ORKSHOP ON ISO20022 MPLEMENTATION IN THE · PDF filePage 1 of 2 Workshop on ISO20022 agenda as of 24 September 2016 WORKSHOP ON ISO20022 IMPLEMENTATION IN THE PHILIPPINES MULTI-FUNCTION

Page 1 of 2 Workshop on ISO20022 agenda as of 24 September 2016

WORKSHOP ON ISO20022 IMPLEMENTATION IN THE PHILIPPINES

MULTI-FUNCTION HALL 1&2 Asian Development Bank HQ

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines 3 October 2016

TIME PROGRAM

08:30-09:00 Registration

09:00-09:15 Opening remarks by Mr. Noritaka Akamatsu, Senior Advisor, SDCC, ADB

09:15-10:00

Session 1: Why we should move to the new standard by Mr. Satoru Yamadera, Principal Financial Sector Specialist, SDCC, ADB - Revolutionary shift of ICT and impacts on financial industry - Shifts in regulation and regulatory reporting

10:00-10:45

Session 2: Main features of ISO 20022 by Mr. Toshio Kawakami, NTT DATA Getronics, and Mr. Masahiro Nishihara NTT DATA Institute of Management Consulting - ISO 20022 and business modeling - ISO 20022 and XML: importance of XML-based message exchange

in financial services - Necessary consideration banks should be aware of

10:45-11:00 Coffee break (Multi Function Hall Gallery)

11:00-11:45

Session 3: Case studies 1 Trend in ICT and corporate EDI by Mr. Takashi Hamazaki, Chief Director, Project Support Center, Global Business Planning & Operations Division, Hitachi - Supply-chain network and corporate EDI in Asia - How banks should engage with corporate EDI - Future of banking and corporate EDI

11:45-12:30

Session 3: Case studies 2 RTGS new generation and implication for banking industry by Mr. Maxim Neshcheret, CMA and Mr. Anthony Lee, Principal Consultant, Consultancy Associates Ltd - RTG and ISO20022 migration in ASEAN countries - Initiatives in other developing markets - How banks can keep up the changes

12:30-13:30 Lunch (Coffee Lounge, 2nd Floor)

Page 2 of 2 Workshop on ISO20022 agenda as of 24 September 2016

TIME PROGRAM

13:30-14:15

Session 3: Case studies 3 ISO 20022 implementation and impact on trade finance and corporate finance by Mr. Digby Bennett, China Systems - Opportunities ISO 20022 may bring in trade finance - Challenges and solutions

14:15-15:00

Session 4: ISO procedures and Role of Registration Authority by Alex Kech, Head of Securities & Standards, Asia and Pacific, SWIFT - ISO20022 management: its technical features and procedures under

Standard Evaluation Group (SEG) and Registration Management Group (RMG)

- Role of Registration Authority (RA) - Support for ISO 20022 implementation - Importance of regional discussion and experience sharing

15:00-15:15 Coffee break (Multi Function Hall Gallery)

15:15-16:00

Session 5: Challenges and next steps for the Philippine financial institutions by Ms. Bella Santos, Director, Payments and Settlements Office, BSP - How to develop Philippine’s financial system's rule book based on the

needs of the Philippine financial institutions - Need for a Philippine Financial System Standard Body and industry’s

support - Next step

16:00-16:15 Concluding remarks by Satoru Yamadera, ADB

1

Session 1: Why we should move to the new standardABMF workshop on ISO20022Satoru (Tomo) YamaderaPrincipal Financial Sector SpecialistSDCC, ADB

1

Outline of presentation1. Drivers of innovation

– Regulation – Technology

2. Key trends in IT innovation2.1 Exponential growth in data and expansion of network2.2 Advances in network analysis2.3 From static to dynamic2.4 Human to machine reading

3. Changes in banking business model4. Why Asia needs standardization

2

2

1. Drivers of innovation in finance• Regulation

– Sophistication of risk calculation– Data-driven monitoring by regulators– Promoter of new business and innovation

• Technology– Exponential growth of data– Advances in network analysis– Static to dynamic– Human to machine reading

3

2. Key trends in IT innovation

4

3

2.1 Exponential growth of data and expansion of network• Increase in data traffic• Increase in capacity of data storage• Decline in IT costs (particularly mobile)• Expansion of communication network• Enormous info available in cyberspace

– Search engine• Data mining

↓ Sampling and estimation • Blockchain technology

– Decentralization of databaseSource: Wikipediahttps://en.wikipedia.org/wiki/Internet_traffic

05001000150020002500300035004000

0

10000

20000

30000

40000

50000

60000

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

Fixed Internet traffic(petabyte/month) leftMobile Internet traffic(petabyte/month) right

Global Internet Traffic

5

2.2 Advances in network analysis• Links as bilateral connection• Complete network• Closed network• Scale-free network • Open network Understanding Relationship

6

4

Technology to support network analysis Ordinary web

Information is searched by human. Information is described as texts.

Linked Open Data

ChildBirthday

work

Company

location

schedule

Information can be searched by machine. Targeted information can be found easily.By using web technology, data which is machine-readable will be shared and linked. 7

Linked Open Data

Source: http://commons.wikimedia.org/wiki/File:LOD_Cloud_Diagram_as_of_September_2011.png 8

5

2.3 From static to dynamic

Data AData B

Data CData D

Static database with rigid structure Dynamic database with flexible structure

9

2.4 From Human to machine reading• XML• HTML• XBRL

– Information with definitionPaper

Straight-Through-Processing

<food><name>Beef steak</name><price>1,000</price><food><name>Kare-Kare</name><price>300</price>

10

6

Steps towards machine-reading

Source: http://5stardata.info/

Linked Open DataURI, XML

Human interface to machine interfaceHuman brain to artificial intelligence

11

Global trend of XBRL, XML• Europe

– Regulatory Reporting (ESMA, EIOPA)– ISO 20022 implementation in T2S, T2

• Asia– Regulatory reporting in Japan (BOJ, FSA)– EDI-Net– ISO20022 implementation in CNAPS, New BOJ Net

• US– Regulatory Reporting (FFIEC)

• More than 8,000 banks have been filing quarterly Call Reports in XBRL since October 2005. – Possible introduction of ISO 20022

12

7

Quick glance on XBRL projects in Europe

From 55 to 65 XBRL projects in 19 European Countries for national reporting or European Reporting though EU directives

Banking regulatedsectorInsuranceregulatedsector

Securities MarketRegulatedsectorBusiness registersector Tax sector Statistics Others(Stock exchg, Private)

More than 13 projetcsAt least 8 within the NCAs for mandatory reporting and from NCAs to EBAEBA Project with the new COREP and FINREP taxonomies

Many under Preparation within the NCAs for mandatory reporting and from NCAs to EIOPAEIOPA project with Solvency II Taxonomy

3/4 projects 1 for mandatory reporting (Spain CNMV IFRS Taxonomy)ESMA projectfor listed companies reporting following IFRS XBRL Taxonomy

13 projects 7 for mandatory reporting of annual accounts following local GAAPtaxonomies

6 projects 4 for mandatory reportingfollowing local fiscal taxonomies

6 projects 10 projects

13Source: Gilles Maguet –XBRL Europe Secretary General, 12th XBRL Europe day & 18th Eurofiling Workshop – Luxembourg 11 December 2013

Legal Entity Identifier (LEI)• The Legal Entity Identifier (LEI) is a 20-digit reference code to uniquely identify legally distinct entities that engage in financial transactions and associated reference data.

Maybank Philippines, Inc= 5493005KVQB0Q5B5EP81• LEI was introduced by G20 to increase market transparency, as a part of OTC derivative market reform.• However, the impact will not be limited to the OTC derivative market.

14

8

15

3. Changes in banking business model

16

9

Changes made by IT innovation• Exponential growth of data and expansion of network

→ Cost of exploring and storing information will be reduced drastically.→ Existing database and networks may become obsolete.

• Advances in network analysis→ Customers’ information can be collected from both open and closed sources.→ Traffic data, relationship, dynamics of network can be monitored and analyzed to understand relationships.

17

Changes made by IT innovation (2)• From static to dynamic

– Database will move to dynamic database– Forecasting to nowcasting

• Human to machine reading– High frequent data and fast data processing requires analysis by artificial intelligence– Human interface is no more necessary but data needs to be machine-readable.

18

10

Example of network analysis

Source: Imakubo, K. & Soejima, Y. (2010), The Transaction Network in Japan’s Interbank Money Markets, Monetary and Economic Studies Vol.28

Regulators may be able to capture the changes of relationships in the market in real time in the future. 19

Impact of IT innovations on finance(Tentative observation)• More and more physical forms and human processing will be transformed to digital, which can be processed by machines.• Rapid IT innovations reduces costs of operations of FIs, but it also reduces cost of entry (Internet banking, insurance, and brokers).(Organized market)• Closed market (such as stock exchange) to more open market (such as OTC and online brokerage)• High Frequency Trading by AI.(Banking)• Closed network of banking would face challenges from more open networks such as telecom and other nonbanks.• Economy of scope in banking model will be eroded.(Other financial services)• Financial intermediation and payment may not be a dedicated business for banks. New financial intermediary service will emerge.• More advanced risk management will be required, thanks to availability of various data.

20

11

IT to decompose banking servicesBanking has evolved as evolution of money

Money = unit of account; means of payment; store of value– Transferring money (means of payment)

• Providing means of payment via bank accounts• Organizing a network of banks for payments

– Safekeeping (store of value)• Providing saving opportunity• From Physical to data safekeeping

– Lending money (creation of bank money)• Intermediation between the parties with excess funds and those in need • Intermediation between different maturity• Evaluating borrowers’ credit

• Banks have provided these services because of scale and scope of economy. • Merits of specialization may overweigh economy of scope of banking (still evolving).• Gradual innovation supports improvement of existing system, but rapid innovation may make the current system obsolete.

M-PesabKash

Cloud funding

Blockchain

21

Supply chain management andpayment system• Connecting corporate treasury information with payment network• STP between one end of supply chain to the other end of supply chain

– Various transactions will be standardized• Supply-chain finance

– Trade finance without L/C– SWIFT Trade Services Utility– Blockchain to replace L/C processing

22

12

Banking network and XML, XBRL• To support various new businesses with enormous data exchange through banking network, migration to ISO20022 is indispensable.

23

Why Asia needs standardization

24

13

Importance of standardization in Asia• Standards are strategic tools that reduce costs by minimizing waste and errors and increasing productivity. • Standardization help companies to access new markets, level the playing field for developing countries and facilitate free and fare global trade.

26

Source: ISO website

Standardization will promote IT innovations, and IT innovation requires standardization.

Heterogeneous Asia●Hello●Magandang umaga po●Xin chào●您(你)好●สวสดครบ● ជ បសរ ●Selamat siang●こんにちは●안녕하십니까

26

Without understanding language, data exchange is possible by using XML.But you need to define the rule, i.e., taxonomy.<name>Yamadera, Satoru</name><name>ヤマデラサトル</name><name>山寺智</name>

14

Why standards are becoming more important? Increase in cross-border transactions Shifts in use, scope, and influence of standards from manufacturing to services Changes in intellectual property management Involvement of the public authorities in standardization

29

Why Asia should take part in the standardization process• Opportunities created by IT innovation need to be shared fairly.• Merits of innovations need to be distributed equally.

– For example, ISO standards are decided and created by voting, hence, Asian representation matters.• Standards may affect business process and business model.• Standards may affect business costs.• Standards may have legal effect.

