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Swiss Payments Harmonization

@ Credit Suisse

Public

Forum St. Peter, Zurich

November 9, 2015

Product Management Payments & Connectivity Solutions

Software Partner Event 2015

November 9, 2015 Product Management Payments & Connectivity Solutions – SEBH 2

Softwarepartner Event 2015

welcomes…


Conclusion

Lars Möller (Head of Product Management Payments Standards & Client Connectivity)

Agenda

Keynote

Lothar Raif (Head of Product Management Payments & Connectivity Solutions)

10:00–10:10

Introduction

Lars Möller (Head of Product Management Payments Standards & Client Connectivity) 10:10–10:20

Format Roadmap

Michael Wunderl (Product Manager Payments Products)

10:20–10:40

Channel Roadmap and Additional Optional Services (AOS)

Michael Wunderl (Product Manager Payments Products) 10:40–11:00

Channel Impact

Gregor von Bergen (Head of Product Management Payments Formats & Projects)

11:00–11:30

Test Supporting Model

Andreas Carl (Software Partner Manager)

12:00–12:20

Direct Net Impact

Marcel Zumbühl (Head of Access & Security Digital Private Bank)

12:20–12:40

Specific Format Offering

Patrick Scamuffa (Product Manager Payments Formats)

12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00


ISO 20022 Client Market Transformation

Move from Swiss Proprietary to XML Formats

2012 2013 2014 2015 2016 2017 2018 2019 2020

SEPA

CH

Old Domestic Formats

pain.001 / pain.002/ pain.008 / camt

EUR Countries

Old Domestic Formats Non-EUR Countries

Old Domestic DTA Format

pain.001/pain.002/pain.008/camt

Old Domestic Payment Slips

New Payment Slips


ISO 20022 Credit Suisse Transformation

Enable XML on the End-to-End Value Chain

Client Side

Market Side

Clients Software Client

Channels

End-to-End Value Chain

Credit Suisse Coverage Software Partner

Coverage

Payments Processing Street Side

Channels Market

Market Side

(07/2016 – 03/2018)

Client Side

(2016 – 2020)


ISO 20022 Credit Suisse Transformation

Migrations with Client and Market Side

Market Side

(07/2016 – 03/2018)

Client Side

(2016 – 2020)

Introduce ISO 20022 XML standard to

Credit Suisse payments operations

Assure market connectivity to new ISO

20022 Swiss clearing channels

Deliver new ISO 20022 based Credit

Suisse product channel and client channel

offering

Regulatory driven

Binding timelines by SIC infrastructure

Introduce ISO 20022 XML standard for

new client-to-bank messages for pay-

ments and cash management messages

Introduce new ISO 20022 based payment

slip

Assure smooth transition phase from old

to new standard

Technical must and opportunities

No regulatory timelines

New Payments Processing Platform Client Migration to ISO 20022


Conclusion


Agenda

Keynote


10:00–10:10

Format Roadmap


10:20–10:40



Channel Impact


11:00–11:30



12:00–12:20

Direct Net Impact


12:20–12:40



12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00

Introduction



Current Credit Suisse Client Channel Offering

Overview of Connectivity Portfolio

Contract Credit Suisse

Direct Net Manual file up-/download No channel, manual login via web browser Private and corporate clients

Enterprise STP Solution User

Direct Net Service Interface Multi operating system compatibility No fully automated login Private and corporate clients Dedicated 3rd party software vendors

Network

Direct Link

Microsoft Windows only Fully automated login Domestic multibank approach Dedicated 3rd party software vendors

Direct Exchange

Any system landscape Fully automated login Highly scalable and individual integration Any 3rd party software vendors

SWIFT for Corporates Any system landscape Highly scalable and individual integration SWIFT software or any 3rd party software

SWIFTnet

or Internet

Internet

SWP

Internet

SWP

Internet

or ISDN

Internet

FIN

FileAct

https

https

Intersys

EBICS

SFTP

FTPS

Intersys

EBICS

FIN

FileAct


Credit Suisse Software Partner Management

5 Categories Based on Software Functionality

Debtors Creditors Payments

Communication

Archive

Banking Software for Companies Software solutions that you can use to make, correct, and release payments and send them automatically to Credit Suisse for execution. Some packages also contain functionalities related to receivables and/or payables management and payroll. Often formats such as

MT940, BESR credit files, or LSV+/BDD direct-debit collections, including logs, are supported in addition to payment transactions in their narrowest sense.


Communication

Archive

ERP/Industry-specific Software ERP Systems and Industry-Specific Software Complete business software, often with a modular design, with functionalities that go beyond payment transactions and cash management

to include such things as vendor ranking, invoicing, reminders, and preparation of balance sheets. Often, services such as MT940, LSV+/BDD incl. logs and MT942 are supported in addition to payment transactions and cash management functions.

