SWIFT presentation SWIFT for Corporates - Do not share without - - PowerPoint PPT Presentation

SWIFT for Corporates - Do not share without SWIFT's prior consent 2

SWIFT presentation

SWIFT for Corporates - Do not share without SWIFT's prior consent 3

excellence community innovation

+200

countries

What’s SWIFT? core values

3

a cooperative serving the financial industry since

1973

integration & interfaces messaging shared services

pillars built with and for the community

3 +12k

customers connected worldwide

~3k

employees worldwide

SWIFT for Corporates - Do not share without SWIFT's prior consent 4

Where’s SWIFT?

• ffices

27

Accra Beijing Brussels Dubai Frankfurt Hong Kong Johannesburg Kuala Lumpur London Madrid Mexico City Miami Milan Moscow Mumbai Nairobi New York Paris São Paulo Seoul Shanghai Singapore Stockholm Sydney Tokyo Vienna Zurich

SWIFT for Corporates - Do not share without SWIFT's prior consent 5

BANKS

FUND MANAGERS

Who’s using SWIFT?

MARKET

INFRASTRUCTURES

CLEARING & SETTLEMENT

SYSTEMS

CORPORATES BROKERS / DEALERS CENTRAL BANKS GLOBAL CUSTODIANS CSDS STOCK EXCHANGES DEPOSITORIES TRADE REPOSITORIES

SWIFT for Corporates - Do not share without SWIFT's prior consent 6

SWIFT & corporates

SWIFT for Corporates - Do not share without SWIFT's prior consent 7

SWIFT and Corporates – A love story !

KYC & Identity Onboarding & Formats

+2,100

corporates on the network

+370

are French, 1st market WW

KYC for Corporates Payments, Cash Management & Trade

SWIFTgpi for Corporates

Financial Crime & Compliance

SWIFTgpi SWIFTgpi

SWIFT for Corporates - Do not share without SWIFT's prior consent 8

SWIFTgpi & SWIFTgpi for Corporates initiatives

SWIFT for Corporates - Do not share without SWIFT's prior consent 9

1 Faster payments

Same day use of funds*

Traceable

End-to-end payment tracking & payment confirmation

2 3 Transparent fees

Deducts and FX

4 Full remittance data

Unaltered reconciliation info

Your company Beneficiary

Intermediary bank

Beneficiary’s bank Your bank *Within the time zone of the receiving gpi member

$

Invoice

a1700db1-90b2-4948-83d8-6309c5c34a3d

How gpi works?

Rulebook

SWIFTgpi

>¥

3900+

Committed banks

840+

Live banks

65+% of SWIFT

cross- border payments sent as gpi

1900+

country corridors

300,000,000,000 USD

sent daily via gpi

gpi adoption

SWIFT for Corporates - Do not share without SWIFT's prior consent 10

11

SWIFT gpi is very fast!

SWIFT for Corporates - Do not share without SWIFT's prior consent

38%

8% 4% 5% 6% 8% 5% 9% 11% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% Within 5 minutes Between 5 and 15 minutes Between 15 and 30 minutes Between 30 minutes and 1 hour Between 1 and 2 hours Between 2 and 4 hours Between 4 and 6 hours Between 6 and 12 hours Between 12 and 24 hours More than 1 day

94%

within 24h

Cash Management 12

SWIFT GPI

DEFINING NEW STANDARD FOR INTERNATIONAL PAYMENTS

BNP Paribas strongly believes in this initiative and has amongst the largest SWIFT gpi footprints with 10 locations LIVE and more to follow in 2020. Indeed, we believe the adhesion is global and it is critical for banks to join this initiative to guarantee best-in-class processing of International Payments.

