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SWIFT © 2021. All rights reserved.

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The information in this document is subject to change without notice and should not be

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or incompleteness contained this document.

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SWIFT’s future strategy (the “Purpose”), including but not limited to this presentation. Please

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Webinar - Payments transformation with SWIFT - March 2021 | Confidentiality: RESTRICTED 1

SWIFT Payments strategySupporting the payments business of financial

institutions through instant and frictionless transactions

2Webinar - Payments transformation with SWIFT - March 2021 | Confidentiality: RESTRICTED

3

− Why a new SWIFT strategy

− What & how: Transaction management

• Approach

• Benefits of ISO 20022

• Connectivity Options

• Timeline

− Next steps

Webinar - Payments transformation with SWIFT - March 2021 | Confidentiality: RESTRICTED

Agenda

4

Why a new SWIFT strategy?


5

Why do we need to evolve as an industry?

5 market trends highlight the need for change


1. Upstream disintermediation — New trade, FX and securities solutions managing transactions in new ways,

absorbing payment/settlement as a side effect

2. Stronger competition — Unmet customer needs leaving opportunities for competitors

— Market entry by new players intensifies competitive landscape

3. Tighter compliance — Higher compliance cost and risk

— Uneven regulatory burden on existing players

4. Increased cost of doing business — Compulsory market changes

— Window of opportunity is closing in securities market

5. Rapid adoption of new tech — Enabling customer experience improvements, and new business and

operating models

— Widespread innovation and disruption

6

Equipping the community for a changing market


1. Integrate upstreamIntegrate with up and downstream solutions to drive business

2. Compete in the new worldProvide a better experience: simpler, cheaper, faster, transparent

3. Comply efficientlyCost effective mutualized solutions to help meet compliance obligations

4. Decrease cost of doing businessTransaction management and shared services to drive efficiency gains

5. Utilise new techBe the thought leader for the market; set technical vision for the industry

SWIFT is the back-end

industry platform...

...that is needed to

power front-end

innovation...

...together with our

members

7

SWIFT Strategy


Builds on our

foundation as an

industry co-operative

with unrivalled

security standards

to innovate rapidly

at scale, with the

right levels of risk

and control

Instant and frictionless transactions

from account to account anywhere in

the world, building on and extending gpi

Smarter securities services for

greater simplicity and efficiency

End-to-end integrity and rich data

services enabled by ISO 20022,

to help our users innovate and grow

State-of-the art digital platform that

enables messaging and transaction

services with effortless customer experience

Smarter

Faster

Better

Smarter securities

Open state-of-the art platform

Rich data

Frictionless payments

8

What & how: Transaction management

Approach


9

The journey to transaction management

Moving from point-to-point messaging into end-to-end orchestration


Standard

Secure

Integrity and availability

Community reach

Transactional referencing

(UETR)

Business service levels

and quality controls

STP enhancements

E2E tracking and insights

Controls

Frictionless payments

Ensuring accuracy and

unaltered rich data across

the transaction

Instant processing

End-to-end orchestration and

built-in value added services

SME and consumers

Enhanced user experience

through tighter SLAs and

quality assurance

Messaging

1970s

Payment Tracking and SLAs

2017

Transaction Management

2021

UETR

Release One – 2022

Starting the journey towards instant and frictionless


Evolution of existing optional services

Benefit from rich data

and interoperability

Enable frictionless

payments

Support business

solutions

Multi-channel/format support Pre-validation gpi customer and FI transfers

Transaction orchestration

and tracking

Embedded transaction screening

and payment controls

Tighter SLA for low

value payments

Transaction enrichmentCase management

and stop and recall

Integration tools and

community standards

Release One

New capabilities

Enables

10

11


Benefits of ISO 20022

- Richer and more structured data

- End-to-end interoperability



ISO 20022 Customer value

Example: remittance information

:70:P1002/Payment of medical resear

ch invoices nrs - 20190830-1072-01/

20190910-2084-01/20190912-3232-01/2

0191030-5044-01/20190917-4214-01/

<Purp>

<Prop>0P102</Prop>

</Purp>

<RmtInf >

<Strd>

<RfrdDocInfo>

<Tp>

<CdOrPrty>

<Cd>CINV</Cd>

</CdOrPrty>

</Tp>

<Nb>AcctPay12345</Nb>

<CdtrRefInf>

<Tp>

<CdOrPrty>

<Cd>SCOR</Cd>

</CdOrPrty>

</Tp>

<Ref> 20190830-1072-01</Ref>

<Ref> 20190910-2084-01</Ref>

<Ref> 20190912-3232-01</Ref>

</CdtrRefInf>

<RfrdDocInfo>

<Tp>

<CdOrPrty>

<Cd>CREN</Cd>

</CdOrPrty>

</Tp>

<Nb>20191030-5044-01<Nb>

<RfrdDocAmt>

<CdtNoteAmt>USD25</CdtNoteAmt>

</RfrdDocAmt>

<CdtrRefInf>

<Tp>

<CdOrPrty>

<Cd>SCOR</Cd>

</CdOrPrty>

</Tp>

<Ref>20190917-4214-01</Ref>

</CdtrRefInf>

<RfrdDocInfo>

<LineDtls>

<Id>

<Nb>002<Nb>

</Id>

<Desc>Cystic Fibrosis Genetic Marker Test</Desc>

<Amt>USD0</Amt>

<AdjstmntAmtAndRsn>

<Amt>USD100</Amt>

<CdtDbtInd>CRED</CdtDbtInd>

<Rsn>Test not on Purchase Order</Rsn>

<AdjstmntAmtAndRsn>

<LineDtls>

</RfrdDocInfo >

This is a payment for

medical research

My client number is:

