The SWIFT global payments innovation: embracing the … gpi -dedicated event-March 2017... · The SWIFT global payments innovation: embracing the future ... RETAIL WHOLESALE 847 243

The SWIFT global payments

innovation: embracing the future

of cross-border payments

13th of March 2017

Janssen Marianna, SWIFT Regional gpi expert

SWIFT gpi initiative: revolutionary or evolutionary change?

gpi dedicated event_March 2017 2

Marianna Janssen – Copenhagen – 16/09/16

Revolution

or evolutionary

change?

“Remember, the greater the opportunity, the fewer are those who see it.”

Capt. James Cook 1728-1779

New Banking Landscape 1/4

A significant disruption or an immense opportunity?

Digitalisation and new non-traditional digital players, intensified competition

New technologies available generating new business needs in the traditional banking business, moving away from proprietary solution towards channel/format/platform agnostic solutions

More than ever demanding customers, re-evaluating services provided by Financial Institutions, trend of reducing the number of banking relationships

Regulatory pressure, the cost of compliance

Challenges/Trends

Challenges

and

Trends

gpi dedicated event_March 2017

Correspondent banking 2/4

Evolution of the business model

Low Risk

Low Margin

High Risk

Low Margin

De-risking as a general trend




0

500

1000

1500

2000

2500

2014 2024

RETAIL WHOLESALE

847

243

1,510

480

1,090

1,990

Revenues ($ billions)

Source: BGC Global Payments report 2015

900$ bn. potential Revenue growth through 2024




Rejuvenation of retail banking and leveraging technologies in other segments by delivering new services

New opportunities of acquiring new capital and new customers by offering innovative and attractive solutions

The ones with a customer-centric strategy will see the customer portfolio growth, others will see a significant decrease

The quickest will monetise the bulk of new revenues, the less adaptive will face margins deterioration and potentially loss of business

Opportunities

for banks

Russian payments market: trends & specificities


0% 20% 40% 60% 80% 100%

RU-CIS

North America

Middle East

Europe - Non Euro Zone

Europe - Euro Zone

Central & Latin America

Asia-Pacific

Africa

88%

45%

73%

44%

40%

82%

53%

62%

8%

50%

20%

48%

58%

15%

39%

35%

0%

0%

4%

0%

0%

2%

2%

1%

4.43%

4.27%

4.34%

7.80%

2.40%

1.95%

6.14%

1.30%

0% 20% 40% 60% 80% 100%

Others

RU-CIS

45.5%

87.8%

48.9%

7.6%

0.6%

0.2%

4.9%

4.4%

Payments

Securities

Trade Finance

Treasurygpi dedicated event_March 2017

World Regional FIN Traffic

Live & Delivered total traffic in 2016

Source: SWIFT Watch

9


FIN Traffic Market Repartition in Russia & CIS countries

Live & Delivered traffic in 2016

Traffic Sent: 88 million messages Traffic Received: 86 million messages

Source: SWIFT Watch

Payments 86.6%

Securities 9.1%

Treasury 4.1%

Trade Finance 0.2%

Payments 89.0%

Securities 6.0%

Treasury 4.8%

Trade Finance 0.2%

10


Top Countries with Highest FIN Traffic in Russia & CIS countries

Live & Delivered traffic in 2016

Total Traff ic = Traff ic Sent + Traff ic Received

Source: SWIFT Watch

Ranking Country Total Traffic Weight in

Russia & CIS Growth

(2016 vs 2015)

1 Russia

157,232,152 88.9% +15.33%

2 Belarus

6,143,949 3.5% +8.31%

3 Kazakhstan

4,761,647 2.7% -1.49%

4 Georgia

2,138,275 1.2% +20.78%

Other

Countries

6,554,514 3.7% -8.58%

Total RU-CIS

176,830,537 13.50%

11

World Regional Transactions in Payment Market Live & delivered transactions of MT 103s in 2015 and 2016

Total Transactions = Transactions sent + received

+18.0%


World Growth = +5.0%

Source: SWIFT Watch

0

100

200

300

400

500

600

Europe - NonEuro Zone

Europe - EuroZone

North America Asia-Pacific RU-CIS Africa Middle East Central & LatinAmerica

Mil

lio

ns

2015

2016

12


Distribution of Payments Transactions of Russia & CIS countries

Live & delivered transactions of MT 103s in 2015 and 2016

Source: SWIFT Watch

Total Transactions = Transactions sent + received

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

International

Domestic

13


Payments Transactions Evolution of Russia only Live & delivered transactions of MT 103s in 2015 and 2016

Growth Transactions Sent FY2016 vs. FY2015 +18.78% Transactions Received FY2016 vs. FY2015 +20.06%

Source: SWIFT Watch 0

1

2

3

4

5

6

7

Mil

lio

ns

Transactions Sent

Transactions Received

14


Source: SWIFT Watch

Weight of international payments sent by Russia & CIS countries Live, international & delivered MT103s transactions sent in 2015-2016

