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The SWIFT global payments
innovation: embracing the future
of cross-border payments
13th of March 2017
Janssen Marianna, SWIFT Regional gpi expert
SWIFT gpi initiative: revolutionary or evolutionary change?
gpi dedicated event_March 2017 2
Marianna Janssen – Copenhagen – 16/09/16
Revolution
or evolutionary
change?
“Remember, the greater the opportunity, the fewer are those who see it.”
Capt. James Cook 1728-1779
New Banking Landscape 1/4
A significant disruption or an immense opportunity?
Digitalisation and new non-traditional digital players, intensified competition
New technologies available generating new business needs in the traditional banking business, moving away from proprietary solution towards channel/format/platform agnostic solutions
More than ever demanding customers, re-evaluating services provided by Financial Institutions, trend of reducing the number of banking relationships
Regulatory pressure, the cost of compliance
Challenges/Trends
Challenges
and
Trends
gpi dedicated event_March 2017
Correspondent banking 2/4
Evolution of the business model
Low Risk
Low Margin
High Risk
Low Margin
De-risking as a general trend
gpi dedicated event_March 2017
New Banking Landscape 3/4
A significant disruption or an immense opportunity?
0
500
1000
1500
2000
2500
2014 2024
RETAIL WHOLESALE
847
243
1,510
480
1,090
1,990
Revenues ($ billions)
Source: BGC Global Payments report 2015
900$ bn. potential Revenue growth through 2024
gpi dedicated event_March 2017
New Banking Landscape 4/4
A significant disruption or an immense opportunity?
Rejuvenation of retail banking and leveraging technologies in other segments by delivering new services
New opportunities of acquiring new capital and new customers by offering innovative and attractive solutions
The ones with a customer-centric strategy will see the customer portfolio growth, others will see a significant decrease
The quickest will monetise the bulk of new revenues, the less adaptive will face margins deterioration and potentially loss of business
Opportunities
for banks
Russian payments market: trends & specificities
gpi dedicated event_March 2017 8
0% 20% 40% 60% 80% 100%
RU-CIS
North America
Middle East
Europe - Non Euro Zone
Europe - Euro Zone
Central & Latin America
Asia-Pacific
Africa
88%
45%
73%
44%
40%
82%
53%
62%
8%
50%
20%
48%
58%
15%
39%
35%
0%
0%
4%
0%
0%
2%
2%
1%
4.43%
4.27%
4.34%
7.80%
2.40%
1.95%
6.14%
1.30%
0% 20% 40% 60% 80% 100%
Others
RU-CIS
45.5%
87.8%
48.9%
7.6%
0.6%
0.2%
4.9%
4.4%
Payments
Securities
Trade Finance
Treasurygpi dedicated event_March 2017
World Regional FIN Traffic
Live & Delivered total traffic in 2016
Source: SWIFT Watch
9
gpi dedicated event_March 2017
FIN Traffic Market Repartition in Russia & CIS countries
Live & Delivered traffic in 2016
Traffic Sent: 88 million messages Traffic Received: 86 million messages
Source: SWIFT Watch
Payments 86.6%
Securities 9.1%
Treasury 4.1%
Trade Finance 0.2%
Payments 89.0%
Securities 6.0%
Treasury 4.8%
Trade Finance 0.2%
10
gpi dedicated event_March 2017
Top Countries with Highest FIN Traffic in Russia & CIS countries
Live & Delivered traffic in 2016
Total Traff ic = Traff ic Sent + Traff ic Received
Source: SWIFT Watch
Ranking Country Total Traffic Weight in
Russia & CIS Growth
(2016 vs 2015)
1 Russia
157,232,152 88.9% +15.33%
2 Belarus
6,143,949 3.5% +8.31%
3 Kazakhstan
4,761,647 2.7% -1.49%
4 Georgia
2,138,275 1.2% +20.78%
Other
Countries
