SWIFT gpi for corporates - mytreasurer.files.wordpress.com · SWIFT gpi for corporates - EACT - SWIFT - 22 June 2018 . 1 . Faster payments . Same day use of funds* Traceable . End-to-end

SWIFT gpi for corporates A new standard in cross-border payments

June 22, 2018

Speakers

2

Sebastian Rojas Head of SWIFT gpi for corporates, SWIFT

Anni Mykkanen Senior Policy Advisor European Association of Corporate Treasurers (EACT)

François Masquelier Senior Vice President Head of Treasury and Enterprise Risk Management, RTL Group

Eddy Jacqmotte Manager Cash & bank – Head of back office administration Borealis

SWIFT gpi for corporates - EACT - SWIFT - 22 June 2018


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Some logistics

3

Corporate challenges with cross-border payments

Uncertainty

Predictability Inconsistencies

Exceptions and investigation

Traceability Automation

Incomplete Where is my payment?

Remittance information

Deductions OUR

SHA BEN

4

Reconciliation


• Sending a cross-border payment can take up to 1 week…

• While manufacturing a Toyota car takes only 18 hours…

Cross-border payments are still too slow !

5 SWIFT gpi for corporates - EACT - SWIFT - 22 June 2018

PSD2 opens doors to almost any company interested in eating a bank’s lunch… to any FinTech Reg’s and Tech’s are creating a new level playing field Payment landscape could be modified soon… SWIFT and the banking community have reacted strongly with SWIFT gpi

Regulations as enabler to new players?


Customers & regulators want better payment services

Speed becomes essential for businesses and B2C models even more

Banks rationalize correspondent banking networks in order to face costs increase, although treasurers are facing multitude of new payment methods

New disruptive digital solutions with enhanced value proposition

Current context


Instructing bank Intermediary bank Ordering Customer

MT 103 MT 103

Beneficiary Customer

Beneficiary bank

* BICs for illustration purposes only

Where is my payment?

? ?


Would tracking your payment on SWIFT be as easy as on AMAZON?

9

Impact on the daily business of an international company


To make sure (cross-border) payments are done on time and with the exact amount expected by the beneficiary

To be able to get a confirmation of the payment once executed

To accelerate payment processes and to automate it from initiation to reconciliation

To reduce costs (if possible)

To reduce or avoid admin burden to chase payments

In a nutshell, what is key for Treasurers?


Time for SWIFT gpi


Accessible by any corporate

Accessible by any bank

Reaching any bank

SWIFTgpi

Core transaction

banks SLA rulebook

1 Faster payments Same day use of funds*

Traceable End-to-end payment tracking & payment confirmation 2

3 Transparent fees Deducts and FX

4 Full remittance data Unaltered reconciliation info

12


1 Faster payments Same day use of funds*

Traceable End-to-end payment tracking & payment confirmation

2

3 Transparent fees Deducts and FX 4 Full remittance data

Unaltered reconciliation info

Your company

Beneficiary

gpi

Intermediary bank

Beneficiary’s bank

Your bank

*Within the time zone of the receiving gpi member

SWIFTgpi Rulebook $

Invoice

a1700db1-90b2-4948-83d8-6309c5c34a3d

SWIFT gpi: secure, faster, traceable & transparent cross-border payments

13


SWIFT gpi is dramatically speeding up cross-border payments!

+90% < 1 day end-end

14

Unparalleled growth in adoption, traffic and corridors

Delivering real value

Nearly 50% of SWIFT gpi payments are credited to end beneficiaries within 30 minutes

More than 100 billion USD are being sent daily via gpi Significant drop in bank enquiry costs by as much as 50% Positive reactions from corporates

Very large community 180

banks committed to implement, 49 top 50 banks signed

200+ countries covered

80+% SWIFT cross-border payments

represented

Millions live payments 35+ Mio

payments sent as gpi since go live 400K payments/day

60 banks live 32 top 50 banks

15

450+ country corridors

25+% cross-border MT103 sent as gpi

SWIFT gpi for corporates - EACT - SWIFT - 22 June 2018 15

60 banks are live, with more than 119 banks in the implementation phase 60 gpi banks live

