Banking Innovation Summit Cr oatia Clive Cooke | R3 | F e - - PowerPoint PPT Presentation
Banking Innovation Summit Cr oatia Clive Cooke | R3 | F e br uar y, 2018 The R3 network is an alliance of the worlds largest banks, insure r s, re gulators and e xc hang e s c ommitte d to de live ring the ne xt ge ne ration of
Clive Cooke | R3 | F e br uar y, 2018
p2. R 3 - Pr ivate and Confide ntial
Ac tion Pe r c e ption Pe r c e ption Ac tion Pr
Pr
Ac tion Pr
Pe r c e ption Ac tion Pe r c e ption Pr
Inte r ne t Ac tion Ac tion Shar e d Communic ation Shar e d Pr
Shar e d Pe r c e ption = T r uth Bank A Bank A Bank B Bank B
Be for e the Inte r ne t Now Afte r Shar e d L e dge r
Communic ation Communic ation
R 3 - Pr ivate and Confide ntial p3.
Bank B
T ODAY
T his is wha t I think I am owe d T his is wha t I think I owe
Supplie r Custome r
T OMORROW
Supplie r Custome r
We both se e the same thing
p4. R 3 - Pr ivate and Confide ntial
c o unte rpa rts a nd
witho ut re lying o n inte r
me diar ie s, r e c onc iliation, matc hing or manual fixe s.
p5. R 3 - Pr ivate and Confide ntial
Re gulator s
de r Payme nts
L aunde r ing / Know Your Clie nt
ivative s Cle ar ing
ing
ra de Re c o nc ilia tio ns
X Se ttle me nt
Ma na g e me nt
Se ttle me nt
Da ta
ime sta mping
ra ud Ide ntific a tio n
a s Sma rt Co ntra c ts
Re mitta nc e
sc ro w Se rvic e s
e nding
L a unde ring / K no w Yo ur Clie nt
I Co mplia nc e
und T ra nspa re nc y
ra de Re po rting
F inanc ial Institutions Individuals Ope r ations
T he se four use c ase s c ould alone ge ne rate
$60- 80bn
in c ost savings1
(1) So urc e : Mc K inse y 2016 F inding s F ro m Re se a rc h Into Distribute d L e dg e r T e c hno lo g y p6. R 3 - Pr ivate and Confide ntial
p7.
Re gulators:
20+ Re g ula to rs a nd Ce ntra l b a nk me mb e rs inc luding ;
MA
Mo ntre a l
Glo b a l Ma rke ts
Partne rs:
70+ pa rtne rs whic h inc lude s syste m inte g ra to rs & a dviso ry, inde pe nde nt so ftwa re ve ndo rs, Infra struc ture / te c hno lo g y pa rtne rs a nd ne two rk se rvic e pro vide rs
R 3 - Pr ivate and Confide ntial
Ne twor k Se r vic e Pr
s De live r y Pa r tne r s (Syste ms Inte g r a tor s & Advisor y) Infr a str uc tur e / T e c hnolog y Pa r tne r s Pa r tne r Solutions (Inde pe nde nt Softwa r e Ve ndor s)
p8. R 3 - Pr ivate and Confide ntial
Blo c kc ha in so lutio n fo r F ina nc ia l Institutio ns
R 3 - Pr ivate and Confide ntial
p10.
The R3 members’ Architecture Working Group,
c o mprising c o ntrib utio ns fro m 300+ individua ls, re a lize d tha t e xisting b lo c kc ha ins we re no t a ppro pria te fo r the wo rld o f F ina nc e .
Bloc kc ha in- inspir e d: ta ke s the b e st
a ttrib ute s fro m Bitc o in a nd E the re um, b ut no c rypto c urre nc y
E nte r pr ise g r a de : b uilt spe c ific a lly
fo r fina nc ia l ma rke ts.
Da ta pr iva c y: tra nsa c tio ns sha re d
Conse nsus: a c hie ve d a t individua l de a l
le ve l, ra the r tha n syste m le ve l. Suppo rts a va rie ty o f c o nse nsus me c ha nisms.
