Bank Readiness & Certification Joan Lee

Director, Corporates Markets, SWIFT Asia Pacific

Americas, 21.1%

Asia Pacific, 9.5%

EMEA, 69.4%

Corporate connectivity

Connected in 81 countries

With business in 194 countries

2

73% of SWIFT-

connected corporates

has more than 5

banks relationships

> 20 banks 25%

b/w 10 and 20 banks

24%

b/w 5 and 9 banks 24%

less than 5 banks 27%

1400+ Corporates on SWIFT

(+15% per annum)

Evolution of Corporate groups on SWIFT

52 119

232

407

594

819

962

1135

1380

0

200

400

600

800

1000

1200

1400

1600

2006 2007 2008 2009 2010 2011 2012 2013 2014

YoY Corporates Adoption

Corporates on SWIFT in Asia Pacific

China

• China export and credit insurance

• China Petroleum Finance

Company

• HI-P International Co ltd

• LG Electronics (China) Co.ltd.

• Cofortune Information Technology

• Sinopec Finance Co.,ltd

• Huawei Technologies Co., Ltd

• GD Midea Holding Co.,Ltd.

• Southern Petro Chemical

• China Railway

• MCC Corporation

• Minsheng Leasing

Hong Kong

• AB International Finance

• Ocean Link International

• Tradelink Electronic Commerce

• Belden Asia (Hong Kong) ltd

• Noble Group ltd

• RZB Austria Finance (Hong Kong)

• MGB Metro Group Buying HK Ltd

• Citic Pacific Hong Kong

India

• Bunge India Private Limited

• Dr. Reddy’s Laboratoreis Ltd

• Reliance Industries

Singapore

• Cargill Global Funding plc SG

• Bunge Agribusiness Singapore

• Grains and Industrial products

• Custom House Currency Exchange

• Fraser and Neave Limited

• DKSH Management Pte Ltd

• Hewlett-Packard Asia Pacific

• Keppel Corporation Ltd

• BP Singapore Pte Ltd

• Mercedes Benz – Daimler

• Wilmar International

• International SOS

• Verizon Business

• Keysight Technologies

• Swiss Overseas Enterprise

Malaysia

• Petronas Holding

• Petronas Trading Corporation

• Petronas Carigali Sdn Bhd

• Malaysian International Trading

• Malaysia LNG Sdn Bhd

• Malaysian Airlines System Berhad

• Daimler Trucks

• Mercedes Benz Services

Thailand

• Mitsubishi Fuso Truck (Thailand) Co

• Mercedes Benz - Daimler

Philippines

• Coastal Renewable Energy

• Nestle

• Mercedes Benz

• Daimler

Japan

• Matsushita Electric Industrial Co

• DIC Corporation

• Sumisho Computer Systems

• NTT Data Getronics Corporation

• Sony Global Solutions INC.

• Nikon Corporation

• Toshiba Corporation

• Nomura Financial Products

• Rakuten

• Mercedes Benz – Daimler

• Fast Retail – Uniqlo

• Recruit Holdings

Korea

• LG Electronics Inc.

• LG CNS Co.,Ltd

• LG Display

• E-Land World Limited

• Samsung SDS

• Samsung CNT

• Samsung SDI

• Mercedes Benz – Daimler

Australia

• Wesfarmers Limited

• Gold Corporation

• Mercedes Benz – Daimler

• Kimberley Clark

• Citic Pacific Australia

• Incitec Pivot

• Fortescue Metals

• One Steel

• SKM

New Zealand

• New Zealand Railways

• Fonterra

4

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

• Low TCO

Automation

5

6

Corporate

Accounts

payable

Accounts

receivable

Treasury

Other

SWIFT

server

SWIFT: a single, standardised gateway

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

• Lower cost

• Transparency and view on cash

• Increased control and security

• Reduced risk

• High cost

• No global visibility on cash

• Impossible to centralise

• Challenge of multiple connectivity channels and formats

Most commonly used messages by Corporates

7

FIN

MT940 Customer Statement (3 million statements sent by AP banks in 2014)

MT942 Interim Transaction Report (4 million reports sent by AP banks in 2014)

MT101 Request for Transfer

MT300 FX Confirmation

MT320 Fixed Loan/Deposit Confirmation

MT910 Confirmation of Credit

MT900

Confirmation of Debit

FileAct 0.5 million files transferred in 2014 between AP banks

and global corporates

MT101, MX pain Payment instruction

MX camt, MT940 Reporting

8

SWIFT certified banks

Asia Pacific - 108 Banks certified

Thailand - 10 banks certified

• Bangkok Bank

• Bank of America Merrill Lynch

• The Bank of Tokyo-Mitsubishi UFJ

• JP Morgan Chase

• Citibank

• Deutsche Bank

• HSBC

• The Royal Bank of Scotland N.V.