– ISO standards may have certain legal effect under WTO Agreement on Technical Barriers to Trade.28

15

Secretariat: USA Participating countries: 27, Observing countries: 51 29

ISO member TC68 member RMG PSEG SSEGBN Correspondent member (ABCI) KH Correspondent member (ISC) CN Full member (SAC) Participant member Member (PBOC)HK Correspondent member (ITCHKSAR) Observing memberID Full member (BSN)JP Full member (JISC) Participant member Member (BOJ) Member (BOJ,

Zenginkyo, NTT Data, JPMC, BTMUFJ)

Member (BOJ, JASDEC, Mizuho

CB, BTMUFJ, NTT Data)

KR Full member (KATS) Participant member Member (KFTC and KATS)

Member (KFTC)LA Subscriber member (DISM)MY Full member (DSM) Observing memberMM Correspondent member (MSTRD) PH Full member (BSP) Observing memberSG Full member (SPRING SG) Participant member Member

(Standard Chartered Bank, Deutsch Bank)

Member Member (Standard Chartered Bank)

TH Full member (TISI) Observing memberVN Full member (STAMEQ)

30

16

Financial service standards created by ISO• ISO 4217 Codes for the representation of currencies and funds• ISO 6166 International Securities Numbering System (ISIN)• ISO 9362 Business identifier code (BIC)• ISO 9564 Personal Identification Number (PIN)• ISO 10383 Codes for exchanges and market identification (MIC)• ISO 10962 Classification of Financial Instruments (CFI code)• ISO 13616 International bank account number (IBAN) • ISO 15022 Scheme for messages (Data Field Dictionary)• ISO 20022 Universal financial industry message scheme • ISO 17442 Legal Entity Identifier (LEI)

31

*

Standardization in Asia

International Standards and practicesInternational Standards and practices

Regional standards and practicesLocal standards and practices

Asia should engage standard setting more closely

Local standards and practices

17

Salamat poThank youTerima kasihありがとうございます

謝謝

*

1

Main Features of ISO20022

Monday, 3rd October, 10:00-10:45

Toshio KawakamiNTT DATA Getronics Corporation

Workshop on ISO20022 Implementation in the Philippines

1

Agenda

I. Why ISO20022 is needed

II. Fundamentals of ISO20022 standard

III. Management of ISO20022

IV. Effects of ISO20022

V. Implementation of ISO20022

VI. Case Study of implementation of ISO20022in Japanese financial institutions

2

2

I. Why ISO20022 is needed

Issues of current message protocols and ISOs

a. Evolved in each financial section, Lack of interoperabilityeven in finance industry

ex. SWIFT FIN, TWIST XML,FIXML･･･, ISO8583,ISO15022･･･

b. Not flexible for insertion of data items or for changes of data

length and attribute

Data modeling enabled for overall financial sections

Syntax-independent business model

Adoption of XML (eXtensible Markup Language)

Features of ISO20022

3

II. Fundamentals of ISO20022

ISO20022 contains1. Metadata repository containing description of messages and business

processes2. Maintenance process of repository contentsin order to meet overall financial industry’s needs and be shared across the industry

See http://www.iso20022.org/

Business model

Business process and data modeling

XML message schema

Metadata repository consists of:

Methodology of implementation of ISO20022 messages

1. Business process and concepts2. Logical messages3. Syntax(data format)

3

4

1.Business Process and ConceptsISO20022 suggests that business model is necessary to define.


Ex.ample Business Model of credit transfer

Source: ISO20022 Homepage https://www.iso20022.org/

5

1.Business Process and ConceptsISO20022 suggests that business model is necessary to define.


Example Business Flow of credit transfer


Prepare onward interbank payment

Send payment Receive payment order

Apply technical validation

Is payment order technically correct?

Reject payment order

Assess reject reason code

reject or notRecycle paymentorder

Apply business validation

Is payment order valid?

Assess interbank paymentrisk

Can settlemen take place?

inform about settlement Settle payment orderSort interbank settlement

Calculate settement positions

prepare onward interbank payment

Yes

No

Yes

No

NoYes

YesNo

single credit transfer msg.

single credit transfer reject msg.

Settlemen passed

Settlemen failed

Send payment

Repair payment order

PaymentClearingAgent A PaymentdepositoryAgent B DepositorySettlementAgent

4

6

2. Logical Messages

All information needed for business process is descripted to perform its business activity.


CreditTransferTransactionInforamtion

InterbankSettlementAmout: JPY 10000000InterbankSettlementData: 2015-09-29Debtor:DebtorAgent:

Party Identification

Name: ABC CorporationPostalAddress:

Postal Address

AddressLine: StreetName: Times SquareBuildingNumber: 7PostCode: NY 10036TownName: New York

FinancialInstitutionIdentification

BICFI: BBBBUS33InstructedAgentName: BBBB BankPostalAddress:NYOther:

Example Logical message of credit transfer descripted partially

7

3. Syntax(Data Format)

All information are defined as an ISO20022 message using XML.

Example of pacs008 FItoFICustomerCreditTransfer

<FIToFICstmrCdtTrf>

<GrpHdr>

<MsgId>BBBB/150928-CCT/JPY/123</MsgId>

<CreDtTm>2015-09-28T16:00:00</CreDtTm>

<NbOfTxs>1</NbOfTxs>

<SttlmInf>

<SttlmMtd>COVE</SttlmMtd>

<InstgRmbrsmntAgt>

<FinInstnId>

<BICFI>CCCCJPJT</BICFI>

</FinInstnId>

</InstgRmbrsmntAgt>

<InstdRmbrsmntAgt>

<FinInstnId>

<BICFI>AAAAJPJT</BICFI>

</FinInstnId>

</InstdRmbrsmntAgt>

</SttlmInf>

<InstgAgt>

<FinInstnId>

<BICFI>BBBBUS33</BICFI>

</FinInstnId>

</InstgAgt>

<InstdAgt>

<FinInstnId>

<BICFI>AAAAGB2L</BICFI>

</FinInstnId>

</InstdAgt>

</GrpHdr>

<CdtTrfTxInf>

<PmtId>

<InstrId>BBBB/150928-CCT/JPY/123/1</InstrId>

<EndToEndId>ABC/4562/2015-09-08</EndToEndId>

<TxId>BBBB/150928-CCT/JPY/123/1</TxId>

</PmtId>

<PmtTpInf>

<InstrPrty>NORM</InstrPrty>

</PmtTpInf>

<IntrBkSttlmAmt Ccy="JPY">10000000</IntrBkSttlmAmt>

<IntrBkSttlmDt>2015-09-29</IntrBkSttlmDt>

<ChrgBr>SHAR</ChrgBr>

<Dbtr>

<Nm>ABC Corporation</Nm>

<PstlAdr>

<StrtNm>Times Square</StrtNm>

<BldgNb>7</BldgNb>

<PstCd>NY 10036</PstCd>

<TwnNm>New York</TwnNm>

<Ctry>US</Ctry>

</PstlAdr>

</Dbtr>

<DbtrAcct>

<Id>

<Othr>

<Id>00125574999</Id>

</Othr>

</Id>

</DbtrAcct>

<DbtrAgt>

---Abbreviated below--


5

8

What is XML?Example <BL><BL_Header>

…</BL_Header><BL_Body>

<MsgFmtType>S</MsgFmtType><DateFrom>20080101</DateFrom><DateTo>20081231</DateTo><MsgNoType>1</MsgNoType><MsgNoFrom>00000000</MsgNoFrom><MsgNoTo>99999999</MsgNoTo><SectCode>0000</SectCode><MT>999</MT><Msg Attr=“search”/>

</BL_Body><BL_Footer>

…</BL_Footer>

</BL>

Element

Attribute

Element has a tag name. It starts <Tag Name> and ends </Tag Name>.

Element can have parent-child structure.

Attribute of element has a value.


9

<BL_Body><MsgFmtType>S</MsgFmtType><DateFrom>20080101</DateFrom><DateTo>20081231</DateTo><MsgNoType>1</MsgNoType><MsgNoFrom>00000000</MsgNoFrom><MsgNoTo>99999999</MsgNoTo><SectCode>0000</SectCode><MT>999</MT>

</BL_Body>

ITEMS Attribute Column Contents Tag for XMLBL Body Part BL_Body

Message format type Char(1) 1 S MsgFmtType

Date From YYYYMMDD 2 20080101 DataFrom

Date To YYYYMMDD 10 20081231 DateTo

Message No Type Char(1) 18 1 MsgNoType

Message No From Char(8) 19 00000000 MsgNoFrom

Message No To Char(8) 27 99999999 MsgNoTo

Section Code Char(3) 35 000 SectCode

MT Char(3) 38 999 MT

Example of conventional message and XML

S 20080101 20081231

XML Conventional message

1

00000000 99999999 000 999


6

10

When using XLM messages, XML parser can easily analyze the XML message in application program.

XML parser can- read XML messages- check them- reply elements and attributes from application program

There are other tools of handling and editing XML messages.

XML Document

XML ParserApplication Program


11

Merits of using XML

- Generally used as a markup language- Easily understand the meaning of items- Easily deal with data in the message as well as in the window(Liaison with items in the message and in displayed message)

Demerits of using XML

- Redundancy of XML data Communication cost has decreased. Compared with in the past, more data

can be sent at the same cost.


7

12

Business Areas of typical ISO20022 messages


Business Area Code Contents

Payments pacs,pain,remt

Complete end-to-end payments chain:customer to ban, bank to bank, reporting(SEPA and RTGS are using.)

Investment funds semt,sese,setr

Investment fund orders, transfers, reconciliation, price reporting and fund cash forecasting reports are available.

Securities clearing and settlement, and corporate actions

secl,seev

Messages are used for CSD in order to clear securities, to settle them and to perform corporate actions

Trade tsin,tsmt,tsrv

The overall Demand Gurantee and Standby Letters of Credit business.Also messages for TSU(Trade ServiceUtilities)

13

Registered ISO20022 messages.

M essage U sage M sg ID N um ber of M sgs M essage U sage M sg ID N um ber of M sgs

Account M anagem ent acm t 23 Reference D ata reda 8

Adm inistration adm i 5 Paym ent Rem ittance Advice rem t 2Authorities auth 22 Securities C learing secl 10Acceptor to Acquirer C ard Transactions caaa 17 Securities Events seev 44ATM M anagem ent caam 12 Securities M anagem ent sem t 21C ash M anagem ent cam t 34 Securities Settlem ent sese 40Term inal M anagem ent catm 8 Securities Trade setr 33ATM C ard Transaction catp 17 Trade Services Initiation tsin 13C ollateral M anagem ent colr 14 Trade Services M anagem ent tsm t 53Foreign Exchange Trade fxyr 15 Trade Services tsrv 19Paym ents C learing and Settlem ents pacs 7 B usiness Adm inistration H eader head 1

Paym ent Initiation pain 10 TO TAL 428

Defined in Sep.,2016


8

14

Mapping other standards to ISO20022Some institutes provide the mapping information from the current message

format to ISO20022 message format. It is easy to understand.


Exam ple M T 103 (SW IFT) pacs008.001.02 (ISO 20022)

Identification ofthe D ebtor agent

::52A:AB C D EFG H

(*)52A:O rdering Institution(payer's bank)

<D btrAgt> <FinInstnid> <B IC >AB C D EFG H </B IC > <FinInsnId></D btrAgt>

Account num berof the debtor

:50K:1234567890

(*)50K:O rderingC ustom er(payer)

<D btrAcct> <Id> <O thr> <Id>1234567890</Id> </O thr> </Id></D btrAcct>

N am e andcontact details ofthe debtor

:50K:1234567890

M AN ILA B AN KRO PPO N G I 100,M IN ATO -KU ,TO KYO ,JAPAN

<D btr> <N m >M AN ILA B AN K</N m > <PstAdr> <StrtN m >RO PO N G I</StrtN m <B ldgN b>100</B ldgN b> <Tw nN m >M IN ATO -KU /Tw nN m > <C try>TO KYO </C try> </PstAdr> </D btr>

15


ISO20022 Registration Management Group(RMG)

Mission: To ensure that ISO20022 is a trusted-standard providing high quality business models for exchange of information for financial services.

Role: To promote and support the involvement of financial service actors to facilitate the registration and maintenance of high quality globally relevant ISO20022 compliant business models for exchange of information for financial services.

Members: Senior industry experts nominated by ISO member countries

Activities:Business justification to describe the scope and need to define

ISO20022 messagesThen evaluated, messages are available in the ISO20022 repository.

9

16



17



10

18

IV. Effects of ISO20022

ISO20022 has the next features and brings effects for users.

-Providing well structured financial messages

-Unifying the existing standards such as ISO15022, ISO8583, SWIFT

proprietary message

-E-Dictionary providing concise definitions of ISO20022 message items

-Appreciating the benefits of XML

-Open to anyone in the industry

-Providing high level of business validation

-Free messages to implement

-Interoperability to other standards

-Messages defined by the industry specialists

19


Where to implement ISO20022 messages

Your Internal Systems

FEP Core System

Other Systems

Network System

requiring ISO20022 messages

Example of system configuration to connect to network system using ISO20022

Note: FEP(Front End Processor) may not be used

11

20


Consider the next points when connecting a network system using ISO20022

1. New connection using ISO20022 or update to ISO20022

- If new connection, think about everything.- If replaced to ISO20022 from other standards, think about how to

convert from the current protocol to ISO20022

2. Protocol of network system- ISO20022 is NOT a protocol alone to connect.- Understand and implement the protocol of physical layer to

application layer of OSI(Open System Interconnection).

3. Where to implement ISO20022

- Minimum requirement is to implement in the system next to the network system using ISO20022 in your IT resources.

