Products and Services SOFE Steve Gilderdale Pieter Herrebout November 29 December 1 2011
Agenda Introduction Our 2015 strategy and vision Key highlights from this year Focus for the next 12 months Messaging Footprint (connectivity, interfaces and integration) Services and TCO reduction Initiatives Sanctions, Watch, Corporates, SWIFTRef 2
SWIFT 2015 strategy Deepening the Core Expanding the Core Custody and Asset Servicing RTGS Corporates Correspondent Banking Clearing and Settlement Reference Data Sanctions Matching Enabling Interoperability and TCO reduction Services Interface Hosting High-end Interfaces Low-end Connectivity Go Local Enabling Transformation Platform Brand Innovation People CSR 3
Realising the strategy Messaging Security Footprint Services Reduce customer TCO Adopt new technologies allowing business agility Drive up revenues; provide value added Support interoperability Board_Dec2010_NMG_Briefing_Material_V1 4
Key highlights 2011 Reduce TCO Easier installation Simpler operations Increased functionality More resilience options Access for all SWIFT traffic Successful adoption of new connectivity products Online Operations Manager New search and report options 5
Overview of the next 12 months Messaging and security Footprint Svcs & TCO Domestic & industry-wide initiatives. Messaging evolution 3SKey 2012 Alliance on Linux Lite enhancements Consulting & quality management MIRS Alliance connect Interface enhancements Training and support Managed Services Partner Management: framework, label management
Messaging 7
FileAct Evolution Proven solution with steady growth Secure and reliable file transfer solution Gb Used globally for a variety of business purposes Leverages your single window and allows to rationalise infrastructure Easy to integrate 8
FileAct Evolution Proposed enhancements Increased efficiency Transfer time, higher throughput Flow management & traffic priority Enhanced reliability Eliminate "unknown state" File transfer "resume" Intelligent file delivery Sizing guidelines 9
"SWIFTNet" Browse Current offering Central value add: - Strong internet defense by SWIFT - Security checks - Closed User Group - Access control (RBAC) End user Screens & Transactions MV-SIPN Service provider person Browse application Browse framework: - WebStation, or - WebPlatform, or - Browse on Lite WebServer eg ICM (TARGET2) IWS (EURO1) BTender (BoE) Online Operations Mgr (SWIFT) 10
"SWIFTNet" Browse Evolution Central value add: - Strong internet defense by SWIFT - Security checks - Closed User Group - Access control (RBAC) End user Screens & Transactions MV-SIPN Service provider person Browse application Some users request option to use personal tokens (avoid storing user certificates on HSM) Some service providers request easier way for browse integration ability to support two-factor authentication (physical tokens) support for mixed community (some users on internet) 11
RMA beyond FIN: current plan FileAct SCORE: RMA optional since 1 June 2011 Mandatory as of 2012 Standards Release Generic FileAct Migration to RMA as of 2012 Standards Release User community feedback Is this the most appropriate way forward? Any change in current plan would require Board approval 12
FIN renewal SWIFT is changing the technology that FIN uses centrally in SWIFT Completely transparent to users and interface vendors SWIFT does not mandate any customer or vendor testing Optional testing windows for vendors and customers wishing to test Customers to confirm interest to their service managers before 01 Sept 2012 Customer activities Optional testing for Premium Plus customers Optional testing for all customers Vendor activities Optional testing SWIFT activities Oct 2012 Nov 2012 Dec 2012 Migration of T&T BICs Jan 2013 Feb 2013 Mar 2013 Migration of live BICs 13
Application Service Profiles Recap XML file containing list of all service parameters Available from swift.com download centre Allows messaging interfaces to upload this file & automatically use correct parameters Service cb.rtgs Non-repudiation: Y Uses RMA: Y Signing: Crypto... Service: cb.rtgs!p Non-repducation: Y Uses RMA: Y... KB tip 3000608 SWIFT updates this file every weekend with latest service information Customers download the file from swift.com and upload to their interface: either on a regular basis or when a service administrator requests them (due to service parameter change) 14
Application Service Profiles Feedback SWIFT is currently investigating to address following questions: Where can I find the changes of the latest ASP compared to previous one? Can I get a notification when a new ASP is available, and what services have changed? Can I automate the ASP delivery from SWIFT to my environment? 15
Your view on SWIFT traffic Business users Watch products SWIFT operations Operational monitoring SWIFT lines Leased Line Usage Report 16
