Sydney June 8, 2017

Michael Moon Head of Payments Markets, Asia Pacific, SWIFT

Global Payments Innovation

Innovation is challenging foundations of the financial industry

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In this “disruption” banks are always present

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… more often than not, there is a

banking organization somewhere in the

fintech stack … for such things as …

• access to deposits or accounts

• payment system access

• credit origination

• compliance management

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Innovation with Business Process AND Technology

SWIFT rails today

Secure

6.5bn FIN messages

Seconds Bank to bank message sent

anywhere in the world

3 days Approximate annual value

world GDP through SWIFT

network

Resilient Always available

11,000 Connects financial

institutions,

Corporates & Market

Infrastructures Globally

All currencies Eg. $, €, £, ¥ etc

200+ Countries & territories

3,000 Connects financial

institutions, corporates &

market infrastructures in

Asia Pacific

6.5% Annual growth

Cents Cost per message

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So what’s the problem ?

friction

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payment

fees compliance

liquidity FX documents

reconciliation

Regional

banks

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A new world for corporate payments

Tracking

“I’m not able to tell

when the money

hits the beneficiary’s

bank account”

Brooke Tilton

Vice President, Treasury Operations, Viacom

Transparency

“Many times we

don’t have visibility

on the fees lifted

along the way”

Peter Claus-Landi

Director banking initiatives, General Electric

Speed

“Critical business

requires faster

payment execution”

Martin Schlageter

Head of Treasury Operations, Roche

Michel Verholen

Director, Global Treasury Center, Zoetis

Remittance information

“We miss information

regarding the invoice

and the payer for

timely reconciliation”

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Speed

Transparency

Traceability

Certainty

Information

85+ Country corridors

110+ Banks committed to gpi

70+ Globally live or on-boarding

20+ in APAC live or on-boarding

of cross-border payments

on SWIFT

75% Countries and territories

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200+

SWIFT gpi : 70+ banks live or on-boarding

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Banks

110+

ABN AMRO Bank

ABSA Bank

Agricultural Bank of China

Akbank

Alfa-Bank

ANZ

BBVA

Banque Centrale Populaire

Bank of America Merrill Lynch

Bank of China

Bank of Communications

Bank of New York Mellon

Barclays

Bayerische Landesbank

BNP Paribas

China Citic Bank

China Construction Bank

China Minsheng Banking Corporation

Citibank

Commerzbank

Commonwealth Bank of Australia

Crédit Mutuel-CIC Banques

Danske Bank

DBS Bank

Deutsche Bank

Denizbank

DNB Bank

Ebury

Erste Group Bank

FirstRand Bank

Guangfa Bank

HSBC

ICBC

Industrial Bank

ING Bank

Over 110 global transaction banks committed to SWIFT gpi Sample illustration of banks with implementation project, live

Countries

220+ SWIFT cross-border payments

75%

Intesa Sanpaolo

INTL FCStone

JPMorgan Chase Bank

KBC Bank

KEB Hana Bank

Lek Securities Corporation

Lloyds Bank

Mashreq Bank

Mizuho Bank

National Australia Bank

Natixis

Nedbank

Nordea Bank

Oversea Chinse Banking Corporation

Ping An Bank

Piraeus Bank

Postal Savings Bank of China

Rabobank

Raiffeisen Bank International

Royal Bank of Canada

Santander

Sberbank

Shanghai Pudong Development Bank

Siam Commercial Bank

Société Générale

Standard Bank of South Africa

Standard Chartered Bank

Sumitomo Mitsui Banking Corporation

Tadhamon International Islamic bank

TEB

The Commercial Bank of Kuwait

Toronto-Dominion Bank

Turkiye Cumhuriyeti Ziraat Bankasi

UniCredit

Wells Fargo

Westpac Banking Corporation

Yapi Ve Kredi Bankasi

Zhejiang Rural Credit Cooperative Union

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13 banks have joined SWIFT gpi in China, Australia’s largest trade partner

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SWIFT gpi roadmap delivers change today … and in future

SWIFT gpi Customer Credit

Transfer

- Faster

- Transparent

- Traceable

- Unaltered remittance

information

Live in Feb 2017

Phase 1

Delivering a

New standard

Phase 2

Designing

Digital transformation

Phase 3

Exploring

Technological innovation

Enabling digital payment

services

- Rich payment data service

- Stop and recall payment

service

- International payments

assistant service

Q4 2017 - 2018

Exploring the use of new

technologies

- DLT Proof of Concept for

real-time reconciliation of

nostro accounts

Q1 2017 – 2019?

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SWIFTgpi

SWIFT gpi: secure, faster, traceable & transparent cross-border payments

1 Faster payments Same day use of funds*

Traceable End-to-end payment tracking

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3 Transparent fees Deducts and FX 4

Full remittance data Unaltered reconciliation info

Your company

Beneficiary

gpi

Intermediary

bank

Beneficiary’s bank

Your bank

*Within the time zone of the receiving gpi member

SWIFTgpi Rulebook $

Invoice

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

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The payments tracker – technology innovation

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Central payments database,

hosted at SWIFT

Data consumption via GUI, via

MT199 (push) or via API (pull)

Transparency of total fees and time

Unique, end-end tracking number

“One-glance”

status overview

Track path,

in real-time

Details of banks along

the chain

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What’s next: the digital transformation of cross-border payments

Rich payment data Request for cancellation International Payment Assistant

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Rich remittance information, invoices,

compliance documents, etc.

Stopping unsolicited payments

(double payment, manual errors, fraud)

STOP

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Validation of payments before execution

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Account number ?

BIC ?

Passport required ?

Beneficiary ?

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DLT & SWIFT gpi: the Nostro-vostro reconciliation POC

High cost of

reconciliation

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“All service interfaces, without

exception, must be designed from

the ground up to be externalisable”

Jeff Bezos

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Open-ness and APIs are present in these innovations in Australia

Opening the SWIFT gpi rails

DLT Proof of

Concept for Nostro recon

API Sandbox

Industry Challenge,

with Innotribe

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Financial community and FinTechs innovating together

APIs

MT103 MT202COV

STP:

UETR #123

X

International Payments Assistant

Request For Cancellation

Rich Payment Data

Customer Credit Transfer,

including cover

Third-party applications

APIs APIs APIs

Additional

value

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2017 gpi global innovation industry challenge in Asia Pacific

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payments

Building the future – for your business to grow, you need to:

gpi

DLT

Business intelligence

Be ahead

of the curve

Be efficient ISO Multi-

Network

operational

excellence

CSP

FCC Customer

Security

Programme

Be secure

& compliant

Financial

Crime

Compliance

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SWIFT gpi –

Journey of

innovation with the

community

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