- You may consider that the whole internal IT systems adopt ISO20022, but it depends upon cost and schedule

21


Example of Protocol using ISO20022

OSI Layer Contents

Application ISO20022-based message exchangeNetwork open/close controlSecurity requirements

Presentation SNMP, UTF8 character

Session TLSTransport

Network TCP

Data Link IP

Physical Ethernet

Each network system has its protocol to connect.

Other standards on them

12

22


Where to implement ISO20022 messages ?

Your Internal Systems

FEP Core System

Other Systems

Network System

requiring ISO20022 messages

Options for implementation0. Inside Core System without using FEP1. Inside FEP2. Inside Core System with FEP3. Adding one more FEP next to Network system

Note: FEP(Front End Processor) may not be used

1

FEP

03

Proprietary Protocol

Protocol using ISO20022

2

Data items stored

23


Option Modification Reliability Expansion Schedule &Cost Evaluation

0. Inside Core System without using FEP

1. Inside FEP

2 Inside Core System

3 Adding more FEP

You have to compare each option in terms of easiness of modification, reliability, expansion, development schedule, and cost, etc. and evaluate.

This evaluation work depends upon your internal system

In general,

- Very hard to add more connection method into Core System- Essential to modify Core System to meet the requirements of network

system, for example, by adding necessary data items or codes into the message bound for FEP

13

24

VI. Case study of implementation of ISO20022 in Japanese FIs

Large Bank in Japan

FEP Core SystemRTGS

RTGS run by Bank of Japan has started ISO20022 since October in 2015.The large banks connect directly to BOJ via Computer-To-Computer Connection System whose protocol uses ISO20022.

NewFEP

-Replaced by the new FEP which supports ISO20022 without changing protocol between FEP and Core System-Minimum changes for Core System by adding new items for ISO20022 messages and liquidity management requested by BOJ

Liquidity Management

25


FI in Japan

FEP Core SystemJASDEC Net

JASDEC has started ISO20022 since January in 2014.The large FIs are obliged to implement its protocol using ISO20022 by the end of 2018. Some FIs have already connected and others are developing.

NewFEP

JASDEC

14

26


Cautions when implementing ISO20022 messages

- More than two ISO20022 messages needed.Most of conventional messages can map ISO messages. But…

- Code changed. ISO20022 requires the designated codes in data items.

27

For reference

Homepage of ISO20022.org has tremendous information on ISO20022.(https://www.iso20022.org/)

Useful information

-Full catalog of messages https://www.iso20022.org/full_catalogue.page

-Message definition reports(MDR) on the page

-Codes used in ISO20022 and procedures to add proprietary codehttps://www.iso20022.org/data_source_scheme.page

-Registration of messageshttps://www.iso20022.org/development.page

-Approval process checkinghttps://www.iso20022.org/status_of_submissions.pagehttps://www.iso20022.org/catalogue_of_change_requests.page

15

Copyright © 2011 NTT DATA Corporation

1

Copyright © 2016 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc.

3rd Oct. 2016

Masahiro NISHIHARA, NTT DATA Institute of Management Consulting Services

Main features of ISO 20022

2Copyright © 2016 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc.

Payments to the GovernmentBill Payments

Debit Cards

Credit Cards

Credit Transfers

CD/ATM

Direct Debits

Bills/Checks

Stocks

Investment Trusts

Corporate and Other Bonds

CP

Money Market

Financial Derivatives

Market

Clearing SettlementTrading/Instruction

/Confirmation Bank of Japan

Japan SecuritiesDepository Center

Tokyo StockExchange

Stock Exchanges

Bill and CheckClearing System

Tokyo Financial ExchangeOsaka Securities Exchange

Japan Securities Clearing Corporation

JASDEC DVP Clearing Corporation

ZenginSystem(ACH)

CLS (yen)Foreign Exchange

Yen Clearing System

CD / ATMOnline

Network

Money Market Trade Confirmation System

Financial Institutions

Multi-Payment Network Clearing

CenterClearingCenter

SWIFTBOJ-NET

FundsTransferSystem

JGB Registration / Book-Entry System

(BOJ-NET JGB Services)

Treasury FundsServices

Book-Entry Transfer System

for CP

Book-Entry Transfer System forInvestment Trusts

Book-Entry Transfer System

for Stocks

Book-Entry TransferSystem for

Corporate BondsDVP

DVP

DVP

DVP

DVP

ISO20022 in Japanese financial infrastructures

Foreign Exchange Market

JGBs

Pre-SettlementMatching System(Japan Securities Depository Center)

Japan Securities Clearing Corporation

2


How to adopt ISO 20022 for Japanese financial infrastructures

There are some financial infrastructures using ISO 20022 in Japan. Below steps are typical approach for implementation.

STEP 1:Working Group and Collecting Comments

STEP 2: IT Perspectives

STEP 3: Case Study Analysis

STEP 4: Creating Systems and Implementation

• Financial industry organization, self regulatory organization and/or infrastructure operator launch working group for new financial infrastructures. Working members are above bodies, some financial institutions, regulatory bodies and central bank.

• Working group collects comments about new infrastructures from market participants.

• Working group creates rough sketch.

• Working group, infrastructures operator and IT vendors study rough sketch from IT perspectives.

• Information technology is focal point for new infrastructures.

• Working group analyze case study for using new infrastructure.

• It sometimes conduct interviews or send questionnaire to market participants and/or other industries to examine pros and cons.

• Working group creates blue print and roadmap.

• Infrastructure operator creates new financial infrastructure and implement it.


[Case Study]Implication of Master Data Management in Japanese Factories

Legacy Style

Each factory had each information system and master data.

A Company: A Factory

A Company: B Factory

Code: 98798770

A Company: Headquarter

Code: A12345

• Can’t check inventory easily !

• Can’t optimize stock levels !

Current Style

Every factory uses same master data and standard.Headquarter can check their company’s inventory easily on a global scale.

A Company: A Factory

In Z country

A Company: B Factory

In Y country

Code: A98798770

A Company: Headquarter • Easy to check inventory

and tooptimize stock levels !

3


Smoother Information Distribution and Reducing Costs and Time

Using same standard contributes to smoothen information distribution and reducing cost and time.

Domestic Fund Transfer

Overseas Remittance

Securities Settlement

Zengin Format

SWIFT Messages

Using

XMLISO20022

Cross Services

Cross-Border

ニシハラマサヒロ

Masahiro Nishihara

Masahiro Nishihara

Copyright © 2011 NTT DATA INSTITUTE OF

MANAGEMENT CONSULTING, Inc.

Copyright © 2016 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc.

1

© Hitachi, Ltd. 2016. All rights reserved.

October, 2016Takashi HamazakiHitachi, Ltd.

Trend in ICT and corporate EDI- Impact of ISO20022 implementation -

Prepared for Workshop on ISO20022 Implementation

The views expressed in the material are those of the author and do not necessarily represent those of Hitachi, Ltd. or any other related entities.

© Hitachi, Ltd. 2016. All rights reserved.

1. Introduction

2. Contribution to industry2.1. What is EDI2.2. Corporate EDI (TWX-21)2.3. Financial EDI2.4. Supply chain finance

3. Advanced financial service3.1. AI/Big data analysis3.2. Case studies

Contents

1

2

© Hitachi, Ltd. 2016. All rights reserved.CONFIDENTIAL

1. Introduction

2

Adoption of ISO20022Should be a quite reasonable decision from IT expert point of view.

Key words : “Standardization” and “Scalability”Potential advantages beyond the cross-border connectivity.

Following report includes;1) Expectation of ISO20022 implementation from the

industry.2) Advanced financial service using the latest IT technology.


2. Contribution to industry

3

ISO20022 is a global standard for message exchanges in financial institutions.

One of the relevant use case taking advantage of the interoperability of ISO20022 from the industry perspective should be obviously related to message exchange.

EDI is a messaging platform in industry, which would play a big role in financial sector as well.

There would be bigger impact to the society, once the standard of message exchange between financial institutions and industry companies(/and governments) is established. Of course, there should be challenges to be solved.

3


2.1. What is EDI？

4

EDI (Electronic Data Interchange) enables participating companies to exchange trade information, i.e. ordering/order receiving and shipping/supply, on a predefined standard format via various communication network, i.e. Internet or dedicated line.

Communication speed has been dramatically improved compared to a past paper based scheme. As a result, it leads to a reduction of clerical work and an increase of sales chances.

AAAAAAAAAAAA

Company A

Specific format

translatorSSSSSSSSSSSS

Standard format(Syntax rules)

communication software

(Data communicationControl procedure)

communication software

SSSSSSSSSSSS

BBBBBBBBBBBB

Specific formatStandard format

<Types of EDI>Direct EDI/Point-to-Point, VAN, AS2(HTTP), FTP/VPN, Web EDI, Mobile EDI etc.

Company B

translator

<EDI Standard>ANSI (ASC X12), CII(JIS X7012), UN/EDIFACT(ISO9735),RNIF(RosettaNet),TRADACOMS etc.


Business System Cloud as the largest

scale in Japan

About TWX-21 :

Service Features :

ECO-System :

TWX-21 is an EC Platform which supports the business activities of B to B.Approx. 57,000 companies(in 30 countries/regions), and 280,000 IDs use TWX-21TWX-21 provides “Inter-enterprise activities” cloud service with respect to each functional roles and users.TWX-21 develops and supports standard functions by reflecting on user opinions.

SaaS Data exchange

• EDI, Web-EDI- Commercial distribution data

exchange- Drawing / Specification exchange- Global big size data exchange

SaaS Business support

• Reverse Auction• SCM Support• Order receiving, Billing

Management• Aggregate/Management of

Environment Information

SaaS BPO

• MRO(e-sourcing/Mall)

Maintenance Lifecycle

Purchase Analysis

Production Plan

Share Info.

SaaS Operation Support• Helpdesk• Billing Management、Collection Agency• Contract, Member Management• System Implementation・Integrated monitoring,

Platform

TWX-21 Center

Oversea buyersDomestic buyers

Oversea suppliersDomestic Suppliers

Web FAXGateway

Hitachi Cloud CenterMember

master DB

TWX-21 Total membersApprox. 57,000 companies

SaaS: Software as a Service EDI: Electronic Data Interchange BPO: Business Process OutsourcingMRO: Maintenance, Repair and Operation

Approx.1,000 Buyers

Approx.56,000 Suppliers

5

2.2. Corporate EDI (TWX-21)

4


2.2.1. Eco system of TWX-21

TWX-21Eco-system

We develop services based on the business solution know-how of Hitachi GroupTWX-21 users, 57,000 companies use service.Aggregate user needs from TWX-21 user council and global helpdeskTWX-21 try to standardize to industry organization, and provide new function of TWX-21.

We collaborate with our users and create new valuable services.

6


2.2.2. TWX-21 Web-EDI Global Service Overview

Target To send and share business information for purchasing process in industries.

Features

•Able to simply offer order issuing, shipping instruction, delivery and billing process onweb browser to suppliers by EDI data which uses internet.

•Optimize process, reduce total lead time, save manpower, increase speed and improveprecision of complicated process in supplier side.

TWX-21 Web-EDI

Responsible forraw material

Buyer

OverseaBuyer

Sale location

Responsible forProduction control/ Receiving

Buyer

Chinese Japanese English

Supplier

PO

Supplier

Statementof dlvy.

Production /Shipping location

Logistics Company

FileTransfer

Order Shipping Inspec-tion Billing

•New arrivals / Search / Download•Printing logistics document•Order receiving management•Shipping / Shipping balance management•Billing management•Item status management•User authority management

Helpdesk（Japanese, English, Chinese, Thai language）

7

5


Menu Buyer’s

System

BuyerSupplier Logistics

Request Div. PIC

Request Div. Manager

Purchase Div. PIC

Purchase Div. Manager

Quotation Request

Quotation Response

Order

Order Acceptance

Statement of delivery issue

Shipping

Inspection

Billing

Quotation Request

Approval /Reject ReceiveQuotation

Request

Estimate

Making order Receive

Reply Order

Acceptance

Approval Quotation

Approval/Reject

Quotation Response

Billing

View

Shipping

Print Delivery

Note

PickupView

View

You can choose menu according to your company’s operation

Approval /Reject

Confirm inspectionInspection

2.2.3. Web-EDI Global Service support operation

Quotation RequestFunc.

EDI

Purchasing & LogisticsFunc.

8


To achieve shorter lead times and inventory reduction, offer an information sharing among companies involved in the SCM by SaaS.Concept

TWX-21 Center SupplierBuyer

Systemcollaboration I / F

Web Interface(JP,EN,CH)

Forecast/BO BalanceBO ListDlvy. Date Reply ListDlvy. Note IssuanceAlert ListShipping/ASN

Forecast/Back Order Balance

Inventory

Consumption

PlanScheduled Dlvy.