Payments

Communication

Treasury Group Acc’ting Treasury and Group Accounting Software Software solution for liquidity management. Functions go far beyond normal payment transactions.

Often, services such as LSV+/BDD incl. logs and BESR credit files, and MT942 are supported in addition to payment transactions and cash management functions.

Communication

Integrators/Communication Solutions Software solution to ensure seamless integration into a client’s existing system. The integration software handles communication with

Credit Suisse and all necessary conversions to allow exchanges in at least one working format (e.g. DTA incl. log) between the client’s existing solution and Credit Suisse.

Communication

Archive

Archive Systems Software solutions for archiving business-related documents, including electronic documents and bank records provided by Credit Suisse.

1

2

3

4

5


Today

DTA incl. protocol and/or MT101

ZED/BESR

MT940


Minimum Entry Requirements by Category


Communication

Archive


Communication

Archive

ERP/Industry-specific Software

Payments

Communication

Treasury Group Acc’ting

Communication

Communication

Archive

Banking

Software

ERP Systems &

Industry-specific

Software

Treasury &

Group Accounting

Software

Integrators/

Communication

Solutions

Archive

Systems


ZED/BESR

MT940


ZED/BESR

MT940

Communication

Integration to Customer Systems

At Least one Format

Communication

E-Documents

Archive Solution

1

2

3

4

5

Required

Nice to have


Tomorrow Credit Suisse Software Partner Management

Two-Level Requirements as of Tomorrow Minimum Entry Requirements Advanced Requirements

pain.001 and/or MT101

pain.002

pain.008

camt.053 MT940

camt.054


pain.002

pain.008

camt.053 MT940

camt.054


pain.002

pain.008

camt.053 MT940

camt.054

Communication

Integration to Customer Systems

At Least one Format


pain.002

pain.008

camt.053 MT940

camt.054


pain.002

pain.008

camt.053 MT940

camt.054


pain.002

pain.008

camt.053 MT940

camt.054

Communication

E-Documents

Archive Solution


Communication

Archive


Communication

Archive

ERP/Industry-specific Software

Payments

Communication

Treasury Group Acc’ting

Communication

Communication

Archive

Banking

Software

ERP Systems &

Industry-specific

Software

Treasury &

Group Accounting

Software

Integrators/

Communication

Solutions

Archive

Systems

1

2

3

4

5

Required

Nice to have

No change

No change

Remark: format availability is

channel- specific



Integrated Market Approach

• Credit Suisse Internal Fact Sheet for Relationship Managers • Credit Suisse Public Compatible Software Sheets

• Credit Suisse Customer Mailings

• SIX ISO 20022 Brochure • Concept for Neutral Buyer’s Guide

• Concept for ISO Label • Dedicated SPOC

Benefit Overview for Software Partners


Conclusion


Agenda

Keynote


10:00–10:10

Format Roadmap


10:20–10:40



Channel Impact


11:00–11:30



12:00–12:20

Direct Net Impact


12:20–12:40



12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00

Introduction



Market Timelines Shape Credit Suisse Roadmap

Aim to Start Client Migration from Mid 2016

Schedule

Credit Transfer (CT) 2013 2014 2015 2016 2017 2018 2019 2020

New messages (pain for SEPA and CH CT)

Legacy messages (e.g. DTA)

SWIFT FIN messages

Payment slip

New payment slips with data code

Red and orange payment slips (e.g. BESR payment slips)

Direct Debit (DD) & E-Invoice

Swiss direct debit based on XML *

E-invoice based on XML with LSV

XML message for SEPA DD

Legacy messages (e.g. LSV & BDD)

Reporting

XML messages (camt.054)

XML messages (camt.052/camt.053)

Legacy messages (e.g. BESR Files)

SWIFT FIN messages/paper and e-documents (EOS)

Annotations

1st invoice featuring the new payment slip with data code (possible from July 1, 2018)

End data for CH formats and products in accordance with Swiss market requirements:

Swiss DTA format not supported (Jun 30, 2018) Old payment slips not processed (Jul 1, 2020)

current

current

new

new

current

current

current

new

new (LS)