Operational Monitoring (1/2) TPS & volume monitoring 17
Operational Monitoring (2/2) Queue monitoring 18
Footprint 19
Network connectivity: moving up the value chain ALLIANCE CONNECT 1. Internet based connectivity Over 50% uses internet to reach SWIFT 2. More options require more flexibility Easy switching 3. Wireless connections Infrastructure limitations in some regions 4. Operational excellence Best in class offering 20
New feature developments Best in class Flexibility TCO reduction Available Dec 2012 Introducing a pro-active detection of degraded services in the network that would allow SWIFT to re-route the traffic Providing better protection against DDoS attacks against Internet-based SWIFT services Increasing reach through wireless (VSAT, 3G) connections Extension of the load sharing feature to Bronze and Silver Silver Plus: new product feature on Alliance Connect where internet is prime line / NP line is back-up Portability 21
Customer premises Focus on: wireless Phase 2: Q3 2012 Example: SILVER Network Partner SWIFT Internet Phase 1 (VSAT/3G/4G) on the internet leg Local ISP must support and provide wireless CPE Possible for Alliance Connect Bronze, back-up link Alliance Connect Silver Phase 2 VPN Box A VPN Box B (VSAT/3G/4G) on the internet leg+network partner (NP) leg Local ISP and NP must support and provide wireless CPE Possible for all products 22
Focus on: Load Sharing Feature 7.0 Enhancement Available now on all Alliance Connect products Made easier with SWIFTNet 7.0 Firewall config to accept the used port ranges Port offsetting is done by the SNL Segregation can also be done for the same SNL between InterAct (incl. FIN) and FileAct traffic Free of charge: no order needed Load-sharing is not load-balancing Resilience unaffected In case of unavailability of one line, all traffic goes on the remaining line 23
Focus on: Alliance Connect Silver Plus Alliance Connect: Silver Plus feature Context: Internet as prime connectivity channel: high bandwidth low cost Keep a reliable backup path using a managed Network Partner line Pricing: Main port fee (@): 200EUR/month Backup port fee: in function of the bandwidth and/or technology used Ordering Order pages on swift.com (option on Silver) For both existing Silver customers as new customers 24
Focus on: portability What? Your Advantage? How? Transparently changing technology and/or NP without changing the SWIFT footprint No change of VPN boxes Cost saving up to 2.425 USD Change order through swift.com Change scenario s document will be available 25
Alliance Portfolio Leverage R7 and launching new initiatives in 2012 Reduce TCO Increase Resiliency Web Platform - cost reduction deploying SWIFT Database Recovery - increase resilience. Linux version - saving with next hardware renewal Available with R7 Available with R7 Pilot H2 12 Increase Value Alliance Access - single interface for all traffic Web Services - unlock data for reporting. Reporting option Alliance Access new framework Available with R7 Available with R7 Consultation Ease Integration SOAP, MQHA, DirectFileAct Launching Packages : SWIFTRemit, FileAct, BAI Additional integration facilities Available with R7 Available with R7 Consultation 26
Alliance Portfolio Reduce TCO and Increase Resiliency Financial Applications Web Platform Integrator Back Office Support Database Recovery Access Gateway Linux Version (Pilot H2 2012) 27
Web Platform Release 7 Cost reduction deploying SWIFT Reduce TCO Web Platform Financial application Access Patch 7.0.30 : GUI for manual FileAct with support for RMA Gateway *Accord GUI on Web Platform General Availability: end Dec 2011 28
Database Recovery What s new with Release 7 Increase Resiliency Remote Disaster Site Support the recovery of the database in a remote disaster site recovery scenario (asynchronously) Database Repair Service Used to analyse a recovered database and prevent live messages to be sent as duplicate transactions. Re-emission Protects against accidental re-emission of messages by backoffice and middleware applications, during their own recovery procedures. 29
Linux Support Savings with next hardware renewal Reduce TCO Scope When Not yet Not Scope When Not Yet Not Available Alliance Access, Gateway, SNL Red Hat Enterprise Linux - 64-bit x86 Pilot Second half 2012 Integrator, CREST interface, TDA, EuclidConnector WebStation, Workstation, CAS, MQSA We are looking for pilots Clustering and virtualization not qualified, but supported 30
Alliance Portfolio Increase Value Financial Applications Web Platform Integrator Back Office Support Single Interface and Web Services Access Gateway Reporting framework consultation Q4 2011 31