A/P

Exception

100

40 60 30

0 20 5

60 20 - 5

◆

Item Code#：99-0Z

DesignSection

ReceivingSection

Procurement Section

Sales Section

Support the cross-enterprise delivery adjustment .Offer information about an unstable problem of supply and demand adjustments by sendinge-mail and display them on the SC3 screen as an alertMake using same user ID as Web-EDI service available to provide single portal

ManufacturingSection

ShippingSection

Business System

Forecast/BO BalanceBO ListDelivery ReplyReceiving/InspectionInventory/Planned

Consumption

2.2.4. Supply Chain Collaboration Cloud Service

9

6


Category Menu ContentsForecast (a) Forecast / Back Order

Balance ReferenceShow Open order (Forecast inventory) information of Inventory, Scheduled Consumption and Scheduled Dlvy. (Arranged Plan, BO Back Order, Back Order), etc..

(b) Back Order/Arranged Plan(per Item)

Show the latest Scheduled Dlvy. information of each items based on the Arranged Plan, BO Back Order and Back Order.

(c) Forecast (ETD) Show Arranged Plan based on FOB.

Order (d) PO Back Order Show Back Order Reference by PO No.

(e) BO/PO Differences Management List

Show Allocation Status of PO to BO Back Order.

(f) Dlvy. Date Reply List Show the latest Dlvy. Date management information based on Back Order.･Change Request of Dlvy. Date from buyer･Input the latest Dlvy. Date Reply depends on Supplier

(g) Dlvy. Note Issuance ・Show Issuance status of Dlvy. Note.・Print Dlvｙ. Note

(h) ASN(shipping) Input Shipping Information (Shipped Qty) based on Back Order.

(i) Goods Receiving/Inspection Show Receipt Qty/Inspected Qty.

(j) Stock-In/Out Details Show Stock-In/Out Details of consignment item.

(k) Account Payable (Daily) Show Account Payable (Daily) Details of consignment item.

2.2.5. SC3 Service Function List

10


This service can be used regardless of business area, type, or scale of the enterprise.We support the reformation of your indirect material with the following two service menus.

The Service that supports the reformation of the indirect material purchase

Buyer e-sourcing/Mall Supplier

Internet Internet

PurchasingData

Order Request

Approval

Reception/Shipping

Delivery

Type1

Type2 Advanced Type（Purchase using Private Catalog）・The private catalog of individual enterprise will be registered in the environment of electronic dealings along with other functions provided by the Standard Type including the Buyer and Supplier features.

Standard Type（Purchase using Hitachi Catalog）・Hitachi manages price negotiation, selecting merchandise for catalog, making orders and settle a claim with supplier.

The One-Stop payment of the purchased amount of your company with Hitachi. ・Hitachi will consolidate the volume of purchase of all the Buyer enterprises(e.g. Hitachi Grp.380sites,and others

240sites), and it will negotiates for the best price with the Supplier(s).

2.2.6. e-sourcing/Mall overview

11

7


2.2.7. Business Flow Type Summary of Service

BusinessProcessingPattern

Standard/Option

BuyerSupplier

Buyer

Requester Approver Purchaser Purchasingapprover Inspector Payment

Processing

CatalogItem

PurchasingStandard

Non-CatalogQuotationPurchasing

(Type 1)

Option

Non-CatalogQuotationPurchasing

(Type 2)

Option

Claim Payment Option

Item Search

Order Request Approval/Rejection

Reception/Shipping Inspection

QuotationRequest

Request ReceptionQuotationRequest

QuotationReply

Reply evaluation Quotation Reply

Order Request

ApprovalRequest

PaymentRequest

Price Adjustment

Payment Request

Service etcBilling

PaymentObject

Approval/Rejection

Reception/Shipping Inspection

Order Request Approval/Rejection

Request Reception

QuotationRequest

QuotationReply

Reply evaluation

Reception/Shipping InspectionApproval

/Rejection

Approval/Rejection

Request Reception

Approval/Rejection

Price Adjustment

12


2.2.8.【Case 1】A car manufacturer in China- Efficiency improvement of purchasing & Logistics business -

13

Realize all progress management duties of procurement/logistics business system by using TWX-21.The work of pickup/inspection has become smoothly with sharing information with the logistic companyReduce workload largely about parts procurement and adjusting delivery date in China market.Man hour of progress management has become only one twentieth.

before after

[Man hour ofprogress management]

Approx. 1/20

ProductionCenter

Suppliers Logisticcompany

Registershipping

R&DCenter

ProgressManagement

Create/SendPO

Adjustment/Management

of priceIssuance PO

Pickup statusmanagementReply of price

Reply of delivery date

Issuancedelivery note

ProcurementProgress

management

ReplyDelivery

note

Order

Issuancedelivery note

Inspectionmanagement

Business data, master data, progress management(status of shipping, delivery date, etc.)

POrequest

Pickupinspection

Order

Registershipping

ReplyDelivery

dateorderProgress

ManagementProgress

managementProgress

managementProgress

management

TWX-21 Web-EDI Global Service + Purchasing & Logistics function

8

© Hitachi, Ltd. 2016. All rights reserved.CONFIDENTIAL 14

2.2.9.【Case 2】A trading company - Visualizing trading progress among global offices -

TWX-21Extend the Scope of application

Background：Delivery delay／Stock buildup／Business complexGoal：Visualize trading process between overseas office as a first step to build up a business infrastructure to visualize global trading process.

Supplier

Customer

ExporterOrder Accept

Purchase Sales

ImporterOrder Accept

Purchase Sales

Factory Port

P/O

Invoice

P/O

Invoice

P/O

Ack./Conf./ASN/Invoice

Port Factory

Collect global information at just timing-Visualize trading progress-Warn reply delay-Warn difference between P/O and reply

TWX-21 Gateway

Customizable data exchange service(option)

Extend the Scope of application

EDIFACTTWX-21Format

TWX-21Format

Screen UploadDownload EDIFACT

Selectable the way of data exchange depending on scale of company


■ Standardize ISO20022 for message exchanges among banks.

Add EDI information/commercial information from the industry companies to traditional message exchange, utilizing the scalability of ISO20022.Automate the reconciliation based on EDI information added to the messages.

Potential cost savings for companies in traditional reconciliation operation.

2.3. Financial EDI

Financial EDI• Financial EDI is a scheme to exchange fund settlement

data , for example payment instruction, together with EDI ordering information/commercial information.

9


Supplier ＢBuyer A EDI

7

Orders Received

Prototype

BOM②Quotation

③Notification/ Confirmation of Order

④Acceptance of Order

⑤Shipping Information

⑥Acceptance information

⑦Accounts Payable Data

Order

Quotation

Delivery

Inspection/Acceptance

Accounts Payable

Production Management

Return Management

Accounts Receivable

①RFQ Information

Supplier

Name

Payment

Term

Order# 2016/1 2016/2 2016/3 2016/4

Ｂ N+3：100％ 001 10M\ 10M\

002 30M\ 30M\

003 60M\ 60M\

100M\ 100M\

：Inspection ：Payment

ＸBank（Remitting）

ＹBank（Destination）

Buyer

name

Payment

Term

Order# 2016/1

Ａ N+3：100％ 001 10M\

002 30M\

003 60M\

100M\

Consignor 取組日 Remitting

Bank

Account

Information

recipient Payment

Amount

EDI

Information

Ａ 2016/4/30 ＸBank ＊＊＊＊＊ B 100M\ Order #Allocation Month

①Generating Payment Instructions /Add EDI Information

② Payment Instructions

Consignor 取組日 Remitting

Bank

Account

Information

Payment

Amount

EDI

Information

Ａ 2016/4/30 ＸBank ＊＊＊＊＊ 100M\ Order #Allocation Month

③Transfer Payment

④Clearing the Order# matching with the Buyer’ Name and Allocation Month

ERP System(Accounting)

⑤Journalize・Entry

2.3.1. Outline of Financial EDI

PaymentClearingNetwork


2.4. Supply Chain Finance

■Potential revenue contribution by new financial services or improvement of existing services can be expected, in addition to bottom line savings at the participating companies of EDI.

■ Financial institutions and industry companies together may provide new services or improve existing services, utilizing those information stored in EDI and Financial EDI at both parties, including trading history, order information, etc. • Example: PO finance, Asset Based Lending(ABL)

“Supply chain finance” provides lending service more timely yet with lower financial cost, leveraging EDI information closely tied with company’s business operation in supply chain(Procurement-Production-Sales).

Following slides show those services in terms of the utilization of EDI.

10


1. Leverage 『Notification/ Confirmation of Order』 and 『Acceptance of Order』 as evidence in applying for PO finance.

Orders are not legally allowed to cancel once it is received, while unit price, unit numbers, or delivery date can be changed. Therefore, 『Notification/ Confirmation of Order』『Acceptance of Order』can be utilized as evidence of conclusion of a contract. In credit management phase, order date, unit number, order amount, or delivery date, etc., can be utilized to understand business volume and LT from order to delivery.

2.4.1. PO finance

Providing evidence and KPIs in credit management for PO finance

PO finance (Purchase Order finance)• PO finance provides unsecured loan based on the future revenue as

repayment source once a company has received an order. • It is a funding option for cases where the longer collection ends in cash flow

problems while it requires certain condition, for example, the creditworthiness of PO issuer or ensured delivery of the products.

• Considering the information required for PO finance evaluation, it has higher affinity with those used in EDI system.


1. Improve quality of credit management in PO financeChronologically store 『Notification/ Confirmation of Order』『Acceptance of Order』, including order volume, LT from order to delivery, changes in unit price, unit numbers, or delivery. Analyze those data to improve quality of credit management.

2. Figure out the trend of dilution ratio of accounts receivablesChronologically store 『Shipping Information』『Acceptance information』Compare ‘shipping amount’ in 『Shipping Information』 and ‘Acceptance amount’ in 『Acceptance information』Analyze those data to figure out the trend of dilution ratio of accounts receivables, which can be included as one of the KPIs for assessment rate.

3. Valuation of on-time delivery of supplierChronologically store 『Notification/ Confirmation of Order』『Accounts Payable Data 』Compare ‘delivery date’ in 『Notification/ Confirmation of Order』and ‘exact delivery date’ in 『Accounts Payable Data 』Analyze those data to confirm supplier's accountability in procurement, manufacturing and shipment to meet delivery date.

2.4.1. PO finance

Analyzing the trend of KPIs for credit management

11


1. The evidence of monitoring ABL The flow can be traced through EDI/Financial EDI.

(Inventory⇒Shipment⇒Acceptance⇒Confirmation of debts and credits.)It enables lenders to track the cash flow as the repayment source. ⇒This data can be used for monitoring the status of aggregated chattel mortgage

type of ABL.⇒Potential needs from SMBs, which does not own liquidation valuable chattel.

2.4.2. Asset Based Lending (ABL)

Loaner


Execution ofLendingMovables

Registry

Aggregated chattel

mortgage

Assignment registry

Shipping／Inspection Client CompanyWIPMaterials/pars Product

track the cash flow as the repayment source

Inspection Date/ Number

Inspection Date/Number

Shipping data

Inspection data

Accounts Receivables

EDI

Tracking/Monitoring the business status after funding


Construction of a credit model for SMBs in consideration of transaction risks by information sharing among commercial and money flow.

Inven

tory

Asset

InventoryMother company

(Buyer)

Orders

Financials

Payment

Transaction History

Other Info(Product Quality, Technology, Delivery Skill, IP）

New Credit DB

Collateral Personal

Collateral

New Scoring/ Pricing Model

New credit management

service tools for SMB

PO

（MTS）Sales FCST

Tier2Company

④Delivery/Inspection

②Pro

cu

rem

en

t

⑤Payment⑥Payment

CRD（＊）

Credit Guarantee

Association

＊：Credit Risk InfoDB for SMB


①Order

Delivery/Inspection

A/R・A/P

other EDI

Parts/Materials

WIP

A/P

A/P

EDI

Tier1 Company

A/R③Man

ufa

ctu

ring

（BTO）

Inspection Data

：Commercial/Product/Money Flow

：Data Flow

2.4.3. Future State 1/2

12


1.New credit service flexible with funding needs in business process, using the commercial information stored.

Improve the credit management quality using AI.

