SWIFT For Corporates

Road Ahead for Corporate Connectivity

About SWIFT

A member-owned cooperative by and for the financial

services industry

A platform to exchange financial information securely

and reliably

Brings financial community together to work collaboratively to shape market practice, define standards and

debate issues of mutual interest

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COMMUNITY PLATFORM STANDARDS

Bring the financial community together Exchange financial information securely and reliably

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A partnership between SWIFT and 9 public and

private sector Indian banks (SBI, PNB, BoI, UBI,

Canara, BoB, HDFC, ICICI and Axis).

The RBI approved channel provider to payment

systems, for trade finance, treasury, corporate-to-

bank exchange and other markets.

Our aspirations are to provide the Indian financial community: • best-in-class domestic messaging and standards services that are reliable, secure and scalable,

• based on standard and proven SWIFT technology,

• at a fair and competitive price in Indian Rupees to the community,

• with ownership and governance by Indian banks,

• and support RBI vision and objectives for (i) competition,

(ii) reduced concentration risks and (iii) international best practices.

Current Challenges / Needs of a Corporate Treasurer

Industry

Requirements

Simplified Implementation

Secure connectivity to

banks

Low TCO

Bank agnostic solutions

Automation/ STP

Best of breed technology

Risk mitigation/ Tighter controls

SWIFT for Corporates

Managing multiple

proprietary channels

a challenge

Corporate Client

Account

Payable

Account

Receivable

Treasury

Trade

Finance

Internet

VAN

Leased Line

PSTN

H2H

e-Banking X

e-Banking Y

“Fax-Banking”

Others

A single standardised

channel to multiple

banks

Corporate Client

Account

Payable

Account

Receivable

Treasury

Trade

Finance

SWIFT Net

SWIFTNet Interface

• One gateway • One network • One security

standard

• Lower costs • Reduced risk • Improved control • Better compliance

Others

SWIFT for Corporates The Evolution since 2008

1585 corporate groups

using SWIFT

2630 Banks

reached

globally

46% Fortune 500

companies

on SWIFT

37% Less than

USD 1 billion

25% Less than 0.5

USD billion

Representing more than

30,000 corporate entities: Joined in 81 countries

With business in 193 countries

More than 14% of the SWIFT membership

is now made up of corporates

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Benefits

SWIFT offers

Corporates a

comprehensive

solution for

communication with

their banks

Improved transparency - Efficient working capital management - Better forecasting

Process improvement and automation - Predictable and confident treasury ops - Reduced manual intervention - Automated reconciliation

Reduced operations costs - Harmonized bank communications - Common integration with ERP & TMS

Uniform security and reduced risks - Common security framework - Enabling uniform controls and

improved compliance

• Aggregation of accounts worldwide • Intra-day / end of day balance • Cash forecasting for borrowing and

investment activities

• Payment factories (A/P consolidation) • Treasury centralization • Consolidation of Bank relationships

• Secure and agnostic connectivity to banks • Compliance to new regulations

Centralization and consolidation

Multibank cash reporting

Compliance and risk management

• Straight-through-processing • Low TCO

Automation

Your job as treasurer Corporate-to-bank requirements SWIFT

Manage payments and collections processing

Manage cash

Manage Foreign exchange

New revenue from better cash management

Actual cost savings

Opportunity cost savings

Risk management

Building your business case

In short: why

are corporate

joining

SWIFT?

How we can help you

Market Segments

supported over

SWIFT

SWIFT offers a wide and

growing range of products

and services for multi-

banked corporates

Payment

and Cash

Management

Trade

Finance Treasury

Credit/Debit Instruction

Payment status advice

• Treasury payments

• Bulk payments

Account statement

(including intra-day

statements)

Latter of credit

Bank guarantee

Supply chain finance

FX deal confirmation

• FX (INR/USD)

• FX (INR/Non USD)

• FX Options

• Loans and deposits

Regulatory reporting

On-boarding

Solutions Contract with SWIFT

SWIFT Connectivity

System Integration

Standards & Automation

Bank On-boarding

SWIFT On-boarding Solutions

Products Tools Services

SWIFT’s On-boarding Solutions help new and existing clients go live faster with SWIFT messaging services

Decision Go Live

SWIFT 3sKey

Digital signature and

authentication

• No uniform mechanism

• Different system per bank

• Costly and difficult to maintain

• Multi-Bank

• Multi-Country

• Multi-Application

• Multi-Network

Typical landscape at corporates

The Solution

Identity and Mandate

Management

3SKey for user (login)

authentication

Web e-Banking

Cloud applications

Cash &Treasury portals

Data sensitive applications

Internal applications

Corporate user

The Bank Payment

Obligation (BPO)

A strong alternative

instrument for trade

settlement

Seller’s bank Buyer’s bank

Central data

matching

TSU

Rulebook

Any channel /

any format /

any solution

Any channel /

any format /

any solution

Paper documents

Dematerialised flows

BPO: a new

payment term in

the Sale contract

UR BPO

Buyer Seller

TSU

SWIFTREF

Corporate Treasury

Challenges - Incorrect /

Inaccurate Bank Data

Every month we track up to 20% of changes in our reference data, therefore it’s critical to keep the master bank database always up to date.

Resource-intensive Costly

Data maintenance

Highly manual Error-prone

Thousands of suppliers worldwide

… with bank data changing frequently…

Data sourcing from multiple (unreliable) reference data

sources

Company staff updating data manually

and independently

How can SWIFTRef

help?

All the reference data corporates need Worldwide, Accurate, Up-to-date, Any time and from a Single source!

IBAN format (ISO13616) BIC (ISO9362) LEI (ISO17442) Local Operating

Units

Legal Entity Identifiers (LEI)

Central banks, Banking associations

National Bank/Sort codes

Financial institutions

Standard Settlement Instructions, IBAN and

SEPA data

Financial information

providers Credit ratings, annual reports,

regulation & sanctions data

CNAPS-codes, IFSC-codes, CHIPS codes,

Thank you