• Standard Chartered Bank

• Sumitomo Mitsui Banking Corporation

9

Certified banks in Asia

“SWIFT connectivity has grown in popularity amongst corporates

worldwide, and since CMB introduced corporate connectivity through

SWIFT in 2008, China is no exception. There are two groups of customers

that we find are most attracted to SWIFT: Chinese companies with an

international growth trajectory, and foreign multinational corporations

investing in China. By implementing this, these companies enjoy a

consistent experience when communicating with their banks worldwide.”

10

Wang WeiXing, Product Manager &

Zhou MuYang, Product Manager, Cash Management,

China Merchants Bank

Companies need to work with a bank that has the experience,

expertise and value-added functionality that will help enable

them to achieve their goals. These criteria should be

paramount when corporates fine tune their banking

relationship selection process”.

11

“

Tom Durkin

Global Head of Integrated Channel Solutions

Bank of America Merrill Lynch

12

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

BankA

BankB

BankC

BankD

BankE

BankF

BankG

BankH

Bank I BankJ

BankK

BankL

BankM

BankN

BankO

BankP

BankQ

BankR

2013 – Total FIN 249,483

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

BankA

BankB

BankC

BankD

BankE

BankF

BankG

BankH

Bank I BankJ

BankK

BankL

BankM

BankN

BankO

BankP

BankQ

BankR

2014 – Total FIN 268,789

YoY 7% Growth on Total FIN between Banks and Corporates

Why are banks getting ready to offer SWIFT for

corporate connectivity?

13

Drivers of

Change Perceived as

Innovator

with new

efficient channel

for multi-bank

corporates

New

Opportunities of

Business

Growth

Technology

Transformation as

Key Enabler

Focus resources

on

internal strategic

valued-add

client solutions

Getting ready for corporate messaging Bank Readiness Certification

SWIFT for Corporates

14

Is your bank ready for SWIFT for Corporates?

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

SCORE registration Financial institutions (shareholders and sub-members*) can register to SCORE free of charge

Subscribe to SCORE on swift.com

Test services Live services

FIN FIN

FileAct (real-time) FileAct (real-time)

FileAct (store-and-forward) FileAct (store-and-forward)

*Sub-members register by their SWIFT shareholder

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

17

Bank readiness certification Entry & Advanced comparison

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 a dedicated SWIFT-page on website Yes Yes

*Bank should comply with FA implementation guide

19

Bank Readiness https://corporates.swift.com/en/certification/

SWIFT For Corporate Webpage Samples

20 SWIFT for Corporates

HSBC

http://www.hsbcnet.com/gbm/products-services/transaction-banking/integrated-

banking.html

Bank Readiness to support Swift for Corporates

Technical services

Standards Services

Products & services

Standards

gap analysis

SWIFT Project Management

Functional

analysis

Integration design

and implementation Technical

infrastructure

review

Identify

Resources

Business

Study

Technical

requirements Testing Go-Live

Integration

project

ISO 20022

Training

2 weeks ~4 weeks 2 weeks ~8 weeks ~8 weeks 1 week

On-boarding Services

SWIFT Consulting Services provides

• Project Definition and Planning

• Workshop on technical setup, messaging standards and SCORE

• Business Intelligence on corporate messaging and benchmarking

• Training and certifying your teams as SWIFT for Corporates Specialist

10

mths

Banks need to get ready for Corporates

22 SWIFT for Corporates

• Growing

Corporates

demand for

SWIFT

Worldwide and

increasingly in

Asia Pacific

• Corporates’

need for

Global Cash

Visibility

• Single

standardised

connectivity

and gateway to

their multi-

bank

relationships

Thank you ! SWIFT for Corporates

Website: www.swift.com/corporates

Email: swiftforcorporates@swift.com,

supplychain@swift.com

Twitter: @swiftcorporates

LinkedIn

Groups:

SWIFT for Corporates

Supply Chain on SWIFT

23 SWIFT for Corporates