Agenda Corporates, Banks and Solution Partners adopting the MT798 - - PowerPoint PPT Presentation
Market adoption of MT798 Facilitating multi-banking in trade finance using SWIFT's industry standards for letters of credit and demand guarantees SWIFT's Trade and Supply Chain team supplychain@swift.com La Hulpe, June 21 th 2012 Agenda
Market adoption of the MT798 standards 2
Most are already using SWIFT for payments but this is not a pre-requisite
Corporates Use of MT798 for … Use of MT798 as … Live Usage Multi-bank Solution
Alcatel-Lucent Guarantees Exporter Live Surecomp Saudi Aramco Export LCs Exporter Live In-house ArcelorMittal International Export LCs Exporter Live Misys Metro Group Buying Import LCs Importer Live In-house Metsä Finance Export LCs Exporter Q4 2012 GlobalTrade Corporation Safran Guarantees, LCs Exporter and importer Q4 2012 GlobalTrade Corporation Voith Guarantees, LCs Exporter and importer Q4 2012 Surecomp
3 Market adoption of the MT798 standards
More corporates will confirm their adoption of MT798 in H2 2012
4 Market adoption of the MT798 standards
SWIFTReady Trade Finance
standards SWIFTReady for Corporates – Trade Finance
standards
Vendor Trade Finance Solution China Systems Eximbills CSI BankTrade Misys Trade Innovation Plus MIT CREDOC Sopra Evolan IB Surecomp DOKA 5, IMEX
Bank
Corporates
Vendor Trade Finance Solution GTC GlobalTrade Corporate Misys Misys Trade Portal Pinnacle Solutions Incorporated (PSI) Synergy Trade Services (TS) Multi-bank Corporate Site
5 Market adoption of the MT798 standards
Note: Surecomp is ready but not certified in 2011
Industry standards are industry-owned and technology-neutral. They offer a coherent legal and operational framework.
(UCP600, URDG758, ISP98, URC 522, URBPO, …)
(for L/Cs, Demand Guarantees, Collections)
6 Market adoption of the MT798 standards
Streamline the L/C, Guarantees and open account trade transactions Automate workflow of the trade life cycle to reduce cost Accelerate handling of discrepancies and settlement Move to paperless transaction processing Enhance visibility on credit lines
Application, amendment, … Advising / confirming banks Sellers
MT798 ISO 20022
Advice, confirmation, amendment, …
MT798 ISO 20022 MT7XX ISO 20022
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Internet Issuing banks Buyers Internet Inter-bank flows
Market adoption of the MT798 standards
Message-level interoperability between various software solutions No vendor lock-in and vendor-specific process fees for banks Increased choice of vendor solutions (competitive space) Reduced technical, operational and legal costs
Application, amendment, … Advising / confirming banks Sellers
MT798 ISO 20022
Advice, confirmation, amendment, …
MT798 ISO 20022 MT7XX ISO 20022
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Internet Issuing banks Buyers Internet Inter-bank flows
Market adoption of the MT798 standards
Market adoption of the MT798 standards 9
Industry standards enable banks and corporates to increase efficiency and minimise costs when respecting all of the above best practices
9362) for banks and corporates
specific formats and proprietary rulebooks in the C2B trade finance space – Their goal is to intermediate the corporate-to-bank contractual relationship, which is actually not necessary as their role is at technology level – They also wish to force banks into their systems using corporate pressure – Corporates and banks adopting such platforms are locked into the vendor- specific rules, formats and technologies – Software solutions should be independent of each other and interoperate using Industry Standards (as it is the case for payments)
implementation generates huge implementation and running costs (software, legal, operational, technical); usually most fees are charged to the banks whereas those solutions target the corporates
party is not impacting the other party (technology independence).