new

Old Format

New Format Temporary Format CH-TA upon request *

current

current

new

Test Phase 1 Client Migration 1

Test Phase 2 Client Migration 2

Wave 1 Wave 2

Work in Progress

Wave 1 starting mid 2016

pain.001, pain.002,

camt.054

Wave 2 starting 2018

pain.008,

camt.052, camt.053

Deadline for Software Partners

Remark: format availability is

channel- specific


Client Migration Activities during Lead Time

Client Communication Prepares for Client Transparency Initiative

2014 2015 2016 2017 2018 2019 2020

Credit Suisse Migration to SIC4

Start client migration in waves Final rule book available

Payment Slips

camt.052

camt.053

Direct Debit

Launch new payment slip Termination

old payment

slips & ESR

Final specifications available

Termination

old LSV tbc

Final specifications available tbc

Credit Transfer

camt.054

Termination old DTA

Swiss Payments Market Change

Client Transparency Initiative

Front Enablement

Client Migration

Migration

Wave 1

Migration

Wave 2

Wave 1 Wave 2

Work in Progress


Client Transparency Initiative

Future Payments Offering Triggers Change Activities at Client Side

Client/Stakeholder Transparency

Clients Client’s representative

Mailings Personal contacts Client checklists

Questionnaire

Make sure, our communication

reaches the correct counterparts

Client/Product Transparency

Actual product, services channel usage Customizations, deviations Software solution Processes

Personal contacts Product, process advices by payments

specialists

Make sure, our Front/Front Support

staff has the right answers

Client/Timeline Transparency

Actual know how Project plan Lead times

SW-Partner time alignments Support offerings

Migration window

Make sure, our support resources are

available at the right time

Client Segment Front Support unit

Future product, services channel usage

Process optimizations

Project execution time Testing and support timelines

Migration time window


Client Migration Promotion

Delivery Approach

Key messages

Major client migration waves expected in 2016/18 (Wave 1) and 2019 (Wave 2). Early adopters have already started. SEPA migration in EU has shown significant share of late migration behavior by clients. ISO 20022 communication activities are marketing measures to position Credit Suisse as a competent partner guiding our clients and non-clients through Swiss market changes Client Migration Support and Testbank Offering by Credit Suisse to enable Credit Suisse clients to migrate to XML

Client Migrations

Step 1 Phase Step 2 Phase Pilot Phase

ISO 20022 Communication

Internal/external communication

Dim

ensi

ons

Client evaluation

Impact analysis

Communication to clients, SW-partner, market

Migration package offering

Migration support

Awareness

Understanding

Commitment

Enablement/Migration

November 9, 2015 Product Management Payments & Connectivity Solutions – SEBH 18 18

A) Provision of awareness communication on ISO20022/XML to all DTA clients executed

B) Client transparency initiative “know your clients payment business” to introduce migration windows to selected clients

25 mailings to clients and a client brochure plus 2 mailings to software partner

Awareness Understanding

Target A) Provision of awareness communication on ISO20022/XML to all DTA clients executed

B) Client transparency initiative “know your clients payment business” to introduce migration windows to selected clients

Target

Group

Institutional Clients

Small & Medium Enterprises

NAB

Private Clients SB* with DTA

Small & Medium Enterprises

Large Swiss Corporates

NAB

PCCH & GEAM with DTA FI with DTA

KPI’s

external

1) 100% of DTA clients are informed by end of 2015 on DTA to XML

2) 100% of selected clients contacted by end of 2015 3) 60% of selected clients analyzed in regards to migration

complexity (needs, software, testing etc.) by end of 2015 4) 50% of selected clients have activated the “News-Ticker

Service” by end of 2015

KPI’s

internal

5) 100% of Relationship Manager and Front Support of selected clients have received briefings and trainings

6) Effort estimation for dedicated migration support team can be refined by end of 2015

Communication Activities 2015

First Two Phases Implemented


ONLINE

• Internet Homepage

• Banner / Online Banking • Document-Pool (Flyer, Factsheet, Q&A, XSD Schemes) • News Ticker Service & Newsletter

OFFLINE

• Mailings (Awareness, Understanding) • Client Flyer

• Client Survey & Mailing

Document Pool Payment Slip Roadmap Channel Evaluation

Factsheet Update Q&A Update Newsletter Archive Translation in FR & IT

Communication Activities 2015

Front & Client Communication Achievements

Did you sign up, yet?

www.credit-suisse.com/zvmigration

http://www.credit-suisse.com/zvmigration




Q1/2016 Q2/2016 Q3/2016 Q4/2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mile

sto

ne

Market

Connectivity

Client Channels

XML readiness

Credit Suisse

Infrastructure

Co

mm

un

icati

on &

Mark

eti

ng

Online

Offline

Events

XML migration

2017

XML migration

pilots 2016

www

SIC4 Activation CHF

Release

Client

brochure

2nd Client survey

incl. news ticker

Software partner alignments

Release Direct

Net

ISO Client

Channel

www

incl. news ticker

www

incl. news ticker

Product factsheets

Software partner alignments

Next Steps and Outlook in 2016

Front & Client Communication Plan

Work in Progress

Direct Link, Direct Exchange, ISO Client Channel

www

incl. news ticker

Direct Net Online Banking


Client Format Migration

Shift from Legacy Formats to XML

Key messages

Migration split in two phases Pre-requisites for client migration: Bank readiness (client channels), client software readiness, client readiness Client migration activities start after Credit Suisse IT infrastructure has been connected to SIC4 (July 2016)

