Introducin a SWIFT: Facilitando ventajas competitivas a travs de estndares comunes y una plataforma

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Introdución a SWIFTFacilitando ventajas
competitivas a través de estándares comunes y una
plataforma compartida

• Lambert Timmermans
• Gerente América Latina, SWIFT sc

Cartagena - Agosto 2005
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SWIFT Plenary - Agenda

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

3
SWIFT Plenary - Agenda

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

4
SWIFT - connecting the financial community
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Visión SWIFT2006

• "Nuestra misión es ser la infraestructura de
  mensajería de la comunidad financiera, aportando
  el menor riesgo y los mayores niveles de
  contingencia."

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Single window connectivity for the industry
Insurancecompanies
Broker- dealers
Banks
Investment Managers
PensionFunds
Corporates
SWIFT
Stock Exchanges
Transfer Agents
User Groups
Other Exchanges
Infrastructures and VMUs
ETC providers
ICSDs CSDs
Creating STP momentum for the industry
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SWIFT2006

• Making financial messaging safer and less costly

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2005 Pricing initiatives

• FIN Price reductions

Average reduction 8
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Rebate history
EUR Millions
10
33 M
30
8
25 M
20
5
15 M
10
?
0
2002
2003
2004
2005
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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

?
?
?
?
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Pricing and traffic Harnessing economies of scale
Price (EURcent/msg)
Traffic (Millions of messages)
50
2500
45
Traffic
2000
40
35
1500
30
25
1000
20
Price
15
500
10
5
0
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SWIFTs changing market mix
Share of SWIFT messaging revenues (EUR)
100
80
60
40
20
0
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
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SWIFT la red mundial en 2005
7,678 instituciones financieras
Dia pico 10,958,655
Disponibilidad 99.999
203 paises
Crecimiento
Pagos/576 MM msgs
Comercio /19 MM msgs
Tresoreria/65 MM msgs
Valores/338 MM msgs
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Banking market infrastructures in 1995
EBA
Norway
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Banking market infrastructures in 2005
Albania France CRI Singapore Angola Germany
(RTGSplus) Slovenia (SIPS, GIRO) Australia
Ghana South Africa (SAMOS) Austria (ARTIS)
Greece South Africa (BOP, ZCL) Azerbaijan
Hungary Spain (SLBE) Bahamas Guatemala Sri
Lanka Belgium Italy (BI-REL) Sweden (RIX,
BGC) Barbados Ireland Switzerland Bosnia
Herzegovina Jordan Tanzania Bulgaria Kuwait
Thailand Canada Latvia Trinidad Tobago Chile
LCH Tunisia CLS Bank Luxembourg
Uganda Croatia Malta UK NewCHAPS Denmark
Mauritius Venezuela EBA (EURO1) Namibia
West African Monetary EBA (STEP1, STEP2) New
Zealand Union ECB (TARGET) Netherlands (TOP)
Egypt Netherlands (Interpay) USA (CHIPS,
Fedwire) Eurogiro Norway Zambia Finland
Philippines Zimbabwe Romania
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Securities market infrastructures 1995
JP Morgan
Cedel
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Securities market infrastructures 2005
Euroclear NL
Euroclear FR
Euroclear Bank
Clearstream
DTCC ISCC
Eurex
Singapore SE
CREST
ECSDA
JSCC
Iberclear
Omgeo
SIS SIS X-clear
HKMA
LCH.Clearnet
Tokyo Stock Exchange
Strate
Sydney Futures Exchange
London Stock Exchange
Johannesburg SE
and others!
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Increasing resilience - 4 Pillars II

• Physical and cyber security
• Personnel processes
• Service continuity
• Crisis management

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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."

