20022 adoption

• CPMI-IOSCO & Annex F for CSPs

• Issuer to investor CA announcement • Funds hub implementation• Collateral management• OTC clearing

Securities

• Aging technology• New technology (distributed ledger)• Regional ambition-collaboration• ISO 20022

Regulation & compliance

Regionalisation

Resiliency & reliability

Real-time

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Translating S2020 to SWIFT APAC Priorities

Trends

Renewal

• Fighting financial crime, monitoring & control, compliance recommendations.

• FATF, Basel III, FATCA, FCPA, AML, Sanctions

• ASEAN Economic Community (AEC), CIPS, Pacific payment system

• Increasing international connectivity of infrastructures• ISO 20022 adoption

• Demand for safer and more reliable infrastructure• Cyber threats increasing• CPMI-IOSCO PFMI & Annex F for CSPs

• Real-time 24-7• Convergence btw high & low value

Payments

• New systems: ISO 20022 messaging – rapidly growing interest in XML messaging capabilities

• Multi-currency clearing, PvP• Extended operating hours (e.g. HK RMB 20.5 hrs)

• CPMI-IOSCO Principles• Regulatory reporting• T+2

• ASEAN Economic Community (AEC)• Regional harmonization: ABMF, ASEAN Link, HK-CN,

TW-SG, CSIF cross-border DVP• ISO 20022 adoption

• CPMI-IOSCO & Annex F for CSPs

• Issuer to investor CA announcement • Funds hub implementation• Collateral management• OTC clearing

Securities

• Aging technology• New technology (distributed ledger)• Regional ambition-collaboration• ISO 20022

Regulation & compliance

Regionalisation

Resiliency & reliability

Real-time

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Reinventing correspondent bankingMaking Real World Change

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Correspondent banking model is under pressure

Customers and regulators push for better payments service

Banks rationalize their correspondent banking networks

Digital innovators offer new disruptive solutions

End customers increasingly demanding

Domestic payments going real-time

Regulatory intensity and increasing costs

Network rationalization

Enhanced value proposition

Disintermediation

Global payments innovation initiative – January 2016

Global payments innovation initiative – January 2016 23

Global payments innovation initiative (gpii)

Global reachprovided by banks connected to domestic payments systems

SLA rulebookwith customer at centre

of value proposition

Smart collaboration(e.g. enhanced compliance practices,

optimised intraday liquidity flows)

Embrace innovation(e.g. peer-to-peer messaging,

real time settlement mechanism)

Global payments innovation initiative (gpii)

Bank access channelsDomestic payment systems

SWIFT

Bank access channelsDomestic payment systems

SWIFT

Existing SWIFT messaging

Bank access channelsSWIFT for corporates

Bank access channelsSWIFT for corporates

Accessible by any bank

Differentiate vsnon-gpii banks

Still reach non-gpii banks

Reach any bank

Operational qualityOpen model

Existing SWIFT messaging

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1. ABN AMRO Bank2. Australia and New Zealand Banking Group3. Banco Bilbao Vizcaya Argentaria4. Bank of America Merrill Lynch5. Bank of China6. Bank of New York Mellon7. Bank of Tokyo-Mitsubishi UFJ8. Natixis9. Banco Santander10. Barclays11. BNP Paribas12. Citibank13. Commerzbank14. Credit Suisse15. Danske Bank

16. DBS Bank17. Deutsche Bank18. Ecobank19. FirstRand Bank20. HSBC21. Industrial and Commercial Bank of China22. ING Bank23. Intesa Sanpaolo24. JPMorgan Chase25. KBC Bank26. KEB Hana Bank27. Lloyds Banking Group28. Maybank29. Mizuho Bank30. National Australia Bank

31. Nordea Bank32. Oversea-Chinese Banking Corporation33. Raiffeisen Bank International34. RBC Royal Bank35. Royal Bank of Scotland36. Sberbank37. Skandinaviska Enskilda Banken38. Société Générale39. Standard Chartered40. Sumitomo Mitsui Banking Corporation41. TD Bank42. UniCredit43. UBS44. United Overseas Bank 45. Wells Fargo

45 leading banks sign up to SWIFT’s global payments innovation initiative

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SWIFT welcome address by Alain Raes

Presentations & Public Speaking

Transcript of SWIFT welcome address by Alain Raes