AFTE Treasury Tech Lab 28 Janvier 2019 Agenda 1. Commission - - PowerPoint PPT Presentation

COMMISSIONS DE L’AFTE Commission Fintech

AFTE Treasury Tech Lab 28 Janvier 2019

COMMISSIONS DE L’AFTE

Agenda

2

*Irritant : problème dont les solutions actuelles, quand elles existent, ne sont pas/plus réellement satisfaisantes (2018) *entrain: vivacité et bonne humeur communicatives. Animation gaie (2019)

1. Commission actualités 2. KYC Experimentation

1. Introduction: 2. Estelle ROIENA (R3 CORDA) 3. Feedback Banques et Assurances ‒ Pierre SEIN (EULER HERMES) ‒ Frederic DALIBARD (NATIXIS) ‒ Martial CHAMOUNAUD (SOCGEN) 4. Feedback Corporates ‒ Jean-François BARDELLI ( DAHER) ‒ Mathieu LAPASSET (DANONE) ‒ Noëlle Belmimoun (ARCELOR MITTAL)

3. Next steps

‒ Frédéric MAI (CONFORMITEE) ‒ Estelle ROIENA (R3 CORDA)

COMMISSIONS DE L’AFTE

KYC Experimentation

02

What problems are we are trying to solve?

Financial Institutions all performing the same checks Corporate customers send multiple documents to multiple FIs all performing the same checks Resulting in expensive, labor- intensive and unreliable updating Onboarding times can take as long as 2-4 months. Corporates take the most time.

KYC is an expensive and time consuming process!

Resulting in duplicative and expensive efforts

Current State

KYC

Customers Send multiple documents & data To multiple Financial Institutions To perform the same checks Customer frustration Significant costs, and delays

Current State

• Highly fragmented and

increased risk

• Data take days to transfer and

validate

• Regulatory reporting is tedious

and suffers from human error

• KYC data delivered by

customers multiple times and stored locally by each bank

Duplication Duplication

Future State

Why DLT?

Future State

• Data controlled by the

customer

• Reduced data transfers and

security risk

• Improved Customer

experience

• Cost and time reduction
• Improved auditing and

regulatory reporting Customers Customers own and control their data Customers permit and revoke access to KYC Data Single version of Data Banks access Customer KYC data 3rd party attestation done once

French Corporate CordaKYC Trial

Deployment Global Trial Summary Webinar Kick-off VM Setup Welcome Webinar Corda Network Webinar Compliance & Reg Webinar Use Case Webinar

Redeployment Office Hours Corda Introduction Key Concepts Training Corda for Business KYC in Corda Leia II Prototype Model Selection Prototype Mechanics Corda Network Business Networks Tech Contact Feedback

We are here

5

Banks

14

Customers

French Trial: Actors

5

Asset Managers & Insurers

1

Attester

103

Individuals joined the project

25

Institutions

Project Participation

25

Institutions deployed nodes

35

Nodes on Corda Testnet

Global Trial Participation

Global Trial: Transactions

185

Approved KYC data shared to attester & banks

232

KYC Updates sent to Banks

Delivered

Learnings:

• Corda Introduction & key concepts
• KYC and LEIA2 use case recordings and videos
• Corda network and Business networks blog, playbook and podcast
• End of section Q&A Webinars
• Partner Showcases

Deployment:

• Azure subscription for cloud deployment
• Deployment instructions
• Tech support

Trial:

• Interactions with 25 institutions and 35 nodes
• Platform support for duration of week long trial
• R3 hosted services: attester and datastore

Learnings

Corda Introduction (Week 1)

• Welcome webinar
• Introduction to Blockchain
• Introduction to Corda (video and blog)
• Corda Key Concepts training
• Introductory whitepapers

Corda for Business (Week 2)

• Corda Enterprise
• What is a CorDapp?
• Use cases for Corda
• Industry initiatives
• Case studies
• Corda webinar

KYC on Corda (Week 3)

• KYC on Corda
• Model Selection
• Leia II Prototype
• Regulatory Considerations research
• Regulatory considerations webinar
• Leia II Prototype Mechanics
• Use case webinar

Partner Showcases (Week 4 )

• Gemalto Trust ID
• Capgemini KYC Trust
• Tradle

• n Corda already in

COMMISSIONS DE L’AFTE

Témoignage Banques et assureurs

• Frederic DALIBARD (NATIXIS)
• Martial CHAMOUNAUD (SOCGEN)
• Pierre SEIN (EULER HERMES)

COMMISSIONS DE L’AFTE

Témoignage Banques et Assureurs

• Quel est ton opinion sur l’expérimentation faite dans les aspects

techniques, de mise en place et utilisation ?

