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7/30/2019 Swift for Corporates Overview
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SWIFT for corporatesClient or event
SpeakerDate Month Year
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Presentation title - Event - Date Month Year 2
Agenda
Your challenge our solution
SWIFT for corporates
New Services
Business case Case studies
Your SWIFT project
More info?
7/30/2019 Swift for Corporates Overview
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Presentation title - Event - Date Month Year 3
Corporate Treasury drivers
StandardisationRationalisation
Automation
Security
Manage liquidity
Visibility to global cashAbility to reach all banks
Risk
Compliance
Regulators (SOX, SEPA)
Internal controls
Technology
Web (IP)
Efficiency
ProductivityWorking capitalInfrastructure
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Presentation title - Event - Date Month Year 4
Corporate
Accountspayable
Accountsreceivable
Treasury
Other
Standardisedgateway
SWIFT: a single, standardised gateway
Corporate
e-banking Y
host to host X
e-banking Z
VAN
Internet
Leasedline
Accountspayable
Accountsreceivable
Treasury
Other
Multiple bank channels Single, standardised gateway
Global visibility on cash
Lower cost
Increased control and security
Reduced risk
High cost
No global visibility on cash
Impossible to centralise
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Presentation title - Event - Date Month Year 5
Global visibility on cashBetter visibility on global cash allows reductionof borrowing cost, optimisation of un-investedcash and avoidance of working capital growth
EUR 10 mill ion in net benefit at Swiss Re
30% volume increase perresource at GE
8 extra staff avoided at Petronas
Cost reduction / avoidanceAutomation leads to staff productivity increase,re-allocation and growth avoidance
15 systems retired at T-Mobile
25 systems retired at DuPont
40 systems retired at Arcelor
Cost reductionRationalisation of electronic bank messagingsystems at EUR 5,000 to 20,000/year each
Benefits of using SWIFT - examplesCase studies available from swift.com/corporates
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Presentation title - Event - Date Month Year 6
What corporates on SWIFT value most
reach all our banks directly,
with the highest securityHead of Treasury Control and Reporting, Novartis
achieve all objectives
of our treasury
centralization projectHead of Treasury and Risk Management,
Iberia
run a central platform
with a single standard for
every country and every bank
VP Finance & Treasury, T-Mobile International
build one central
source of truth
for banking dataGroup Manager, Treasury,
Microsoft
We took
SWIFT
to
have a standard
and reliable process
with all our banks
Group Treasury, Petronas
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Financial Crisis - Value for SWIFT and
priority on treasury projects
Where is
my cash?
Can I move
my cash?
Can I
reach allmy banks?
MT 940 MT 101 Multi-bankgateway
7
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8
Corporates on SWIFT
Where do we stand today ?
2006 2007 2008 2009 Q1 2010
282
402
565600
#registered corporate entities Geographical split
EMEA
Americas
69%
20%
Asia Pacific
11%
181
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Management consultancy firms
Connectivity: Lite, SBs, Member
concentrator
ASP
Adoption
Expansion
MarketPlayers
Specials
ISO20022 (XML) SEPA & PSD
FileAct
Industry dimension: uti lities and
governmental bodies
2003: 12
2007: 105
2009: 391
Mid caps
Where do we stand: EMEA
Sustained growth although early adopter
markets roll out New: Middle East, Nordics
9
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Direct connectivity
New: management consultancy f irms
ASP offering: coming
Bank readiness: improving
Adoption
Expansion
Actual adoption of ISO20022 (XML) for
reporting & payment
2003: 4
2007: 45
2009: 110
Mid caps
North America: Western coast
Latin America: Brazil, Peru, Colombia
Where do we stand: Americas
10
MarketPlayers
Specials
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Global banks expand their SWIFT offering
Local banks joining the club
Speed
Lite for all: first step to SWIFT
Adoption
Expansion
Education and awareness
High interest for SWIFT Trade solutions
2003: 0
2007: 22
2009: 64
Large
Korea
Hong Kong, India, China
Where do we stand: APAC
11
MarketPlayers
Specials
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Presentation title - Event - Date Month Year 12
Agenda
Your challenge our solution
SWIFT for corporates
New Services
Business case Case studies
Your SWIFT project
More info?
