Key Trends and Benefits Kiyono Hasaka & David Dobbing SWIFT - PowerPoint PPT Presentation

ISO 20022 Adoption Key Trends and Benefits Kiyono Hasaka & David Dobbing SWIFT Standards Bangkok, 28 March 2013

Agenda Introduction ISO 20022 Landscape ISO 20022 Adoption by Corporates Common Global Implementation (CGI) Implementation Roadmap The Way Forward Q&A 2

Introduction to SWIFT – Member-owned cooperative – Founded in 1973 – Head office in Belgium – Over 10,000 members in 212 countries and territories – Over 1,000 corporate members – Over 4 billion messages yearly – Peak day of over 20 million messages 3

ISO 20022 Landscape Introduction ISO 20022 Landscape ISO 20022 Adoption by Corporates Common Global Implementation (CGI) Implementation Roadmap The Way Forward Q&A 4

ISO 20022 landscape ISO 20022 What ? ISO 20022 ISO 20022 Who ? Where ? ISO 20022 ISO 20022 Why ? When ? ISO 20022 How? 5

ISO 20022 What ? ISO 20022 is a recipe to build standards 6

Open standard and recipe to build ISO 20022 a common financial language Capture the basic foundations of the business Agree on how to exchange those concepts in a financial messaging context Collaboration 7

More than just messaging! A repository … ISO 20022 Repository Payment Business model InstructedAmount Creditor Definition of payment Remittance PaymentDate Debtor CreditorAccount DebtorAccount Message creation Information needed to communicate, eg, credit transfer instruction Implementation Technical XML Schema 8

XML (eXtensible Markup Language) • de facto standard syntax An example of street address <address> • Supported by major vendors <number>70</number> <street>Euston Square</ street> • Off the shelf tools <city>London</city> </address> • Facilitates technical interoperability • Auto-validation of message instance • Character sets – local language support • Message size – there are not the same limits as MT 9

SWIFT and ISO 20022 SWIFT’s commitment to ISO 20022 includes Registration • Responsible for the maintenance and publication of the Authority central repository for ISO 20022 • New ISO standards Development • Provisioning of new standards on SWIFT network Implement • Support other submitting organizations Tools and • Provision of development platform, middleware and Services interface • Standards consultancy & training • ISO 20022 to the financial industry Promote 10

ISO 20022 Who and Where ? ISO 20022 is increasingly adopted by key players around the globe 11

ISO 20022 Adoption in the Payment Market CPA, CA DK CPA, CA SEPA,EU CH Zengin, JP T2, EU CIPS, CN FED, US IPFA BOJNet, JP CNAPS, CN CO IN SG PE BR PNG SADC AU NZ Low- High- Live Planned 12 value value

ISO 20022 Adoption in the Securities Market CSD, EE T2S, EU CSD, PL CSD, LT Euroclear JASDEC, JP [S&R] CSD, LI DTCC, US CN [Corp Act] Clearstream JASDEC, JP [Corp Act] VN SGX, SG ASX, AU BR, CSD 13

ISO 20022 When ? It’s all about the right standards at the right time for the right reason 14

When to adopt ISO 20022? Key considerations: – Global Corporates’ demands – Harmonization (driven by regulation or innovation) – Renewal of legacy systems – Further automation required – Creation of new services – Interoperability with other systems/players – New setup: easier to opt for ISO 20022 – Existing setup using domestic / other standards: (resistance to change) - > opportunity to renew / transform the process 15

ISO 20022 Why ? ISO 20022 is a global standard that also supports local needs 16

Why adopt ISO 20022 ISO 20022 allows for more flexibility to cater for local specific needs • Open standards, any organizations can use the ISO 20022 recipe • Be aligned with the major initiatives and practices around the globe • Easy to implement, off the shelf tools available • Future-proof because of the syntax-independent model • Possibilities to add locally required data in a structured way • Message size – flexible and there are not the same limits as MT ISO 20022 MT ISO 20022 Awareness Training Live Meeting V01 17

ISO 20022 How? Community collaboration and management of local implementations 18

How to adopt ISO 20022 Coordinated approach: – Collaboration and best practice sharing in working groups (eg ETDA – led market initiatives) – Services to help communities migrate and implement (roadmap/creation of guidelines/mapping/etc) – Tools (MyStandards) to facilitate sharing and harmonization of market practices 19

ISO 20022 Adoption by Corporates Introduction ISO 20022 Landscape ISO 20022 Adoption by Corporates Common Global Implementation (CGI) Implementation Roadmap The Way Forward Q&A 20

ISO 20022 Adoption by Corporates Over 200 different corporates are sending ISO 20022 payment messages to different banks over 30 countries worldwide today 21

ISO 20022 Adoption by Corporates (Before) 22 Source: Standard Chartered Bank 2011

ISO 20022 Adoption by Corporates (After) 23 Source: Standard Chartered Bank 2011

SWIFT for Corporates http://www.swift.com/corporates 24

ISO 20022 Adoption – Key Benefits Increased STP Straight Through Processing Cost Efficiency Global Interoperability 25