SWIFT gpi for corporates

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Scarlett Stone
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1 SWIFT gpi for corporates A new standard in cross-border payments June 22, 2018

and Enterprise Risk Management, RTL Group

2 Speakers 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 Sebastian Rojas Head of SWIFT gpi for corporates, SWIFT 2

3 Some logistics To ensure a smooth presentation, we will handle all questions at the end of the webinar. During the webinar feel welcome to enter your question in the «Q&A» window and send it to «All panelists» 1. Enter your question here 2. Select All Panelists 3. Send 3

4 Corporate challenges with crossborder payments Automation BEN Where is my payment? Uncertainty Inconsistencies Traceability Deductions OUR Incomplete Predictability SHA Remittance information Exceptions and investigation Reconciliation 4

5 Cross-border payments are still too slow! Sending a cross-border payment can take up to 1 week While manufacturing a Toyota car takes only 18 hours 5

6 Regulations as enabler to new players? 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 6

Current context Customers & regulators want better

and B2C models even more Banks rationalize correspondent

although treasurers are facing multitude of new payment

7 Current context 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 7

8 Where is my payment??? MT 103 MT 103 Ordering Customer Instructing bank Intermediary bank Beneficiary bank Beneficiary Customer * BICs for illustration purposes only 8

9 Would tracking your payment on SWIFT be as easy as on AMAZON? 9

10 Impact on the daily business of an international company 10

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

11 In a nutshell, what is key for Treasurers? 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 11

12 Time for SWIFT gpi SWIFTgpi 1 Faster payments Same day use of funds* Accessible by any bank 2 Traceable End-to-end payment tracking & payment confirmation Core transaction banks SLA rulebook 3 Transparent fees Deducts and FX Reaching any bank 4 Full remittance data Unaltered reconciliation info Accessible by any corporate 12

13 SWIFT gpi: secure, faster, traceable & transparent cross-border payments Your bank Intermediary bank 2 Traceable End-to-end payment tracking & payment confirmation gpi a1700db1-90b d8-6309c5c34a3d Invoice Your company SWIFTgpi Rulebook $ 1 Faster payments Same day use of funds* Beneficiary s bank Beneficiary 3 Transparent fees Deducts and FX 4 Full remittance data Unaltered reconciliation info *Within the time zone of the receiving gpi member 13

14 SWIFT gpi is dramatically speeding up cross-border payments! +90% < 1 day end-end 14

15 Unparalleled growth in adoption, traffic and corridors Very large 180 community banks committed to implement, 49 top 50 banks signed 200+ countries covered 80+% SWIFT cross-border payments represented Millions live payments 60 banks live 32 top 50 banks 450+ country corridors 35+ Mio payments sent as gpi since go live 400K payments/day 25+% cross-border MT103 sent as gpi 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 15

60 banks are live, with more than 119 banks in the implementation phase 60 gpi banks live Nordea Bank Royal Bank of Canada Wells Fargo HSBC Bank of New York Mellon Citi JPMorgan Chase Bank of America

SUN Commercial Bank ICICI Bank ING China Guangfa Bank Rabobank China Minsheng Bank Shanghai Pudong ABN AMRO Bank Turkiye Garanti Development Bank BNP Paribas Commerzbank Bankasi Bank of

16 60 banks are live, with more than 119 banks in the implementation phase 60 gpi banks live Nordea Bank Royal Bank of Canada Wells Fargo HSBC Bank of New York Mellon Citi JPMorgan Chase Bank of America Merrill Lynch Danske Bank Alfa-Bank E.SUN Commercial Bank ICICI Bank ING China Guangfa Bank Rabobank China Minsheng Bank Shanghai Pudong ABN AMRO Bank Turkiye Garanti Development Bank BNP Paribas Commerzbank Bankasi Bank of Communications KBC Bank Raiffeisen Bank National Bank of Bank of China Bank of Jiangsu Natixis International Kuwait China Zheshang Bank Deutsche Bank ICBC China Construction Bank Crédit Mutuel-CIC Société Générale Bank al Ethiad China CITIC Bank CTBC Bank Sumitomo Mitsui Commercial Bank BBVA UniCredit Banking Corporation Intesa Sanpaolo of Kuwait Siam Commercial Bank National Banco Santander Bank for Investment & KB Kookmin Bank Commercial Bank OCBC Development of Vietnam Bangkok Bank Mashreq DBS Bank Bank Standard Chartered FirstRand ABSA Bank Nedbank Standard Bank National Australia Bank Westpac ANZ Commonwealth Bank of Australia 16

17 Getting started with SWIFT gpi Advanced 3 Multi-bank / multi-channel Payments Tracking Corporate generates unique transaction reference (UETR) gpi Standards for FIN & ISO Harmonised tracking details across banks 11 banks 11 corporates Pilot Corporate 2 Payments tracker in bank portals Visibility through unique transaction reference (UETR) Real -time transaction status updates Detailed bank fees & FX rates Beneficiary payment confirmation + 14 banks Live Standard 1 gpi Payments Same day payments Unaltered remittance information Visibility on bank fees (on request) End-to-end traceability (on request) 60 banks Live 18

18 Banks and corporates are integrating gpi Automated channels 11 banks & 11 corporates in pilot MNC MT 101/ pain.001 MT 199 /pain.002 H2H APIs 36 banks with gpi APIs live or in implementation ERP / TMS gpi connector SME Web portal Front-end applications Back-end applications e-banking portal 14+ portals live 19

19 Pilot participants 20

20 Corporate pilot: end-to-end C2B/B2C gpi flows gpi payments tracker 3 TMS/ERP Ordering corp 1 MT 101/pain UETR(s) 4 MT 199 /pain UETR(s) 2 MT UETR MT 103 UETR Beneficiary 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) 21

21 Corporate pilot a common canvas for multi-banked corporates Corporate-specific payment statuses Common approach for payment reporting (transparency) Standards FIN & ISO Delivered to beneficiary bank Default Date & time 26 April :00 CET MT 101, MT 199 (gpi) pain.001, pain.002 Confirmation of credit to beneficiary gpi status Credited Status originator Save with us Bank (SBWUDE33) Rejections Out of gpi Instructed Amount and currency Confirmed Amount and currency USD EUR Routing Banca Mexicana de Credito Cash bank Save with us bank Bank optional FX information Save with us Bank USD to EUR exchange rate: 1.22 Deducts information Cash bank: - 20 EUR Charge code SHA 22

22 Pilot timelines: from testing definition to controlled live May Jun Jul Aug Sep Oct Nov Dec Phase 1 Phase 2 Phase 3 API final specs Kick-off Phase 2 Kick-off Phase 3 Individual project planning + business pairing Bilateral testing with SWIFT Community testing (B/C) Controlled live Live Pre-bilateral readiness Preparation (optional) Sibos Kick-off Individual project plans CUG registration (T&T and Live) Tracker release & CUG activation (T&T) Kick-off Bilateral testing gcat activation Status group call bilateral and community testing CUG activation (Live TBC in Phase 2) Second group (banks, corporates, vendors) 23

23 How to get started with SWIFT gpi? 1 Identify your key corridors and needs 2 Contact your banks & IT vendors, and ask about SWIFT gpi 3 Include gpi (payments and tracker) in your next bank or TMS/payment factory RFP

24 Critical success factors

25 Questions & Answers

26 Questions? Contact: Download SWIFTgpi App on your ipad 27

SWIFTgpi A new standard in cross-border payments. Jul, 2017

SWIFTgpi A new standard in cross-border payments Jul, 2017 Your cross-border payment challenges Speed Critical business requires faster payment execution Transparency Many times we don t have visibility