7/30/2019 Swift for Corporates Overview
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Presentation title - Event - Date Month Year 13
About SWIFT
A
co-operativeorganisationserving thefinancial
industry
A
provider ofhighly secure
financialmessaging
services
Thefinancial
standardisationbody
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Presentation title - Event - Date Month Year 14
Business standards
ERP
The solution a collaborative partnership
Middleware SWIFTNet
ERP(s)ERP(s)
TreasuryWorkstation
BanksPartners SWIFT or
partners
SWIFT
SWIFT and standards bodies
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Presentation title - Event - Date Month Year 15
Financial services, provided by banks
Treasury Management Monitor accounts and obtain global visibility on
cash by integrating end-of-day and intra-daystatements into treasury systems
Manage liquidity and pool cash company-wide,
by sending payment orders Financial risk management, by exchanging FX
confirmations and matching them
Invest surplus cash
Cash Management
Run payment / direct debit factory to paysuppliers, debit customers, pay salaries, and receive account statements and advices
ACH payments, disbursement files, check files
Additional services Electronic Bank Account
Management (EBAM)
Personal Digital Identity
Exceptions and
investigations Trade finance
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Presentation title - Event - Date Month Year 16
Standards and SWIFTNet messaging
Standardsand formats
SWIFTNetmessaging
FIN FileAct InterAct
SWIFT MTs ISO 20022Domestic formats
ISO 20022
MT 101 for high valuetreasury payment
MT 940 with end-of-dayaccount statement
MT 300 FX confirmation
Example ACH files Supplier payments
Direct debits
Salary payments
Exceptions & investigations
Typicalapplication
Treasury andRisk
Management
CashManagement
Exceptions andInvestigations
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Presentation title - Event - Date Month Year 17
Alliance Lite
Large corporate (500 million1 bn turnover)+/- 200 transactions/daySimple solution
Internet
Direct connection
Global corporate (25+bn turnover)Millions payments/yearManage your own SWIFT connection
Indirect connection
Very large corporate (125 bn turnover)Hundred thousands payments/yearOutsource SWIFT connection Service bureau or
Member/Concentrator
VPN
Internetor VPN
Web server
Work flow
SWIFTAlliance
SWIFT
Network partners
VPN
Connectivity options, adapted to your needs
VPN
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Presentation title - Event - Date Month Year 18
Back-office integration
Do it yourself
Or, choose an application that is SWIFTReady for corporates
Several vendors have SWIFTReady middleware
You can also be helped in your feadsibility and/orimplementation by knowledgeable business consultants. Watchthe SWIFTReady Consultancy label.
See swift.com
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Presentation title - Event - Date Month Year 19
Agenda
Your challenge our solution
SWIFT for corporates
New Services
Business case Case studies
Your SWIFT project
More info?
7/30/2019 Swift for Corporates Overview
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Electronic Bank Account Management (EBAM)
Project objectives
20
Fax
Paper
Today Tomorrow
Faster/cheaper Standardised
DematerialisedAutomated/STP
XML messagesSupporting documents
Personal Digital Signature
Corporate
Bank
Corporate Bank
Low satisfaction Expensive
Low integration Slow
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Improved control , reduced errors
Improved process follow-up
Improved customer service
Standard for all banks
Standard for all customers
Straight Through Processing
Time saving
Cost reduction
Electronic Bank Account Management (EBAM)
Benefits
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22
Electronic Bank Account Management on SWIFT
SWIFT solution 3 layers
Messaging service - FileAct
Headerspecifications
(ACMT)
Attachmentsenabled
Multi formats
Namingconvention
Personal Digital SignatureTechnical specifications
Sign a XML
Signattachments
Transportcertificates
XML ISO messages
15 msges18 businessscenarios
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Personal Digital Signature
Current Landscape The Corporate View
No uniform mechanism
Different system per bank
Costly & difficult to maintain
Corporate-to-Bank Digital Identity Theory vs. Practice (March 2010) 23
We have !!! We want
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Solution for Personal Digital Signature
24
45678
Bank A Bank B Bank C
CorporateRepresentative
InternetSWIFTNetProprietaryeTokens with
credentials
Multi-bank
Multiple channels
Solution Benefits
Why SWIFT
Convenience
Reduced risk &costs
Standardised
industry solutionTrusted, neutral
provider
Shared investment
Corporate
Bank
Lower costs
Timelines
Q110 - Development
Q210 - Piloting
Q310 - Launch of service
Improvedsecurity
Personal Digital Identity Overview (Feb10)
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Personal Digital Signature: Key Benefits
25
Interoperable solution
Global usage
Central Certification Authority
Anonymous certificates
One signing mechanism
Secure infrastructure
Local Requirements
SWIFT support
Multi-bank / Multi-application / Multi channel
Local & international bank relations
SWIFT issues credential / each bank makes association
Only bank knows user behind the certificate
Uniform processes @ corporate / central revocation function
Re-use of interbank PKI / Qualified eTokens
Software certificates / local standards / national regulation
Token installation / vendor engagement
Corporate-to-Bank Digital Identity Theory vs. Practice (March 2010)
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Presentation title - Event - Date Month Year 26
Agenda
Your challenge our solution
SWIFT for corporates
New Services
Business case
Case studies
Your SWIFT project
More info?
