ISO 20022 Accelerating the Pace of Adoption

ISO 20022 Accelerating the pace of adoption

Mark Brule, CPA

Malene McMahon, SWIFT

Frank Vandriessche, SWIFT

14 April 2015

ISO 20022 adoption - context

2

200 initiatives Under discussion > planned > rollout > live

90 countries

Europe Asia Pacific

Americas Middle East & Africa

ISO 20022 Payments

Securities

Trade Services 51% Foreign Exchange

42%

4% 2% 1%

Cards

ISO 20022 adoption - context

3

Financial

institutions

Comply with MI

Internal optimisation

Flexible services to

customers

MI FI Financial institutions’ customers Market

infrastructures

Enable new services

Streamline end-to-end

business processes

Facilitate regional

integration

SWIFT’s offering for market infrastructures

and financial institutions

4

Standards

expertise

& tools

Secure

messaging

platform

Shared

Services Connectivity

& integration

for ISO 20022

Community management

Harmonized standards usage

Training & consulting to support best-practice implementation

Seamless integration

Predictable, secure and reliable environment

SWIFT Business Forum Canada - 14 April 2015

SWIFT’s ISO 20022 value proposition High-value payment market infrastructures

5

Products

& Services

Messaging

FIN 82 %

IA 9% - FA 3%

WebAccess 6%

Reach

77 HVPMIs (+3) IPFA

SEPA,EU

B

R

DK

CH

FED, US

CPA, CA

IPFA

T2,

EU

AU

Zengin,

JP

CNAPS,

CN

IN

Low-

value

High-

value

BOJNet

, JP

CPA, CA

Live

Live

Live

NZ

SG

CO

PE

Live

PG

CL

Z

A

PL

BN

CNAPS,

CN

SADC

UK

Live

Live

Global ISO 20022 adoption by PMIs

Solution design • Message portfolio • Rulebooks • Data models, IGs, conversion

rules

Communication

Prepare future evolution • Changing business & regulatory

requirements • Technological change

Adopt

STRATEGY DESIGN

Strategy, business case and scope discussions

Provider selection • Network & Messaging • Products & Services (eg tools,

applications, consulting)

Implementation/adoption approach & roadmap, including testing framework & coexistence planning, if any

Establish standards management framework

Establish communication & education programme

INTERNAL PREPARATION TESTING

Implement

Roll-out of ISO 20022 solution identified in the Adopt phase • Network connectivity • Messaging services • Upgrade applications & systems • Interfaces • Build on-boarding & testing environment • Build integration products & services • Install support desk for members

Project management

Provider management

Community support & training

GO LIVE OPERATE

Use

Go live support

Monitoring live operations

Support

Release management (solution & standards)

Community support & training

Communication

Provider management

SWIFT’s offering for Market Infrastructures

7

Standards

expertise

& tools

Secure

messaging

platform

Shared


& integration

for ISO 20022



Value-add training & consulting



What have Market Infrastructures and financial

institutions been telling us?

8

Less variation,

more global

market practice

Provide a predictable

environment for

MI communities (versions, release mgmt, ..)

Best practice sharing for community

adoption & implementation

1

2

3

SWIFT’s offering for Market Infrastructures Harmonized standards usage

Our collaborative web platform

to better manage standards…

MyStandards

Readiness

Portal

… and facilitate your

community on-boarding

Access complete message portfolio

Consult global guidelines as a basis

Multi-format documentation

Customize to reflect community needs

-> harmonized market practices

Easy maintenance of guidelines

+ predictable release cycles

+ version management

Go live & evolve solution

Set-up closed user group

+ efficient community onboarding

Self-service internet testing

Integration components

MT/MX mapping rules

9

10

• Reliable & secure messaging service

Interact S&F, FileAct, WebAccess

• Non-repudiation, archival and retrieval

• Double authentication

• Central validation of base messages, global market

practice and reference data

• Predictable standards release ensuring timely

budgeting and planning for your community

• Easy and efficient self-service Closed User Group

on-boarding for your community

• SWIFTNetCopy for HVPMIs

Messaging

platform

Reliability

Availability

Security

SWIFT’s offering for Market Infrastructures Predictable, secure and reliable environment

