The SWIFT global payments

innovation initiative

October, 2016
The journey so far
December 2015
January 2016

April 2016

June 2016

SWIFT gpi overview - October 2016

The correspondent banking model is under pressure

Customers and End customers increasingly demanding

regulators push for
better payments service Domestic payments going real-time

Banks rationalize their Regulatory intensity and increasing costs

correspondent banking
networks Network rationalization

Digital innovators offer Disintermediation

new disruptive
solutions Enhanced value proposition

SWIFT gpi overview - October 2016

 Objective: deliver a better customer payment experience

“Before” “After”
Traditional correspondent banking The SWIFT global payments innovation (gpi) initiative

1. Slow, can take multiple days 1. Fast(er) (start with “same day”)
2. Expensive, multiple deducts 2. Higher efficiency & less intermediaries
3. Secure and compliant 3. Secure and compliant

4. No transparency on cost and time 4. Transparent, with payments tracking

5. Convenient and ubiquitous 5. Convenient and ubiquitous

6. Open and inclusive (global reach) 6. Open and inclusive (global reach)

The objective is to first fix these key pain points

Note regarding prices: it will be at the discretion of each SWIFT gpi

member to decide the pricing strategy vis-à-vis its customers,
including other financial institutions
SWIFT gpi overview - October 2016
The SWIFT global payments innovation (gpi) initiative

Delivering the future of cross-border payments

̶ Proactively respond to evolving customer needs for more speed, transparency and traceability
in cross-border payments
̶ New multilateral rulebook, initially focused on business-to-business payments
̶ Building on the foundation that banks provide in security, resiliency and compliance
̶ Delivering real-world innovation: building on existing platform, embrace new technologies along a
strategic roadmap
̶ Global reach, collaborative industry-wide initiative, organised by SWIFT
̶ Open model, participation based on operational quality

 Fast  Secure  Real-world innovation

 Transparent  Resilient  Global reach
 Traceable  Compliant  Open model

SWIFT gpi overview - October 2016

SWIFT gpi concept

Messaging technologies Accessible

by any bank

Still reach
non-initiative
SLA rulebook
banks

Core transaction banks

Reaching
any bank

Tracker

Directory Observer

SWIFT gpi overview - October 2016

Value-added product suite

SWIFT gpi product suite
Directory
• Providing operational info on gpi
members, BICs, currencies, cut-off times
• Essential reference data to calculate best
gpi payment route
Availability
December 2016 via SWIFTRef
SWIFT gpi overview - October 2016
Tracker
 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
Availability
 Demo: Sibos
 GUI: November 2016
• MT 199 / API: Q1 2017
Observer
 Business Intelligence dashboard showing
bank compliance with gpi SLA.
 Ensure control, monitoring and
enforcement of SLA, and, consequently,
service quality
Availability
 Approach to be finalised: Q4 2016
 Basic version: April 2017
 Advanced version: Q4 2017
SWIFT gpi customer credit transfer – Value proposition for corporates

Key features Benefits for a corporate

Faster, same day use of funds*

Grow international business

Transparency of fees

Enhance supplier relationships

End-to-end payments tracking

Increase treasury efficiencies

Remittance information transferred unaltered

(*) within the timezone of the receiving gpi member

SWIFT gpi overview - October 2016

SWIFT gpi customer credit transfer - Value proposition for banks
Grow volumes
• Offer distinctive payments service
• Retain and attract new customers
• Protect and grow transaction
volumes
• Comply with regulation
(Dodd-Frank, PSD2, …)
• Sell payments services to third
parties
SWIFT gpi overview - October 2016
Reduce cost Lead innovation
• Lower network management cost, • Reputational benefit
avoid proprietary connections in • Leader in global payments
non-strategic countries, access innovation
global quality network
• Enhanced compliance practices
• Optimised intraday liquidity flows
• Increased straight through
processing
SWIFT gpi initiative banks
50%
30%