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Presentation title - Event - Date Month Year 27
Making your business case
Costs
Operationalbenefits
Project typicallypaid back 2 x
by operational benefits?
Additionalbenefits
Better security,more control,
difficult to quantifybut can be key
driver
Business
case
Financialbenefits
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Presentation title - Event - Date Month Year 28
SWIFT costs:
as of 15 KEUR / year
Integration costs
Total cost of ownership
ERP
Middleware SWIFTNet
ERP(s)ERP(s)
TreasuryWorkstation
Depends on size of corporate, type of connectivity,volume of transactions
Registration: 2 KEUR/year Connectivity
- Direct: 50 KEUR one-time +19.4 KEUR/year
- Service Bureau: 15 55 KEUR/year (see provider)- Alliance Lite
Traffic- FIN MT: 6 20 eurocent- Payment in FileAct: 0.1 0.03 eurocent
Alliance Lite: KEUR 10 KEUR/year, incl. registration,connectivity, up to 200 items in/out per day
Includes servers or PCs and operations
Back-office application integration Middleware enablement Project
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Presentation title - Event - Date Month Year 29
Benefits can be quantified
Operationalbenefits
Staff reduction, reallocationand/or growth avoidance
#FTE * cost per FTE
Bank systems retirementand/or growth avoidance
#systems * 5 to 20 KEUR
Financialbenefits
Working capitaloptimization and growthavoidance
#basis points improvement
% slow down in growth
Use un-invested cash
Reduce overdraft and borrowing cost
Transaction efficiencies Economies of scale
Interest on payments
released later
#days * overnight interest
Additionalbenefits
Security Avoidance of fraud, manual errors,
ComplianceLess control points, documentation,legal costs,
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Presentation title - Event - Date Month Year 30
Case studies performed by
Available from swift.com/corporates
Typical ROI: 200% - 300%
Arcelor Mittal 600%
GE 410%
Novartis 120%
Swiss Re 4 x savings to investment
T-Mobile 180%
DuPont 200%
Iberia 280%
Petronas 410%
Microsoft 326%
5 year business case
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Presentation title - Event - Date Month Year 31
Agenda
Your challenge our solution
SWIFT for corporates
New Services
Business case
Case studies
Your SWIFT project
More info?
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Presentation title - Event - Date Month Year 32
Case studies
Arcelor
Belcorp
DuPont
EADS
GE Iberia
Microsoft
Novartis
Petronas
SwissRe T-Mobile
Yves Rocher
All different:Industry sector, country of operations,
turnover / size,
treasury organistion,usage of SWIFT,
One commonality:
a compelling business case
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Presentation title - Event - Date Month Year 33
Arcelor Mittal
Challenges with previous infrastructure Streamline infrastructure to achieve
greater visibility into cash receipts
Spending significant time in maintainingmultiple systems and connection points,each with totally different characteristics
Company profile
World number one steel company
330,000 employees; 60+ countries
Pro-forma 2005 revenue: 62.2 billion
Treasury profi le
In 2002, Arcelor Treasury had 750 bankaccounts in 40 banks, 14 different countries
Top Decision: Use SWIFT as cornerstoneto deploy unique, shared and highlystandardized bank connectivity solutionsupporting all treasury activities
Key benefits of using SWIFT Improved security, reliability and StraightThrough Processing
605% ROI, ~ 6 million NPV in 5 years
There is no SWIFTNet Project; there is onlySWIFTNet in Projects
In House Bank
TMSKTP/SIDE
SWIFTSAA/SAG
FAIPFP2
Banks
ERP
Arcelor MittalEntities
LAN
/Intranet-HTH
FIN and FileAct for liquidity, cash, credit andrisk management
46 banks in 16 countries connected
Case studyperformed by
J uly 2005
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Presentation title - Event - Date Month Year 34
Arcelor Operational impact
Bank Hardware RetirementSWIFTNet combined with Payment Factory allowsArcelor to retire over 40 bank messaging systems
25% of total benefits ( 20K savings per bank, per year)
Staff Reduction
Productivity gains from SWIFTNet led to resourcereallocation in Treasury Back Office and reduction in
Treasury Commercial Management and Finance
25% of total benefits
Working Capital Optimization
With SWIFTNet, cash aggregation volume increased by67%. Using gain of 5 basis points, Arcelor can investadditional capital translating to benefits of 0.43 million
4% of total benefits
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Presentation title - Event - Date Month Year 35
Arcelor Benefits
Consulting / Internal Labor:Legal contracts review,payment factory development,SWIFT implementation, testing
Connectivity: linkage to SWIFT,maintenance
SWIFTNet: usage fees,including gateway services &maintenance
Hardware retirement: 40 bankmessaging systems withaverage cost of 20K per year
Headcount avoidance: maintain4 headcount while activitydoubled