Alliance Access Single Interface for all Traffic Increase Value Financial Applications Payload File FileAct Settings Financial Applications File Transfer, MQHA, SOAP Payload File Access FTA/FTI Alliance Gateway solution is in maintenance mode. Direct FileAct FileAct Settings Access Financial Applications Payload File Parameter Files FileAct Package * *Support existing FTA/FTI parameter files or Sterling Connect:Direct configuration files. Access + Integrator 32
A new set of Web Services Message and Event Query Service Increase Value Financial Applications Web Platform Integrator Back Office Support Access Web Services Gateway The main benefit is to address the needs for analysing, from an external application, the operational data present in Access database 33
Alliance Access Reporting Pilot H2 2012 - Tentative Increase Value Current idea : Reporting framework in Alliance Access Set of predefined reports Report Category : Operational Performance Check (Number of message exceptions STP rate and Average processing time) End of the Day check Long term archive for operational audit purpose Operational Statistics (group per correspondent, per time,..) Financial Statistics group by currency, sum of amounts, ) List of all user activity related to messages (auditing) 34
Alliance Access Reporting Consultation going on Increase Value We are looking for : Customers interested in reporting in Alliance Access Contact details of customers with operational but also business profile Your feedback on our assumptions Material currently available : Questionnaire with examples of possible reports Poll on SWIFTCommunity.net Poll on Linked In Discussion Paper We are looking for people to participate 35
Alliance Portfolio Ease Integration Consultation will start in 2012 Financial Applications Web Platform Integrator Packages Back Office Support SOAP MQHA Direct FileAct Access Gateway 36
Integrator 7.0 Latest Update Ease Integration Semantic Validation for FIN Messages Reduce TCO by avoiding NAKs caused by violation of certain cross-element rules in FIN messages. Duplicate Check Implement your own duplicate check rules ignore e.g. timestamp values Works with Alliance Access 7.0 and Alliance Entry 7.0 Install by 30 September 2013 Upgrade path 1.0 2.0 2.1 7.0 37
Integrator 7.0 : Packages Combo deals at an attractive Price Ease Integration What is it? Restricted-use Integrator license Integrator-based functionality covering 80% of problem resolution Consulting Services implementation for the customisable last 20% Available : SWIFTRemit : Cost-effective and quick way to build a technical remittance capability and go live FileAct package : Move FileAct from Alliance Gateway to Alliance Access BAI2/940 starter package : Transform between BAI2 and MT94x formats for corporate and cash management 38
Alliance Portfolio Key focus in 2012 Wrap-up Financial Applications Web Platform Integrator Back Office Support Increase Value Access Gateway Ease Integration Reduce TCO - increase Resilience. Unlocking the potential of Release 7 Future Development of interface Wednesday 30 Nov 11.00 to12.30 Wednesday 30 Nov 14.00 to15.30 Thursday 1 Dec 9.00 to10.30 Wednesday 30 Nov 14.00 to15.30 39
LITE Release 2.2 December 2011 Automatic download on AutoClient of Browse received Funds MX, in CSV format and in XML (ISO 200022) format Use Lite to access any Browse service over SWIFTNet (more than 30 available already) TARGET2 (ICM ) Domestic RTGS systems Market Infrastructures Services offered by financial institutions 40
Services 41
SWIFT Services With you at every step of the way New initiatives Consulting Training Business opportunities Reputation risks Total cost of ownership Operational efficiency STP Operational risks Operational Internal inefficiencies 42
Consulting Services Supporting your initiatives and priorities Capitalize on your existing SWIFT infrastructure Implement bestpractices Efficiently manage SWIFT operations Ease implementation of Industry initiatives Maximise STP and reduce back-office processing costs Get valuable market insights and benchmarking 43
Consulting Services License to believe 450+ Projects 350+ Clients 75+ Countries Average satisfaction rating of above 4.5/5.0 35 members and growing 15 years average experience Access to 2,000 + SWIFT specialists Partners www.swift.com/consultingservices 44
Training Services Our knowledge, your solution +1.000 sessions per year 8.6/10 customer satisfaction +100 users certified +20.000 users trained per year 5 learning channels Business analysts Security officers Implementers Operators Administrators Sales staff, etc. +130 countries Europe Middle East Africa Asia North America Latin America 15 languages +50 courses Payments & trade Securities & treasury Interfaces & security 45