MT 103 (+)

MT 202/205 (COV)

MT 204

• Closed user group

• Message validation

• PKI based security

• Archival and retrieval

• Copy services

• Support MT

Authorisation

request Authorisation

response

MT 096

Payment

Instruction Autorised/settled

Payment Instruction

Sender Notification

MT 103 (+)

MT 202/205 (COV)

MT 204

MT 012

MT 097

Abort Notification

MT 019

SWIFT’s offering for Market Infrastructures Today’s FINCopy solution

11

pacs.008

pacs.009

pacs.010

• Closed user group

• Message validation

• PKI based security

• Archival and retrieval

• Copy services

• Support ISO 20022

Authorisation

request Authorisation

response

pacs

008/009/010

(copy)

Payment

Instruction Autorised/settled

Payment Instruction

Sender Notification

pacs.008

pacs.009

pacs.010

xsys.002

xsys.001

Abort Notification

xsys.003

SWIFT’s offering for Market Infrastructures Tomorrow’s SWIFTNet Copy environment

12

13

Full spectrum of

services

covering Adoption,

Implementation &

Use phases • MIRS (for HVPMIs)

• SWIFTRef

• BI for HVPMIs

• …

• Business case

support

• Impact

assessment

• Roadmap

definition

• Gap analysis

• Rule book

development

• Data models

• Customized

implementation

guidelines

• Transformation

rules

• Project

management

• Awareness &

training

• Test message

preparation ISO 20022

Strategic

Consulting

ISO 20022

Implemen-

tation

ISO 20022

Solution

Design

Value-add

services

SWIFT’s offering for Market Infrastructures Shared services

Interface/Integration

SWIFT messaging platform

MT back-office

Send / receive MTs

to / from counterparties

Send / receive MXs to /

from counterparties

Transformation

MT to MX

and vice versa

Future route to

T2/EBA/CPA…

Shielding users from migration impact

SWIFT’s offering for Market Infrastructures Connectivity and integration

14

Standards

& market

practice

Messaging

platform

Presence on MyStandards:

• Portfolio of payment messages

• Global HVP market practice

• Version information (current/future)*

• Release management*

• Offline testing services

Standards training & support (fixed no of days)

ISO 20022 MI starter set For all MIs

SWIFT for ISO 20022 – packaged solutions

15


Standards

& market

practice

Messaging

platform








SWIFTNet CUG setup for MI:

• InterAct S&F

• SWIFTNet Copy (Y mode, partial or full)

• Validation against global HVP market practice

Self-service CUG on-boarding for community

Download community integration components

for SWIFT customers:

• XSD, deployment packs, connectors

SWIFTNet testing*

ISO 20022 MI starter set For small & medium size MIs

16

Standards

& market

practice

Messaging

platform

Connectivity

&

Integration

Shared

Services








SWIFTNet CUG setup for MI:

• InterAct S&F

• SWIFTNet Copy (Y mode, partial or full)

• Validation against global HVP market practice

Self-service CUG on-boarding for community

Download community integration components

for SWIFT customers:

• XSD, deployment packs, connectors

SWIFTNet testing*

ISO 20022 standards consulting

ISO 20022 Strategy & design consulting

Customized market practice creation, publication &

maintenance service

Test message preparation

Project management & community on-boarding

MIRS

SWIFTRef

Connectivity

Alliance Access/Gateway/AMH

MT/MX Transformation

Integration services

ISO 20022 MI full offering For medium & large size MIs


17

SWIFT’s offering for financial institutions

18

Standards

expertise

& tools

Secure

messaging

platform

for ISO 20022



Training & consulting to support best-practice implementation



Shared


& integration

An FI’s ISO 20022 landscape..