AcctPay12345

I am paying invoice no:

20190830-1072-01

20190910-2084-01

20190912-3232-01

I have reduced the amount

of invoice no: 20190917-

4214-01 by 100 USD

because the 2nd line item is

not part of the Purchase

Order

Invoice no: 20191030-5044-

01 is a credit note and I

have deducted 25 USD from

the total amount

MT 101 and 103 are

limited to 4 lines of 35

characters

Free form text that ERP

and bank apps have to

interpret


ISO 20022 facilitating compliance controls

Example: structured party information

{1:F01ABNANL2AAXXX1234012345}

{2:O1031511010606UBSWCHZHGXXX00000130850105141149S}

{3:{108:UHBMT103001}{121:360f1e65-90e0-44d5-a49a-

92b55eb3025f}}

{4:

:20:987654321/DEV

:23B:CRED

:32A:011521USD10551,50

:33B:USD10551,50

:50K:/122267890

BIODATA GMBH

HOCHSTRASSE, 27

8022-ZURICH

SWITZERLAND

:59:/1234567890

MR. CUBA GOODING JR.

1234 OCEAN DRIVE

90099 LA

:71A:SHA

Structured and

labelled data

brings clarity to

the message and

enables accurate

and efficient

screening

Unstructured and ambiguous

Beneficiary Customer details,

e.g. “Cuba” in beneficiary

name can be confused with a

sanctioned country

MT103, Single Customer Credit Transfer pacs.008, FI To FI Customer Credit Transfer

<?xml version="1.0"?>

<Document xmlns:xsi="http://www.w3.org/2001/XMLSchema-

instance"

xmlns="urn:iso:std:iso:20022:tech:xsd:pacs.008.001.08">

<FIToFICstmrCdtTrf>

…

<CdtTrfTxInf>

…

<Cdtr>

<Nm>Mr. Cuba Gooding Jr.</Nm>

<PstlAdr>

<StrtNm>Ocean Drive</StrtNm>

<BldgNb>1234</BldgNb>

<PstCd>90099</PstCd>

<TwnNm>Los Angeles</TwnNm>

<CtrySubDvsn>CA</CtrySubDvsn>

<Ctry>US</Ctry>

</PstlAdr>

…

</Cdtr>

<CdtrAcct>

<Id>

<Othr>

<Id>1234567890</Id>

</Othr>

</Id>

</CdtrAcct>

14


Connectivity Options


Today, sender and receiver must use the same channel/format

15

Current messaging channels


InterAct/

ISO 20022

InterAct/

ISO 20022

FIN/MT FIN/MT

16

Traffic that will be handled by the transaction manager


MT format ISO 20022 format API

• MT103

(incl MT103 STP,

RETN, REJT)

• MT202/205

(incl MT202/205, RETN,

REJT)

• MT202/205COV,

(incl MT202/205COV,

RETN, REJT)

Based on CBPR+

usage guidelines

• pacs.008

• pacs.009

(incl COV)

• pacs.004

• pacs.002

(equivalent

business flows)

• Other FIN payments and other FINplus CBPR+ traffic

• Other business areas (e.g. securities, trade,...)

• Market infrastructure (MT and MX) related traffic

• Corporate-bank flows

Transaction

manager

Existing

processing

Traffic in scope of release 1 Traffic not in scope of release 1

SWIFT will automatically route traffic (in Release 1 scope) to the transaction manager

ReceiverSender

Receivers must still be able to use existing channels and

formats for this remaining traffic

17

Interoperability supported by the enhanced platform

Choose your preferred channel and format independently of your counterparts’ capacities


Sender and receiver independently choose the channel/format for traffic that is eligible for processing by the transaction manager

FIN/MT

InterAct/ISO 20022

API/JSON (ISO 20022) InterAct/ISO 20022

API/JSON (ISO 20022)

InterAct/ISO 20022

Transaction

manager

with embedded MT

This approach allows different financial institutions to adopt new formats at their own pace

18

Example: receiver with multiple business applications


Current situation

FIN/MT

Messaging interface

Screening application

Archiving application

Business application 1


needs all info

needs all info

MT or ISO 20022 based

MT based

FIN message

MT

MT

MT

MT

Future situation

Messaging interface

Screening application

Archiving application



needs all info

needs all info

MT or ISO 20022 based

MT based

InterAct message

with embedded MT

InterAct/ISO 20022

ISO+MT

ISO+MT

ISO

MT

The interface provides the MT format to the different business applications

The interface provides the ISO and/or MT format to the business applications as they need it

FOR ILLUSTRATION

19


Timeline


Customer Planning

Now 2021 H 2022 H 2023

Ongoing voluntary engagement / collaboration

Screening

for ISO

20022

(Jul. ‘21)

Mandatory testing of payments

processing for Nov. ‘22 adoptersOptional testing of APIs for pre-validation,

screening, fraud detection and tracking services

(Feb. ‘22)

Coexistence

period for ISO

20022 & MT

(Nov. ‘22 to Nov.