10+ more locations

Cash Management 13

SWIFT GPI

DEFINING NEW STANDARD FOR INTERNATIONAL PAYMENTS

SWIFT gpi is finally addressing some key pain points of cross-border payments to deliver concrete improvements to treasurers : ✓ SPEED with same day credit ✓ TRACEABILITY sharing status and confirming credit ✓ TRANSPARENCY on fees, banks, timing and status

The International Payments processing relies on chain of banks working together. The multiplication of partners multiply the change of single point of failure. This is being addressed with SWIFT gpi. Having more than 10+ million cross-border payments per annum in 130+ currencies and offering a global reach with one of the most inclusive global Cash Management footprints with presence in 55 countries, it is a mandatory requirement to size such opportunities to improve service quality for corporates. Today, all cross-border transactions sent through the LIVE branches will be respecting the SWIFT gpi SLA, regardless the channel or currency used. BNP Paribas made it a priority and invested heavily in parallel in the renewal of their International Payment infrastructure.

14 SWIFT for Corporates - Do not share without SWIFT's prior consent

gpi experience for Corporates

Generation of tracking reference by corporate

X

Multi-bank payment initiation & tracking

X

Self service tracking in e-banking

X

Tracking through support desk

=

Speed, transparency, unaltered remittance

=

Generation of tracking reference by corporate

X

Multi-bank payment initiation & tracking

X

Self service tracking in e-banking

=

Tracking through support desk

=

Speed, transparency, unaltered remittance

=

Generation of tracking reference by corporate

=

Multi-bank payment initiation & tracking

=

Self service tracking in e-banking

=

Tracking through support desk

=

Speed, transparency, unaltered remittance

=

Improve your experience with international payments through banks support teams

1

Self service web access to the tracker

2

Fully integrated tracking trough ERP & TMS systems

3

Cash Management 15

Different channels to get the information on your BNPP gpi

• utgoing

payments →

SWIFT GPI

EASY FOR YOU TO ACCESS THE INFORMATION

via BNP Paribas Customer Support Via BNP Paribas e-banking platform Via your owner ERP/ TMS (g4C)

You

✓ Send your payment file with your own UETR ✓ Receive gpi tracker status real-time (MT199/ pain002) ✓ Bank acgnostic Liaise via BNPP with your vendor for more details of accessible functionalities

Cash Management 16

SWIFT GPI

BNP PARIBAS USE CASES FOR CORPORATES : THANKS TO FULL TRANSPARENCY INTO PAYMENT ROUTING, FEES AND APPLIED FX OF THE SWIFT TRACKER:

INTEGRATE ALL THE TRACKER INFORMATION IN YOUR ERP/ TMS

BNP Paribas shares to your ERP/TMS vendor directly and real-time the SWIFT tracker status messages related to your transactions to integrate directly in the system.

PUSH NOTIFICATIONS TO YOUR BENEFICIARIES

As you initiate your BNP Paribas transactions, a link is sent to your designated beneficiaries for them to track & trace the payment, fostering trust and visibility with your internal and external counterparties

BNPP SUPPORT IS BETTER EQUIPPED

Each BNP Paribas customer support is better equipped to answer your questions and track & trace your payments with direct access to the SWIFT tracker

TRACK & TRACE REAL-TIME & SELF- SERVICE

Track & trace yourself your transactions real- time in your e-banking platform, either for data crunching, visibility or investigation

BETTER MANAGEMENT OF INCOMING

( under development) BNP Paribas aims to enable you to track & trace incoming flows with pro-active alerting and smoothen cash forecasting

SWIFT for Corporates - Do not share without SWIFT's prior consent 17

SWIFT gpi for Corporates

Corporate Receivables Payables

g4C service level agreement rulebook

Inbound Tracking

Pilot (started Sep 2019)

✓ Payment advice ✓ Tracking of incoming payments ✓ Real time credit confirmation (own account) ✓ Payment insights (time, routing, fees,…)

Pay and Trace

Live

✓ gpi payment initiation ✓ Tracking of outgoing payments ✓ Real-time credit confirmation (at bene) ✓ Payment insights (time, routing, fees,…)

Open C2B API

Planned (Q2 2020)

Standardised and interactive Corporate-to-bank API providing real-time tracking for Pay and trace and Inbound tracking across SWIFT and proprietary channels

SWIFT for Corporates - Do not share without SWIFT's prior consent 18

gpi principles applied to corporates – Pay & Trace gpi payments tracker

MT 103 + UETR & STI:001 MT 103 + UETR & STI:001

TMS/ERP

Ordering corp Beneficiary Instructing gpi Agent

2

MT 101 + UETR, pain.001 + UETR(s)