Lead time of at least one year prior to client onboarding

1 DirectNet = Credit Suisse Online Banking

2014 2015 2016 2017 2018 2019 2020

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

DTA clients

to XML

Selected pilots

N/a

BESR file

to camt.054 N/a

N/a

LSV clients to

XML

N/a

N/a

N/a

N/a

MT940 to

camt.053

N/a

N/a

N/a

Clients

to new

payment slip

N/a

N/a

N/a

N/a

Piloting Direct Net Migration wave1

(1st phase DN1)

Piloting

ISO ClientChannel

Migration wave 1

(2nd phase DN

&ICC)

Migration wave 2

(1st phase)

Migration wave 2

(2nd phase)

Wave 1

W

ave 2

Work in Progress

Deadline for Software Partners


Conclusion


Agenda

Keynote


10:00–10:10

Format Roadmap


10:20–10:40



Channel Impact


11:00–11:30



12:00–12:20

Direct Net Impact


12:20–12:40



12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00

Introduction



Credit Suisse Client Formats Rollout

Feature Changes Depend on Annual Release Cycles

Key messages

Publication of definitons for file formats according to ISO standards of SIC/EBA to software partners and clients from June 2015 on

Publication date is in line with SIC/EBA cycles – realization ½ year

After publication, feature changes depend on yearly releases

Yearly release cycles of SIC and EBA trigger yearly software

deployments by Credit Suisse

2015 2016 2017

Jan

Feb

Mar

Ap

r

Mai

Jun

Jul

Au

g

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

Mai

Jun

Jul

Au

g

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

Mai

Jun

Jul

Au

g

Sep

Oct

No

v

Dec

pain.001/pain.002

(Credit transfer & status)

camt.052

(intraday account statement)

pain.008/pain.002

(Direct debit & status)

camt.053

(eod account statement)

camt.054 (credit/debit advice,

BESR V11 successor)

SIC/EBA release cycles

Individual Formats via Fides

1b 2a 2b 3

Direct Link

ISO Client Channel

Direct Net

Direct Net

Direct Net CUG

Impl. Changes ‘16 Impl. Changes ‘17 Impl. Changes ‘18

Publication to software

partners and clients



ISO Client Channel

ISO Client Channel

ISO Client Channel

ISO Client Channel

ISO Client Channel



Wave 1

www.credit-suisse.com/zvmigration Latest status always at

Work in Progress

2.4 2.5







Swiss Business Rules: SIC Defined AOS (Additional Optional Services)

Selective Integration by Credit Suisse Standard Offering (1/3)

Interface

Versions

(SBR 1.5)

Additional backward compatibility may be available as an AOS, depending on the financial institution, i.e. support more than the

latest pain version published by SIX plus the preceding version

No

1

Stick to standard (current and previous version).

No

No

Multi-banking scenarios

handled via Fides

Mixed currencies within the

same B-Level induce

problems with reconciliation

at the customer

Message flow

(SBR 3.1)

Additional participants (e.g. in a multi-banking scenario):

Forwarding Agent; multi-banking-provider Example: Payment order sent to bank 1 as the multi-bank provider with

bank 2 as the debtor account Intermediary: correspond bank B; Example: financial institution A makes a transfer via correspondent bank B to financial institution C.

2

Some financial institution allow mixed currencies within the same B-Level.

Mixed B-Levels are grouped by financial institutions according currency and

possibly to other criteria (e.g. charging options or instruction priority)

Booking

information

(SBR 4.3.1)

3

4

No AOS Description Comment

pain.00x

pain.001

Available at CS

Service Level

(SBR 4.5.2.4)

If the element is not sent, yet the order fulfills SEPA criteria, it can be handled under “best effort” as a SEPA transaction.

External Service Level 1 Code, e.g.: – PRPT (“EBA Priority Service”)

– SDVA (“Same Day Value”)

– URGP (“Urgent Payment”) Proprietary: – Individual defined code, to be used by agreement

No

no individually

defined proprietary

codes

Only standard codes;

Pass through to recipient; no impact on processing.


No AOS Description

Duplicate Check

(SBR 4.10)

Usually, financial institutions also implement other technical duplicate

checking of other elements (A-, B- or C-Level) as an AOS

6

Cheques and

payment

instructions –

Version Check

(SBR 4.12)

If someone submitting a pain.001 explicitly wants to specify the

“debtor bank”, then after consulting his financial institution he can send this in the Creditor Agent element in the form of a BIC.