• As-tu trouvé que la plateforme a une avantage quelconque par rapport

à tes actuels méthodes de communication KYC avec les Corporates ?

• Quel est l’effort que vous êtes disposé à faire pour vous mettre

d’accord avec vos pairs pour donner une solution conjointe à cette problèmatique?.

COMMISSIONS DE L’AFTE

Temoignage Corporates

• Jean-François BARDELLI ( DAHER)
• Mathieu LAPASSET (DANONE)
• Nöelle BELMIMOUN (ARCELORMITTAL)

COMMISSIONS DE L’AFTE

Témoignage Corporates

• Quel est ton opinion sur l’expérimentation faite dans les aspects

techniques, de mise en place et utilisation ?

• As-tu trouvé que la plateforme a une avantage quelconque par rapport

à tes actuels méthodes de communication KYC avec tes partenaires ?

• Quel sont vos besoins au niveau de KYC pour le future?.

COMMISSIONS DE L’AFTE

Next Steps

03

Active Development

Smart

Annual fee of €50,000 /$75,000 In addition to the introductory package, ‘Smart’ membership enables you to advance your development towards live solutions with increased technical deployments and support.

• Dedicated Account Manager
• 10 days of R3 professional services ( assistance with POCs,

Corda deployment ) see rate card

• Unlimited participation in CorDapp Trials
• Co-host an industry working group
• One free virtual Corda developer training session (max 20

people)

• R3 Microsoft Azure cloud usage*
• Membership fee credit against Corda Enterprise license ( in

year of membership ).

• Co-author one paper with the R3 research team*

Educational, Observational

Introductory

Free of charge The introductory membership allows for corporate members to enter into the blockchain/ distributed ledger industry and join the R3 ecosystem:

• Access to online Corda training for business and tech.
• Participate in R3’s extensive private research library
• Gain access to members’ previous projects*
• Contribute to industry working groups (Healthcare,

energy,..)

• Participate in 1 CorDapp Trial, fast-learning of the next

generation of Blockchain technology

• Get introduced to global initiatives at early stages
• Annual theme strategy update
• Full access to the R3 Marketplace
• Attend r3 events including the global members conferences

held with leading cross-industry institutions *Subject to any IP restrictions *Subject to availability

R3 Marketplace

Bringing R3 partners and members together to discover solutions built on Corda.

• Join our global ecosystem of partners and leading institutions

leveraging Corda

• Explore and trial the growing catalogue of CorDapps
• Broadcast and promote your solution and expertise to the

R3 Ecosystem

• Find the right partner to help you deliver your solution

marketplace.r3.com

Join a project to continue the development of a production grade KYC solution, based on Leia II

Join project to contribute to production-grade KYC application (building on from leia II)

KYC Trust: Corporate KYC

Roadm ap Our ambition is to deploy a MVP by Q2 2019 and scale globally

Europe NA Q1 2 0 1 9 Scale from : MVP Production ready Q4 2 0 1 8 Corporates Banks Minim um Viable Product Europe + NA Banks Corporates Q2 2 0 1 9 Q3 2 0 19 Q4 2 0 1 9 I terative Releases & Extensions New countries New invited banks New invited Corporate & subs W orkshops Banks Corporates Global

+

Engagem ents Banks Corporates Term sheets Scale out End Users requirem ents Roll out

Voltron – The Open Platform for Documentary Trade

• Voltron is a letter of credit (LC) application, business network and

consortium focused on developing an industry utility to provide a comprehensive, digital and simplified documentary trade solution for banks and corporates. For corporates, Voltron enables:

• shorter working capital cycles
• increases digitization
• A simplified experience and improved operational efficiency

by digitization the end-to-end trade process. Voltron is truly an open platform, connecting multiple trade parties across differing technology stacks and networks via a simple, singled channel.

Founding Banks: Partners: Visit marketplace.r3.com and search ’Voltron’ for more information

Summary of Voltron Trial Opportunity

• On February 18th 2019, R3 will be kicking
• ff a global trial of the Voltron Application
• Voltron is a letter of credit application,

business network and consortium focused

• n developing an industry utility to

provide a digital, end-to-end and simplified documentary trade solution for banks and corporates.

• The global trial is a seven week

collaborative engagement open to

• rganisations with significant

documentary trade business.

During the seven weeks, R3 and our partners Cryptoblk and Bain & Co will:

• Guide participants through training on the

business network, application and Corda technology that underpins it

• Bain & Co will outline the business case

for Voltron and explain why and how you should apply for investment

• Support deployment of Voltron

application to a Corda Network

• Orchestrate a one week trial of the

Voltron application to simulate real-world LC transactions between participants

Together we are making Trade Finance smarter, more transparent and better connected.