2. Improve quality and save cost in credit verification operation with new credit mgmt. service tools for SMB.

Integrated DB with 3rd party EDI, providing commercial information from different industries and supply chains. New credit management service tools using information about Commercial/Money Flow + Personal Collateral・Physical Collateral・IPs, etc.Improve the credit management quality using AI.

3.Tracking/Monitoring the business status after funding and Covenants information

Tracking the cash flow as the source of repayment by visualization of the process. (Inventory→Accounts Receivables→Cash) ex.ABL

2.4.3. Future State 2/2


3. Advanced financial services

23

Standardization of messages increases number of users and message volumes.

Scalability of messages improve the quality of messages. New financial service using the vast volumes of data stored in companies and financial institutions.

Standardized data is interoperable and easier to be utilized in analytics, e.g. AI/Big data.

Following cases in financial institutions would help us to have a better understanding/ image of analytics.

13


3.1. AI/Big Data analysis

24

■The use of Big Data and AI is expected in various areas of financial business.

■ Big Data and AI are getting widely noticed as IT advances and Information explosion.

■Big Data Analysis doesn't work without AI anymore.

■Standardized data is easier to be utilized in analytics.

Today’s situation


3.1. AI/Big Data analysis

AI Technologies catching eyes in the marketRule Discovery Type : Hitachi AI 『H』

• Calculate all data combinations and discover “hidden correlation“ affecting the determined KPIs.

• More PDCA cycles would lead better achievement of determined KPIs.

Case Studies＃ Industry Business

Operation Case

1 BankingFinancing DM

Develop a mathematical model to estimate the prospect of closing a new service contract including card loan or other financial services and products. Create a customer list in order of higher possibility of closing a new contract and send out DMs.

2 Banking Analytics ofText data

Store CRM data, including client visit record and customer reactions. Analyze the clients’ reactions to specific plan A, for example negative interest policy, to discover specific features/trend of clients showing the same reactions.

Reference Securities

LendingStock

Transaction

Analyze the daily financial rate, which a trader has decided, supply-demand balance, and various indicators to predict lending rate of financial services and products.

14

© Hitachi, Ltd. 2016. All rights reserved.CONFIDENTIAL 26© Hitachi, Ltd. 2015. All rights reserved.

3X better response ratio from customer than before.

Traditional marketing analysis method cannot increase the number of new customer anymore.

Achieve better response ratio from customer via DM for card loan application.

Create a customer list in order of higher possibility of closing a new contract and send out DM from the top.

Deposit DataCustomer Info

Create mathematical model to estimate the prospect of closing a new contract.

ATM utilizationDeposit Changes Region

3.2. Case Studies (１) DM

Background

Purpose

Input Data

Output

Action

Outcome

Aggregate

© Hitachi, Ltd. 2016. All rights reserved.HITACHI CONFIDENTIAL 27

Categorize clients into several types based on clients’ reactions to specific plan A.Visualize the features of the clients to support building a successful proposal approach appropriate for each category.

Different reactions to specific plan A among clients

Quantify clients’ business status based on reactions to Plan A

Challenges (Hypothesis) Analytics Approach

※ Relevant KPIs shall be determined by AI.

Visualize & Quantify the clients’ reactions to specific plan A to discover clients business challenges and potential needs. Build a successful proposal approach based on the clients business status and reactions.

Potential Use Case

Positive

Negative

Neutral(No reaction)

Client Reaction to Plan A

What triggers difference in client reactions? Business

Portfolio

Capital

Financials

Positive NegativeNeutral(No reaction)

Retail80％+

Retail80〜50％

Retail80〜50％

$100K〜$50K >$100K <$50K

FixedAssets Ratio

>○％

FixedAssets Ratio

○〜○％

FixedAssets Ratio

<○％

3.2. Case Studies (2) Analytics of Text data

Company CRevenue】$100M【Office】Tokyo

Company BRevenue】$100M【Office】Tokyo

Company ARevenue】$100M【Office】Tokyo

15

1

www.cma.se

Next Generation RTGS:Experience of ISO20022 implementation

www.cma.se 2

COMPANY PROFILE

2

www.cma.se

WHO WE ARE

3

We specialize in implementing new environments and upgrading existing ones with our tailor-made products

CMA is based in Sweden with offices in France, Canada, and Russia, with local teams in Tunisia, Singapore and New Zeland

Our team consists of 100+ certified engineers with international experience in payment systems

27+ years on the market of financial technology solutions

www.cma.se

ACHIEVEMENTS

4

1500+ Commercial banks use our solutions

37 Central Banks are among our clients

Our products work in 50+ countries in 24 time zones

500+ Projects completed worldwide

$100bln+ Transacts daily through our systems

3

www.cma.se

OUR EXPERTISE

5

Real-time Gross Settlement System (RTGS)

Central Securities Depository (including Clearing and Settlement)

Automated Clearing House (ACH)

Cheques Truncation System

Instant Payments (including Online Clearing and Bill Payments)

Automated Trading System (including Auction module)

Solutions for Commodities Markets (incl. Trading, Clearing, Settlement)

Transaction Management Systems and STP-enablers

www.cma.se

GLOBAL FOOTPRINT

6

4

www.cma.se 7

ASIAN PROJECTS

www.cma.se

ASIA PRESENCE

8

Indonesia – RTGS, CSD and Online Auctioning and SecondaryMarket Trading Systems for the Central Bank (RTS/X®, DEPO/X®, TRAD/X®)

Laos – RTGS and ACH Systems for the Central Bank (RTS/X®, BCS/X®)

Mongolia – RTGS System for the Central Bank (RTS/X®)

Cambodia – ACH/ACP System for the National Bank (BCS/X®)

Brunei – RTGS, ACH, CSD Systems for the Monetary Authority (RTS/X® BCS/X®, DEPO/X®)

Bangladesh – RTGS System for the Central Bank (RTS/X®)

Pakistan – RTGS System with Depository Modulefor the Central Bank (RTS/X®, DEPO/X®)

Kyrgyzstan – ACH and Automated Securities Trading, Forex and Money Systems for the Central Bank (BCS/X®, DEPO/X®)

5

www.cma.se

Status of ISO20022 implementation

9

Indonesia – RTGS, CSD and Online Auctioning and SecondaryMarket Trading: ISO20022 implementation under discussion

Laos – RTGS and ACH Systems: ISO20022 upgrade is scheduled

Mongolia – RTGS System: ISO20022 upgrade is scheduled

Cambodia – ACH/ACP System: ISO20022 upgrade is scheduled

Brunei – RTGS, ACH Systems: ISO20022, SWIFT is used by banks, CSD under implementation

Bangladesh – RTGS System: ISO20022, VPN & SWIFT are used by banks

Pakistan – RTGS System with Depository Module: ISO20022 is not supported

Kyrgyzstan – ACH and Automated Securities Trading, Forex and Money Systems: ISO20022 is not supported

Under discussion, implementation in 2017 (tentative)

Implemented

Under discussion, no implementation deadline

www.cma.se

Real Life Examples

10

Usage of XML/XSD

facilitates development

and doesn’t requires

specific knowledge and

technology as for FIX, MT

etc.

DEVELOPMENT CYCLE

Usage of local characters

facilitates reconciliation

and final posting of

transactions

RECONCILIATION

Possibility to keep

additional signature to

validate payment

SECURITY

Implementation of Bills,

Cheques/E-Cheques

(with images), Mandates

NEW SERVICES

6

www.cma.se

Extended data: Security & New Services

11

SWIFT/VPN

RTGS/ACH/P2

P

ISO20022 ability to carry extended data

• Originator/receiver(s) able to include digital

signature for each transaction that be processed

by counterparty.

Reduce security risk. Facilitate validation.

• Electronic version (e-Cheques/Cheques, Bills,

Invoices, Mandates) of document can be

incorporated/supported by same message set.

Possibility of new services implementation and

reduced costs for documents management.

www.cma.se

National characters support: Reconciliation

12

National ID is used to register client account. Client name is written in national characters that are not supported by RTGS/ACH. Thus, automatic processing/reconciliation of payment is complicated or impossible.

ISO20022 ability to support local characters

Payment instruction includes clients name written in local alphabet.

Reduce time for payment processing (manual/automatic) and facilitates reconciliation process.Improves customer experience and satisfaction level.

7

www.cma.se

Development Cycle

13

• Different formats for different systems• Different Transformation Rules;• Different Business Rules for

processing & validation;• Different modules/components to be

incorporated;• Competence for each format (FIX,

ISO15022, ISO8583 etc)

ISO20022 for developers

Reduce costs/time of implementation and further enhancements.

Usage of XML for different types of transactions: unified solution for different business processes;Usage of XML XSD Schemas facilitates development of transaction validation/processing solution due to “smart” nature of XML (self-described format).

DEPLOYMENTVALIDATIONDEVELOPMENT

www.cma.se 14

Next Generation RTGS

8

www.cma.se

Next Generation RTGS

FAST

UNIFIED INTERFACE

ISO20022, API

NOT ONLY PAYMENT

Mandates, Cheques,

Bills

HYBRID

RTGS, ACH, P2P+

INTERNATIONAL

Regional Integration

SECURE

PKI, AML, FD

www.cma.se

NG RTGS – CMA Vision/Solution

16

New Generation RTGS (financial backbone)

Government Portal

CommercialBanks

Financial Service providers

Mobile operators and other billers

Tax authority Customs Police

Regional/International

9

www.cma.se

Unified standard

- One standard to access NG RTGS

services

- One standard to be used by bank’s

clients (corporates, merchants,

PSPs etc)

HOW ISO20022 CAN HELP?

Extended services

- ISO20022 able to

support

extended set of

services

provided by NG

RTGS

Centralized control & Enhanced

security

- Centralized control on financial

flows

- Extended data capture helps to

reduce security risk

Help Banks

- Extend existing transaction-oriented

business

- Present new services for FinTech

companies

www.cma.se 18

Solutions

10

www.cma.se

Basic module (MTX/X)

19

MTX/X Adapter

Interaction with Central System

(SWIFT, public or private network) Data

transformation

Protocol transformation

WebServices,ODBC,

files,proprietary protocols

CentralSystem

Integration bus

to internal system(s)

www.cma.se

Advanced module (TMS/X)

20

TMS/X

Internal Systems

Administrative

Workstations

STP

Payments Messages Workflow

Cheques Batching MT<->MX

Monitoring

Transactioncapture and

workflow

External Systems

RTGS, ACH/NRT, CSD

Bank Head Office & Branches

Workstations at Bank’s Branches

Core Banking, Treasury,Salary,eBanking, etc. Monitoring and Control

Transaction capture and workflow

Database

Enables STP for payments and messages

Hides unnecessary functions

Aggregates and segregates payments

Converts message formats

Facilitates reconciliation

Pre-validation and additional authorization

Solution Highlights

Extendable modular architecture (plug-ins)

11

www.cma.se 21

MyStandards

MyStandards Browse and search content in a common structured way

Analyse, compare and assess specific guidelines/specifications with your other different guidelines/specifications or other publicly available guidelines (e.g. SEPA) and standards release information

Capture and maintain usage guidelines in a formal, consistent way

Collaborate, share, comment and control using a single platform

Create and publish documentation without manual intervention

Generate processable output (schemas) for efficient implementation

Content

Browse base standards like MT and MX/ISO 20022 and publicly available guidelines(e.g. SEPA, SMPG, PMPG, CGI)

Features

www.cma.se 22

Conclusion

12

www.cma.se

Conclusion

23

• ASEAN+3 agreed to adopt ISO20022

• ASEAN Central Banks & FI in progress

of ISO20022 implementation

Inevitable

How your organization will adopt to

new reality?

Strategy

www.cma.se

THANK YOUQUESTIONS?

E-mail address for enquiries:[email protected]

1

ABMF – CSIF

Workshop on ISO20022 in

Philippines

Session 3

RTGS New Generation & Implication for Banking Industry

(3 October 2016)

Agenda

-2- Introduction of CALAbout ISO20022 – Benefits & Opportunities for BanksPractical Example of ISO20022 MessagesInitiatives in other Developing MarketsHow Banks can Keep up with Migration Q & A

2

Introduction of CAL

Consultancy Associates Limited (CAL) - Who Are We?Strategic and management consulting company since 1994, with services inAsia, Middle East, Africa and North America.Specialized in payment and settlement systems, core banking systems,securities market, IT strategy and public sector services managementWe have accomplished projects for international organizations - ADB, WorldBank, First Initiative, Federal Reserve Bank, etc.Our clients include:Central banks and Commercial banks over 30 countries world-wideSecurities market regulator, stock exchangesGovernment offices (ministries, ICT authority, etc)Others e.g. S.W.I.F.T., IBM

-3-

Introduction of CAL – Key Members

Paul Whitmore (Chairman and Executive Director of CAL)40 years experiences in IT, banking and financial industryServed in 30 central banks, HSBC, Gulf Oil, Swire GroupHe was Project Manager for the RTGS system in Hong Kong in 1994, which was apioneer systemSince then, has overseen more than 30 RTGS, ACH, ATM Switch systems implementationAnthony Lee (Principal Consultant – Payments, Banking, IT)28 years work experiences in IT and payment systems development, amongstmultinational bank and over 20 central banksExpertise in RTGS, ACH, SWIFT, Electronic Cheques Clearing, Card systems, Mobilepayments systemOther consultantsExperts in various areas – Legal, central bank operations, commercial banks, securitiesmarket, IT, Security, etc.

