SWIFT GPI Making your cross-border payments faster,

more transparent and traceable

May, 2017

Kai Liu

Senior Solution Architect

SWIFT JAPAN

Agenda

1. What is the current adoption of GPI globally?

2. What is the value proposition for your customers?

3. How to integrate GPI with your local SWIFT Infrastructure?

4. Implementation Details

May 2017 - GPI

3

SWIFT GPI is live!

21 Banks

successfully piloted

12 Banks exchanging

live gpi payments

100 gpi member banks

60+ Country corridors e.g. US – China, UK – Denmark, UK – Italy, UK – Netherlands

224 Countries

75% of all payments traffic on SWIFT

May 2017 - GPI

AMERICAS EMEA APAC

20% 52% 28% 100+ member banks

sending payments into

more than 224

countries and

territories;

representing over 75%

of all SWIFT cross-

border payments

ABN AMRO Bank

ABSA Bank

Agricultural Bank of China

Alfa-Bank

Australia and New Zealand

Banking Group

Axis Bank

Banco Bilbao Vizcaya

Argentaria

Bangkok Bank

Bank of America Merrill Lynch

Bank of China

Bank of Communications

Bank of New York Mellon

Bank of Nova Scotia

Bank of the Philippine Islands

Bank of Tokyo-Mitsubishi UFJ

Banco Bradesco

Banco Santander

Banco de Crédito del Peru

Banco do Brasil

Banorte

Banque Européenne

d’Investissement

Barclays

Bidvest Bank

BNP Paribas

Budapest Bank

CaixaBank

Canadian Imperial Bank of

Commerce

China Construction Bank

China Merchants Bank

Citibank

Commonwealth Bank of Australia

Commerzbank

Crédit Agricole

Crédit Mutuel-CIC Banques

Credit Suisse

CTBC Bank

Danske Bank

DBS Bank

Deutsche Bank

DNB Bank

Ecobank

E.Sun Commercial Bank

Erste Group Bank

Fifth Third Bank

FirstRand Bank

Handelsbanken

Helaba Landesbank Hessen-

Thüringen

HSBC Bank

ICICI Bank

IndusInd Bank

Industrial and Commercial

Bank of China

ING Bank

Intesa Sanpaolo

Intl. FCStone

Investec

Itaù Unibanco

JPMorgan Chase Bank

Kasikornbank

KBC Bank

KEB Hana Bank

Lloyds Bank

Mashreq Bank

Maybank

Mizuho Bank

National Australia Bank

Natixis

Nedbank

Nordea Bank

Oversea-Chinese Banking

Corporation

PKO Bank Polski

Promsvyazbank

Rabobank

Raiffeisen Bank International

Resona Bank

Royal Bank of Canada

Royal Bank of Scotland

Sberbank

Siam Commercial Bank

Silicon Valley Bank

Skandinaviska Enskilda Banken

Société Générale

SpareBank 1

Standard Bank of South Africa

Standard Chartered Bank

Sumitomo Mitsui Banking

Corporation

Swedbank

Tadhamon International Islamic

Bank

TMB Bank

Toronto-Dominion Bank

UBS

U.S. Bank

UniCredit

United Overseas Bank

Wells Fargo

live on gpi

1- What is the adoption of SWIFT gpi?

May 2017 - GPI

Agenda

1. What is the current adoption of GPI globally?

2. What is the value proposition for your customers?

3. How to integrate GPI with your local SWIFT Infrastructure?

4. Implementation Details

May 2017 - GPI

Value for banks

Increase operational

efficiency in your customer

claims and investigations

management

Ability to do cash

forecasting and optimise

your liquidity

management

Reduce Costs

Significantly increase

customer satisfaction by

offering speed, certainty,

transparency and a

confirmation of credit for

cross-border payments

Build a reputation of

leader in global payments

innovation

Delight Customers

Retain and attract new

customers

Sell payments services to

third parties

Grow Business

6 May 2017 - GPI

Value for corporates

Reduced settlement time

Leverage investment

opportunities

Higher visibility for capital

and credit management

Reduced FX risk

Treasury & Cash

Management

Enhanced predictability and

traceability

Greater planning and

decision making

Improved reconciliation and

forecast reporting

Budgeting, planning

and forecasting

Better cash flow

management

Speed and visibility on

critical payments

Certainty for buyers and

sellers

Transparency on bank fees

Reduced exception

handling & investigations

Accounting & core

functions

7 May 2017 - GPI

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

1 Faster payments Same day use of funds*

Traceable End-to-end payment tracking

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

May 2017 - GPI

New services in the pipeline:

Rich payment data Request for cancellation International Payment Assistant

SWIFTgpi

Rich remittance information, invoices,

compliance documents, etc.

Stopping unsolicited payments

(double payment, manual errors, fraud)

STOP

SWIFTgpi

Validation of payments before execution

SWIFTgpi

Account number ?