19

Your participation to

Market

Infrastructures

2017 2016 2015 Step2

EURO1/

STEP1

Baltic CSDs

ACH CENIT (CO)

Securities

2018

& beyond

Your customers

(corporates, branches

and other FIs)

2016 2017 2015 2018

& beyond

Payments

An FI’s ISO 20022 landscape…

20

Market Infrastructures

2017 2016 2015 Step2

EURO1/

STEP1

Baltic CSDs

ACH CENIT (CO)

Payments

Securities

2018

& beyond

Your customers

(corporates, branches

and banks)

2016 2017 2015 2018

& beyond

How to

prepare, plan

& budget for

MI imple-

mentations

How to

internalise

ISO 20022

in your

infrastructure

How to offer

flexible

services to your

customers

• Get visibility on current and future

ISO 20022 initiatives

in other geographies and

business areas

• Understand impact on:

• Business applications

• Shared services

(sanctions screening, archiving,…)

• Interface and integration

infrastructure

As is To be

• Develop ideal To be model on the

ISO 20022 related functionality of:

• business applications,

• shared services

• infrastructure,

• and the communication

between them

• Design future-proof implementation

of ISO 20022

A holistic view to take informed decisions

21

Recommended

actions and

implementation

roadmap

Analyze

As Is

Operating

Model

Establish

ISO 20022

Landscape

Benchmark

against

discussed

‘ideal solution’

Global and Best Practices

Accelerate

strategy,

reduce risk

and cost

Create

a well-informed

ISO 20022

implementation

roadmap

Adopt best-in-

class practices

Business,

implementation and

standards expertise

directly

from the source

ISO 20022 impact assessment Build a strategic roadmap for your firm

SWIFT Business Forum Canada - 14 April 2015 22

Governance, process flows

Build on ISO 20022 business model

Sizing of systems and connections,

Recovery and resiliency

Middleware, manual processing,

connectors & converters

Business processes &

activities use..

Data that must be

collected, organized,

safeguarded & distributed

using..

Applications such as custom or

off-the-shelf software tools that run

on…

Technology such as computer systems and

networks

ISO 20022 solution design service

23

MyStandards

& Readiness

Portal

MI multi-format documentation

MI integration components (XSDs,

deployment packs)

MI CUG set-up & joining

MI self-service internet testing

MI

A

MI

B

You

Your customers

+ Compare and analyse versions

+ Compare and analyse

market practice of multiple

market infrastructures

+ Create your own internal and

customer guidelines

+ Offer your customers

the same easy onboarding

experience

MyStandards

& Readiness

Portal

MyStandards for you and your customers

24

Efficient community

management

Resilient messaging platform

Standards expertise

Unequalled contribution

to ISO 20022

SWIFT - the trusted source for your ISO 20022 initiative

Trusted consulting

partners for more

ISO 20022 initiatives

globally than anyone else

Only worldwide value-added network

designed specifically for ISO 20022

Highest standards of reliability,

availability and security

Selected as platform provider

for key ISO 20022 initiatives

in payments and securities

Forty years of community expertise Unique tools and established

processes to support communities

for ISO 20022

Why SWIFT for ISO 20022

25

Mark Brule

Director, Payments Innovation

Canadian Payments Association

14 April 2015

Slide 27

The CPA is leading the modernization of Canada’s payments industry

and helping to shape our digital economy by establishing ISO 20022 as

the standard for payment messages.

Payments based on ISO 20022 will foster innovation and help Canada

compete at home and around the globe by facilitating financial

transactions in an efficient and cost effective manner.

Slide 28

• Development of ISO 20022 messages for AFT, LVTS and EDI payments

• Development of a standards management support structure at CPA

• Develop the timeline and approach to the adoption strategy (including high level

cost model)

• Policy and AFT Rule development

Phase II: 2016…

• Focus on adoption and implementation of the ISO 20022 standard

• Industry adoption for AFT begins

• Provide supporting services to enable adoption

Phase I: 2013-2015

Slide 29

2015

2016

2017

Q1-2016: • New standards published for AFT, EDI and LVTS • Rules published for ISO - AFT Payments • Adoption strategy for ISO - AFT Payments