-4-

3

Introduction of CAL – Some Central Banks Clients

-5-

Asean Far East & South AsiaBank IndonesiaBank Negara MalaysiaBank of ThailandBank of LaoNational Bank of CambodiaPeople’s Bank of ChinaHong Kong Monetary AuthorityState Bank of PakistanCentral Bank of Sri LankaReserve Bank of India

Middle East AfricaCentral Bank of KuwaitCentral Bank of OmanCentral Bank of YemenCentral Bank of BahrainCentral Bank of IranSaudi Arabia Monetary Authority Qatar Central Bank

Bank of GhanaCentral Bank of EgyptCentral Bank of LibyaCentral Bank of the GambiaCentral Bank of GuineaCentral Bank of NigeriaCentral Bank of Sierra LeoneCentral Bank of West African States (BCEAO)

Introduction of CAL – Consultancy Services

9/28/2016

-6-

4

ISO20022 - Benefits

--7- From Software development & maintenance viewsInteroperability – Global messaging standards; banks & countriesXML messages are technically easier to work with in softwaredevelopment and system integrationFrom Operational views:ISO20022 messages are human-readable. Tracing and solving errors orinconsistencies is simplerEasy-to-add XML fields can carry more rich and explicit information e.g.AML informationFor Payment users (debtor or creditor) views:ISO20022 messages provide clear model of business process/messageflow,; enable STP processing for corporate or individualFaster to receive payment and more automation for corporate

ISO20022 – Benefits (cont’d)

-8- From CPU processing view:Faster/more efficient to perform validation and routing of XML-basedISO20022 messagesImprove and automate corporate-to-bank & bank-to-corporatecommunication (payment instructions, cash management, reporting &reconciliation)Increase bank competitiveness in long run (digital banking, newfunctions/new services)…. One Possible Business Case:ISO20022 use XML message formats, which are global standards for dataimport/export…. It will cost less for developing new financial systeminterface

5

ISO20022 – Payment Business Area

-9- ISO20022 message are identified by business area codes (4 characters).Following codes will be relevant to payment business (bold are for RTGS,ACH) :acmt – Account Managementadmi – Administrationcaaa – Acceptor to Acquirer Card Transactionscamt – Customer Account & Cash Managementcatm – Terminal Managementpacs – Payments Clearing & Settlementpain – Payments Initiation by Customer for direct credit or direct debit

For example:“pain.001.001.07” is sent by customer to bank for requesting credit transfer“pacs.008.001.06” is FI-to-FT credit transfer message for “payment clearingand settlement” process.

Mapping ISO20022 messages to SWIFT MT

(Payment Business Area)-10-

FIN MT messages ISO 20022 MX equivalent

Name MessageIdentifier

Name MessageIdentifier

Customer Payment MT103 FIToFICustomerCreditTransferV03 pacs.008.001.03

Customer Payment MT 103+ FIToFICustomerCreditTransferV03 _STP pacs.008.001.03(STP)

Financial Institution Credit Transfer

MT 202 FinancialInstitutionCreditTransferV03_GENERAL pacs.009.001.03

Financial Institution Credit Transfer Cover

MT 202 COV FinancialInstitutionCreditTransferV03_COVER pacs.009.001.03(COV)

Financial Institution Debit Transfer

MT 204 FinancialInstitutionDirectDebitV01 pacs.010.001.01

Debit Notification MT 900 BankToCustomerDebitCreditNotificationV03_DEBIT camt.054.001.03(DEBIT)

Credit Notification MT 910 BankToCustomerDebitCreditNotificationV03_CREDIT camt.054.001.03(CREDIT)

Source – “TARGET2 - General Functional Specification of the MX / ISO 20022 migration” published by 3CB, Nov 2013

6

ISO20022 – A Practical Example

Development involves Central Bank, participant banks and/or banks’ customers (e.g. corporate)Example of using ISO20022 messages for Customer Credit Transfer:

Source – “Payments Initiation November 2015 Standards MX – MDR Part 1 ”, p.21 published by S.W.I.F.T.

-11-

ISO20022 – A Practical Example

-12- Two main payment messages:CustomerCreditTransaction –use “pain.001.001.07”FIToFICustomerCreditTransfer – use “pacs.008.001.03” (mapping to SWIFT MT103)Pain.001.001.07 – sent by Customers to Creditor banksStructure of message asindicated:

Source – (Rulebook v.8.0) of the European Council of Payments (EPC) SEPA transfer scheme

7

ISO20022 Migration

- Initiatives in Other Markets

** Information Source- “ISO20022 Adoption Initiatives Report” published by ISO20022 Registration Authority in April 2016)

-13-

ISO20022 Migration

- Initiatives in Other Markets

ISO20022 Adoption for RTGS & ACH systems:Highly matured in Europe… mainly SEPA. TARGET2 development started in 2013, in progress with planned migration towards end 2017USA ... actively studying and planning developmentMiddle East… Bahrain implemented ISO20022 compliant Near Real Time ACH system (2015)Asia… adoption has started.. .with several countries :Japan… BOJNET went live with ISO20022 in Oct 2015China … adopted ISO 20022 in CNAPS II & CIPS 2015Brunei… new RTGS & ACH adopting ISO20022 live in 2014India - RBI mandate new RTGS using ISO20022, phased implementation started since late 2013. Singapore G3 FAST & GIRO ISO20022 have been progressing, planned live in Oct 2016ASEAN countries – Indonesia, Lao are planning for migration.

--14-

8

ISO20022 – How Banks can Keep Up

-15- 3 ‘C’s Strategy: ‘C’entral Leadership & coordinationCountry Level

‘C’ollaboration Amongst BanksIndustry Level

‘C’apacity Building for Each BankBank Level

ISO20022 – How Banks can Keep Up?

-16- ‘Central’ Leadership & Coordination:ISO20022 migration should be Initiated /driven/ overseen by a country-level Central BodyPossible Central Body:Central Bank, orBanker Association, orNational Payment Council/ EFT Committee (comprising centralbanks, representing banks, government and major company users)An interbank payment company association for with representativebanksISO20022 is best adopted as a ‘means to an end’ not an ‘end’ itself, e.g.Implement ISO20022 for developing New Gen RTGS; or real-timeclearing /Faster Payment

9


Central Leadership & Coordination-17- Establish a “National ISO20022 Working Group” with 1st initiative on PaymentBusiness Area, chaired by central body board member, and inviting central banks,banks and industry representativesISO20022 payment infrastructure & bank readiness must be mandated for allbanks (to benefit from true interoperability)First ISO20022 initiative to combine with Central Bank/Interbank clearingcompany new generation RTGS development projectWorking Group to plan and commission “ISO20022 Migration Roadmap” byinviting ALL banks to participate (i.e. participants of New Gen RTGS)Working Group major task to select, specify, publish and administer ISO20022technical standards for New Gen RTGS system :Produce Functional Specification, including detailed ISO20022 message specification andmapping to existing MT/formatsSeek ISO20022 organization to validate compliance of ‘designed’ message specification

ISO20022 – How Banks can Keep Up?Central Leadership & Coordination

--18-

2. Assessment

& Design

1. Establish central

working group

3. Acquire or

develop New RTGS

4. Market

Adoption ISO20022

5. Banks &

Corporate ISO20022

Testing

6. New RTGS

Market Rehearsal

7. New RTGS ISO20022

Go-Live

Bankers Associatio

n

Central bank or Payment Council

Central Leadership

Banks

Corporations

‘C’entral Leadership & Coordination

‘C’ollaboration

‘C’apacity Building

Typical National ISO20022 Migration Roadmap

10


Central Leadership & Coordination:-19- Working Group major tasks (cont’d):Seek ISO20022 organization to validate compliance of ‘designed’ messagespecificationPrepare XSD (ISO20022 message schema) in a central repository for nationalaccess/download.Some Major decisions:How to acquire/develop new Gen RTGS (adopting ISO20022)May require preparing RFP and invite tendersBusiness processes review/modeling will be required.Choices of Go-live approach, e.g.Big-bangPhased approach (with or without message converter)Parallel Run (of old and new RTGS) for limited duration

ISO20022 – How Banks can Keep Up

--20-

‘Collaboration’ of Banking Sector – ALL BanksAll banks in country should collaborate to build common goal, consensus andconsolidate feedback to market consultation by the central ISO20022 workinggroupLeverage existing or new institutional structure e.g. Banker Association, viaparticipation as sub-committee in the central working group.Emphasize on interoperability (between banks) and benefits to entire bankingsector e.g. more automation/STP, common standards, simplifying future systemintegration, etc.Ensure level playing field & information sharing for big/small banks,IMPORTANT – to provide feedback/comments ON-TIME to consultation fromNational ISO20022 WG

11


‘Capacity’ Building – Each Bank

Mobilize staff with right caliber to build up expertise/knowledge on ISO20022, amongst:IT Dept software development team Corporate Banking departmentPayment department/ Remittance Dept, etc.Internet/mobile/channel banking departmentEtc.Form an Bank Internal ISO20022 Expert Group:Allow time for the staff to study, interact and brain-storm for developing knowledgeEnable the Group to provide support across ALL departments

-21-

Source : www.iso20022.org “Financial Repository”


Capacity Building – Each Bank-22- ISO20022 Useful Resources include:www.iso20022.org providing commonly used business processes, MessageDefinition Reports (MDR) for ISO20022 messagesSWIFT – guideline, services, productsISO20022 Training courses in marketLearn from banks in other ISO20022 live countries

Participate in Central Bank/Central Body new GEN RTGS project (asparticipant), via following:Form a Project Steering Committee (PSC) from senior management toprovide commitment and supportAppoint Participant Project Manager (preferably full-time)

12


Capacity Building – Each Bank

Participate in Central Bank/Central Body Newgen RTGS project :Mobilize a Participant Project Team (including ISO20022 Expert Group, business & IT users)Respond to Participant Readiness Activities directed by Central Bank/Central Body, including:Attending country level ISO20022 migration seminar/workshopsCommence ISO20022 developmentprojects for:Core banking system adopting ISO20022 messages / RTGS APIs, etc.System interface/Enterprise MiddlewareInternet/Mobile & relevant Channel systemsIBAN adoption (if not yet)Etc.

-23-

Source : “ISO 20022 Account Statement Guide” published by www.finanssiala.fi in 2012


Capacity Building – Each Bank-24- Participate in Newgen RTGS project (cont’d):Install or build participant system for connecting to new Gen RTGSCommunicate with corporate customers to develop/use ISO20022Educating customers on ISO20022Testing and CertificationMarket Rehearsal and Rollout

Important – Communication & Support to Bank Customers/corporates:Designing new Payment products /services based on ISO20022Disseminate ISO20022 payment message standards/specificationsto enable corporate to develop their ERP system for sending/receivingISO20022Provide assistance to achieve ISO20022 benefits e.g. STP, automationProvide environment and support for corporate to test ISO20022 messages.

13

-25-

Thank you

1

Presentation ofTSU/BPO

and ISO20022

Trade, Supply Chain Finance and Open AccountOur Core Business

Seller’s bank

Buyer’s bank

Guarantees (MT 76x)

Collections (MT 4xx)

Documentary Credits (MT 7xx)

MT-based MX-based

TSU

SWIFT trade services market offerings

2

• My presentation will now show a live demonstration using the SWIFT network using MX ISO20022

1

ISO procedures and role of

the registration authority

Oct 2016

Alexandre Kech, Head of Securities Markets & Standards, SWIFT Asia Pacific

2

Agenda

ISO20022 management: its technical features and

procedures under Standard Evaluation Group

(SEG) and Registration Management Group (RMG) Role of Registration Authority (RA) Support for ISO 20022 implementation Importance of regional discussion and experience

sharing

2

3

ISO20022 management: its technical

features and procedures under

Standard Evaluation Group (SEG) and

Registration Management Group (RMG)

Role of Registration Authority (RA)

Slide 4

ISO 20022: The actors (1/2)

ISO_20022_LV_v135

Submitting organisations

Could be

Communities of users or organisations that want to develop ISO 20022

compliant messages to support their financial transactions

ANBIMA

ASF

Berlin Group

BIAN

CBI Consortium

CFETS

China UnionPay

Clearstream

CLS

Danish Bankers Association

Early Warning Services

EPC

ESMA

Euroclear

FFI

FISD

FPL

FpML

IFX Forum

ISITC

nexo A.I.S.B.L.