4.48%

0.71%

2.02%

2.03%

2.10%

4.00%

10.24%

14.43%

60.00%

4.77%

0.79%

2.10%

2.08%

2.14%

4.47%

10.88%

13.62%

59.15%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Others

Uzbekistan

Azerbaijan

Moldova

Armenia

Georgia

Belarus

Kazakhstan

Russia

2016

2015

15


Source: SWIFT Watch

Weight of international payments received by Russia & CIS countries Live, international & delivered MT103s transactions received in 2015-2016

2.45%

1.58%

1.80%

1.67%

1.92%

2.97%

4.03%

5.79%

15.67%

62.12%

2.34%

1.62%

1.82%

1.84%

2.07%

2.74%

4.43%

5.78%

15.82%

61.53%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Other

Kyrgyzstan

Armenia

Azerbaijan

Mongolia

Moldova

Georgia

Kazakhstan

Belarus

Russia

2016

2015

16

Top 10 Payments Corridors from Russia & CIS countries to the World Live, international & delivered transactions of MT 103s in 2016


Source: SWIFT Watch

0 0.5 1 1.5 2 2.5

Kazakhstan - Germany

Belarus - United States

Russia - China

Belarus - Germany

Georgia - United States

Russia - Latvia

Kazakhstan - United States

Russia - Belarus

Russia - Germany

Russia - United States

Millions

5 of the top 10 corridors are sent from Russia

and represents 39.62% of the total transactions

4 of the top 10 corridors are with United States

as the counterparty country and represents

24.38% of the total transactions

17

Top 10 Payments Corridors from Russia & CIS countries to the World Live, international & delivered transactions of MT 103s in 2016


Source: SWIFT Watch

0 0.5 1 1.5 2 2.5

Kazakhstan - Germany

Belarus - United States

Russia - China

Belarus - Germany

Georgia - United States

Russia - Latvia

Kazakhstan - United States

Russia - Belarus

Russia - Germany

Russia - United States

Millions

5 of the top 10 corridors are sent from Russia

and represents 39.62% of the total transactions

4 of the top 10 corridors are with United States

as the counterparty country and represents

24.38% of the total transactions

18


Top 5 Counterparties for Payments with Russia as the Receiver

Live, international & delivered MT 103s to Russia in 2016

US

DE KZ BY

GB

Source: SWIFT Watch

United States, 25.48%

Germany, 15.79%

Kazakhstan, 12.65%

Belarus, 9.55%

United Kingdom,

7.67%

19


Top 5 Counterparties for Payments with Russia as the Receiver

Live, international & delivered MT 103s to Russia in 2016

US

DE KZ BY

GB

Source: SWIFT Watch

United States, 25.48%

Germany, 15.79%

Kazakhstan, 12.65%

Belarus, 9.55%

United Kingdom,

7.67%

20


Top 3 End Beneficiary Countries of Transactions Sent to US

Live international & delivered MT 103s from Russia in 2016

End Beneficiary Countries (EBC) Growth: FY2016 vs FY2015

Stay in United States

288 kmsgs (+1.30%)

Hong Kong

140 kmsgs (+16.37%)

China

266 kmsgs (+14.83%)

Source: SWIFT Watch

16.0%

14.0%

9.8%

14.3% 14.5%

11.4%

United States China Hong Kong

2015 2016

21

New challenges, new business rules: the leaders and the followers


23

SWIFT gpi: the reason of existence


24

SWIFT gpi - One year on

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


SWIFT gpi offering: the fundamentals


gpi video 1

SWIFTgpil_V1-2-3_FINAL.mp4



SWIFT gpi promise: the fundamentals

Payment traceability: transparency of transactional status

Increased speed of Payment processing along the chain

Secure SWIFT network and compliant process

SWIFT Global reach but open and inclusive

Deliver a better customer experience through increasing efficiencies

Transparency of fees and processing time along the chain

Stil l reach

non-initiative

banks

Accessible

by any bank

Reaching

any bank

Tracker

Directory Observ er

SWIFT gpi concept

SLA rulebook

Core transaction banks

Enablers

Messaging technologies


SWIFT gpi product offering


SWIFT gpi product suite

Directory Tracker Observer

End-to-end payments tracking database to

monitor progress of a gpi payment

Allows to track a payment’s path in real

time, obtain transparency on deducts and

confirmation that payment was credited

Business Intelligence dashboard showing

bank compliance with gpi SLA.

Ensure control, monitoring and

enforcement of SLA, and, consequently,

service quality

Availability

December 2016 via SWIFT r

Reach Plus

July 2017 dedicated gpi Directory

Availability

GUI: November 2016

• MT 199 / API: May 2017

Availability

Basic version: May 2017

Advanced version: Q4 2017

• Providing operational info on gpi

members, BICs, currencies, cut-off times

• Essential reference data to calculate best

gpi payment route

29 gpi dedicated event_March 2017

SWIFT gpi Tracker


Central payments database,

hosted at SWIFT

Updated via MT199 or API

Data consumption via GUI, via

MT199 (push) or via API (pull)

SWIFT gpi Tracker “in the cloud”

Bank A Bank B Originator Beneficiary Bank C

MT199/API

(MT101) MT103 MT103 (MT910)