1 4

MT 199 + UETR & STI:003 / pain.002 + UETR(s) *

g4C confirmations

▪ Delivered to beneficiary bank as non- gpi ▪ Delivered to beneficiary bank as gpi ▪ Beneficiary has been credited ▪ Transaction was rejected ▪ Payment has left gpi

Corporate generates and includes UETR in the payment instruction (MT 101 – unitary payment / pain.001 – unitary and bulk payments) Bank creates MT103 including UETR generated by the corporate Tracker delivers B2C specific confirmations to Instructing bank Instructing bank relays back to ordering corporate (MT 199* / pain.002) as-it-happens

2 1 3

*Banks can send pain.002 instead of MT 199 (single transaction confirmation as-it-happens) in mutual agreement with their corporate pairs. SWIFT will not support testing or perform format validation in pain.002 in the scope of Early Adopters Phase

3

4

SWIFT for Corporates - Do not share without SWIFT's prior consent 19

gpi principles applied to Corporates – Inbound tracking gpi payments tracker

MT 103 + UETR MT 103 + UETR

TMS/ERP

Ordering corp

1

MT 199 / API STI:007

g4C confirmations

▪ Payment advice (ordering bank) ▪ Delivery confirmation (at bene bank) ▪ Credit confirmation (at bene account) ▪ Rejections

Payment is initiated in the SWIFT network (MT 103) Tracker identify g4C beneficiary bank and extracts payment details Tracker delivers payment advice details to beneficiary bank Beneficiary bank relays back to beneficiary corporate as-it- happens (FIN/ ISO)

g4C bene bank Beneficiary

FIN / ISO STI:007

1 2 3

4

2 3

4

Payment

$

Cash Management 20

SWIFT GPI

BNP PARIBAS PRIORITIES FOR 2020

INTEGRATE ALL THE TRACKER INFORMATION IN YOUR ERP/ TMS

BNP Paribas shares to your ERP/TMS vendor directly and real-time the SWIFT tracker status messages related to your transactions to integrate directly in the system.

PUSH NOTIFICATIONS TO YOUR BENEFICIARIES

As you initiate your BNP Paribas transactions, a link is sent to your designated beneficiaries for them to track & trace the payment, fostering trust and visibility with your internal and external counterparties

BNPP SUPPORT IS BETTER EQUIPPED

Each BNP Paribas customer support is better equipped to answer your questions and track & trace your payments with direct access to the SWIFT tracker

TRACK & TRACE REAL-TIME & SELF- SERVICE

Track & trace yourself your transactions real- time in your e-banking platform, either for data crunching, visibility or investigation

BETTER MANAGEMENT OF INCOMING

( under development) BNP Paribas aims to enable you to track & trace incoming flows with pro-active alerting and smoothen cash forecasting Enable service for incoming Enable service for incoming Enable service for incoming Create new services Continuously expand our gpi country coverage

SWIFT for Corporates - Do not share without SWIFT's prior consent 21

g4C participants

▪ 60+ participants – 60% already live ▪ 8 out of 10 Top Cash Management on SWIFT ▪ 100+ BICs enabled

SWIFT for Corporates - Do not share without SWIFT's prior consent 22

• Enable instant cross-border experience
• Remove transaction issues upfront
• Reduce exceptions & investigations

Value Proposition

• Increased speed of transfer of funds to the end beneficiary
• Provide best experience to end customers at payment initiation
• Detect and correct non-STP situations before initiating a payment

Service benefits

Beneficiary Verification Account and name Format of accounts Sanction screening Fraud and mule accounts

• Beneficiary account exists
• Beneficiary data matches

Payment Validation International guide Static checks Resolution services Fee Prediction Transaction cost calculator

Pre-Validation initiative

• Required transaction data are

included

• Transaction data are validated
• Transaction data are structured

Beyond g4c – Prevalidation initiative

SWIFT for Corporates - Do not share without SWIFT's prior consent 23

KYC for Corporates

24 SWIFT for Corporates - Do not share without SWIFT's prior consent

What problems are we facing?