26

Marco Polo Network

An open network for trade and working capital finance

Corporates

Bank Members

Ecosystem Business Networks

The Marco Polo Network

What is it?

An open technology network for working capital and trade finance.

The Marco Polo Network is a bank focused network of platforms offering

• Corporate facing applications to provide corporates access to multiple working capital finance solutions directly from

within their internal ERP system.

• Access to the broader Eco-System of Insurers, Logistics Providers, Non Banks, Information providers etc.
• Connectivity with other Business networks through the UTN

As a result of the above the Marco Polo Network enables increased origination of clients and transactions to grow existing and build new revenue streams. The Marco Polo Network enables the banks to offer better customer experience and seamless data integration, while reducing costs, time and risks. The Marco Polo Network is enabled by the TradeIX developed platform focusing on trade and working capital finance applications and modules with further modules being added in 2019.

ERP

Purchase Orders Invoices Credit Memos Client/Suppli er Data Sourc e

• The

success

• f

trade and working capital finance solutions depends on access to accurate and timely data on underlying commercial transactions.

• This

source

• f

truth, the ERP, is currently disconnected from the technology systems

• f

the financial institutions on which corporates depend for financing.

• Both corporates and financial institutions

use manual or semi-automated, slow, and costly processes to carry out key functions in the set up and operation of trade and working capital finance solutions and reconciliation of them.

Historic Data

Lack of Automation

manual extraction

• f trade finance

data and sharing it manually with funders

Multiple Systems

Must use multiple systems from each single funding/solution provider.

Costly Reconciliation

Need to create and keep separate journals requiring manual reconciliation.

Corporate Impact

Corporate ERP = Source of Truth

The Marco Polo Network

One Network rk for multi tiple le Trade Finance nce Soluti tions Works s with th your existing isting soluti tions Access ss to distrib tribute ted ledger Tech chnolo logy User r Flexib ibil ilit ity Access ss to Trade and Worki king Capit ital Finance nce

Why be a part of it?

Corporate ERP’s

ERP-Embedded and standalone Working Capital & Trade Finance Apps

• New ERP Providers
• Continuous enhancement / development
• Customer journey onboarding, Registration ,

Permissioning

• User Testing
• Production readiness (support, ERP certification)
• Standalone App
• Roadmap + enhancements
• Receivables Dashboard ,Issuance , Funding

(Request ,Proposal , Acceptance)

• Ledger and Detail views
• QA
• Complete Demo at Sibos
• Working Capital Planner
• Trade payment and Settlement
• Common UI components
• QA
• Complete Demo at Oracle World

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The Marco Polo Network

How do I get involved?

Cost: $0, zip, nada. Resources:

• Key point of contact within the corporate is required for the duration of the pilot (preferably

in Treasury).

• Corporates will not be required to host their own infrastructure, therefore a technical

resource is not mandatory for this phase.

Time Commitment: 6 Weeks

• This includes education sessions on the product as well as allocated testing time for the

software.

Interested in hearing more?

Contact Estelle.Roiena@r3.com

COMMISSIONS DE L’AFTE

COMMISSIONS DE L’AFTE

Top 3 des irritants

Sondage AFTE 2017

80% 74%

80% 83% 74%

Dématérialisation insuffisante Pas d’harmonisation Pas de traçabilité sur la complétude du dossier

COMMISSIONS DE L’AFTE

Une communauté de pionniers, un tronc commun de standardisation… en avant Conformitee !

juin 2017

Sondage AFTE

février 2018

POC CRS/Fatca Faisabilité de la standardisation

mai 2018

Workshop Validation du tiers de confiance

juillet 2018

Workshop Périmètre de la standardisation

juillet-octobre 2018

Ateliers Experts Contenu du tronc commun

COMMISSIONS DE L’AFTE

Standardiser

COMMISSIONS DE L’AFTE

Standardiser : Once for all!

COMMISSIONS DE L’AFTE

Standardisation pragmatique

Interopérabilité pour conserver du sur mesure pour les 20% plus complexes

Avancer vite sur le B2B en France pour traiter 80% des cas les plus simples

COMMISSIONS DE L’AFTE

Conformitee Live en 2019

Sondage AFTE POC CRS/Fatca Faisabilité de la standardisation Workshop Validation du tiers de confiance Workshop Périmètre de la standardisation Ateliers Experts Contenu du tronc commun Fin 2018 Initialisation du pilote Q3 2019 Déploiement du pilote

COMMISSIONS DE L’AFTE Commission Fintech

AFTE Treasury Tech Lab Contacts

Valérie VOISIN, AFTE. valerie.voisin@afte.com Ignacio SANCHEZ, ignacio.sanchez@treasuryrunning.com Lionel JOUVE, lionel.jouve@wirecard.com