Staff reduction: Efficiencies fromusing SWIFT contributed toreducing department headcountfrom 40 to 10
Break-even in 18 months
Benefits grew exponentially afterrecognizing values of PaymentFactory with no additional costs
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Presentation title - Event - Date Month Year 36
SWIFT implementation
Belcorp
Challenges with previous infrastructure Multiple and various electronic bank
communication systems
Back-office staff tied up in manual activitiesto download information and feed ERP
Further standardize & automate paymentsand collection processing, with all banks
Company profile
Cosmetics products for women Present in 14 countries; 400,000 clients
5,000 employees
2007 revenue objective: 1bn USD
Treasury profi le
Regional treasury center in Lima, Peru Set policy, standardize processes, manage
liquidity, maintain bank relationships,execute payments, corporate lending andFX transactions
60+ banks, 30 to execute payments
Key benefits of using SWIFT Automated communications
Enhanced security and availability
Back-office staff re-allocated to value-addedactivities
Central Treasury
Use FIN and FileAct to receive account statementsand information of collections,and send mass payments
Phased, country-based approach
IPMBusiness
ApplicationSAP SICC
SWIFTAlliance
J uly 2007
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Presentation title - Event - Date Month Year 37
DuPont
Challenges with previous infrastructure
Treasury staff dedicated to data collectionand managing multiple bank connections,leaving little time for strategic activities
Manual interventions, high operational risk
Lack of global visibility and ability tooptimally manage cash
Company prof ile
Leading global chemical company $27.4 billion revenue
Operations in 70 countries
60,000 + employees
Treasury profile
Centralized operations across three centers
worldwide Management of SWIFT as financial
communications channel for treasury andbusiness units
Global implementation of treasury workstationand single instance of ERP
Key benefits of using SWIFT
Cost reduction from automation and singlecommunication platform; financial benefits frombetter visibility and management of cash
SWIFT was the only way to make our vision reach all our banks via one connection a reality
203% ROI over 5 years
Scalable platform to support growth objectives
Receive account info and statements in BAI2 format(FIN and FileAct), lockbox and ACH files (FileAct)
Send treasury payments (FIN), payments files wires, ACHs, checks & FX payments (FileAct)
Intranet
Singapore
Spain
U.S.
Treasury Workstation(Quantum)
ERP (SAP), usedby Business Units
SWIFTAlliance
Global Treasury Centers
March 2007
Case studyperformed by
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Presentation title - Event - Date Month Year 38
DuPont: Financial result from using SWIFT
Project management andoperations cost: time toestablish infrastructure,connections and systeminterfaces, and manage serverenvironment
SWIFT costs: subscription,
SWIFTNet infrastructure andSWIFTNet FIN and FileAct
DuPont will generate $2.5 million innet benefits over 5 years:
IT labor savings from reducedinfrastructure maintenance
Treasury labor savings frombusiness process improvementsrelative to global centering
activities Retirement of 25 bank messaging
systems
Working capital optimization fromimproved cash visibility
Payback in 3 years
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Presentation title - Event - Date Month Year 39
EADS
Challenges with previous infrastructure Enhancement of risk management
Standardize processes for increasedtransaction volume & constant head count
Achieve further efficiency gains inTreasury operations
Company profile
Aeronautic and Defense
2006 revenue of EUR 39 billion
Sales in 200 countries
About 116,000 employees
March 2007
Treasury profi le
EADS central Treasury Activities provided: Corporate Finance,
Sales & Project Finance, Interest RateManagement, Cash Management, FXManagement, Asset Management
Key benefits of using SWIFT Clear gains in process quality and efficiency
Highly reliable process, no down time
Project implementation in time and budget
Reliable platform for future requirements,Payment Factory being planned
SWIFT implementation
Trade confirmations MT300/305/320, notice toreceive MT210, payment orders MT101, statementsMT940/942, settlement orders MT541/543
SWIFTNet Accord to match confirmations
Service Bureau for connectivity, applicationmodules and long-term archive
EADS Service Bureau
SWIFTAllianceWorkstation
BeneficiaryControl List
Intra day accountmatching
BrokersTreasuryTransaction
System
SWIFTAllianceGateway
Banks
Accord
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Presentation title - Event - Date Month Year 40
SWIFT implementation
GE
Challenges with previous infrastructure 38 proprietary connections, each different
(systems, processes and data)
Significant resources to maintain, increaserequired to support scaling of volume
Impacting ability to quickly assemble viewof current cash positions