6,554,514 3.7% -8.58%
Total RU-CIS
176,830,537 13.50%
11
World Regional Transactions in Payment Market Live & delivered transactions of MT 103s in 2015 and 2016
Total Transactions = Transactions sent + received
+18.0%
gpi dedicated event_March 2017
World Growth = +5.0%
Source: SWIFT Watch
0
100
200
300
400
500
600
Europe - NonEuro Zone
Europe - EuroZone
North America Asia-Pacific RU-CIS Africa Middle East Central & LatinAmerica
Mil
lio
ns
2015
2016
12
gpi dedicated event_March 2017
Distribution of Payments Transactions of Russia & CIS countries
Live & delivered transactions of MT 103s in 2015 and 2016
Source: SWIFT Watch
Total Transactions = Transactions sent + received
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
International
Domestic
13
gpi dedicated event_March 2017
Payments Transactions Evolution of Russia only Live & delivered transactions of MT 103s in 2015 and 2016
Growth Transactions Sent FY2016 vs. FY2015 +18.78% Transactions Received FY2016 vs. FY2015 +20.06%
Source: SWIFT Watch 0
1
2
3
4
5
6
7
Mil
lio
ns
Transactions Sent
Transactions Received
14
gpi dedicated event_March 2017
Source: SWIFT Watch
Weight of international payments sent by Russia & CIS countries Live, international & delivered MT103s transactions sent in 2015-2016
4.48%
0.71%
2.02%
2.03%
2.10%
4.00%
10.24%
14.43%
60.00%
4.77%
0.79%
2.10%
2.08%
2.14%
4.47%
10.88%
13.62%
59.15%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
Others
Uzbekistan
Azerbaijan
Moldova
Armenia
Georgia
Belarus
Kazakhstan
Russia
2016
2015
15
gpi dedicated event_March 2017
Source: SWIFT Watch
Weight of international payments received by Russia & CIS countries Live, international & delivered MT103s transactions received in 2015-2016
2.45%
1.58%
1.80%
1.67%
1.92%
2.97%
4.03%
5.79%
15.67%
62.12%
2.34%
1.62%
1.82%
1.84%
2.07%
2.74%
4.43%
5.78%
15.82%
61.53%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
Other
Kyrgyzstan
Armenia
Azerbaijan
Mongolia
Moldova
Georgia
Kazakhstan
Belarus
Russia
2016
2015
16
Top 10 Payments Corridors from Russia & CIS countries to the World Live, international & delivered transactions of MT 103s in 2016
gpi dedicated event_March 2017
Source: SWIFT Watch
0 0.5 1 1.5 2 2.5
Kazakhstan - Germany
Belarus - United States
Russia - China
Belarus - Germany
Georgia - United States
Russia - Latvia
Kazakhstan - United States
Russia - Belarus
Russia - Germany
Russia - United States
Millions
5 of the top 10 corridors are sent from Russia
and represents 39.62% of the total transactions
4 of the top 10 corridors are with United States
as the counterparty country and represents
24.38% of the total transactions
17
Top 10 Payments Corridors from Russia & CIS countries to the World Live, international & delivered transactions of MT 103s in 2016
gpi dedicated event_March 2017
Source: SWIFT Watch
0 0.5 1 1.5 2 2.5
Kazakhstan - Germany
Belarus - United States
Russia - China
Belarus - Germany
Georgia - United States
Russia - Latvia
Kazakhstan - United States
Russia - Belarus
Russia - Germany
Russia - United States
Millions
5 of the top 10 corridors are sent from Russia
and represents 39.62% of the total transactions
4 of the top 10 corridors are with United States
as the counterparty country and represents
24.38% of the total transactions
18
gpi dedicated event_March 2017
Top 5 Counterparties for Payments with Russia as the Receiver
Live, international & delivered MT 103s to Russia in 2016
US
DE KZ BY
GB
Source: SWIFT Watch
United States, 25.48%
Germany, 15.79%