Market adoption of the MT798 standards 10
Market adoption of the MT798 standards 11
Scenarios: Major issues for banks:
Corporate using a vendor platform forcing banks to adopt proprietary formats, security and rules Corporate re- using its FI BIC and the MT7xx messages on the bank-to-bank FIN service Corporate using a vendor BIC and the MT798 standards
bank FIN service
Corporate using MT798 standards with its own BIC in SCORE
Increased vendor and technical costs
Additional fees for banks to pay to the vendor; additional IT integration
No fee for banks to re-use SWIFT and SCORE for trade finance Increased
costs
Additional vendor- specific operational processes for limited number of clients Additional customer-specific
practices for banks to develop
Single trade-specific process for all multi-bank corporates Increased legal complexity and costs
Parties need to develop vendor- specific contractual arrangements Parties need to develop corporate- specific contractual arrangements Parties need to develop vendor- specific contractual arrangements
Standardised SCORE agreement for cash and trade Increased KYC risks
Depends on vendor-
frameworks Lack of visibility on corporate identity, resulting with likely KYC issues Lack of full visibility to end-corporate identity, resulting with likely KYC issues
Standardised SWIFT registration for corporates and re-use of BIC by corporate
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Scenarios: Major issues for corporates:
Corporate using a vendor platform forcing banks to adopt proprietary formats, security and rules Corporate re-using its FI BIC and the MT7xx messages
bank FIN service Corporate using a vendor BIC and the MT798 standards on the bank-to-bank FIN service
Corporate using MT798 standards with its own BIC in SCORE
Increased vendor and technical costs
Need for multiple solutions when any
required do not support the vendor platform Proprietary development: so packaged solutions and costs cannot be shared
Re-use SWIFT connectivity in use for treasury and cash management Not following industry standards and best practices
Dependency on single vendor solution: less competition and technical lock-in Not able to benefit from full MT798 functionality Corporate does not benefit from SWIFT's FIN Responsibility and Liability (R&L)
Single process with all banking partners Increased legal complexity and costs
Parties need to develop vendor- specific contractual arrangements Parties need to develop corporate- specific contractual arrangements Corporate cannot benefit from standardised legal documentation
Standardised SCORE agreement for cash and trade Increased KYC risks
Depends on vendor-
frameworks Lack of visibility on corporate identity, resulting with likely KYC issues Lack of full visibility to corporate identity, resulting with likely KYC issues
Standardised SWIFT registration for corporates and re-use of BIC by corporate
Market adoption of the MT798 standards 13
Avoid vendor lock-in by pushing back on proprietary portals/formats
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Partner Solution Contact
!
Joel Schrevens, Digby Bennett joel@chinasystems.com digby@chinasystems-me.com +32 475 904413 Selene Chan, James Tindall schan@banktrade.com jtindall@banktrade.com + 44 7941 325716 Olivier Berthier, Stephan Nouy Olivier.berthier@misys.com Stephane.Nouy@misys.com +33 (0)1 53 00 70 13 Jean-Luc Spinardi sales@mitsa.ch + 41 213 188 181 Marina Singlard msinglard@sopragroup.com +33 5 6573 4651 Murray Freeman Murray.freeman@surecomp.com +1 201 716 1236
Misys TI Plus Evolan IB DOKA 5, IMEX
Partner Solution Contact
!