Company profile
Diversified technology, media and financialservices
100 countries; 300,000 employees
$ 152.4 billion revenue
Treasury profi le
GE Corporate Treasury serves 4,000business units
20,000 bank accounts with 200 banks
$ 10 billion average daily cash movements
Key benefits of using SWIFT One set of global financial messaging
processes, connections, message formats
Enhanced security, improved flexibility,increased automation, increased visibility
406% ROI in 5 years, payback in 33 months,$ 10.5 million net savings over 5 years
IntermediaryBank
2ndTierBanks
BusinessSystems
1stTier Banks
FIN for payments and credit advice
FileAct to replace EDI connections
Web Cash Treasury Workstation calculatespositions, determines intra day settlements,balance reporting, financial data
Case studyperformed by
J une 2005
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Presentation title - Event - Date Month Year 41
GE Operational impact
Improved ReliabilityGE Corporate Treasury reduced number of connection failures.Pre-SWIFT, average connection failure was 50 times per year;with SWIFT no connection failures have occurred
SimplificationBefore implementing SWIFT, GE Corporate Treasury dealtwith over 100 banks with 38 proprietary software connections.With SWIFT fully implemented, number of connections willdrop to one
Operational EfficiencyBy implementing SWIFT, Treasury Operations team canincrease activity volume per resource by 31%
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Presentation title - Event - Date Month Year 42
GE Benefits
GE Corporate Treasury willgenerate $ 10.5 million in net
benefits over 5 years frominvestment in SWIFT; achieves
positive return on operationalbenefits alone
GE Corporate Treasurywill achieve benefits fromincreased visibility andavailability of its cash
around the globe
Bank-wide adoption and support ofFileAct delayed realization of benefitsfor first years. As banks adopt FileAct,GE continues to increase its benefits
realization
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Presentation title - Event - Date Month Year 43
Iberia
Challenges with previous infrastructure Obtain visibility to liquidity across countries
Centralize payment origination activities
Manage multiple payments formats andauthorization procedures
Operate 60+ electronic banking channels,requiring significant treasury and IT staff
Company profile
Largest air transport group in Spain,fourth largest in Europe
5.5 billion revenues
Operates in 47+ countries
Employs 24,000 individuals
J uly 2007
Treasury profi le
Centralized treasury for Europe and NorthAmerica and in Latin America
Management of cash positions, paymentsand collections; Design and execution ofinterest rate & FX risk programs; Bankingrelationships
Key benefits of using SWIFT Consolidation of multitude of banking systems,
re-allocation of resources following automation
276% ROI over 5 years
We now have single bank messaging platformand whole process from payment origination toacknowledgement is straight-through
SWIFT implementation
MT101 sent via FIN for high value treasury andsupplier payments
MT101 and PAYMUL files sent via FileAct for lowvalue, UK ACH and PE-ACH supplier payments,PAYMUL for foreign and domestic chequepayments sent via FileAct
Case studyperformed by
XRT
Payment, Cash& Treasury
System (XRT)
Quantum
TreasuryManagement
System
SWIFTAllianceAccess
&Gateway
TransferSystem(XBE)
Oracle
GL
AP
AR
Authori-sation
Localbanks
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Presentation title - Event - Date Month Year 44
Iberia: Financial result from using SWIFT
Project management - time toestablish infrastructure andexecute project
Servers & Operations - cost toinstall and operate SWIFTNetinfrastructure
Application integration - toadapt treasury systems andconnect to SWIFTNet
SWIFT costs - MA-CUGregistration fees, SWIFTNetinfrastructure and traffic
Benefits generated by SWIFTNetfor Iberia include:
Payback in 25 months
60 electronic bank systemsretired over two years
Re-allocation of resources
following centralization ofbanking messaging activitiespreviously handled in the localoffices
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Presentation title - Event - Date Month Year 45
Microsoft
Challenges with previous infrastructure Visibility across multiple accounts / banks
Multiple channels and data formats, highcost to support, lack of scalability & agility
No central source of truth
Company profile
Software, services and solutions Revenue over $ 50 billion
Operates in 100 countries
Over 80,000 employees
Treasury profi le
Centralized Treasury with 130 employees
100 banks, 1,000 bank accounts
Global ERP and TMS
5,000 Treasury wires monthly, $ 70 billion
Key benefits of using SWIFT Single secure, reliable, resilient, cost effective
channel for communicating with all banks
326% ROI, $4.9 million NPV over 5 years
SWIFTNet is enabling Microsoft to build onecentralized source of truth for all bankingdata shared across the company.