7

8

5

Comment Available at CS

Yes Standard duplicate check on

A-Level; additional checks on B-Level PmtInfId & ReqdExctnDt

No

9

Not seen as a consumer demand



Errors due to

incorrect

schemes

(SBR 6.1.2)

Depending on the institution, the incorrect sections may be

excluded. Partial processing continues of the correct elements in the message.

Incorrect

Customer Credit

Transfer Initiation

message

(SBR 6.1.3)

Additional status reports Status reports with no group status

Extended scope of status reports

pain.002

No Stick strictly on standard;

maintaining offer of <all or nothing> flag

No Only adding additional complexity

Status summary

(SBR 6.3)

Additional/other status are possible at certain institutions No Only adding additional

complexity


Breakdown of

bulk orders

[pain.001,

pain.008)

(SBR 9.5)

Some institutions offer separate designation of transaction in a bulk

payment order in the debit advice (camt.054) as an AOS 10

No AOS Description Comment Available at CS

camt.05x

Yes



Yes

in SBR version 2.5

as of 10th August

2015 defined as

standard

Enables same-day payments before the cutoff-time. Payment Type

Information

(SBR 4.5.2.3)

SBR changes V2.4 to V2.5

Instruction Priority <InstrPrty>

The value HIGH corresponds to the “Express Flag” in today’s online solutions

Depending on the agreement with the financial institution, instructions may be used

Element for

instruction

Debtor Agent

(SBR 4.13.2)

Yes in SBR version 2.5 as of 10th August 2015 defined as standard

Stick to the standard and support correct processing in case of bilateral agreement

between client and CS

Salary payments

(SBR 4.11.1)

Not an AOS, but CS would like to point out that according to the Swiss

Business Rules 4.11, the SALA flag has no effect on the type of processing and notification! The notifications of salary payments must

be controlled by the Debtor Account Type (see SBR 4.7).

New chapter in RBS V2.5 For salary payments, <BatchBookg> must be

TRUE and <DbtrAcct><Tp> <Prty> must be CND

Caution


Conclusion


Agenda

Keynote


10:00–10:10

Format Roadmap


10:20–10:40



Channel Impact


11:00–11:30



12:00–12:20

Direct Net Impact


12:20–12:40



12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00

Introduction



Client interaction Channel/Format Bank processing

Manage client need Visualize inventory and flows Support client processes Keep data and information Deliver user experience

Identify and authenticate Encode and decode information Secure information transfer Keep data integrity

Authorize flows Improve data quality Deliver additional services Process client need Keep data and information

Relationship management

Paper based

Online Banking

Software partner Direct Link

ISO Client Channel

Pre-processing

Processing

Secu

rity

SWIFT

Direct Exchange

Direct Net Service Interface

Generic ISO 20022 Capability Map

Needed Capabilities: No Change; Available Possibilities: Drastical Change


Generate Client Value

The ISO20022 Roadmap

Collaboration with SWPs Leads to Stronger Market Positionings

Channel

Form

at

Dat

a

Valu

e C

hain

Flexibilize

Focus

Strengthen

Standardize

Facilitate simpler client onboarding and decrease switching costs Support open technologies to reduce investment risk and get fair prices Leverage know-how of existing solution providers for our target channel offering

Overcome format heterogeneity and missing market consensus Reduce market barriers due to reduced implementation costs for clients Allow client individual adaptions and change management

Focus on data validity, quality and usefulness Get in touch with our clients and evaluate their data needs

Enable a use case oriented data view throughout the system

Collaborate to deliver value for our clients Enable new differentiation possibilities for SWPs Generate new revenue possibilities for SWPs


SWPs Possibilities Beyond Basic ISO20022 Principles

Just a Simple Example What Would be Possible

Telecom provider (creditor) Credit Suisse SWPs and your clients (debtor)

Credit sends additional data valuable for clients to Credit Suisse Credit Suisse enriches client output SWP partner delivers additional functionalities

Direct debit Visualize

By employee By cost center By service …

Automate

Assign to department Assign to process Assign to cost center

Control

Control budget Control usage Control correctness …

Account

statement


Schedule1 Transition phase

2015 2016 2017 2018 2019 2020

Credit Transfer (CT) New messages (pain for SEPA and CH CT)

Legacy messages (e.g. DTA)

SWIFT FIN messages

Payment slip New payment slips with data code

Red and orange payment slips (e.g. BESR slips)

Direct Debit (DD) & E-invoice Swiss direct debit based on XML

E-invoice based on XML with LSV

XML message for SEPA DD

Legacy messages (e.g. LSV & BDD)

Reporting XML messages (camt.054)

XML messages (camt.052/camt.053)

Legacy messages (e.g. BESR Files)

