Business Intelligence The competitive advantage of transforming data

into actionable business insights

Morgane Donck, Business Intelligence EMEA

SWIFT Benelux Forum

23 April 2015

Changes happening in correspondent banking More risk averse banking

2 SWIFT Business Intelligence - BF

The number of net new RMA relationships is going down worldwide – banks are closing down

relationships in order to drive risks down and comply with regulatory requirements

For more details and case studies on the BI offering, please refer to

http://www.swift.com/products_services/by_type/business_intelligence/overview

3

Roadmap Business Intelligence

Economics

BI for

Compliance

Services

RMB tracker

Products

Global

Transaction

Banking

Compliance Securities Treasury

SWIFT Index

Currency Index

Watch Value

Analyser

Watch

Securities

Analyser

On-site Business Intelligence

Workshops & Training

Enriched Watch

data

Watch Insight

Swift Business Intelligence products & services support various business lines and give

opportunities to optimise functions and understand where business growth sits in the market

Existing

Exploration

Development

Central banks

Peer

benchmarking

Corporate

report

Consulting services helping

you to leverage the full

potential of WATCH products

Consulting services

providing more information –

e.g. peer benchmarking,

enriched data, workshops,…

BI solutions for banks

4

WATCH Insights

WATCH Analyser

Business Intelligence

Services

Reports focusing on four

specific business domains:

Trade Finance, Payments,

Network management,

Operations

Subset of Watch data

Interactive database with

possibility to build customized

reports on Swift traffic

Complete set of data with

value and currency or only

number of transactions

Volume Value

For small

banks with

only 1 BIC8

and less

international

presence

For larger

banks having

multiple BIC8

and

international

presence

SWIFT Business Intelligence - BF

BI solutions for banks

5

WATCH Analyser

Interactive database with

possibility to build customized

reports on Swift traffic

Complete set of data with

value and currency or only

number of transactions

Volume Value

Migration of Watch to new state-of-the-art business intelligence platform,

with enhanced functionalities for graphics, visual output, analysis and

export

Migration

done!

SWIFT Business Intelligence - BF

Charges analysis (BEN, SHA,

OUR)

Initial Ordering Country

End Beneficiary Country

FX in transactions

Length of LC (tenor)

LC confirmed/unconfirmed

BI solutions for banks

6

Consulting services helping

you to leverage the full

potential of WATCH products

Consulting services

providing more in-depth data

Business Intelligence

Services

Peer benchmarking: Understand your position

and growth in the market

compared to peers

Enriched data: Go beyond Watch and

create your competitive

advantage by

understanding your traffic

and market practices

even better

Training/Workshop

on Watch: Get the best out of your

Watch subscription and

embed it in your daily

workflow

Ordering option Top 10 Ordering Country Ordering option Top 10 Ordering Country

Initial ordering Initial ordering

4%

81%

15%

Blank

Option A

Other options

27%

22%

15%

8%

6%

5%

5%

5%4% 3%

United Arab Emirates Russia United States

Ukraine Turkey Kazakhstan

United Kingdom Poland Tajikistan

Uzbekistan

18%

55%

27%Blank

Option A

Other options

28%

24%23%

11%

5%

3%3%1%1%1%

United Arab Emirates Uzbekistan Russia

Cyprus Azerbaijan Armenia

Switzerland Kyrgyzstan Czech Republic

TajikistanTenor Length in 2013 Tenor Length with preferred correspondents in 2013

Tenor Length Tenor Length

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Correspondent E

Correspondent D

Correspondent C

Correspondent B

Correspondent A

0-30 days

31-60 days

61-90 days

91-180 days

> 180 days

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Correspondent E

Correspondent D

Correspondent C

Correspondent B

Correspondent A

0-30 days

31-60 days

61-90 days

91-180 days

> 180 days

Corporate business

development report: Understand how many

corporates are connected

to Swift and what your

market share is

For all types of audience,

wanting to master their

business

For all types of audience,

understanding position

domestically or

internationally, and setting

strategy upon this

For larger institutions,

wanting to understand their

international message flows

better and looking for

optimising correspondent

banking revenues

For larger institutions,

wanting to understand how

they are doing in the

corporate space, and what

the potential for growth is

BI solutions for banks Example analyses for operational excellence

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NACK analysis Free text message type RMA analysis

What’s the ratio of NACK

messages?

How does that compare to the

market?

What’s the reason for the NACK?

STP!

How many free text messages are

used? What type?

How does that compare to the

market?

Who sends you most?