OAGi

Omgeo

Payments UK

RU-CMPG

SABS

SWIFT

TC68/SC7/TG1

TWIST

T2S

UN/CEFACT

ECB

Banque de France

Banco de España

Deutsche Bundesbank

etc.

3

Slide 5ISO 20022 LV v135

ISO 20022: The actors (2/2)

Registration Management Group, RMG

– Overall governance, court of appeal

– Approve business justifications for new message standards

– Approve new member entities

– Create Standard Evaluation Groups (SEGs) and SubSEGs

Standards Evaluation Groups, SEGs and SubSEGs

– Represent future users in specific financial areas

– Validate new candidate messages and change requests

Registration Authority, RA

– Ensure compliance

– Maintain and publish ISO 20022 Repository

Technical Support Group, TSG

– Assist RMG, SEGs, RA and submitting organisations

Non for profit cooperative

40 years of standards management

Global community

Founding father of ISO 20022

Neutral

Slide 6ISO_20022_LV_v135

ISO 20022 The registration process

Submitting

organisationFinancial industry group or standards body

Business

justificationBusiness justification

RMG Project approval & allocation to a SEG

SEGBusiness validation

RAOfficial registration

and publicationRepository

Dictionary

CatalogueOptional pilot testing

or first implementers

www.iso20022.org

R

M

G

m

o

n

i

t

o

r

s

Submitting organisation

& users


& RADevelopment & provisional registration

4

Slide 7

Users CRs Users introduce Change Requests to the RA

Submitting

organisation

Submitting organisation prepares ‘Maintenance Change

Request’ with each CR implementation

SEGSEG screens Change Requests (CRs)

SEG SEG approval/rejection

Submitting

organisation

& RA

Development of new versions

SEGValidation of new versions

RA Registration and publication Repository

Dictionary

Catalogue

By June 1

By July 7

By August 21

By October 1

By December 1

By February 1

April-May

Timing

ISO 20022 registration processYearly maintenance process

First implementers

ISO 20022 LV v135


& users

Slide 8

ISO 20022 Registration Management Group (RMG)

Members - 72 senior managers from:

– 21 countries: AT, AU, BR, CA, CH, CN, DE, DK, FI, FR, GB, IN, IT, JP, KR, NL, NO, SE, SG, US, ZA.

– 14 organisations: ACTUS, CFTC, Clearstream, DTCC, ECB, EPC, Euroclear, FPL, FpML, IFX, ISITC, MasterCard, SWIFT, VISA

Convener: James Whittle, Payments UK (GB); Vice-convener: Mike Tagai, JPMorgan Chase (JP); Secretary: Andre de Roy, Payments UK (GB)

Meetings: twice a year

Key decisions:

– Creation of six SEGs: Payments and Securities in 2005, Trade Services and Forex in 2006, Cards & Related Retail Financial Services in 2008, Derivatives SubSEG in 2016

– Approval of ISO 20022 message development projects

ISO_20022_LV_v135

5

Slide 9

ISO 20022 – The Payments SEG (1/3)Members – 59 experts

– 19 countries: AU, AT, BR, CA, CH, CN, DE, DK, FI, FR, GB, IT, JP, NL, NO, SE, SG, US, ZA

– 6 organisations: ECB, Euroclear, IFX, ISITC, MasterCard, SWIFT

Convener: Harri Rantanen (FI); Vice-convener: Peter Hoogervorst (SG); Secretary: AurelieSteeno, SWIFT

Approved: C2B payment initiation (SWIFT/ISTH), Interbank credit transfers and direct debits (SWIFT), Exceptions and investigations (SWIFT), B2C advice & statement (ISTH/ISITC), Mandates (SWIFT) , Change/verify account identification (GUF), Bank account management (SWIFT), Creditor payment activation request (CBI Consortium), Cash account reporting request and notification (SWIFT), Bank Services Billing (TWIST/SWIFT), Authorities Financial Investigations (FFI), Stand-alone remittance advice (IFX/OAGi), Cross-border Transactions Currency Control Reporting (RU-CMPG), Financial Institution Direct Debit (SWIFT)

Under evaluation: none

Next: Cash management (SWIFT), Account switching (Payments UK), Mandate Status List (DBA), Payment Pre-Authorization (Early Warning Services), Payments Mandates – Supplement (SWIFT, SABS), Payments Status Request (SWIFT, EPC)

ISO 20022 LV v135

Slide 10

ISO 20022 – The Payments SEG (2/3)

ISO_20022_LV_v135

Payments Credit

transfers

Covering instruments such as:

Direct debits

Cheques

Covering actors such as:

Private & corporate customers

Financial institutions

Central banks

Clearing houses &

RTG systems

6

Slide 11ISO 20022 LV v135

Payments

Including business areas such as:

Communications between the

ordering customer and its bank, etc.

Interbank transfers via correspondent banking or ACHs,

high value payments, low value

bulk payments, RTGS, etc.

Account opening, standing orders, transaction and

account information, advices &

statements from …

Payment initiation

Clearing & settlement

...the account servicing

institutions to account owners,

including reporting from the financial

institution…

…to the ordering & beneficiary customers,

reconciliation, exceptions & investigations

handling.

ISO 20022 – The Payments SEG (3/3)

Cash Management between various actors:

Slide 12

ISO 20022 – The Securities SEG (1/3)

Members – 72 experts

– 17 countries: BR, CA, CH, DE, DK, FI, FR, GB, IE, IT, JP, NL, NO, SE, SG, US, ZA

– 9 organisations: ACTUS, CFTC, Clearstream, DTCC, ECB, Euroclear, ISITC, FPL, SWIFT

Convener: Axelle Wurmser, BNP Paribas (FR); Vice-convener: Charles-Raymond Boniver, RBC (CA); Secretary: Dominique Forceville, SWIFT

Approved: Investment funds (SWIFT), Transaction regulatory reporting (SWIFT), Proxy voting (SWIFT), Issuer’s agents communication (Euroclear), Corporate actions (SWIFT), Settlement & reconciliation (SWIFT), Post-trade (SWIFT/Omgeo), Total portfolio valuation report (ISITC/SWIFT), CCP Clearing (FPL/SWIFT), Collateral Management (FPL, FpML, ISITC, SWIFT), Money Market Statistical Reporting (ECB, Banque de France, Banco de España, Deutsche Bundesbank), Transparency of Holdings (Clearstream), SSI for Securities, Payments & FX (ISITC, Omgeo, FPL)

Under evaluation: Financial instruments and transactions regulatory reporting - MiFID II/MiFIR(ESMA)

Next: Target2-Securities (SWIFT/4CB)

ISO_20022_LV_v135

7

Slide 13


ISO 20022 LV v135

Securities Equities

Covering instruments such as:

Funds

Fixed income

Covering actors such as:

Investment managers, distributors,

transfer agents, fund

administrators

Broker / dealers

Regulators

Stock exchanges,

ETC providers Clearing

houses, CCPs

CSDs, ICSDs

Market Data Providers

Custodians

Service bureaux

Slide 14


ISO_20022_LV_v135

Including business areas such as:

Account opening, standing orders, transaction and

account information, advices &

statements, queries & investigations

Income, corporate

actions, market data, proxy

votingCollateral, repos, securities lending &

borrowing

Custody

Collateral management

Trade Initiation, pre-trade

Trade, post-trade

Clearing & settlement

Securities

Securities Issuance

8

Slide 15

ISO 20022 – Derivatives SubSEG

Members – 52 experts– 8 countries: BR, CA, CN, DK, FR, GB, JP, US

– 10 organisations: ACTUS, CFTC, Clearstream, DTCC, ECB, Euroclear, FPL, ISDA/FpML, ISITC, SWIFT

Convener: Karel Engelen, ISDA/FpML; Vice-convener: Joe Halberstadt, SWIFT;

Secretary: Courtney McGuinn, FPL

Approved: none

Under evaluation: Financial instruments and transactions regulatory reporting – Trade Repository Reporting (ESMA)

ISO 20022 LV v135

Slide 16


– 9 countries: CA, CH, CN, FR, GB, NO, SE, US, ZA

– 3 organisations: FPL, ISITC, SWIFT

Convener: Ram Komarraju, CLS (US); Vice-convener: Zaiyue Xu, CFETS (CN); Secretary: Joe Halberstadt (SWIFT)

Kick-off meeting: in September 2006

Approved: Forex notifications (CLS), Post Trade Foreign Exchange Messages (CLS), FX Post-Trade Trade Capture and FX Post-Trade Confirmation (CFETS)

Under evaluation: none

Next: Post Trade Foreign Exchange – Supplement (CLS)

ISO_20022_LV_v135

ISO 20022 – The FX SEG

9

Slide 17


– 12 countries: CA, CH, DE, DK, FI, FR, GB, IS, IT, JP, NL, US

– 1 organisation: SWIFT

Convener: Tapani Turunen, Tieto (FI) Vice-convener: Peter Potgieser (NL); Secretary: David Dobbing (SWIFT)

Kick-off meeting: in September 2006

Approved: Invoice Financing Request (CBI Consortium), Trade Services Management (SWIFT), Financial Invoice (UN/CEFACT TBG5), Demand Guarantees and Standby Letters of Credit (SWIFT), Factoring Services (ASF)

Under evaluation: Invoice Tax Report (FFI & Tieto)

Next: none

ISO 20022 LV v135

ISO 20022 The Trade Services SEG

Slide 18

ISO 20022 – The Cards & Related Retail Financial Services SEG


– 15 countries: AT, CA, CH, CN, DE, DK, FI, FR, GB, JP, KR, NL, SE, US, ZA

– 5 organisations: IFX, Mastercard, nexo A.I.S.B.L., SWIFT, VISA

Convener: William Vanobberghen, Groupement des Cartes Bancaires (FR); Vice-convener: Richard DuVall (IFX); Secretary: Reinhard Herwig (DE)

Kick-off meeting: on 23-24 October 2008

Approved: CAPE – Acceptor to Acquirer and Terminal Management (nexo A.I.S.B.L.), ATM interface for transaction processing and ATM management (IFX Forum/nexoA.I.S.B.L), Acquirer to Issuer Card Messages – version 1(TC68/SC7/TG1)

Under evaluation: Dispute Resolution in Cards Fee Collection (CUP)

Next: Payment Tokens Management Exchanges (nexo A.I.S.B.L & ISO TC68/SC7/TG1), Acquirer to Issuer Card Messages – version 2 (TC68/SC7/TG1)

ISO_20022_LV_v135

10

Slide 19

ISO 20022 – Technical Support Group


– 9 countries: BR, CN, CH, DE, DK, FR, GB, JP, KR

– 7 organisations: ACTUS, CFTC, DTCC, Euroclear, FPL, ISITC, SWIFT

Convener: Frank Dreisch, Gefeg (DE); Vice-convener: Anthony Coates (GB); Secretary: Kris Ketels, SWIFT

Kick-off meeting: on 23-24 October 2008

Mission: help RMG, RA, SEGs and Submitting Organisations withtechnical matters

ISO 20022 LV v135

20

Support for ISO 20022 implementation

11

ISO 20022 adoption – Financial Market Infrastructures

200 initiatives

Financial

Market Infrastructures

Financial Institutions Financial Institution customers

EuropeAsia Pacific

Americas

Middle East & Africa

Transformation

Regulation

Globalisation

580 CorporatesUnder discussion > planned > rollout > live

90 countries

Why is SWIFT involved in many ISO 20022 implementation?

