Global Payments: disruptions, trends and innovations Michael Moon - - PowerPoint PPT Presentation
Global Payments: disruptions, trends and innovations Michael Moon Head of Payments Markets Asia Pacific SWIFT Auckland, New Zealand 2016 Community 200+ Countries and territories 11,000+ SWIFT users FIN messages peak day (2015) 27.5
Global Payments: disruptions, trends and innovations
Auckland, New Zealand 2016
Michael Moon Head of Payments Markets Asia Pacific SWIFT
SWIFT users
Countries and territories
FIN messages peak day (2015)
Community
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Scene setting: Nature of Disruption Game changing trends & innovation New Zealand
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“The pace of change in terms of what customers are doing, how they pay us… it’s breathtaking … any company that interacts with consumers and thinks that last week’s technology and approach is going to work five years from now is probably making a mistake”
Warren Buffett
in financial services and payments challengers are everywhere
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Disruption across industries Sources of competition Vertical to horizontal
Disruption from unexpected sources
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Innovation is challenging bedrock foundations of the financial industry
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Payments is becoming one of the disrupted sectors
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Game changing trends
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Cyber risks Regulation New Entrants Emerging Technologies Big Data
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Digitisation is changing how business is done
Source: McKinsey Global Institute, March 2016, Digital Globalization: The New Era of Global Flows
(2005 to 2015)
Real time payments is not just about being “fast” anymore
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Open Access Simpler Addressing API to Anything Intelligent Messaging ̶ Inclusive - extended participant ecosystem ̶ Regional/global interoperability ̶ Extensive use of Digital Channels, esp. Mobile ̶ Reduced friction for customer ̶ Alias/Proxies instead of account numbers ̶ Addressing and Overlay Services integration ̶ Consumed by Corporates, SMEs, Govt.
̶ Transfer of information, not simply value ̶ Information rich ̶ ISO 20022
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New Payments Platform Australia embracing these trends
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Local bank Local bank PSP PSP ACH ACH GTB
GTB
End customer (retail, SME, corp) End customer (retail, SME, corp)
Correspondent Banking
disintermediation
Transfer Agent Transfer Agent
In global payments the value chain is being challenged throughout …
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global payments innovation (gpi) initiative – reinventing global payments Drivers for change.. ..Future of cross-border
200+ countries 75%+ x- border payments
Rising Customer expectations Correspondent network Rationalisation Disruptive forces
Faster, same day use of funds Transparency of fees End-to-end payments tracking Information transferred unaltered
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Central payments database, hosted at SWIFT Updated via MT199 or API Data consumption via GUI, via MT199 (push) or via API (pull)
SWIFT gpi tracker “in the cloud”
Bank A Bank B Originator Beneficiary Bank C
MT199/API
101 > 103 > 103 > 910 >
MT199/API MT199/API
“One-glance” status overview Track path, in real time Details of banks along the chain Transparency of total fees and time Unique, end-end tracking number
Bank D
103 >
MT199/API
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Fintech & the blockchain
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SWIFT on distributed ledger technologies – non negotiable features of scalable DLT
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DLT R&D@SWIFT
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Cyber threat evolution
Worms/ Viruses Simple DDoS Phishing Pharming APTs Multi-Stage Hacker Collaboration
Disruptive Attacks Intrusive Attacks
Advanced DDoS Sophisticated Malware Attacks The Unknown??
2007 Today 2020 2001
Destructive Attacks
Future cyber threats would be even more sophisticated and
current threats
Nuisance Fraud Disruptive Destructive
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SWIFT Customer Security Program (CSP)
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You Your Counterparts Your Community
Secure and Protect Share and Prepare Prevent and Detect
DVR RMA Third Parties Intelligence Sharing CSI Forensics Security Controls Assurance SWIFT Tools
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SWIFT Customer Security Programme
Improve information sharing amongst the global community Enhance SWIFT-related tools for customers Enhance security guidelines Support increased transaction pattern detection Enhance support by third party providers
STREAMS
Customer and third party engagement Programme communications
ENABLERS 1 2 3 4 5
Build customer and 3rd party assurance frameworks
E1 E2 E3
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5 streams 3 enablers
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Connecting Global Fintech: Hub review 2016
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SWIFT & NZ payments
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Video: the near future of payments
www.swift.com
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