Jacob Katsman, Nick Pachnev katsman@globaltradecorp.com pachnev@globaltradecorp.com +1 416 627 8520 / +1 416 661 8520 Olivier Berthier, Stéphane Nouy Olivier.Berthier@misys.com Stephane.Nouy@misys.com +33 (0)1 53 00 70 13 John Nash Pinnacle Solutions Incorporated +44 7587 088 049 john.nash@psi-nj.com
Misys Trade Portal GlobalTrade Corporate
Pinnacle Solutions Incorporated (PSI)
Synergy Trade Services (TS) Multi-bank Corporate Site Note: Surecomp is ready but not certified in 2011
Market adoption of the MT798 standards 15
Market adoption of the MT798 standards 16
Bank% CC! MT798%contact%person% Email% Bank!of!America! US! Paul!Johnson! paul.a.johnson@baml.com Banque!Saudi!Fransi! SA! Shafeek!H.!Al<Manameen! ShafeekM@AlFransi.com.sa Bayerische!Landesbank! DE! Florian!Seitz! florian.seitz@bayernlb.de BNP!Paribas! FR! Eric!Henry! eric.henry@bnpparibas.com CiGbank! US! Fran!Martell! fran.martell@citi.com CM!CIC! FR! Tony!Croizer! tony.croizer@e-i.com Commerzbank! DE! Sven!Mueller! sven.mueller@commerzbank.com Crédit!Agricole!CIB! FR! Patrick!Boiteau! patrick.boiteau@ca-cib.com Danske!Bank! DK! John!Enemark! john.enemark@danskebank.dk Deutsche!Bank! DE! Frank!Bothe! frank.bothe@db.com Gulf!InternaGonal!Bank! SA! Mathew!Silva! mathew.silva@gibuk.com HSBC! HK! Kate!Han! katenqhan@hsbc.com.hk J.P.!Morgan! US! Merlin!Dowse! merlin.dowse@jpmchase.com; KBC! BE! Karen!Sterckx! karen.sterckx@kbc.be LBBW!Landesbank!Baden!WürSemberg! DE! Rolf!Seidel! rolf.seidel@LBBW.de Nordea! FI! Soren!Andresen! soren.andresen@nordea.com RBS! US! Deborah!Seliski! deborah.seliski@rbs.com Riyad!Bank! SA! Medhat!Sanuri! medhat.sanuri@riyadbank.com Samba! SA! Abdulkader!A.!Bazara! abdulkader.bazara@samba.com Société!Générale! FR! Corinne!Bakok! corinne.babok@socgen.com Standard!Chartered! SG! Ashutosh!Kumar! ashutosh.kumar@sc.com The!NaGonal!Commercial!Bank! SA! Omar!Yassine!
UBS!AG! CH! Erwin!Freiburghaus! erwin.freiburghaus@ubs.com Unicredit! AT! Markus!Wohlgeschaffen! markus.wohlgeschaffen@unicreditgroup.de
André%Casterman% Head!of!Trade!and!Supply!Chain! Patrick%Krekels% Legal!Counsel! Nadine%Louis% Supply!Chain!Finance!and!Business!Intelligence! Marie?ChrisAne%Diaz%Supply!Chain!Finance! David%Hennah% Supply!Chain!Finance! Aline%Henrard% Supply!Chain!Finance! Raimo%Naatsaari% Documentary!Trade!Finance!and!e<invoicing! Robert%Marchal% Standards! David%Dobbing% Standards! Angéline%Tan% Standards! Kineth%Yuen% Standards!–!Asia!Pacific! Anyal%Hozee% Partner!Management! Chris%Conn% Business!Development!–!Americas! James%Wills% Business!Development!–!Americas! Connie%Leung% Business!Development!–!Asia!Pacific! Robert%Schneider% Business!Development!–!EMEA! Urs%Kern% Business!Development!–!EMEA! MaO%Monaco% Corporate!Sales!–!Americas! Paula%Goldsmith% Corporate!Sales!–!Americas! Zelda%Anthony% Corporate!Sales!–!Asia/Pacific! Thomas%Peeters% Corporate!Sales!–!Benelux! SebasAan%Niemeyer% Corporate!Sales!–!AT/DE/CH! Arnaud%Dupuy% Corporate!Sales!–!France! Neil%Gray% Corporate!Sales!–!UK/Ireland/Nordics! Jan%Heinsbroek% Corporate!Sales!–!Nordics! Roger%Inderbitzin% Corporate!Sales!–!Switzerland! Ashley%Schmidt% Media!RelaGons!–!Americas! Sandra%Gavard% Media!RelaGons!–!Asia!Pacific! Thea%George% Media!RelaGons!–!EMEA!
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Email is firstname.lastname@swift.com
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Market adoption of the MT798 standards