58.2% of treasury professionals cite that time spent

• n KYC requests is what is most challenging to them*

93%*

93% of treasurers say that responding to KYC requests is more difficult now than it was 5 years ago

Some corporates have over 2000 bank

accounts and a highly complicated

corporate structure

81% of treasures are concerned about how well

their counterparties protect their KYC data*

53.3% of Corporates have reduced the

number of banks that they work with*

C:\>

!

*Reference: Eurofinance – Solving the KYC conundrum

25 SWIFT for Corporates - Do not share without SWIFT's prior consent

KYC named as one of the top challenges

• Data collection is a repetitive process
• Lack
• f

standardisation leads to manual workflows

• Process carried out across multiple

channels adding to complexity

• Irregular review cycles & schedules
• Lack of transparency
• Increasingly

strict regulatory requirements

• High overall costs for all involved

parties

→ KYC is time-consuming, repetitive, cumbersome & costly

26 SWIFT for Corporates - Do not share without SWIFT's prior consent

The KYC Registry for Corporates

User friendliness Access to quality data Secure, user-controlled access Privacy Co-operative business model One central repository

✓ Covering up to 80% of KYC requirements ✓ Single, global standard ✓ Automatic refreshments and change alerts to correspondents ✓ Proven use of navigation ✓ SWIFT validation of accuracy, completeness, format and validity in time ✓ Full control over data and who can access it ✓ Audit trail ✓ Compliant with data protection regulations ✓ Non-profit cooperative of FIs ✓ Trusted 3rd party of 45+ years ✓ Developed with our community

27 SWIFT for Corporates - Do not share without SWIFT's prior consent

Key Features 4 Categories

• Identification of the customer
• Ownership and management structure
• Type of business and client base
• Tax

277 Data Fields

• Mix of mandatory, optional and recommended
• 4 modules identified as extended baseline

25 Document Types

• 51% mandatory or recommended
• 49% optional

28

The KYC Registry for Corporates

KYC Registry

KYC Data & Documents validated by SWIFT

Corporate

Notification

2

Bank X 

Counterparty

• r Relationship

Management approves access

3

Data is unlocked

4

CDD or EDD Data Upload

Bank X

CONSUMERS CONTRIBUTOR

Access Request

1

Notification5

• 1. Bank X requires access

and approaches the Corporate via the KYC Registry

• 2. The Corporate receives

notification that Bank X requests access to their KYC data

• 3. The Corporate approves

access of Bank X 

• 4. Access to data is unlocked
• n the KYC Registry
• 5. A notification is sent to

users at Bank X that KYC data has been made available by the Corporate. The permission is valid until pro-actively revoked or surrendered.

SWIFT for Corporates - Do not share without SWIFT's prior consent

SWIFT for Corporates - Do not share without SWIFT's prior consent 29

BANK S CORPORATES

The KYC4C Working Group

35 Members 16 Countries 3 Regions 100+ Relationships

All about Collaboration

Be part of SWIFT’s Engagement Group

30

Subscribe now to the KYC Engagement Group to:

• Stay up-to-date with recent developments
• Have direct access to our KYC experts structuring the

solution

• Share your feedback on the solution’s development
• Be part of the vital SWIFT KYC Community

Use the link to register and learn about Terms & Conditions: https://www.swift.com/webform/kyc-pilot-engagement-group The more input we receive from the community, the more effectively the solution will suit KYC needs of corporates and their

• banks. It is a mutual challenge; the community should address it

collectively. Share the link with your counterparties within the community (banks/corporates) to adopt the solution once available.

SWIFT for Corporates - Do not share without SWIFT's prior consent

Example – Home page

31 SWIFT for Corporates - Do not share without SWIFT's prior consent

Example – Identification

32 SWIFT for Corporates - Do not share without SWIFT's prior consent

Example – Document upload

33 SWIFT for Corporates - Do not share without SWIFT's prior consent

www.swift.com

SWIFT for Corporates - Do not share without SWIFT's prior consent 34