MT199/API MT199/API

“One-glance”

status overview

Track path,

in real time

Details of banks along

the chain

Transparency of total fees and time

Unique, end-end tracking number

Bank D

MT103

MT199/API


32

Gpi Tracker – visuals


33

Tracker – in progress (1)


34



35



36

Tracker – completed


37

Tracker – rejected


38

Tracker – detailed search page

Overview of all

transactions, filtering

capability

More targeted

search capability, combination of

fields


SWIFT gpi Directory


PARTICIPANT ID ID TYPE PARTICIPANT NAME COUNTRY CURRENCY

CUT-OFF

TIME

CUT-OFF

DAY LOCAL TIME ZONE

ACTS AS

INTERMEDIAR

Y

REACHABLE

THROUGH CHANNEL TYPE START DATE STOP DATE

ANZBAU3MXXX BIC AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED AU AUD 16:00+10:00 Australia/Sydney Y D-C

ANZBAU3MXXX BIC AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED AU EUR 16:00+10:00 Australia/Sydney N D-C

ANZBAU3MXXX BIC AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED AU GBP 16:00+10:00 Australia/Sydney Y BARCGB22XXX INTERMEDIARY

ANZBAU3MXXX BIC AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED AU USD 16:00+10:00 Australia/Sydney Y CHASUS33XXX INTERMEDIARY

BARCGB22XXX BIC BARCLAYS BANK PLC GB GBP 16:00+00:00 Europe/London Y D-C

BARCGB22XXX BIC BARCLAYS BANK PLC GB EUR 16:00+00:00 Europe/London Y EBA FIN-PMI

BARCGB22XXX BIC BARCLAYS BANK PLC GB EUR 16:00+00:00 Europe/London N TGT FIN-PMI

BARCGB22XXX BIC BARCLAYS BANK PLC GB USD 16:00+00:00 Europe/London Y HKI FIN-PMI 20160915

BARCGB22XXX BIC BARCLAYS BANK PLC GB CNY 16:00+00:00 Europe/London Y HKI FIN-PMI

BARCGB22XXX BIC BARCLAYS BANK PLC GB CNY 16:00+00:00 D-1 Europe/London Y BKCHHKHHXXX INTERMEDIARY

BARCGB22XXX BIC BARCLAYS BANK PLC GB JPY 09:00+00:00 D-1 Europe/London Y SMBCJPJTXXX INTERMEDIARY

BARCGB22XXX BIC BARCLAYS BANK PLC GB USD 16:00+00:00 Europe/London Y BARCUS33XXX INTERMEDIARY

BARCGB22XXX BIC BARCLAYS BANK PLC GB USD 16:00+00:00 Europe/London Y CITIUS33XXX INTERMEDIARY

BARCGB2LXXX BIC BARCLAYS BANK PLC GB USD 16:00+00:00 Europe/London Y D-C

CITIUS33XXX BIC CITIBANK N.A. US USD 15:00-05:00 Y D-C 20160901

CITIUS33XXX BIC CITIBANK N.A. US USD 15:00-05:00 Y D-C 20160831

CITIUS33XXX BIC CITIBANK N.A. US CNY 15:00-05:00 D-1 Y HKI FIN-PMI

CITIUS33XXX BIC CITIBANK N.A. US CNY 15:00-05:00 D-1 Y DEUTHKHHXXX INTERMEDIARY

CITIUS33XXX BIC CITIBANK N.A. US GBP 15:00-05:00 Y DEUTGB2LXXX INTERMEDIARY

CITIUS33XXX BIC CITIBANK N.A. US JPY 15:00-05:00 D-1 Y D-C

gpi Directory BIC at which the

participant is

reachable for

receiving gpi

payments

Participant's gpi

cut-off time for a

currency (not a

general cut-off

time for all

payments nor

bilaterally agreed

cut-off times)

Whether or not

the participant

acts as a gpi

intermediary for

this currency

How to reach the

participant ?

- Through an intermediary

- Through Direct or Cover

account relationship

- Through a FIN Payments

Market Infrastructure

The currency

accepted in

incoming gpi

payments, by the

Participant ID

The data shown here is fictitious and only serves to illustrates the syntax and possibilities. Blue fields are populated by SWIFT.

The country

determining

the bank

holidays of

the

participant

40 SWIFT gpi – <Customer> – <Session Name> – <Date> – Confidentiality: RESTRICTED

SWIFT gpi Observer




SWIFT gpi: why you should join


gpi_video 2_the_future_of_cross-

border_payents.mp4

WEB_the_future_of_cross-border_payments.mp4





What’s in it for you? Immediate return


No additional transaction surcharges from SWIFT

Gpi Tracker – a powerful tool for internal and external use

Immediate enhanced service portfolio

Example of thought leadership and innovation

Gpi Observer – a powerful BI tool providing competitive intelligence insights

www.swift.com Contact us

[email protected]

www.swift.com/gpi

Download

the SWIFTgpi App on your iPad

Eager to learn more about it?


mailto:[email protected]

http://www.swift.com/gpi

Documents

The SWIFT global payments innovation: embracing the … gpi -dedicated event-March 2017... · The SWIFT global payments innovation: embracing the future ... RETAIL WHOLESALE 847 243