Kazakhstan, 12.65%
Belarus, 9.55%
United Kingdom,
7.67%
19
gpi dedicated event_March 2017
Top 5 Counterparties for Payments with Russia as the Receiver
Live, international & delivered MT 103s to Russia in 2016
US
DE KZ BY
GB
Source: SWIFT Watch
United States, 25.48%
Germany, 15.79%
Kazakhstan, 12.65%
Belarus, 9.55%
United Kingdom,
7.67%
20
gpi dedicated event_March 2017
Top 3 End Beneficiary Countries of Transactions Sent to US
Live international & delivered MT 103s from Russia in 2016
End Beneficiary Countries (EBC) Growth: FY2016 vs FY2015
Stay in United States
288 kmsgs (+1.30%)
Hong Kong
140 kmsgs (+16.37%)
China
266 kmsgs (+14.83%)
Source: SWIFT Watch
16.0%
14.0%
9.8%
14.3% 14.5%
11.4%
United States China Hong Kong
2015 2016
21
New challenges, new business rules: the leaders and the followers
gpi dedicated event_March 2017 22
23
SWIFT gpi: the reason of existence
gpi dedicated event_March 2017
24
SWIFT gpi - One year on
21 Banks successfully piloted
12 Banks exchanging live gpi payments
100 gpi member banks
60+ Country corridors e.g. US – China, UK – Denmark, UK – Italy, UK – Netherlands
224 Countries
75% of all payments traffic on SWIFT
gpi dedicated event_March 2017
SWIFT gpi offering: the fundamentals
gpi dedicated event_March 2017 25
gpi video 1
SWIFT gpi promise: the fundamentals
Payment traceability: transparency of transactional status
Increased speed of Payment processing along the chain
Secure SWIFT network and compliant process
SWIFT Global reach but open and inclusive
Deliver a better customer experience through increasing efficiencies
Transparency of fees and processing time along the chain
Stil l reach
non-initiative
banks
Accessible
by any bank
Reaching
any bank
Tracker
Directory Observ er
SWIFT gpi concept
SLA rulebook
Core transaction banks
Enablers
Messaging technologies
gpi dedicated event_March 2017 27
SWIFT gpi product offering
gpi dedicated event_March 2017 28
SWIFT gpi product suite
Directory Tracker Observer
End-to-end payments tracking database to
monitor progress of a gpi payment
Allows to track a payment’s path in real
time, obtain transparency on deducts and
confirmation that payment was credited
Business Intelligence dashboard showing
bank compliance with gpi SLA.
Ensure control, monitoring and
enforcement of SLA, and, consequently,
service quality
Availability
December 2016 via SWIFT r
Reach Plus
July 2017 dedicated gpi Directory
Availability
GUI: November 2016
• MT 199 / API: May 2017
Availability
Basic version: May 2017
Advanced version: Q4 2017
• Providing operational info on gpi
members, BICs, currencies, cut-off times
• Essential reference data to calculate best
gpi payment route
29 gpi dedicated event_March 2017
SWIFT gpi Tracker
gpi dedicated event_March 2017 30
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
(MT101) MT103 MT103 (MT910)
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
MT103
MT199/API
31 gpi dedicated event_March 2017
32
Gpi Tracker – visuals
gpi dedicated event_March 2017
33
Tracker – in progress (1)
gpi dedicated event_March 2017
34
Tracker – in progress (2)
gpi dedicated event_March 2017
35
Tracker – in progress (3)
gpi dedicated event_March 2017
36
Tracker – completed
gpi dedicated event_March 2017
37
Tracker – rejected
gpi dedicated event_March 2017
38
Tracker – detailed search page
Overview of all
transactions, filtering
capability
More targeted
search capability, combination of
fields
gpi dedicated event_March 2017
SWIFT gpi Directory