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SWIFT Plenary - Agenda

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

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SWIFT en América Latina
Organisacion regional SWIFT
Migracion SWIFTNet
Acceso corporativo/Ma-CUG
Conferencia Reg. 2005
47 paises
8.2 MM msg ( 17)
Sistemas de pagos
Service Bureaus
699 usuarios activos
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2. SWIFT Trafico en America Latina por mercado
(Mayo 2005)
Crecimiento
Cuota
Tot Msg (Sent) 8.7 mio
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Traffic2004 Top 20 countries and Latin America
Millions
450
400
350
300
250
200
150
100
50
0
Latin America
GB
US
DE
FR
BE
IT
NL
CH
JP
LU
HK
ES
AU
SE
ZA
CA
AT
SG
DK
FI
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Growth2004 Top 20 countries, Latin America and
"RIC's"
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Latin America traffic2004 Top 10 countries
Millions
4.5
4.1
4.1
4.0
3.5
3.0
2.6
2.5
2.0
2.0
1.5
1.5
1.3
0.9
1.0
0.8
0.6
0.7
0.6
0.5
0.0
MX
BR
VE
CL
AR
CO
EC
PE
PA
AN
Others
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Latin America growth2004 Top 10 countries
50
44
45
40
40
35
29
30
24
25
18
20
16
14
15
11
10
10
8
5
-1
0
CL
VE
CO
MX
AR
EC
BR
PE
AN
PA
Others
-5
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SWIFT Plenary - Agenda

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

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Proprietary connections IT Iceberg concept
software
lines
maintenance
hardware
support
testing
project management
backup
legal
procurement
software maintenance
release qualification
disaster take-over exercises
education
documentation
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SWIFTNet - main features SWIFTNet messaging
product offering
Standard store-and-forward messaging for single
instructions
Real-time file transfer forbulk payments files
and reporting
Real-time messaging for query / response and
transaction input
Online information visualisation
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SWIFTNet single window access to the financial
world
Market infrastructures
SWIFTNet FIN
Business solutions
Customer solutions
SWIFTNet
FX-Accord FIX Cash reporting Proprietary
reporting Bulk payments Securities report Funds
mngnt Browsing
Broader range ofbusiness solutions
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SWIFTNet single window access to the financial
world
Market infrastructures
SWIFTNet FIN
Business solutions
Customer solutions
SWIFTNet
FX-Accord FIX Cash reporting Proprietary
reporting Bulk payments Securities report Funds
mngnt Browsing
Broader range ofbusiness solutions
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Example of FIN Use a single standard with all
counter-parties
FIN for treasury and liquidity management
Request for Transfer (MT101)
Notice to receive (MT210)
Credit/debit advice (MT900/910)
Intra-day Statement (MT942)
End of day Statement (MT940)
A complete set of standard messages that allow
end to end automation
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FIN for liquidity management Automate investment
and borrowing activities
FIN for liquidity management
. an extensive set of standards to automate
your collateral management and corporate actions
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Financial risk managementAutomated matching with
SWIFTNet Accord
FIN and Accord for financial risk management
Accord subscriber
Accord subscriber or non- subscriber
Copies of confirmations
Real-time interactive Reporting and Exception
handling
Accord Real-time Confirmation Matching
SWIFTNet Accord further reduces costs and
operational risk
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SWIFTNet single window access to the financial
world
Market infrastructures
SWIFTNet FIN
Business solutions
Customer solutions
SWIFTNet
FX-Accord FIX Cash reporting Proprietary
reporting Bulk payments Securities report Funds
mngnt Browsing
Broader range ofbusiness solutions
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SWIFT provides a total solutionfor payments and
settlement systems
FIN FIN Copy InterAct FileAct
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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

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Payments Markey Infrastructures (May 2005)
Live
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Ex. Contd SWIFTNet expands the options for US
banks
Single payments
FEDNET
TCH
FEDACH
FedWire
EPNACH
CHIPS
FIs
RTGS
Dedicated link
Dedicated link
SWIFT
Single SWIFTNet connection
US Banks
Existing SWIFT flows (FIN)
New SWIFT flows (InterAct and FileAct)
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SWIFTNet single window access to the financial
world
Market infrastructures
SWIFTNet FIN
Business solutions
Customer solutions
SWIFTNet
FX-Accord FIX Cash reporting Proprietary
reporting Bulk payments Securities report Funds
mngnt Browsing
Broader range ofbusiness solutions
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The Bulk Payments Solution is based onSWIFTNet
FileAct
FileAct
Sender
Receiver
1
File transfer initiation
2
Actual file transfer
3
Delivery notification (optional)
File transfer status
File transfer status