Re g ula tor- foc use d: de sig n dire c tly e na b le s
re g ula to ry/ supe rviso r o b se rve r no de s.
Sma r t c ontr a c t: stro ng link b e twe e n
le g a l pro se a nd sma rt c o ntra c t c o de .
E a sy inte g r a tion: re use s e xisting ja va de ve lo pe r skills ma king inte g ra tio n with
b a nk syste ms e a sy a nd sa fe .
p11. R 3 - Pr ivate and Confide ntial
One No de = Many Apps, F le xible Ne two rks, No S trande d Asse ts
Busine ss Ne two rks
p12. R 3 - Pr ivate and Confide ntial
R 3 - Pr ivate and Confide ntial p14.
Dig ita l Asse ts T r a de F ina nc e Dig ita l Ide ntity Dig ita l Ca sh Insur a nc e
GO- L IVE
De plo yme nt Co nside ra tio ns
INCUBAT OR
Whe re me mb e rs b y re g io n o r b y pro duc t e xplo re b lo c kc ha in so lutio ns
F inT e c h pa rtne r Jo int Ve nture I ndustry RF P Owne rship c o nside ra tio ns Co rda E nte rprise
Graduate
Eva luate pro je c ts a nd re sults to g ra dua te the suc c e ssful
Ac c e le ra to r
Cor Dapps
p15.
F ast trac k re sults
Co nside r L e g a l/ Re g s, Da ta Ora c le s, Pa rtne rs, Pro duc tio n Re a dine ss De dic a te d R3 te a m le a d c o lla b o ra tio n to ra tify Busine ss Ca se
Sprint Proje c t
Ba nk inte g ra tio ns Risk Ma na g e me nt Se c urity Arc hite c ture Inte g ra tio n Pro c ure me nt
ACCE L E RAT OR
Whe re e xpe rime nts c o me to life * Qua lity Assura nc e
R 3 - Pr ivate and Confide ntial
De live ry Pa rtne r
p16.
ISV & Ne twor k Par tne r s De live r y & Infr astr uc tur e Par tne r Custome r s |Me mbe r s | Stake holde r s Cor Dapps Re gulator s |Ce ntr al Banks | L e gal
R3 wor k with softwar e ve ndor s and par tne r s to build applic ations (Cor Dapps) that will sit on top of the Cor da Ne twor k
R 3 - Pr ivate and Confide ntial
Ac c e le r ator – Digital Asse ts
Vision Obje c tive s Be ne fits
T
itie s to distr ibute liquidity mor e e ffic ie ntly - Pilot
A c o lla te ra l le nding so lutio n fo r so urc ing o r pro viding Hig h Qua lity L iq uid
Assets (HQLA) on R3’s Corda
T
A upg ra de / do wng ra de s b y utilizing distrib ute d le dg e r te c hno lo g y fo r the to ke niza tio n o f b a ske ts o f se c uritie s tha t a llo ws fo r q uic k, le g a l tra nsfe r o f HQL A a nd re - hypo the c a tio n
Ne twor k of Par tic ipants
re q uire se c uritie s to b e mo ve d a c ro ss CSDs
De live ry) o f b a ske ts o f se c uritie s
nha nc e re g ula to ry tra nspa re nc y o f c o lla te ra l c ha ins via a
standardized and transparent marketplace, with a “Collateral Tracking” view for regulators
R 3 - Pr ivate and Confide ntial p18.