gpi dedicated event_March 2017 39
PARTICIPANT ID ID TYPE PARTICIPANT NAME COUNTRY CURRENCY
CUT-OFF
TIME
CUT-OFF
DAY LOCAL TIME ZONE
ACTS AS
INTERMEDIAR
Y
REACHABLE
THROUGH CHANNEL TYPE START DATE STOP DATE
ANZBAU3MXXX BIC AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED AU AUD 16:00+10:00 Australia/Sydney Y D-C
ANZBAU3MXXX BIC AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED AU EUR 16:00+10:00 Australia/Sydney N D-C
ANZBAU3MXXX BIC AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED AU GBP 16:00+10:00 Australia/Sydney Y BARCGB22XXX INTERMEDIARY
ANZBAU3MXXX BIC AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED AU USD 16:00+10:00 Australia/Sydney Y CHASUS33XXX INTERMEDIARY
BARCGB22XXX BIC BARCLAYS BANK PLC GB GBP 16:00+00:00 Europe/London Y D-C
BARCGB22XXX BIC BARCLAYS BANK PLC GB EUR 16:00+00:00 Europe/London Y EBA FIN-PMI
BARCGB22XXX BIC BARCLAYS BANK PLC GB EUR 16:00+00:00 Europe/London N TGT FIN-PMI
BARCGB22XXX BIC BARCLAYS BANK PLC GB USD 16:00+00:00 Europe/London Y HKI FIN-PMI 20160915
BARCGB22XXX BIC BARCLAYS BANK PLC GB CNY 16:00+00:00 Europe/London Y HKI FIN-PMI
BARCGB22XXX BIC BARCLAYS BANK PLC GB CNY 16:00+00:00 D-1 Europe/London Y BKCHHKHHXXX INTERMEDIARY
BARCGB22XXX BIC BARCLAYS BANK PLC GB JPY 09:00+00:00 D-1 Europe/London Y SMBCJPJTXXX INTERMEDIARY
BARCGB22XXX BIC BARCLAYS BANK PLC GB USD 16:00+00:00 Europe/London Y BARCUS33XXX INTERMEDIARY
BARCGB22XXX BIC BARCLAYS BANK PLC GB USD 16:00+00:00 Europe/London Y CITIUS33XXX INTERMEDIARY
BARCGB2LXXX BIC BARCLAYS BANK PLC GB USD 16:00+00:00 Europe/London Y D-C
CITIUS33XXX BIC CITIBANK N.A. US USD 15:00-05:00 Y D-C 20160901
CITIUS33XXX BIC CITIBANK N.A. US USD 15:00-05:00 Y D-C 20160831
CITIUS33XXX BIC CITIBANK N.A. US CNY 15:00-05:00 D-1 Y HKI FIN-PMI
CITIUS33XXX BIC CITIBANK N.A. US CNY 15:00-05:00 D-1 Y DEUTHKHHXXX INTERMEDIARY
CITIUS33XXX BIC CITIBANK N.A. US GBP 15:00-05:00 Y DEUTGB2LXXX INTERMEDIARY
CITIUS33XXX BIC CITIBANK N.A. US JPY 15:00-05:00 D-1 Y D-C
gpi Directory BIC at which the
participant is
reachable for
receiving gpi
payments
Participant's gpi
cut-off time for a
currency (not a
general cut-off
time for all
payments nor
bilaterally agreed
cut-off times)
Whether or not
the participant
acts as a gpi
intermediary for
this currency
How to reach the
participant ?
- Through an intermediary
- Through Direct or Cover
account relationship
- Through a FIN Payments
Market Infrastructure
The currency
accepted in
incoming gpi
payments, by the
Participant ID
The data shown here is fictitious and only serves to illustrates the syntax and possibilities. Blue fields are populated by SWIFT.
The country
determining
the bank
holidays of
the
participant
40 SWIFT gpi – <Customer> – <Session Name> – <Date> – Confidentiality: RESTRICTED
SWIFT gpi Observer
gpi dedicated event_March 2017 41
gpi dedicated event_March 2017 42
gpi dedicated event_March 2017 43
SWIFT gpi: why you should join
gpi dedicated event_March 2017 44
gpi_video 2_the_future_of_cross-
border_payents.mp4
What’s in it for you? Immediate return
gpi dedicated event_March 2017 45
No additional transaction surcharges from SWIFT
Gpi Tracker – a powerful tool for internal and external use
Immediate enhanced service portfolio
Example of thought leadership and innovation
Gpi Observer – a powerful BI tool providing competitive intelligence insights
www.swift.com Contact us
www.swift.com/gpi
Download
the SWIFTgpi App on your iPad
Eager to learn more about it?
46 gpi dedicated event_March 2017