Leveraging SWIFT for growing your Corporates business Melody Chua Manager, Corporate Strategy and Solutions, Asia Pacific [email protected]
Leveraging SWIFT for
growing your Corporates
business
Melody Chua
Manager, Corporate Strategy and Solutions, Asia Pacific
SWIFT connecting users globally
Corporate Insurance companies
Banks
Brokers & dealers
Investment managers
Stock exchanges
Trust companies
Settlement systems
Payment systems
Clearing systems
Regulators
Government & government agencies
Asset Managers
Why are corporates connecting to SWIFT?
Drivers for Corporate Banking Connectivity
• Aggregation of accounts worldwide
• Intra-day / end of day balance
• Cash forecasting for borrowing and investment activities
• Payment factories (A/P consolidation)
• Treasury centralization
• Consolidation of Bank relationships
• ERP / TMS consolidation
• Secure and resilient connectivity to banks
• ISO 20022 standards
Centralization and consolidation
Multibank cash reporting
Compliance and risk management
• Straight-through-processing
Automation
SWIFT: a single, standardised gateway
Corporate
Accounts
payable
Accounts
receivable
Treasury
Other
SWIFT
server
Corporate
e-banking Y
host to host X
e-banking Z
VAN
Internet
Leased
line
Accounts
payable
Accounts
receivable
Treasury
Other
Multiple bank channels Single, standardised gateway
• High cost
• No global visibility on cash
• Impossible to centralise
• Challenge of multiple connectivity channels and formats
• Lower cost
• Transparency and view on cash
• Increased control and security
• Reduced risk
Evolution of Corporate groups on SWIFT
480 701 842 1015
1238 1472
1712 1736
0
500
1000
1500
2000
2500
2010 2011 2012 2013 2014 2015 2016 2017
Corporates connected in APACYoY Corporates Adoption
Corporate connectivity Per region
AM-UK includes Americas, UK, Ireland and Nordics
All Corporates on SWIFT Corporates joining in 2016
EMEA 53% AM-UK
35%
AP 12%
EMEA 45%
AM-UK 33%
AP 22%
> 20 banks 24%
b/w 10 and 20 banks 24%
b/w 5 and 9 banks
23%
less than 5 banks
29%
Corporate connectivity Per corporate turnover & banking partners
71% of SWIFT-connected corporates deal
with 5 banks or more
(based on Live traffic in Q4 2016)
Corporates by number of banking partners
Corporates with
traffic in Q4 2016
49% of corporates joining SWIFT in 2016 have a
turnover < 1 Billion USD
35% of corporates joining SWIFT in 2016 have a
turnover < 500 Million USD
Corporates by annual turnover (USD Billion)
> 10 Bn 14%
1-10 Bn 37%
0.5-1 Bn 14%
< 0.5 Bn 35%
> 10 Bn 27%
1-10 Bn 34%
0.5-1 Bn 12%
< 0.5 Bn 27%
Inner: joining in
2016
Outer: All
Most commonly used messages by Corporates
Top 3 sent
messages
% of FIN traffic
sent by
Corporates
MT101 43%
MT103 38%
MT300 10%
Cumulative 91%
Top 3 sent
messages
% of FIN traffic
received by
Corporates
MT940 52%
MT942 25%
MT900 8%
Cumulative 86%
Growth % of files Sent vs
Total Sent
pain.001.001 29% 89%
pain.008.001 26% 11%
pain.002.001 1% 0%
camt.053.001 -34% 0%
Others 3% 0%
Total 28% 100%
Growth % of files received
vs Total received
pain.002.001 53% 78%
camt.053.001 60% 9%
camt.054.001 95% 7%
Others -23% 5%
Total 48% 100%
Growth % of files Sent vs
Total Sent
pain 21% 87%
pacs 4% 9%
admi 0% 2%
Others -2% 1%
Total 18% 100%
Growth % of files rcvd vs
Total rcvd
camt 26% 55%
pain 46% 34%
pacs 24% 9%
Others -1% 2%
Total 31% 100%
33% of files received via FileAct are
ISO 20022 in FY2016
63% of files sent via FileAct are
ISO 20022 in FY2016
FIN traffic
ISO20022 traffic
FileAct traffic
Corporate Connectivity
Per country
Bank Adoption
1,890 banks (BIC8) offering SCORE
corporate connectivity
741 Banks (BIC8) certified
• 78 Groups
• 135 countries
• 38 out of Top40 SCORE banks are
certified
Asia Pacific - 227 Banks certified
Banks Certified in Vietnam 1. BTMU
2. Citibank
3. Deutsche Bank
4. HSBC
5. JPMorgan
6. Mizuho
7. Shinhan Bank
8. Standard Chartered
9. SMBC
10. Societe Generale
11. ANZ (Entry)
Legend
• > 75
• 25 – 75
• 10 – 25
• < 10
• 0
Why are banks getting ready to offer SWIFT for corporate connectivity?
Perceived as
Innovator
with new
efficient channel
for multi-bank
corporates
New opportunities of business
GROWTH AND RETENTION
First step towards embracing more business opportunities with SWIFT
It is a standardised corporate environment on SWIFTNet
It is based on a closed user group
It is administered by SWIFT
Corporates can interact with all banks registered in SCORE
Banks can interact with all corporates registered in SCORE
CORPBIC1
CORPBIC2
CORPBIC3 Your institution
SCORE
Standardised
Corporate
Environment
Growing your support for Corporates via SWIFT
Cash visibility and
reconciliation
Standardization and
automation of Payments
Treasury operational
excellence Trade efficiencies
and optimization
FIN
FIN and FileAct
MT940, MT 942
MT101 and ISO20022
(pain.001, pain.002 etc.)
MT300, MT320
MT798
FIN
FIN
Bank readiness certification Programme objectives
• Publish bank business capabilities over SWIFT
• Facilitate corporate reach for banks over SWIFT
• Enable corporates to increase their bank reach globally using SWIFT
• Promote the operational and commercial capabilities across banks
• Endorse bank’s best practices for corporates over SWIFT
Payments
Cash management
Treasury
Today’s Entry and Advanced Certification Criteria
Criteria Advanced certification Entry certification
Participate in SCORE Yes Yes
Receive FIN MT 101 and send MT 940 Yes Yes
Send MT 942 Yes No
Send/Receive files over FileAct* Yes* Yes*
Testing facilities & scripts Yes Yes
Operational documentation Yes Yes
Have SWIFT-knowledge and trained sales staff Yes Yes
Offer Basic commercial documentation Yes Yes
Provide either dedicated SWIFT-page on the bank website OR a
contact detail Yes Yes
*Bank should comply with FA implementation guide
Changes to mandatory criteria – effective September 2017
Addition of the following criteria to Advanced Certification:
1. Accept ISO 20022 XML payment instructions (pain.001)
2. Send ISO 20022 XML reporting (camt.053)
Bank Readiness
https://www.swift.com/topic/34641/certification/country
www.swift.com