Vision Obje c tive s Be ne fits
Automation o f le nde r c o mmunic ations be twe e n age nt banks and le nde r s - Pilot
By using Co rda , Pro je c t L e nde rCo mm e xpo se s re a l-time c re dit a g re e me nt, a c c rua l b a la nc e s, po sitio n info rma tio n a nd de ta ile d tra nsa c tio n da ta to le nde rs, dire c tly fro m a g e nt b a nk lo a n se rvic ing pla tfo rms suc h a s Finastra’s F usio n Ba nking L
L e nde rCo mm a ims to sla sh o pe ra tio na l c o st a nd sla sh o pe ra tio na l c o st a nd b urde n o f a g e nt to le nde r a dministra tio n a nd de live r se lf-se rvic e c a pa b ilitie s to le nde rs, pro viding a c c ura te info rma tio n o n de ma nd to
T
le nding c o mmunity T
Ne twor k of Par tic ipants
R 3 - Pr ivate and Confide ntial
Ac c e le r ator – Digital Asse ts
p19.
Ac c e le r ator Pr
Vision Obje c tive s Be ne fits
F X c onfir mation matc hing - Pilot Ne twor k of Par tic ipants
▪
F ull ma tc hing wo rkflo w a nd dispute re so lutio n
▪
Sync hro niza tio n o f wo rkflo ws b e twe e n pa rtie s
▪
Re mo ve da ta disc re pa nc ie s & inc re a se ST P
▪
Ope n to no n-Ca lypso a nd R3 Clie nts
▪
F le xib ility fo r lo c a l o r c lo ud b a se d o ffe ring
▪
De ve lo p inno va tio n mo de l suita b le to o the r tra de d pro duc ts
▪
Co st sa ving s a nd o pe ra tio na l e ffic ie nc ie s
▪
T he de live ry o f the MVP a nd o pe ning to the wide r ma rke t is sc he dule d e a rly in Q1 2018.
▪
Ca lypso a nd R3 a re c o mmitte d to pre se nt a stro ng va lue pro po sitio n to the ma rke t in 2018, whic h wo uld c o nsist o f re a l-life tra nsa c tio n pro c e ssing a pplie d to F X a sse t c la ss o ve r a se le c tio n o f inte rna l a nd e xte rna l c o unte rpa rtie s.
▪
Pro je c t T hre db o IIIis a pro je c t b e ing unde rta ke n in pa rtne rship with Ca lypso whic h is de sig ne d to e xte nd Pha se 1 into a pilo t a nd fully suppo rt Ca lypso F X Ma tc hing Wo rkflo w.
▪
Utiliza tio n o f Co rda in ta nde m with Ca lypso will dra ma tic a lly re duc e the c o st a nd c o mple xity o f b a c k-o ffic e o pe ra tio ns, a llo w fo r de ve lo ping sma rt c o ntra c ts a nd he lp furthe r a uto ma ting the who le po st tra de pro c e ssing wo rkflo w.
R 3 - Pr ivate and Confide ntial p20.
Ac c e le r ator – T r ade F inanc e
Vision Obje c tive s Be ne fits
T r ac king goods and tr ade doc ume nts - Pilot
na b le tra ding pa rtie s a nd the ir fina nc ie rs to dra ma tic a lly c ut b a c k-
limina te o pe ra tio na l fric tio n
na b le e ntire ly ne w wa ys o f ma na g ing a nd fina nc ing tra de . T
he pla tfo rm c o nsists o f tra de fina nc e so lutio ns, APIs a nd de ve lo pe r to o ls o n a n o pe n te c hno lo g y infra struc ture po we re d b y Co rda DL T T
a nd mo re inc lusive , c o nne c ting the e c o syste m o f b a nks, b uye rs, supplie rs, te c hno lo g y pro vide rs, insure rs, a nd o the rs c ritic a l to fa c ilita ting g lo b a l o pe n-a c c o unt tra de flo ws
Ne twor k of Par tic ipants
(Pha se 1)
R 3 - Pr ivate and Confide ntial p21.
T e c hnology Provide r
Ac c e le r ator – Digital Cash
T
b uilding a pro to type do me stic pa yme nts fo r inte r-b a nk o b lig a tio ns (b a c ke d b y c e ntra l b a nk de po sits), a DL T pla tfo rm a nd inte rna l c a pa b ility fo r MAS/ ma rke t pa rtic ipa nts in Sing a po re
Vision Obje c tive s Be ne fits
Ne twor k of Par tic ipants Dig ita l Sing a por e a n Dolla r Pr
inte r ba nk dome stic pa yme nts - Pr
R 3 - Pr ivate and Confide ntial p22.