SWIFT implementation
Account info and statements via MT940 & MT942
Planned: Send Treasury wires (FIN), receiveLockbox and billing analysis (822\BSB) data files(FileAct) and statements in XML
Q4 2007
Case studyperformed by
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Presentation title - Event - Date Month Year 46
Microsoft: Financial result from using SWIFT
Project management andoperational costs: timerequired to establish SWIFTinfrastructure, connections
(BizTalk) and systeminterfaces (SAP) and manageserver environment.
SWIFT costs incl. subscription,infrastructure and traffic
Payback in 24 months
IT Labor savingseliminationof/avoidance of time to maintainbank messaging systems
Treasury Labor savings
reduced time to more effectivelymanage global cash, month-end close, monitor balances,
Cost avoidance of 70-100 bankmessaging systems
Working capital optimizationfrom later cutoff times andoptimize un-invested cash
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Presentation title - Event - Date Month Year 47
Novartis
Challenges with previous infrastructure Need to replace multi-bank system
operated by 3rd party service providerwhen that came to end of support
Automate trade confirmations sent by fax
Increase security of payment flows
Company profile
World leader in providing medicines toprotect health, prevent and treat diseaseand to improve well-being
100,000+ employees
37 bn USD group net sales
J une 2007
Treasury profi le
Ensure effective financial risk management
Optimize use and profitability of financialresources
Provide financing and financial services atlow cost to operating businesses
Key benefits of using SWIFT Single channel to reach multiple banks;
automation of previously manual operations
When we had to replace our bank messagingsystem, we took SWIFT to reach all our banksdirectly, with the highest security
120% ROI and EUR 95,000 NPV in 5 years
FX deals are confirmed with MT300 and relatedmovements generate MT101 and MT210
Deposits are confirmed with MT320
Securities transactions still confirmed by fax,implementation of MT5xx planned later in 2007
Banks
Treasurysystem(OMR)
Middleware
SWIFTAlliance
Novartis entities Switzerland: Novartis AG, Holding, Pensionfund Luxemburg: Novartis Investment Bermuda: Novartis Securities Investments
Gibraltar: Novista Insurance
Novartis International
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Presentation title - Event - Date Month Year 48
Benefits composition
Treasury ops
staff re-
allocation
(28%)
Manual labor
cost savings
(50%)
Banking
messaging
cost savings
(22%)Year 0
Cost structure
J oining /
service fees
(16%)
SWIFTNetInfrastructure
(41%)
Traffic (12%)
Project
management
(24%)
Servers +
operations
(7%)
Novartis: Financial result from using SWIFT
Investment included joining and MA-CUGregistration, infrastructure and traffic fees, for6 Novartis entities.
Project which took just 6 months - covered
evaluation, joining / ordering, installation,connection to middleware, testing with bankpartners and go-live.
Operations cover daily management ofSWIFT interface and connection.
Novartis will generate EUR 723,000 in benefitsover 5 years from SWIFTNet.
Automation will allow Novartis to save on labor- previously occupied with manual faxes and
investigations via phone - and to re-allocate0,5 staff equivalent.
Using SWIFTNet, Novartis retired the bankmessaging system operated by a serviceprovider when that came to end of support.