Existing services Planned services SWIFT Operational Services Reducing operational cost and risk Outsourced/cloud Interface infrastructure hosted at and managed by SWIFT Managed Services Remote Operations Manage, monitor, prevent through comprehensive system care, with remote monitoring and best practice configuration management Remote upgrade service for release 7 Alliance Lite remote personalised assistance service Support Services Premium, Premium Plus, Premium Custom (bespoke) Standard phone coverage Remote Support 46
SWIFT services in 2012 Bring value through experience and knowledge Consulting Expand Business consulting packages Focus on operational effectiveness Training Add courses, and increase channel alternatives eg. web class Extend Using SWIFT Certification programme Operational services Packages Offer managed operational services eg. system care Integrate Training, Consulting & Operational services offerings, driven by community initiatives and product introduction 47
Doing more with SWIFT, for less Identify new ways to leverage SWIFT Products and Services Understand cost drivers and reduction opportunities Start dialogue with Products and Services Marketing 48
Zoom on Initiatives 49
Zoom on inititatives Watch breakout Sanctions breakout Deepening the Core Expanding the Core Custody and Asset Servicing RTGS Corporates Correspondent Banking Clearing and Settlement Reference Data Sanctions Matching Enabling Interoperability and TCO reduction Services Interface Hosting High-end Interfaces Low-end Connectivity Go Local Enabling Transformation Platform Brand Innovation People CSR 50
SWIFT for Corporates Portfolio of services Treasury and Risk management Cash management Monitor accounts and obtain global visibility on cash Manage liquidity and pool cash company-wide Invest surplus cash Manage financial risk (FX and interest rate) Sent account payable files (e.g. pay suppliers/salaries, debit customers) Manage reporting through account statements FIN MT940/942 FIN MT101 FIN MT3xx FileAct (ISO20022 or domestic format) Trade finance Send application for L/C or Guarantees (import/export) Receive advice of L/C FIN MT798 or FileAct EBAM Manage bank accounts : opening, maintenance, closing and reporting FileAct (ISO20022) 51
Electronic Bank Account Management (EBAM) Central utility Messaging live since 2010 Central Utility will add essential functionality Successful incubation project Corporates EBAM central utility Banks Bank & country requirements Validation GUI Messaging 52
3SKey Personal digital signature Multiple devices, passwords, systems Need ONE token, ONE password, ONE process No uniform mechanism Different system per bank Costly & difficult to maintain Multi-Bank Multi-Application Multi-Network Multi-Country 53
SWIFT for Corporates Focus of 2012 On-boarding of new corporates: Industrialisation of corporate access Focusing on bank readiness Standardisation: finalise CGI rulebooks, included in SCORE 3SKey: Evaluate new token type for use in on-line/web channels Assess an alternative direct token distribution model Investigate evolution of 3SKey for mobile applications EBAM: Development and commercialisation of EBAM Central Utility 54
SWIFTRef what is SWIFTRef - new reference data products for payments - industry-recognized, single source of data - time-to-market, regulation why better - higher data quality, more data - stronger data integration, consistency - multi-lingual helpdesk and support why SWIFT - collaborative environment - utility like SWIFTNet - distribution, standards, integration 55
SWIFTRef - purpose reference data MT103 Efficient messaging = SWIFTRef for identification & navigation + SWIFT/ISO standards for the format + SWIFTNet for connectivity 56
From old to new products Old file products BIC Directory New file products BIC Archive BIC Directory BIC Directory Plus (TBD) BICPlusIBAN Directory SEPA Routing Directory SSI Directory CCH Old manual web query tools BIC Online Online Directories Old services SSI Diagnostics Bank Directory Plus IBAN Plus SEPA Plus SSI Retail SSI Wholesale SSI Plus CCH Plus Payments Plus New manual web query tools BIC Plus Online Global Plus Online MT094 Online New services SSI Diagnostics SWIFTRef help desk 57
SWIFT solutions for SSI provision Outgoing payments Sending FI Counterparty db containing SSIs Outdated or missing SSIs! Rejected payment 1) Get missing SSIs Look-up SSIs, Get full SSI db 2) Get SSI updates Get monthly/ daily changes 3) Fix counterparty SSIs Health-check & repair report 4) Get broadcasted SSIs Structured SSI messages Global Plus Online (look-up) SSI Plus (data feeds, web serv.) SSI Diagnostics MT670/671 MT094 58
Bringing it all together Mobile banking SWIFT for corporates Securities allocations Re-engaging with customers Managed services Interoperability Cloud services Partners Remaining agile Reducing costs TCO Programme SWIFTServices Matching Custody and asset servicing Driving up revenues in a tough economy Complying with regulation Sanctions, MyStandards Clearing and settlement Security products Correspondent banking 59
Questions & Answers 60