SWIFT FIN messages/paper & e-documents

ISO Client Channel

current

current

new

new

current

current

current

new

new (LS)

new

current

current

new

How Should you Plan the Next Connectivity Steps

Stronger Integration of SWPs in Our Product Life-Cycle

Alignments for ISO Client Channel onboarding

Selected new ISO Client Channel features

Onboarding ISO Client Channel 2HY

Wave 1 Wave 2

1Q Alignments for end to end benefits

Use ISO Client Channel 2017

2Q

Work in Progress


Conclusion


Agenda

Keynote


10:00–10:10

Format Roadmap


10:20–10:40



Channel Impact


11:00–11:30



12:00–12:20

Direct Net Impact


12:20–12:40



12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00

Introduction



Test Concept

One- or Two-Step Approach

1. Harmonization of Swiss Payment Formats : ISO 20022 XML

2. Update of Credit Suisse Connectivity

Formats have to be tested

Old Swiss Payment Formats New Swiss Payment Formats

Risk of different format spec interpretations and Additional Optional Services (AOS)

Your software creates payment files / imports

account statements

Direct Link/Direct Exchange ISO Client Channel

Old Direct Net Channel New Direct Net Channel

Old EBICS System New EBICS System

Connectivities have to be tested

Your software connects to Credit Suisse now or in the future


Side Topic: Transformation Roadmap EBICS

Swiss Standards vs. Original Standards

CH Now

Area

Regulation

CH Offering

Switzerland

None

CS, UBS, ZKB,

LUKB

Sessions Many, not

standardized

Parameter None

DE

Germany, early adop-

ters in NL, UK, ES

Compulsory in

Germany

Many, standar-

dized, not for CH

None

CH Future

Switzerland

Recommended in

Switzerland

FUL/FDL only

Standardized

FR

France

Recommended

in France

FUL/FDL only

Not standardized

Today’s offering not standardized for CH Standardized for CH, but not offered, yet


Testing Concept

File Testing 2 Approaches – with or without Connectivity

Credit Suisse

Offering CS Schema CS Biz Rules Round Trip Channel Test

Accounts at

Credit Suisse Transactions Self-Admin

2 Yes CS GEFEG

Schema Validation

No Yes No

4 Yes CS Temporary

Developer Contract

Yes Test Not booked Yes Yes pain.002 only No

5 Yes CS

Test System

Delayed Anonymized Not executed Yes Yes Yes No

6 Yes CS Temporary

Live Contract

Yes Real Real Yes Yes Yes No

3 Yes CS

Test Bank

Some Yes Sim. pain.002 and camt.053

Yes

1 No Non-CS

Test Bank

No No Yes Sim.pain.002

only

Formats Connectivity Process Participants Other

File testing only

End-to-End testing

Some


Testing Timeframe

Testing Environment Expanding in 2016

Testing still being expanded

2016 additional CS Test Bank (3) and End-to-End Tests (4/5/6)

For details please contact Payments Standards & Client Connectivity:

2015 2016 2017 2018 2019 2020

Not recommended for files intended to be sent to CS 1 – Non-CS Test Banks

2 – CS GEFEG Schema Validation E-mail us your pain.001, pain.002 and pain.008 for validation

3 – CS Test Bank

4/5/6 – End-to-End Tests In coordination with Payments Standards & Client Connectivity

Work in Progress

Lars Möller

+41 44 334 34 13

[email protected]

Andreas Carl

+41 44 332 37 29

[email protected]

Roger Winnewisser

+41 44 332 28 09

[email protected]

Software Partner Manager Head, External Committees ISO 20022 Client Onboarding Support


Conclusion


Agenda

Keynote


10:00–10:10

Format Roadmap


10:20–10:40



Channel Impact


11:00–11:30



12:00–12:20

Direct Net Impact


12:20–12:40



12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00

Introduction


Security Digital Private Bank – KBCG


Overview

Security for Our Digital Client Relationships & Impact on SWPs

Primary Assumptions

The nature of Trust and how to foster it

Example – Digital Private Banking and new authentication methods



Financial Cyber Threats Timeline

Examples from Only One Month

Aug. 15 Aug. 25 Sept. 01 Sept. 10 Sept. 15



Primary assumptions and hypotheses

Assumptions Regarding Trust between Clients and the Bank

Mental Bias - Clients refer to security as one of the main concerns in mobile/online banking. There is a mental bias triggered by the media regarding security knowledge.

Privacy and Sacrifice - Privacy is a major concern of clients but might be willing to sacrifice it for convenience.

Control Need - Clients don’t want to control everything but they want to be on top of things and feel the bank acting on their behalf.

Constant review - Claiming to be top-secure might encourage unofficial penetration tests to disprove the statement.

Reference System - Clients are cautious regarding new security technology unless offered by a group of banks.