Efficient community

management

Technicalexpertise

Standards & business expertise

Unequalled contribution

to ISO 20022

SWIFT – a trusted source for ISO 20022 initiative

Trusted partners

for many ISO 20022 initiatives

globally

Only worldwide value-added network

designed specifically for ISO 20022

Highest standards of reliability,

availability and security

Selected as platform provider

for key ISO 20022 initiatives

in payments and securities

Forty years of community expertise Unique tools and established

processes to support communities in the

migration

forISO 20022

12

Adopt

STRATEGY DESIGN

IMPACT ASSESSMENT

IMPLEMENTATION GUIDELINES/ STANDARDS MANAGEMENT

INTERNAL PREPARATION TESTING

Implement

STANDARDS IMPLEMENTATION

GO LIVE OPERATE

Use

PHASE 1: GO LIVE SUPPORT

PHASE 2: MONITOR LIVE OPERATIONS

MAINTENANCE

PROJECT MANAGEMENT

RULEBOOKTECHNICAL IMPLEMENTATION

PHASE 3: PREPARE FUTURE EVOLUTION

COMMUNITY SUPPORTCOMMUNITY ONBOARDINGCOMMUNITY AWARENESS, COMMUNITY

ENGAGEMENT

COMMUNITY

BUSINESS IMPLEMENTATION

Typical steps towards the ISO 20022 adoption

ISO 20022 impact assessmentBuild a strategic roadmap for an MI and community

Recommendedactions &

Implementation Roadmap

Analyse

As Is Situation

Understand

the ISO 20022

adoption context

Benchmark against

discussed ‘Ideal

Solution’

• The ISO 20022 initiatives

in your region

• The triggers for adoption

• The different

implementation options

chosen by other MIs

• How ISO 20022 can help

achieve your business

goals

Assess ‘as is’ considering:

• Internally: current infrastructure and

operations, resources

• With your community: Products,

functions, services, flows, standards,

channels and networks used

• Define recommended

implementation roadmap that

includes:

• Business and technical

scope

• Project timeline, resources

• Community engagement

strategy

• Next steps: Define the detailed

design of the solution

• Define the desired to be

situation

• Evaluate and select

implementation option for you

and your community

• Identify gaps to be addressed

for ideal solution

• Evaluate and prioritize

Workshop with key people

Analysis of documents

Interviewing key people, Engaging with the community

How

Best & International Practices

13

Collaborative web platform to better

manage standards…MyStandards

ReadinessPortal

… and facilitate community

on-boarding

Go live & evolve solution

Set-up closed user group

Integration components

MT/MX mapping rules

Self-service internet testing

Access complete message portfolio

Consult global guidelines as a basis

Customize to reflect community needs

Multi-format documentation

Easy maintenance of guidelines

Harmonised Standards UsageDistribution and Maintenance

Transformation projects: around ISO

Involved in all major APAC SMI’s projects

Clearing & Settlement

• ISO 20022 strategy

• High level and detailed gap analysis

review

• ISO governance support

(maintenance and new)

• MyStandards

• Implementation support

• Trainings

Corporate action (TSE)

• Specification co-writing and

maintenance


• MyStandards

Clearing & Settlement

• Standards strategy

• Specifications review

• MyStandards

• Implementation support


Corporate action


maintenance


Corporate action



• Specification writing and

maintenance

• MyStandards

Post-trade


Collateral Management


maintenance

• MyStandards

• Standards forums

• Customised trainings

• Standards consultancy

Se

cu

ritie

s M

ark

et

Infr

astr

uctu

reC

om

mu

nity




• Market practice discussion facilitation




• Market practice discussion facilitation

• Community workshops

• On boarding portal

ReadinessPortalMyStandards

26

14

27

Importance of regional discussion and

experience sharing

Regional discussions = best practice sharing = harmonisation = easier business = common growth

28

15

29

Importance of regional discussion and

experience sharing

30

ISO 20022 regional or domestic implementations, recipe for success

Open

minded

process

review

ISO

20022 RA involvement

ISO

20022 participation

Community

involvement

Transpar

ency

Evolve

the

standards

Adapt

local to

regional

& global

Deadline

for

adoption

16

Proprietary End

ISO 20022 Live

Implement/

TestUse

- Eliminate proprietary standards - Launch of potential of new or updated services or functionalities

following live date

L I V E

Strategic

Priorities

ISO 20022 Adoption StrategyBig Bang Adoption

Enrich with new featuresLive

Enrich

• RBI

• BOJ

• …

Generally

central banks

ISO 20022 Live

AdoptImplement/

Test fixed term

L I V E

Strategic

PrioritiesEnrich

L I V E

ISO 20022 Adoption Strategy

Planed Coexistence with sunset

Co-existence/ phased adoption

Proprietary Sunset

- Phase out proprietary standards progressively (1-3 years)- Implementation of ISO 20022 at later planned stage - Have a fixed term for co-existence or specified sunset date (e.g. set by

number of years, number of participants on-boarded, community suggestion, etc)

• Jasdec

• SGX

Generally CSDs

17

ISO 20022 Live

AdoptImplement/

Test

Strategic

Priorities

L I V E

ISO 20022 Adoption StrategyCoexistence with NO sunset

Co-existence

Proprietary

- No or too far away phase out proprietary standards (more than 5 years)- Permanent co-existence - Costly, inefficient and risky maintenance and management of multiple

protocols - Can work ONLY if the level of functionality in ISO 20022 is so much higher

that there is a strong business case to switch

To be

avoided

• …

• Some CBs

and CSDs

considering

…

ISO Standard Adoption, lessons learned

Best Practices

Full review of current state with open mind on

what needs to be done and spent to reach

goals

ISO 20022 registration authority (SWIFT)

involvement from the start of the project

Early involvement in the ISO 20022

governance process to raise awareness and

own the standard, not just use it.

Local and global community engagement

Publication of clear specification (eg,

MyStandards)

Raise change requests to evolve the ISO

standard to match legitimate local needs

Adapt local practices to international ones as

much as possible

Imposed deadline for migration *

18

www.swift.com

Fintech in APAC - SWIFT Value proposition 35

1

The Need for ISO 20022 Rule Book for the Philippine Financial Services Industry

Implementing ISO 20022 is an involved process• The journey from deciding to use ISO 20022 to actually

implementing the standard is an involved process. • It is one that requires thorough planning, broad

stakeholder involvement, suitable funding, and commitment from industry players.

• Adopting ISO 20022 provides global interoperability, financial messages that can be used in a number of different business areas, and convergence from the hundreds of national standards already in use into one global standard.

2

2

Advantages of Implementing ISO 20022

• Global interoperability• Rich remittance data• Uniform and reusable messages• Political neutrality• Wide availability of IT fixes• Lower overall operating costs after the initial

investment• Use as a strategic platform for innovation

3

(ISO 20022 Implementation best practices Researched and written by Lipis Advisors)

Disadvantages of Implementing ISO 20022

• Difficulty of building a business case to adopt ISO 20022

• Different implementations of the standard within the same payments system

• Increased bandwidth needed for ISO 20022 messages

4

3

ISO 20022 Implementation Process

5

Identify the need(s) that ISO 20022

addresses

Achieveconsensus that

change is needed

Decide to use ISO 20022

Establish centralized governance and

management structures

Determine the plan and timetable forimplementation

Establish budget and obtain

necessary financial commitments

Write technical standards and

implementation guides

Establish migration plan with an end

dateMigrate

Monitor compliance

Identify the need(s) that ISO 20022 addressesThese needs include• For updating of an old system• For the creation of an entirely new system• To enable faster payment processing• To decrease operational/settlement risk• To enhanced remittance information• The need for new or improved products or

services• the adoption of ISO 20022 is never the end goal

6

4

Achieve consensus that change is needed and decide to use ISO 20022

• Arriving at the decision to move to ISO 20022 is itself a process that requires time, energy, knowledge, and buy-in from key stakeholders.

• This is especially true in environments where the business case is challenging or where benefits, risks, and costs accrue unequally to different stakeholders.

• The ultimate decision to move to ISO 20022 is usually achieved after getting buy-in from decision-makers of major industry stakeholders.

• Moving to ISO 20022 at an industry-wide level will require the further step of rallying enough important stakeholders to the cause to create a critical mass for widespread buy-in.

7

Establish centralized governance and management structures

• The centralized governance entity is crucial for developing and coordinating the process.

• Said entity will work with the industry to set up a detailed project plan that takes into account the necessary investments needed for the project, writing rulebooks, creating an implementation guide, and facilitating the steps taken along the way.

8

5

Establish budget and obtain necessary financial commitments

• A central budget for the use of the centralized governance entity to develop and write the rulebook which define the common standards and guidelines of adopting ISO20022

• Budget of each stakeholders to initiate internal changes in the implementation of ISO20022

9

Determine the plan and timetable for implementation

• As agreed upon by the stakeholders via the centralized governance structures, a plan must be established for the remainder of the migration process. This plan include the time needed for writing technical documents, the time needed to make IT changes among all affected stakeholders, time to conduct system testing, going live and decommissioning legacy systems, if needed.

• A critical component of this step is deciding if all parties in a market need to migrate or adopt at the same time, or if it will be done “at will” over a longer period of time with an agreed-to end date.

10

6

Write technical standards and implementation guides

• ISO 20022 is a broad toolbox that works across many industries and business areas, so stakeholders need to decide what capabilities, aspects and specifications of the standard will be used.

• This justifies the importance of developing and writing a Rulebook that will define the standards and guidelines that should be complied with by all stakeholders in the adoption of ISO 20022.

• The Rulebook should ensure the compatibility of the domestic standards with the standards in cross border payments.

11

Migrate• Moving from a legacy standard to ISO 20022 is a massive

undertaking, and utilizing software tools designed to aid ISO 20022 implementation can be extremely helpful.

• The final step in implementing ISO 20022 is reaching the migration end date, which can either mean putting a new ISO-based system online or switching off a legacy system in favor of a new system. This requires a firm end date.

• Regulators often play a major role in setting this end date, but regardless of who decides it, the decision has to have teeth and the industry has to stick to the planned end date.

12

7

Migrate• The move to ISO 20022 does not end once an ISO-

based system goes online. The industry needs to keep communication open and be flexible enough to fix or tweak problem areas even after ISO 20022 is already in use.

• After detailed planning with broad cooperation from a wide range of stakeholders, major changes after the final move to ISO 20022 should be kept to a minimum.

13

Monitor compliance to plan• Throughout the process, structures and metrics must be in

place to monitor migration. • In the most prominent case, SEPA, the European Central Bank

required clearing houses to report rates of SEPA transactions as a proportion of total transactions. They were therefore in a position to know how quickly payment messages were being migrated from legacy schemes to SEPA. If migration is sluggish, steps can be taken to accelerate it, and if migration is rapid, legacy systems may be decommissioned more quickly, leading to cost savings.

• In cases where regulators have mandated migration, penalties may be applied to non-compliant entities.

14

8

Steps undertaken by BSP on the Adoption of ISO 20022

• Created the BSP Task Force on ISO 20022 Compliance. The said Task Force is mandated to prepare the BSP for the AEC 2025 initiatives on cross-border payments and financial integration using ISO 20022. It shall prepare a Roadmap for the Implementation of ISO 20022 and shall coordinate with the BAP, CTB, and RBAP on issues and relevant areas affecting the transactions of the banks with BSP and banks’ transactions with the public.

• Engaged SWIFT on a Project: Impact Assessment on the Implementation of ISO 20022 to assist the BSP and the banking industry to jointly formulate an ISO 20022 Implementation Roadmap

Recommendations

16

• Creation of National Financial Services Standards Board which will be composed of experts from the banking industry, BSP and other financial market infrastructures and will be responsible for the following:– Stock-taking/codifying the current standards used in the

Philippines for various financial services (e.g. payment systems, trading and finance, remittances, financial market ,etc)

– Identifying gaps and opportunities (e.g., SWOT)– Creating a Task Force to develop the Philippine ISO 20022 Rule

Book and to initiate ISO 20022 community readiness program such as community engagements, message flow development, message implementation guidelines development, and defining other key considerations.

9

Recommendations (2)

17

• Creation of National Financial Services Standards Board which will be composed of experts from the banking industry, BSP and other financial market infrastructures and will be responsible for the following: (cont…)– Promoting education and training – Monitoring compliance to the standards– Reviewing recommendations for improvement of standards to

be included in the Rulebook and initiating registration of new standards to the appropriate ISO Group

Recommendations (3)

18

• The Philippine ISO 20022 Rule Book should not only consider domestic standards but it should be made compatible with international cross-border payment transactions.

• While it is understood that adoption of ISO 20022 has significant impact on the banks’ existing core systems, and some banks may be ready to adopt the technology earlier than the others, there should be an agreed timeline when all the banks and other FMIs should be on-board.

• The banking industry is enjoined to cooperate and collaborate with the BSP thru the SWIFT in its Project: ISO 20022 Impact Assessment.

Documents

ORKSHOP ON ISO20022 MPLEMENTATION IN THE · PDF filePage 1 of 2 Workshop on ISO20022 agenda as of 24 September 2016 WORKSHOP ON ISO20022 IMPLEMENTATION IN THE PHILIPPINES MULTI-FUNCTION