• Authenticity, integrity, confidentiality,
  non-repudiation
• Flexible central routing
• Any type of file up to 250Mb, compression
  supported

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

• Standardised file transfer platform
• Support of existing file formats
• Global reach
• Highly secure and cost effective

Customer
Customer
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1. What is SWIFTNet Cash Reporting?
FIN MT 103 / MT 202
Account servicing institution
Intraday FIN MT 900/910/942
SWIFTNet Cash Reporting
Account owner
End of day FIN MT 950
-Time payments are more common -Timed liquidity
needed RTGSs, PvP, DvPs -Longer settlement
days -Interdependencies between payment
systems -Globally connected world -Increasing
regulatory pressure -Time money
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SWIFTNet Cash Reporting supports your real-time
information needs
Market infrastructure cash management
Real-time Nostro account information
Real-time cash reporting for corporates
SWIFTStandards XML
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Service User person to application possible
configurations
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
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The SWIFTAlliance Starter Set
The SWIFTNet single window
Market infrastructures
SWIFTNet FIN
SWIFTAlliance Entry or Access
?
?
Financial institution
SWIFT Business Solutions
Customer Solutions
SWIFTNet Link
?
?
The SWIFTAlliance Starter Set opensthe single
window
Generic SWIFTNet messaging services
?
?
InterAct FileAct Browse
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(No Transcript)
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SWIFTNet single window access to the financial
world
Market infrastructures
SWIFTNet FIN
Business solutions
Customer solutions
SWIFTNet
FX-Accord FIX Cash reporting Proprietary
reporting Bulk payments Securities report Funds
mngnt Browsing
Broader range ofbusiness solutions
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Streamlining with heterogeneous systems is a
challenge
Corporate client
Accounts payable
host to host X
Leased line
Accounts receivable
e-banking Y
Treasury
Other
e-banking Z
PSTN
fax-banking
How can banks help ?
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Banks can help by offering access over a secure
standardised channel
Corporate client
Accounts payable
Accounts receivable
Treasury
SWIFTNet interface
Other

• One platform
• Full STP
• Highest level of security and resiliency

• Lower costs
• Reduced risk
• Improved control

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Banks offering corporate access over SWIFTNet
Americas
Mexico (MX)
United States (US)

• 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

Brazil (BR)

• Banco do Brasil

Canada (CA)

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

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Banks offering corporate access over SWIFTNet ES
PT
Spain (ES)

• 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.

Portugal (PT)

• Banco Comercial Portugues, S.A.
• Caixa Geral de Depositos, Lisboa

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Corporates on SWIFTIndustry sectors
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Corporates on SWIFT by industry sector (3/6)
Financial Services
Food Products

• 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

• Cargill
• Danone
• Nestle Espana
• Kraft

Insurance

• Aegon
• Legal and Finance
• Rural Grupo Asegurador

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Corporates on SWIFT by industry sector (5/6)
Oil and Gas
Personal Care

• Aramco
• BP
• Shell
• Sonatrach
• Lukoil
• Total
• Yara International

• Yves Rocher

Pharmaceuticals

• Johnson and Johnson

Rental and Leasing

• Hertz

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Corporates on SWIFT by industry sector (6/6)
Software

• SAP
• Synergex

Telecom Services

• France Telecom
• Telkom
• UNI 2

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The guiding principles of SWIFT are clear

• To offer the financial services industry a common
  platform of advanced technology and access to
  shared solutions through which each member can
  build its competitive edge.

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Thank you!
Questions and answers