Our Vision Security Is Our Promise. We Deliver Secure and Trustworthy Solutions that Shape the Future

Relationship to Our Clients

Market leading,

reliable

and convenient

security features

for clients

Security as

a promise to

our clients

Protecting clients

with global

security

solutions

Visible thought

leadership

on security

Proactive

security,

fast response

and ensured

continuity

Prevention

Protection

& Reaction

Implicit

Trust

Best

Practice

Visibility

and

Reputation

Client


The Nature of Trust

Why Should We Trust – at All

Mechanisms of trust – Assymentrical, mutual, hope

Perception is reality – It’s the others, how am I treated when things go wrong

Transparent Communication – No space under the rug

Sense of Control – intertwine the real and virtual world

Compliance and Security – need to share vs need to know



Methods to Foster Trust

Why Do We Trust

Brand experience – Reliability, personal experience, reliability

Relationships - Contracts, long term, mutuality

Reaction in deviations – Communication, relentlessness

Objective independent confirmations – audits, certificates

Communication – Take the other serious, confidentiality



Increase client

adaptation to DPB

Reduce client churn

from DPB

Increase client usage of DPB

Trust in the bank

Trust in the

technology

Reliability / Continuity

Professionalism

User friendliness

Novel techniques

Transparency

Trust in the

platform

Client behavior Client interpretation Client perception

Client’s trust is build on the sum of experience regarding

interaction with the bank.

Perceived benefits lead to acceptance and usage of DBP.

All received signals form the client’s perception.

Digital Private Banking - Client Perspective Security communication is fundamental for the creation of the clients impression of Credit

Suisse and shapes their perception on the bank, the platform and the technology.



Direct Net Online Banking Service Interface Modifications

E-Documents


E-documents are electronically transmittable bank documents as signed PDFs. Clients with online banking access are entitled to register for receiving electronic documents. These documents can be downloade via the Direct Net Online Banking Service Interface. Modifications were made to facilitate this download


Conclusion


Agenda

Keynote


10:00–10:10

Format Roadmap


10:20–10:40



Channel Impact


11:00–11:30



12:00–12:20

Direct Net Impact


12:20–12:40



12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00

Introduction



Client

Bank – Bank

Bank

camt.052/3/4 Messages CAsh ManagemenT

Advices/Statements

pain.001 V2 EPC

pain.008 V2 SDD

pain.001 V2 DE

pacs.008 EBA

MT103

pacs.008 T2 (‘17)

pain.001 V2 CGI

pain.001 V2 CH

MT101

DTA

…

pacs.008 SIX

pacs.009 SIX

MT202

pacs.002 SDD

…

Client – Bank

Which information is needed/servicebased/nice to have? Which formats cover the majority of payments relevant to be conducted?

Each country uses a country “flavored” C2B format to cover specific regulatory, product and client needs Many formats have different underlying scheme rules and/or ISO versions in use

Co-existence of MT, ISO20022 and other proprietary standards

Rationale

ISO 20022 Market “Flavors”

Format Overview: Variety Driven by Regulation


Transform/Store

Clearing Client Bank

Processing and validation relevant information

Clearing based information

Client based info

Client based information

Product processing info

End to end info Payment product needs

Service needs

Regulatory info

Bookkeeping/technical/ service needs

Service based info

Standard Offering

Cover all relevant payment schemes which affect Swiss clients

To cover the majority of information and service needs for

clients booked on Swiss Platform Starting point for migration

Individual Offering

Cover individual needs which exceed relevant processing info for bookkeeping or tech. reasons

Information Need

The Driving Element of the ISO 20022 Format Offering Definition


Standard Format Offering

Key Drivers to Determine Market Offering

Client

Market

CHF payments determined by SIC, driven by Swiss harmonization initiative

EUR payments mainly driven by SEPA initiative Other currencies worldwide through SWIFT legacy

formats

Small SME mainly operate domestically SME operate mainly domestically and supra-

regional within the Eurozone Bigger or specialized SME and Multinationals

operate worldwide (onshore) additionally

Standard Format Offering

Cover Swiss payments (specialties) SIC, CGI Cover SEPA payments SIC, CGI, EPC Cover worldwide payments SIC, CGI Offer “standardized” flexibility for complex company

setups CGI


Credit Suisse Client Offering

3 Format Groups

Credit Transfer (CT) Direct Debit (DD)

Reporting


Credit Transfer Schemes

pain.001 and pain.002

Client CS

Client – Bank

pain.001.001.03.ch SIC pain.002.001.03.ch SIC

2.4 (SIX) All Swiss domestic payments (specialties) SEPA payments Crossborder payments other than SEPA

Format and Market Practice Scheme Vers. Payment Coverage

DL/DE now DN mid 2016 IC 2017

Channel/Time

pain.001.001.03 EPC pain.002.001.03 EPC

7.0 (EPC) SEPA payments only Same as SIC

pain.001.001.03 CGI

pain.002.001.03 CGI

October 2010 Same as SIC, as SIC rules are underlying for

processing But CGI formatting accepted

DL/DE/DN 2016

IC 2017

Rationale

SIC covers all necessary requirements for payments from/inside Switzerland Clients in Europe request for SEPA standard Clients may use the new information possibilities. CGI as vastest “self regulated” standard .