Operational excellence

Consulting services helping

you to leverage the full

potential of WATCH products

Consulting services

providing more in-depth data

Business Intelligence

Services

SWIFT Business Intelligence - BF

Peer benchmarking Understand your position and growth in the market

compared to peers

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Peer benchmarking

Consulting services helping

you to leverage the full

potential of WATCH products

Consulting services

providing more in-depth data

Business Intelligence

Services

SWIFT Business Intelligence - BF

Trends

Consulting services helping

you to leverage the full

potential of WATCH products

Consulting services

providing more in-depth data

Business Intelligence

Services

European banks seem to take less risk over the past year in financing export to the ‘more

risky’ EU countries

40000

50000

60000

70000

80000

90000

100000

110000

120000

130000

Average value MT400 & MT700

Growth 2015Q1 vs 2014Q1: -29%

Declining trust between Eurozone & PIIGS

countries? Average value of an export trade finance transaction is going down

Trends

Consulting services helping

you to leverage the full

potential of WATCH products

Consulting services

providing more in-depth data

Business Intelligence

Services

European banks seem to take less risk over the past year in financing export to the ‘more

risky’ EU countries

Q1 2013 to Q1 2014 total

volume growth: 6,31%

Q1 2014 to Q1 2015 total

volume growth: -0,68%

Total volumes for traffic sent out

of Africa is not growing

significantly, even declining?

North America

Europe – Euro Zone

Less MT103 traffic is routed to the US

out of Africa => less usage of USD in

African payments?

Payments streams out of Africa to the world Is Africa the promised land for future payment volumes growth?

Trends

Consulting services helping

you to leverage the full

potential of WATCH products

Consulting services

providing more in-depth data

Business Intelligence

Services

European banks seem to take less risk over the past year in financing export to the ‘more

risky’ EU countries

Less MT103 traffic is routed to the US

out of Africa => less usage of USD in

African payments?

Drop in USD traffic is not offset by a

obvious growth of other currencies

Are the compliance happenings

and trends blocking African

business development?

USD growth:

Q1 2013 – Q1 2014: +7,50%

Q1 2014 – Q1 2015: -3,42%

EUR growth:

Q1 2013 – Q1 2014: +6,99%

Q1 2014 – Q1 2015: +3,65%

Others growth:

Q1 2013 – Q1 2014: -0,11%

Q1 2014 – Q1 2015: +0,87%

USD

EUR

Others

Currencies used for payments sent out of

Africa Is compliance a hurdle for African business development?

For more details and case studies on the BI offering, please refer to

http://www.swift.com/products_services/by_type/business_intelligence/overview

12

Roadmap Business Intelligence

Economics

BI for

Compliance

Services

RMB tracker

Products

Global

Transaction

Banking

Compliance Securities Treasury

SWIFT Index

Currency Index

Watch Value

Analyser

Watch

Securities

Analyser

Swift Monitor

Workshops & Training

Enriched Watch

data

Watch Insight

Swift Business Intelligence products & services support various business lines and give

opportunities to optimise functions and understand where business growth sits in the market

Existing

Exploration

Development

Central banks

Peer

benchmarking

Corporate

report

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“Only 18% of payments on the Swift network are

reported on an intraday basis” Source: Swift Sibos

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On-site Business Intelligence

Visualisation: Real-time monitoring,

deeper analysis, customised

reporting (liquidity, trends &

forecasts)

Data capture in real-

time: Via FinInform service

FININFORM

Bank Bank

Data transformation

& parsing: Via IPLA and Integration

services – different info

sources in 1 central DB

Database

Efficient and cost effective way to monitor Swift traffic supporting risk management,

supervision and regulatory reporting – for Central Banks and Intraday Liquidity Mgt. purposes

NEW

SWIFT Business Intelligence - BF

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Swift Monitor in practice

SWIFT Business Intelligence - BF

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Swift Monitor in practice

SWIFT Business Intelligence - BF

SWIFT Business Intelligence - BF 17

Watch Securities Analyzer

New platform for the Securities market, aligned to market practices, allowing in-depth analysis

of your own traffic and comparison to market totals

Coverage:

• Settlement and Asset

Servicing

• Equities and Fixed Income

Data visualization:

• Mix of MIS data and

benchmarking possibilities:

• Market share analysis

• Efficiency analysis

Users:

• Local and regional custodians

• Global custodians

• Global investment banks

• Asset managers

NEW

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Thank you

SWIFT Business Intelligence - BF

Morgane Donck

SWIFT | Business Intelligence EMEA

morgane.donck@swift.com