‘25)

2025

Platform

milestones

Platform

User Group

ISO 20022


FINPlus compatibility testing

(Sep. ‘20 to Mar. ‘21)Vendors

In-flow

translation

testing

(Nov. ’21

onward)

Test Sparring Partner

(Apr. ’21 onward)

ISO

200

22

Platform go-live with

gpi business services

support and embedded

fraud & screening

(Nov. ‘22)

Connectivity

guidance

API

specifications

(Mar. ‘21)

Platform ready for customer testing

(Mar. ’22 onward)

CBPR+ and gpi compatibility

testing

(Sep. ’21 to Mar. ‘22)

CBPR+ Messages Static Testing

(Already available)

21

Next steps



22

Call for action

- Make sure the interface you use is ready for ISO 20022 and multi-format messages

- Get some benefits now: implement gpi, pre-validation and case management

- Read the Connectivity Guidance and start assessing the impact & benefits for your institution

- Prepare for maximum benefits of the Transaction Management functionalities:

- Get ready for ISO 20022 and CBPR+ via MyStandards and SWIFTSmart

- Appetite for API implementation

- Plan for your testing strategy

Alliance Access

SAA supports the reception

of multi-format messages as

from SAA 7.4.50 / 7.5 (LIVE)

Functional enhancements for

the SWIFT Platform as from

SAA 7.6 (July 2021)

Alliance Messaging Hub

AMH will support multi-format

messages as from

AMH 4.1.6 / 4.2 (30.07.2021)

Other interfaces

Non-SWIFT interfaces will

have to support multi-format

messages when CBPR+ is

live

End of Q3 2021

Test environment available to

vendors

Alliance Lite2 & Alliance

Cloud

Solutions operated and

maintained by SWIFT

Lite2 and Alliance Cloud

gradually ready as of

November 2021

Connectivity Guidance

• Our vision for customer connectivity to the SWIFT

platform, as it evolves towards the transaction

management concept described in SWIFT’s strategy

• Provides the information required to understand the

options available – and the pros and cons of each – to

help plan implementations

• Download now:

https://www2.swift.com/myprofile/res/documents/platfor

m/swift-infopaper-platform-connectivity-guidance.pdf

(login required)


https://www2.swift.com/myprofile/res/documents/platform/swift-infopaper-platform-connectivity-guidance.pdf


Webinars & work sessions

Webinars & information sessions are

available for you to attend and get your

questions answered

Where can I get more help?

New resources are available

SWIFTSmart

The SWIFTSmart e-learning platform

includes training modules for

• Introduction to ISO 20022 and Standards

• CBPR+ message flows and attributes

• Exchange messages over FINplus

WWWISO 20022 Programme hub

The ISO 20022 Programme Document

Centre now includes:

• ISO 20022 for Dummies e-book

• Customers insights

• Corporate case study

• Third-party toolkit

• Past webinar recordings

MyStandards

The MyStandards CBPR+ group page includes:

• (Updated) Final Usage Guidelines for Nov-22

• (Updated) User Handbook

• Translation rules offline documentation

• Samples Library

• Readiness & Translation Portals

Adoption services

Get support for your project with:

• Training

• Impact assessment

• Standards specifications

• Integration solutions

Vendor support

• A Vendor Readiness Portal is live, allowing

vendors to test their applications

• A self-attestation and certification

framework has been launched to allow

vendors to confirm and promote readiness

for CBPR+

Knowledge Centre

The Knowledge Centre includes updated

documentation:

• Frequently Asked Questions (FAQ)

• Customer Adoption Guide

• FINplus Service Description

Customer support

SWIFT Customer Support is available to

answer questions if you do not find the

information you are looking for

https://www.swift.com/standards/iso-20022-programme/information-sessions

https://swiftsmart.swift.com/Saba/Web_spf/EU1PRD0018/pages/pagelistview/pgcnt000000000156357

https://www.swift.com/standards/iso-20022-programme/document-centre

https://www2.swift.com/mystandards/#/c/cbpr/landing

https://www.swift.com/swift-resource/248491/download

https://www2.swift.com/mystandards/#/portal/_G8t3YNUrEemvcKb1r_QxGA

https://www.swift.com/standards/iso-20022-programme/iso-20022-self-attestation-tests-for-payments

https://www.swift.com/about-us/partner-programme/how-to-achieve-swift-certification-for-your-business-application

https://www2.swift.com/knowledgecentre/products/ISO%2020022%20Programme

https://www2.swift.com/go/book/book200726



https://www.swift.com/contact-us/support

https://www2.swift.com/preferences/update

Thank you!

www.swift.com


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