ICBC

ING

Intesa Sanpaolo

JPMorgan Chase

KBC Bank

National Australia Bank

Nordea Bank

Rabobank

Royal Bank of Canada

Standard Chartered

UniCredit

ABN AMRO Bank

ANZ

BBVA Bank of America Merrill Lynch

Bank of China Bank of New York Mellon Citi

Commonwealth Bank of Australia

Danske Bank

DBS Bank

Deutsche Bank

Mashreq Bank

Sumitomo Mitsui Banking Corporation

ABSA Bank

China Minsheng Bank

Crédit Mutuel-CIC Société Générale

Natixis

BNP Paribas

Nedbank

Wells Fargo

Standard Bank

Bank of Communications Raiffeisen Bank International

Alfa-Bank

Siam Commercial Bank

China Guangfa Bank

China Construction Bank

CTBC Bank

E.SUN Commercial Bank

OCBC Banco Santander

Bank of Jiangsu

Westpac


Commercial Bank of Kuwait

FirstRand

National Bank of Kuwait

Commerzbank

Shanghai Pudong Development Bank

HSBC

China CITIC Bank Bank al Ethiad

Turkiye Garanti Bankasi

China Zheshang Bank

National Commercial Bank

Bangkok Bank

Bank for Investment & Development of Vietnam

KB Kookmin Bank

ICICI Bank

16

Getting started with SWIFT gpi

gpi Payments Same day payments Unaltered remittance information Visibility on bank fees (on request) End-to-end traceability (on request)

Payments tracker in bank portals Visibility through unique transaction reference (UETR) Real -time transaction status updates Detailed bank fees & FX rates Beneficiary payment confirmation

Corporate

Advanced

Standard

Multi-bank / multi-channel Payments Tracking Corporate generates unique transaction reference (UETR) gpi Standards for FIN & ISO Harmonised tracking details across banks

Live

Live

Pilot

60 banks

+ 14 banks

11 banks 11 corporates

1

2

3

SWIFT gpi for corporates - EACT - SWIFT - 22 June 2018 18


Banks and corporates are integrating gpi

19

gpi connector

Front-end applications

Back-end applications

36 banks with gpi APIs live or in implementation

14+ portals live

SME

MNC MT 101/ pain.001

MT 199 /pain.002

APIs

e-Banking portal

Automated channels 11 banks & 11 corporates in pilot

H2H

ERP / TMS

Web portal

19


Pilot participants

20


gpi payments tracker

Instructing gpi Agent

Corporate generates and includes UETR in the payment instruction (MT 101, pain.001)

Bank creates MT103 including UETR generated by the corporate

Tracker delivers B2C specific confirmations to Instructing bank (MT 199 & API)

Instructing bank relays back to ordering corporate (MT 199, pain.002)

2

1

3

MT 103 + UETR MT 103 UETR Beneficiary

Corporate pilot: end-to-end C2B/B2C gpi flows

TMS/ERP

Ordering corp

MT 101/pain.001 + UETR(s) 1 4

MT 199 /pain.002 + UETR(s)

3

4

2

21

Corporate pilot – a common canvas for multi-banked corporates


Standards FIN & ISO

Corporate-specific payment statuses

Common approach for payment reporting (transparency)

Delivered to beneficiary bank

Confirmation of credit to beneficiary

Rejections

Out of gpi

Date & time 26 April 2018 – 18:00 CET

gpi status Credited

Status originator Save with us Bank (SBWUDE33)

Instructed Amount and currency 125.000 USD

Confirmed Amount and currency 101.020 EUR

Routing

FX information Save with us Bank USD to EUR exchange rate: 1.22

Deducts information Cash bank: - 20 EUR

Charge code SHA

Default

Bank optional

Banca M

exicana de C

redito

Cash bank

Save w

ith us bank

MT 101, MT 199 (gpi) pain.001, pain.002

22


Pilot timelines: from testing definition to controlled live

May Jun Jul Aug Sep Oct Nov Dec

Phase 1 Phase 2 Phase 3

Individual project planning + business pairing

Community testing (B/C)

Controlled live

Tracker release & CUG activation

(T&T)

Sibos

API final specs

Kick-off Individual project plans

CUG registration

(T&T and Live)

Live

Kick-off Phase 2

Status group call bilateral and community testing

CUG activation (Live – TBC in Phase 2)

Kick-off Phase 3

Pre-bilateral readiness Preparation (optional)

Kick-off Bilateral testing gCAT activation

Bilateral testing with SWIFT

Second group (banks, corporates, vendors)

23

1

Contact your banks & IT vendors, and ask about SWIFT gpi

Include gpi (payments and tracker) in your next bank or TMS/payment factory RFP

Identify your key corridors and needs

How to get started with SWIFT gpi?

2

3

Critical success factors

Questions &

Answers

www.swift.com


Questions? Contact: [email protected]

Download

SWIFTgpi App on your iPad

27

mailto:[email protected]

https://itunes.apple.com/us/app/swiftgpi/id1152292395?mt=8




Documents

SWIFT gpi for corporates - mytreasurer.files.wordpress.com · SWIFT gpi for corporates - EACT - SWIFT - 22 June 2018 . 1 . Faster payments . Same day use of funds* Traceable . End-to-end