SWIFT gpi –

Cross-border
payments
transformed

January 2019
Tackling the challenges in cross-border payments

Speed Transparency Tracking Remittance

information

General
Roche Electric Viacom Zoetis

SWIFT gpi - Cross-border payments transformed - Jan 2018 2

Time for SWIFT gpi

SWIFTgpi

Accessible by
any bank

Messaging technologies

Core
transaction SLA rulebook
banks

Reaching
any bank

Tracker
Accessible by
any corporate
Directory Observer

Value-added product suite

SWIFT gpi - Cross-border payments transformed - Jan 2018 3
Enhancing customer experience by delivering a new standard in cross-border
payments

“Yesterday” | “Today” |
Traditional correspondent SWIFT global payments
banking innovation (gpi)

Slow, can take multiple days  Faster, same day* use of

funds
No transparency on costs
 Transparency of fees
No transparency on time
 End-to-end payments tracking
No confirmation of credit
 Remittance information
transferred unaltered

(*) within the timezone of the receiving gpi member

SWIFT gpi - Cross-border payments transformed - Jan 2018 4

Key element:
A unique end-to-end tracking identifier

A unique end-to-end tracking identifier

is included in the header of the payment message
and
carried across the payments route
up until the beneficiary bank

MT 103 MT 103

Ordering PEFIJPJT SWUBDEFF SDEBFRPP Beneficiary

Customer Customer

SWIFT gpi - Cross-border payments transformed - Jan 2018 5

Key features

The Tracker The Observer The Directory

YOUR gpi Currencies Support

gpi Quality Index COMMUNITY SLA id BIC11 gpi- supported Cut-off Intermediary
Path to reach
enabled time
Quality Indexes bank
Bank 1 Bank 2
same day Branch 1a Branch 2a
Branch 1 Branch 2b
transparency Branch 1c Branch 2c
end-to-end tracking Branch 1d Branch 2d

remittance info
Bank 3 Bank 4
unaltered Branch 3a Branch 4a
Branch 3b Branch 4b
Branch 3c Branch 4c
Branch 3d Branch 4d

compliant
non-compliant (visible to non-compliant gpi bank only)
non-compliant (visible to all gpi banks)

End-to-end payments tracking Business Intelligence dashboard Directory providing operational info on
database showing gpi bank and community gpi members, BICs, currencies, cut-
- to monitor progress of a gpi payment in compliance with gpi SLA off times
real time - to ensure control - to calculate best gpi payment route
- to obtain transparency on deducts - to monitor and enforce SLA
- to receive confirmation that payment - to guarantee service quality
was credited
thanks to unique end-to-end tracking Observer Insights, available as part of
identifier. the standard gpi service. Observer
Analytics, upon demand
Accessible via GUI , MT 199 and APIs

SWIFT gpi - Cross-border payments transformed - Jan 2018 6

APIs typically leveraged by gpi banks to integrate the Tracker into customer channels

Multi-National
Company
Automated channels

The Tracker Host to Host

ERP / TMS
APIs

Small &Medium
e-Banking portal Enterprise

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Key participants:
The market infrastructures

SWIFT gpi
Market infrastructures play key role in:
     
 SWIFT gpi clearing:
To pass on unique gpi identifier and data
between gpi banks
 SWIFT gpi tracking:
To pass on unique gpi identifier to local Cross-border Local market
non-gpi member banks

Market infrastructures support gpi: MI

 When based on SWIFT: Ordering

fully supporting gpi Beneficiary
customer
 When not based on SWIFT:
Local market practice for gpi mapping
(to be) agreed
MI
 When using ISO 20022:
gpi recommendations available Ordering Beneficiary
customer

SWIFT gpi - Cross-border payments transformed - Jan 2018 8

Key enablers:
Payment application vendors

Payment application providers play a key role in gpi-enablement

 Convert corporate payment requests into SWIFT gpi payments

 Encapsulate gpi business logic and SLA in payment transactions
 Reduces efforts for Banks using gpi ready application providers

gpi label ensures vendor applications support gpi by default Today 15 applications are gpi-ready :