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Presentation title - Event - Date Month Year 49
SWIFT Implementation
Petronas
Challenges with previous infrastructure
Sending payments by telex and fax waslabor intensive and prone to errors
Growth in transaction volume to supportlocal and increasingly global operationsstrained resources and bank processes
Operational activities limited ability to focuson analysis and strategic treasury initiatives
Company profile
Leading oil and gas multinational Active in 30+ countries
50 billion revenue
34,000+ employees
Treasury profi le
Group Treasury provides fund management,liquidity management and FX for 60+subsidiaries
Local subsidiaries manage operationalaccounts and daily payables & receivables
Key benefits of using SWIFT
Automation doubled staff productivity, reducedtelex & bank processing costs, allowedinterest earned on funds released later
With SWIFT, we now have a standard andreliable process with our banks
414% ROI, $1.1 million net benefits in 5 years
Project to implement Shared Service Center
based on SWIFT as messaging infrastructure
Group
Treasury(TREMA)
Group Accountsand Services
(SAP)
SWIFTAlliance
Treasury payments, notifications to receive,statements, FX and Securities deal confirmations,sent / received using FIN
Instruction letters to pay suppliers sent in pre-defined template or PDF format via FileAct
FIN
FileAct
Business unit(SAP)
FIN
Case studyperformed by
May 2007
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Presentation title - Event - Date Month Year 50
Year 0
Cost structure
Project
management
(6%)
SWIFT
operations(94%)
Benefits composition
Treasury staff
increase
avoidance (14%)
Telex cost
savings and bank
processing STP
(19%)
Interbank fee
optimization (2%)
Additional interest
earned oninvestment
payments (65%)
Break even analysis
(discounted, at end of year)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Year
0
Year
1
Year
2
Year
3
Year
4
Year
5
Costs Benefits
Petronas: Financial result from using SWIFT
Project costs include linkto Treasury ManagementSystem , which wasalready SWIFT enabled
SWIFT operations costsinclude SWIFTAlliancecapital expenditure andmaintenance, traffic andtransaction charges
Petronas will generate $1.1 million innet benefits over 5 years from itsinvestment in SWIFTNet
Treasury doubled transaction volumewith same headcount, avoiding 8extra staff. Automation eliminatedtelex costs and allowed banks toprocess payments straight through.Better visibility allows reducedinterbank fees. Interest is earned onincreased funds available due topayments released a day later
Payback in 14 months
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Presentation title - Event - Date Month Year 51
SWIFT Implementation
SwissRe
Challenges with previous infrastructure Increase in trading activity heightened
burden on internal processes and systems
Opportunity to improve communicationwith banks and custodians, at timescumbersome and often delayed
Company profile
Leading and most diversified reinsurer Operates in over 25 countries
About 11,000 employees
April 2007
Treasury profi le
Business groups using SWIFT
Asset ManagementFinance (Operational Payments)
Global Cash Management
Consolidated and centralized back-officesystems
Key benefits of using SWIFT Single portal to the financial industry
With SWIFT we have been able to enhanceour communication with banks / custodians,while improving quality, security and efficiencyof our information STP
4x savings to the original investment
Finance Zurich processes ~ 90% of its paymentsvia SWIFT: G/L to pay clients, insurers, brokersand suppliers; Quantum to manage portfoliopositions and perform cash management
Asset Management trades and reconciles ~ 95%of its trades via SWIFT using OpenMSG
SwissReNetwork
Legacy ERP/ EDI
Treasury / CashManagement
Portfoliomanagement
BBP(Servicebureau)
Case studyperformed by
Application 1
Application 2
AccountHoldingBank
FinancialInstitution 1
FinancialInstitution 2
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Swiss Re: Financial result from using SWIFT
Labor: implementation,maintenance, staging andmapping
Other infrastructure: bureaucosts for accessing
SWIFTNet SWIFT costs: membership
fees, traffic costs & BICcosts for multiple BICs
~ 10 million in netbenefits over five years
Increased visibility forbetter cash pooling
Increased visibility and
action enables workingcapital growth avoidance
Payback in 25 months
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Presentation title - Event - Date Month Year 53
T-Mobile
Challenges with previous infrastructure Special e-banking systems in every country
lead to high operating & maintenance costs
Not possible to add central signature
Multiple banks/accounts at national level
Company profile
Mobile communications to 103 millioncustomers in 12 countries
55,000 employees
23.6 billion as of September 2006
March 2007
Treasury profi le
In-House Bank + Payments Factory Process all internal and external payments
from all European subsidiaries in onecentral system, with one global standard
120 million transactions/year
Key benefits of using SWIFT With SWIFT, T-Mobile can run a central
platform with a single standard for everycountry and every bank for the first time
182% ROI
Possibility to roll-out Payment Factory basedon SWIFT at Deutsche Telekom group level
National payment formats sent via FileAct usingXML wrapper, without conversion cost
Bank application ack received via FIN
T-Mobile
International
BanksNational
companies
Intranet
Local ERP(SAP)
Local ERP(SAP)
Local ERP
(SAP)
InternationalFinancePortal
In-HouseBank(SAP)
SWIFTAlliance
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Presentation title - Event - Date Month Year 54
Benefits composition
Cash mgmt
ops labor
savings
(16%)
Bank systems
cost savings(35%)
Transaction
processing
efficiencies
(49%)
Cost s tructure
J oining
(1%)
SWIFTNetInfrastructu
re (7%)
Traffic
(6%)
Project
(25%)
Servers +
operations
(46%)
Middleware
(16%)
T-Mobile: Financial result from using SWIFT
Payback in 2 years
Break even analysis(at end of year)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Year
0
Year
1
Year
2
Year
3
Year
4
Year
5
Costs Benefits
Costs include joiningMA-CUGs, SWIFTNetinfrastructure and traffic.