BIC ?

Passport required ?

Beneficiary ?

v2 – Q4 2017 - 2018

May 2017 - GPI

Agenda

1. What is the current adoption of GPI globally?

2. What is the value proposition for your customers?

3. How to integrate GPI with your local SWIFT Infrastructure?

4. Implementation Details

May 2017 - GPI

gpi payment flow as is

BANK 1 BANK 2 BANK 3

SWIFTgpi

MT103 +UETR

1. Identify as gpi & route payment

2. Generates 103 with UETR which will create transaction in payments tracker

1. Pass-through UETR in a new MT103

2. Update status in tracker

1. Credit the payment

2. Confirm to tracker

MT103 + UETR

Payments tracker

Originator Beneficiary

Status update (MT199/API)

May 2017 - GPI

How GPI MT103 looks

May 2017 - GPI

Alliance Access

Alliance Entry

AMH

Alliance Lite2

Other interface

Middleware

to multiple

payment

systems

How to implement gpi

automated flows ? Bank

payment

application

Corporate to

Bank

Transactions

ePortal

Unique transaction references ?

Confirming payments ?

Tracking of payments ?

Routing decisions ?

Inform corporate clients ?

SWIFT gpi

Payments

Tracker

13 May 2017 - GPI

Alliance Access

Alliance Entry

AMH

Alliance Lite2

Other interface

Middleware

to multiple

payment

systems

Implement gpi fast and smooth,

with minimal impact on bank’s

applications Bank

payment

application

Corporate to

Bank

Transactions

ePortal

gpi Connector

Software (*)

Generate transaction reference

Generate gpi confirmations

Access to gpi Tracker (API)

Access to gpi Directory (API)

Determine if a gpi route is possible

Customisable, to speak the language of

your application (*) The listed features are tentative

SWIFT gpi

Payments

Tracker

14

Independent of

the FIN interface

May 2017 - GPI

Burden of gpi technical compliance placed on customer (UETR, type

code)

All integration handled in bespoke manner

Mandatory SWIFT software to communicate with gpi Tracker (using API)

Hosted at customer premises

Acts as the interface between backoffice applications to gpi Tracker

Customer

needs

GPI Connector Introduction

Expose gpi Tracker API to backoffice applications

Requires configuration to setup connectivity to Tracker

Connector

Functions

What is

Connector

May 2017 - GPI

FIN

16

gpi – client architecture types

Multiple

payment

systems,

geographically

distributed,

multiple

currencies.

No corporate

information

Middleware

consolidates

multiple BO,

Corporate web

application

queries Tracker

via API

Payment

Systems

Payment

Systems Corporate web

application

updated via

MT199

Payment

Systems

Corporate

Portal

FIN interface FIN interface

FIN

Payment

Systems

Payment

Systems

Own

Payment

Systems

Payment

Systems

Payment

Systems

Vendor

Payment

Systems

FIN interface FIN interface

FIN

FIN

transaction

status DB

FIN interface

Payment

Systems

Payment

Systems

Own

Payment

Systems

FIN interface

Payment

Systems

Payment

Systems

Vendor

Payment

Systems

Mid

dle

wa

re

exception

management

FIN

Corporate

Portal API Queries

API Updates

gp

i co

nn

ecto

r May 2017 - GPI

17

gpi high level flow

gpi tracker

Customer

applications

gpi MT msg

Normal MT msg

Proprietary msg

gpi MT103

SAA

AMH

3rd party S/W

API gateway

gpi connector

(API) Embedded

Or Standalone

License gpi connector

Service gpi connector installation and

configuration (2 md)

Customers need to develop its back

office based on “gpi specification” and

fulfill gpi SLA requirements

FIN service

SWIFT

gpi MT199

May 2017 - GPI

18

gpi connector with additional integration

gpi tracker

FIN service

Customer

applications

gpi MT msg

Normal MT msg

Proprietary msg Alliance

Access Normal

MT103

MQ

File

SOAP

gpi MT103

gpi directory

gpi connector

(API) Embedded

Or Standalone

API gateway

Integration

solution

FileAct

Auto Sent

License IPLA + gpi connector

Service gpi connector installation and

configuration + Integration services

+ Benefits of gpi

API

_ No RESTful

development

Process

unchanged

MT103 format + Possible

hybrid model

gpi MT199

Customers need to fulfill gpi SLA requirements

Eg: trigger a status update

SWIFT

May 2017 - GPI

Tracker screen: In progress transaction

19 May 2017 - GPI

Tracker screen: Completed transaction

20 May 2017 - GPI

21

gpi Integration – Safety Net (IPLA only)

Business Day N Business Day N+1

gpi cut-off Safety Net time gpi cut-off Safety Net time

• Multiple cut-offs (depending on currency)

• Cut-off < Safety Net time < EOD

• Non-business days retrieved from Calendar (IPLA only)

• Cut-offs and Safety Net time configurable

Legend:

= Moment of receipt of MT103gpi

= Unconfirmed MT103gpi

= Time covered in one Safety Net cycle

= Available time to confirm MT103gpi

May 2017 - GPI

22

Tracker database is accessible via 3 channels

MT199 API

How to

report

status?