 ACI Worldwide
 Compliance with gpi rulebook  CBA
 CFT Russia
 Commitment to gpi roadmap
 CGI
 Speeds up and reduces costs of gpi adoption for banks  China Systems Corporation
 ECS Financials
 EdgeVerve Systems Ltd
 Fiserv (Prev- Dovetail)
 Finastra (Prev- D&H)
 FIS
SR 2018
 Montran Corporation
 Oracle
 Surecomp
 Tata Consultancy Service
 Tieto
SWIFT gpi - Cross-border payments transformed - Jan 2018 9
gpi adoption

100,000,000,000
105+
340+ 800+ USD
80%
50% of SWIFT cross-
sent banks
Live daily via
Committed gpi
banks border
countrypayments
corridors sent
covered
as gpi

SWIFT gpi - Cross-border payments transformed - Jan 2018 10

gpi traffic reaching OCT 2018

unseen heights
100,000,000
gpi payments sent

DEC 2017
JUL 2017 10,000,000
1,000,000
JAN ‘17 FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC JAN ‘18 FEB MAR APR MAI JUN JUL AUG SEP OCT

SWIFT gpi - Cross-border payments transformed - Jan 2018 11

And gpi is very fast!

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Within 5 minutes
40%
Between 5 and 15 minutes 9%

Between 15 and 30 minutes 3%

Between 30 minutes and 1 hour

Between 1 and 2 hours

Between 2 and 4 hours

4%

6%

8%
95%
within 24h
Between 4 and 6 hours 5%

Between 6 and 12 hours 10%

Between 12 and 24 hours 9%

More than 1 day 5%

SWIFT gpi - Cross-border payments transformed - Jan 2018 12

Value perceived by banks and corporates

Reduce Costs Delight Customers Grow Business Accounting & core Budgeting, Treasury & Cash
functions planning and Management
forecasting

Increase operational Significantly Retain and attract Better cash flow Enhanced Reduced settlement
efficiency in your increase customer new customers management predictability and time
customer claims and satisfaction by traceability
investigations offering speed, Sell payments Speed and visibility Leverage investment
management certainty, services to third on critical payments Greater planning and opportunities
transparency and a parties decision making
Ability to do cash confirmation of credit Certainty of payment Higher visibility for
forecasting and for cross-border for buyers and sellers Improved capital and credit
optimise your payments reconciliation and management
liquidity Transparency on forecast reporting
management Build a reputation of bank fees Reduced FX risk,
leader in global resulting in important
payments innovation Reduced exception FX savings
handling &
investigations

SWIFT gpi - Cross-border payments transformed - Jan 2018 13

The new norm
by 2020!
2020

2019 All payments confirmed

Tracker for all

2018
Financial Institutions

All payments tracked

2017

Rapid initial adoption

SWIFT gpi - Cross-border payments transformed - Jan 2018 14

Recent development towards global adoption
Extended tracking of gpi

MT 103 gpi gpi MT 103

UETR UETR UETR UETR

non–gpi non–gpi
non–gpi gpi bank gpi bank bank bank
bank

SWIFT gpi - Cross-border payments transformed - Jan 2018 15

New gpi services

Cover payments Stop and recall

SWIFT gpi - Cross-border payments transformed - Jan 2018 16

2019 roadmap

Pre-validation Case resolution

Corporate initiation service Request
& tracking for transfer

Financial Instant payments Visibility on

institution incoming payments
transfers

SWIFT gpi - Cross-border payments transformed - Jan 2018 17

Getting started with SWIFT gpi

Learn more on www.swift.com/gpi or

1 on our SWIFTgpi iPad App

Contact us via
2 swiftforbanks@swift.com or swiftforcorporates@swift.com

SWIFT gpi - Cross-border payments transformed - Jan 2018 18

 Global More
adoption value
 www.swift.com

SWIFT gpi - Cross-border payments transformed - Jan 2018 20