Non-SWIFT costs
include projectmanagement, servers +operations, middlewarefor the internationalfinance portal
T-Mobile will generate EUR 4.5million in net benefits over 5 yearsfrom its investment in SWIFTNet
Increased automation, control and
standardisation allow T-Mobile tore-allocate 2 FTE and retire 15bank messaging systems in fourEuropean subsidiaries
Efficiencies from central operationslead to economies of scale andreduction in payment transactions
Payback in 3 years
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Presentation title - Event - Date Month Year 55
SWIFT implementation
Yves Rocher Group
Challenges with previous infrastructure Strong presence with many local banks
Many heterogeneous platforms andsecurity mechanisms
Build European communication platform
Yves Rocher
TMS(KTP/
Reuters)
ERP(SAP)
ServiceBureau(CMCIC)
Bank
Bank
Bank
EAI(TRAX)
Company profile
Personal care 2 billion revenues, 40 million customers
8 brands, acting in 88 countries
15,000+ employees
Treasury profi le
106 banks, 550 accounts 50+ bank communication systems
800 market transactions per year
Decentralized collections & payments.Centralized exchange risk, liquidity,cash pooling, netting.
SWIFTNet FileAct
All kind of payments (treasury, suppliers, payroll).Local formats (AFB320,VCOM...), waiting for XML
Connectivity via Service Bureau; integrationthrough financial EAI
Key benefits of using SWIFT Wide reach
Tighter security
Low operational overhead
Transparency of Service Bureau solution
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Presentation title - Event - Date Month Year 56
Agenda
Your challenge our solution
SWIFT for corporates
New Services
Business case
Case studies
Your SWIFT project
More info?
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Presentation title - Event - Date Month Year 57
Roll out
Plan your project
Define
scope
Contact
banks
Select
software
vendors
Pilot
J oin SWIFT
Install software,connect to SWIFT
Run test pilot
Per bank
Kick-off meeting
Setup and test liveenvironment
Go live
Financialservices
Banks
Applications
Formats andmessaging
Type of
connection
Contactrelationshipmanager or seeswift.com
Agree servicemodalities.Contract templateavailable
Contact SWIFT
See SWIFT readypartners onswift.com
Typical timeframe (depends on size of corporate and type of project)
1 month, for a EUR 750 million turnover corporate,to do treasury management with 3 banks using Alliance Lite
1 year, for a EUR 25 billion turnover corporate,to integrate SWIFT in its Payment Factory project
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About your project
Treasury organisation?
#banks, #bank accounts?
Back-office applications?
Challenges with current
infrastructure? #treasury payments/month?
#commercial payments/month?
Expected benefits?
What would you use SWIFT for?
Target live date?
List of (primary) banks?
#transactions to send over SWIFT? Formats: domestic, ISO, ...?
Which applications would you use?
How would you connect to SWIFT?
Treasury profile SWIFT project
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ERP
SWIFTNet
connectivity
Defining your project scope
Paymentfactory/
middleware
FIN for payments (MT101), statements(MT940/2) and FX confirmations (MT3xx)
FileAct as file transfer to transport anyformat: domestic, ISO 20022, ACH, BAI,
SWIFTNet
ERP(s)ERP(s)
TreasuryWorkstation
Which applications toconnect to SWIFT?
What formats &messaging to use?
Which banksto connect to?
How toconnect?
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Agenda
Your challenge our solution
SWIFT for corporates
New Services
Business case
Case studies
Your SWIFT project
More info?
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More info?
Your banks
Other corporates on SWIFT
SWIFT account director
swift.com/corporates
Corporate community on www.swiftcommunity.net
Conferences
Industry events like Eurofinance, AFP, ACT
SWIFT for corporates days
Sibos Forum for Corporates