How to get

status

updates?

MT199 sent to SWIFT’s tracker

BIC (TRCKCHZZ)

API query, over SWIFTNet,

same contents than MT199,

JSON format

MT199 sent from Tracker BIC

(one message per event)

API query/response

GUI

N/A

Visualization of the transaction

status and details in a Graphical

User Interface

each bank can choose its

preferred ways to

connect: could be a mix

of the 3

Typical

Use Case

Exception management or

Investigations on specific

payments

Payment status stored locally

for further processing (internally

or towards clients)

Get payment information on

demand for a query initiated by

a third party application

May 2017 - GPI

23

Benefits of using each connectivity option

Characteristics

comparison

Benefit of using API Benefit of using MT199

API uses WebAccess (Browse)

service, MT199 uses FIN service

1) Instructing banks’ existing FIN traffic will not be

affected since WebAccess is segregated from FIN

2) Multiple MT199 can be received per transaction as

opposed to a single API call

1) Familiarity with FIN

API enables instructed bank to

know that an inwards payment is

coming

1) Instructed banks have a new source of information

to forecast liquidity

1) Not Applicable

API contains the receiving

timestamp of each bank, the

MT199 does not

1) Remitters can calculate the time each bank in the

chain took to process the transaction

2) Remitting bank can check the service level of their

correspondents

1) Not applicable

API is used as an online pull of

information, MT199 is a push

1) API does not require inhouse storage of

information as information can be retrieved from

Tracker

2) API information can be retrieved multiple times.

MT199 cannot be re-requested if the MT199

message was not consumed properly

3) Banks using API can control when the information

is retrieved or sent

1) Passive receipt of MT199

2) Gpi data is stored inhouse and not subject to

SWIFT Allowable Downtime Window

API is synchronous, MT199 is

asynchronous

1) Immediate error handling with API calls

- Error status of API call is known immediately

1) Almost immediate update of status

May 2017 - GPI

A simple look

24 May 2017 - GPI

25

Alliance Access & AMH customers – gpi connector embedded

Alliance

Gateway

SWIFT

Alliance Access

AMH

HSM

Back office

applications

gpi Tracker

IdP

gpi connector

API to Tracker

authentication

RESTful services Requests &

confirmations

May 2017 - GPI

26

Other interfaces & AMH customers – gpi connector standalone

Alliance

Gateway

SWIFT

HSM

Back office

applications

gpi Tracker

IdP

gpi connector

API to Tracker

authentication

RESTful services

Other interfaces

AMH

Requests &

confirmations

May 2017 - GPI

27

Lite2 customers – using tokens today on Internet

MV-SIPN

Back office

applications

gpi Tracker

IdP

gpi connector

API to Tracker Requests &

confirmations

authentication

RESTful services

AutoClient

Internet Lite2

May 2017 - GPI

Agenda

1. What is the current adoption of GPI globally?

2. What is the value proposition for your customers?

3. How to integrate GPI with your local SWIFT Infrastructure?

4. Implementation Details

May 2017 - GPI

Initiation Implementation Certification

~ 10 weeks ~ 5 months ~ 3 weeks ~ 3 weeks ~ 1 week

Provide necessary info

on gpi impact, rules, …

and address questions

& issues

Process questionnaire

answers

Involved in vendors

questions when

needed

• Assistance when required (Q&A mode) and ad hoc

communications

• Track progress via monthly meetings and dashboard

• Joined preparation of the certification process (test

catalogue, pre-requisites, …)

• Act as a sparring partner

allowing the Onboarding

Bank to successively

test in the roles of

instructing, instructed

and intermediary agent.

• Faciliate the

organization of

integrated tests with

other (Live or

Onboarding) banks

• Live

controlled

usage, with

execution of

limited

number of

scenarios with

minimal

amounts

Penny

Testing

(LIVE)

Community Testing

(T&T)

29

Business Req’s

Gap / Impact Analysis

Solution Architecture

Project Mgt Plan

Func / Tech Design

Development

Unit & System Testing

In-house Dev

Receive / Install Patch

Configuration & Testing

Vendor package

Project Management

Project Kick-Off Start Implementation Ready for Start of

Certification Process Certified by SWIFT

Ready for

Go-Live

Bilateral Testing

(T&T)

Ready for

Community Testing

On

bo

ard

ing

Ba

nk

S

WIF

T

Pa

rt o

f th

e L

ive

gp

i C

om

mu

nit

y

and/or

Indicative Planning of a gpi Onboarding Project

www.swift.com

SWIFT gpi for Corporates - Webinar update - Internal