More offering details

CS Standard Offering: SIC, EPC and CGI (CH) Basic principle where applicable: Acceptance of actual and preceding scheme version The status message scheme follows the initiation message scheme. No cross-variations.

DL Direct Link DE Direct Exchange DN Direct Net IC ISO Client Channel

Work in Progress


Direct Debit Schemes

pain.008 Co-Existing Schemes Required

Rationale

Swiss EUR LSV to be replaced by SDD Project LEON will combine LSV/BDD (Banks) Debit Direct (PF) and E-Bill by 2019 pain.008 CH-TA (Banks)/CH-DD (PF) to enable clients to migrate to ISO before 2019 for LSV


CS Standard Offering: SIC, EPC Basic principle where applicable: Acceptance of actual and preceding scheme version The status message scheme follows the initiation message scheme. No cross-combinations.

Client CS

Client – Bank

pain.008.001.02.ch SIC pain.002.001.03.ch SIC

2.3 (SIX) SEPA Direct Debit only Will be replaced by pain.008 EPC starting November 2016

Format and Market Practice IG Version Payment Coverage

DL/DE now DN mid 2016 IC 2017

Channel/Time

pain.008.001.02 EPC pain.002.001.03 EPC

8.0 (EPC) SEPA Direct Debit only

pain.008.001.02.ch.02 LS

pain.002.001.03.ch.02 pain.008.001.003 CH-TA

1.0 (SIX) LSV+ and BDD only LS all channels

from mid 2018 CH-TA on request

Same as SIC


Work in Progress


Reporting Schemes

camt.054, 053 and 052

Rationale

camt need to cover the broadest set of information as it is containing booking events from all areas ISO newly offers the display of information of complex transactions


CS Standard Offering: SIC and CGI Basic principle where applicable: Acceptance of actual and preceding scheme version camt format scheme does not follow the initiation scheme flexibly, but must be set as default

Client CS

Client – Bank

camt.054.001.02 SIC 1.3 (SIX) Credit/Debit advice, mainly for decomposition of batch bookings BESR, LSV/BDD…

Format and Market Practice IG Version Payment Coverage Channel/Time

camt.053.001.02 SIC camt.053.001.02 CGI

1.3 (SIX) November

2009

Account Statement All channels 2018

camt.052.001.02 SIC

camt.052.001.02 CGI

1.3 (SIX)

November 2009

Account Report

IC 2017

All channels 2018


Work in Progress


Individual Incoming Information Set

Doesn’t Fit Standard or Content Needs But Keep Information Integrity

Transform/Store

Client Bank ISO Client Channel

Processing and validation relevant information

pain.001 ISO pain.001 CH

pain.002 CH/camt.054 CH

pain.002/camt.054 ISO

Rationale

Big corporates may improve their processes by using the new broad information set Branches of multinationals in Switzerland may have different technical setups, determined by headquarters’ treasury


Acceptance of formats outside standard subject to bilateral agreement The integrity of broader format must be secured

Bookkeeping/technical/ service needs


Conclusion


Agenda

Keynote


10:00–10:10

Format Roadmap


10:20–10:40



Channel Impact


11:00–11:30



12:00–12:20

Direct Net Impact


12:20–12:40



12:40–12:55

Pause 11:30–12:00

13:00–14:00 Apéro

12:55–13:00

Introduction



1 2 3

5

5 4 6 6

6 Recommendatory Steps for Transformation

Segmented Approach Needed for Implementation

1 Offering

Step

Plan your offering for your new XML formats portfolio and bank channels

Recommendation

Q1 2016

Timeline

2 Updated

Software List

Help CS update the two lists about Compatible Software for Payment Transactions

Q1 2016

You

Lead


ISO Client Channel

Alignments

Take part in alignment meetings for the end-to-end offering and your onboarding, respectively

Q1 2016 Offering Q2 2016 Onboarding

Credit Suisse Channel Management

5 Determination of

Your Format

Migration Wave(s)

Determine in which testing phase for which client migration wave you would like to take part.

You

4 Testing

Alignement

Take part in alignment of your format testing status/plans. Until then you can test your files by e-mailing them to us.

Q2 2016 Credit Suisse Software Partner Management

6 Channel

Onboardings

Determine in which channel onboarding you would like to take part: Direct Net Interface and/or ISO Client Channel

2HY 2016 You

Wave 1

Wave 2

3

Enjoy the apéro!

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