T he e ve ntua l g o a l is to de ve lo ping simple r to use a nd
more efficient alternatives to today’s systems based on
dig ita l c e ntra l b a nk issue d to ke ns.
vs-Pa yme nt (DvP) se ttle me nt in c a se s whe re it is no t a lre a dy a va ila b le
Pa yme nt) a nd se c uritie s tra nsa c tio ns (DvP)
Inc ubator– T r ade F inanc e
Ba nks, c o rpo ra te s, a nd tra de e c o syste m o n T
he Cor da ne twor k,
inte ra c ting in r
e al time, using shar e d busine ss logic to tra nsfo rm
Do c ume nta ry T ra de (L e tte rs o f Cre dit) b usine ss.
Vision Obje c tive s Be ne fits
Ne twor k of Par tic ipants T r ade financ e – Doc ume ntar y T r ade - Pilot
a ding T itle Re g istry
Suppo rt a pilo t L e tte r o f Cre dit tra nsa c tio n, utilising a n e le c tro nic b ill o f la ding T itle Re g istry a nd L e g a l rule b o o k, de plo ye d o n Co rda a nd the R3 Ne two rk. Sc a le the ne two rk a nd pilo t c lie nts thro ug ho ut 2018.
R 3 - Pr ivate and Confide ntial p23.
Inc ubator Pr
Vision Obje c tive s Be ne fits
Cor por ate KYC - Pr
By pa rtne ring Me mb e r institutio ns KYC SME kno wle dg e , R3 Co rda de sig n e xpe rie nc e a nd Sync hro ny's De ve lo pme nt c a pa b ility, pro je c t L e ia II c a n spe c ify, de sig n a nd de live r a pro to type to de mo nstra te the KYC o n- b o a rding pro c e ss fo r a c o rpo ra te c lie nt. T he hig h le ve l o f SME e ng a g e me nt will drive g o o d insig hts into the re q uire me nts a nd b uild b uy- in a mo ng st the c o mmunity who will b e ne fit fro m a pro duc tio n ve rsio n o f L e ia . De mo nstra te the va lue o f Se lf So ve re ig n, de -c e ntra lise d Co rpo ra te KYC
T
in fo r c o ntinuing to wa rds a n Ac c e le ra to r pha se o f the L e ia pro g ra m
Ne twor k of Par tic ipants
R 3 - Pr ivate and Confide ntial p24.
Ac c e le r ator Pr
Vision Obje c tive s Be ne fits
E ur
c ial Pape r
/ de a le r / inve sto r pla tfo rm with po te ntia l fo r IPA / CSD / Custo dia n ro le re mo va l.
r anspar e nc y & Owne r ship tr ac king - Sing le sha re d c o nse nsus vie w o f
the sta te , va lue a nd o wne rship histo ry (tra nsfe rs, rig hts & o b lig a tio ns) via DL T to g ua ra nte e a c o nsiste nt, a c c ura te , a udita b le , re po rta b le re c o rd.
disation & automation - Sha re d b usine ss lo g ic tha t c a n b e
a uto ma tic a lly e xe c ute d i.e . Sta nda rd industry pro c e sse s fo r ha ndling life c yc le e ve nts mo de lle d a s sma rt c o ntra c ts.
re pre se nta tio n & c a sh o n le dg e r. A ne w a pplic a tio n & b usine ss mo de l fo r the issua nc e , de a ling & se ttle me nt o f E uro Co mme rc ia l Pa pe r o n a Distrib ute d L e dg e r. De live r the full E CP tra de life c yc le o n a Distrib ute d L e dg e r into Pro duc tio n & sc a le a c ro ss ke y jurisdic tio ns.
Ne twor k of Par tic ipants