1.
2.
ABN AMRO Bank
ABSA Bank
85+
initiative banks
Europe,
Middle East,
Africa
Asia Pacific
62.
63.
Nordea Bank*
Oversea-Chinese Banking Corporation
3. Alfa-Bank 64. PKO Bank Polski
4. Australia and New Zealand Channelling payments 65. Promsvyazbank
Banking Group* into 224 countries 66. Rabobank
5. Axis Bank 20% 67. Raiffeisen Bank International
6. Banco Bilbao Vizcaya Argentaria Representing 71% of all Americas 68. Resona Bank
7. Bangkok Bank SWIFT cross-border 69. Royal Bank of Canada*
payments Regional representation of
8. Bank of America Merrill Lynch* 70. Royal Bank of Scotland
9. Bank of China* SWIFT gpi banks 71. Sberbank
10. Bank of New York Mellon* 28. Commerzbank 72. Siam Commercial Bank
45. ICICI Bank
11. Bank of Nova Scotia 29. Crédit Agricole 73. Silicon Valley Bank
46. IndusInd Bank
12. Bank of the Philippine Islands 30. Crédit Mutuel-CIC Banques 74. Skandinaviska Enskilda Banken
47. Industrial and Commercial
13. Bank of Tokyo-Mitsubishi UFJ* 31. Credit Suisse 75. Société Générale
Bank of China*
14. Banco Santander 32. CTBC Bank 76. SpareBank 1
48. ING Bank*
15. Banco de Crédito del Peru 33. Danske Bank* 77. Standard Bank of South Africa
49. Intesa Sanpaolo*
16. Banco do Brasil 34. DBS Bank* 78. Standard Chartered Bank*
50. Investec
17. Banque Européenne d’Investissement 35. Deutsche Bank 79. Sumitomo Mitsui Banking Corporation*
51. Itaù Unibanco
18. Barclays* 36. DNB Bank 80. Swedbank
52. JPMorgan Chase Bank*
19. Bidvest Bank 37. Ecobank 81. Tadhamon International Islamic Bank
53. Kasikornbank
20. BNP Paribas* 38. E.Sun Commercial Bank 82. TMB Bank
54. KBC Bank
21. Budapest Bank 39. Erste Group Bank 83. Toronto-Dominion Bank
55. KEB Hana Bank
22. CaixaBank 40. Fifth Third Bank 84. UBS
56. Lloyds Bank
23. Canadian Imperial Bank of Commerce 41. FirstRand Bank 85. U.S. Bank
57. Mashreq Bank
24. China Construction Bank 42. Handelsbanken 86. UniCredit*
58. Maybank
25. China Merchants Bank 43. Helaba Landesbank Hessen- 87. United Overseas Bank
59. Mizuho Bank*
26. Citibank* Thüringen 88. Wells Fargo*
60. National Australia Bank
27. Commonwealth Bank of Australia 44. HSBC Bank 61. Natixis
SWIFT gpi overview - October 2016 (*) Pilot bank
SWIFT gpi roadmap – Draft proposal

 Focus
 In pilot.
 Final specs. with live service.

 Optional
 Build/Test – timeframe tbc

 Set of additional optional

services
 Each with their own timeline
 High-level info sent end July
 More details after Sibos

• Approach tbd

SWIFT gpi overview - October 2016

 Interested?
www.swift.com

Contact us
swiftforbanks@swift.com
www.swift.com/gpi

Download
SWIFT gpi overview - October 2016
SWIFTgpi App on your iPad
SWIFT gpi tracker “in the cloud”

101 > 103 > 103 > 103 > 910 >

Originator Bank A Bank B Bank C Bank D Beneficiary

MT199/API MT199/API MT199/API MT199/API

Transparency of total fees and time

“One-glance”
status overview

Unique, end-end tracking number

Track path,
in real time
Central payments database,
hosted at SWIFT

Details of banks along Updated via MT199 or API

the chain
Data consumption via GUI, via
MT199 (push) or via API (pull)

SWIFT gpi overview - October 2016

Payments Tracker mock-up home screen

Payments tracker – June 2016 – Confidentiality: RESTRICTED Do not disclose to third parties without SWIFT's prior 14
written consent
 Payments Tracker – detailed search + results
More targeted
search capability,
combination of fields

Overview of all
transactions,
filtering
capability

Payments tracker – June 2016 – Confidentiality: RESTRICTED Do not disclose to third parties without SWIFT's prior 15
written consent
gpi Tracker – in progress (1)

Payments tracker – June 2016 – Confidentiality: RESTRICTED Do not disclose to third parties without SWIFT's prior 16
written consent
gpi Tracker – in progress (2)

Payments tracker – June 2016 – Confidentiality: RESTRICTED Do not disclose to third parties without SWIFT's prior 17
written consent
gpi Tracker – in progress (3)

Payments tracker – June 2016 – Confidentiality: RESTRICTED Do not disclose to third parties without SWIFT's prior 18
written consent
gpi Tracker – in progress (4)

Payments tracker – June 2016 – Confidentiality: RESTRICTED Do not disclose to third parties without SWIFT's prior 19
written consent
gpi Tracker – completed

Payments tracker – June 2016 – Confidentiality: RESTRICTED Do not disclose to third parties without SWIFT's prior 20
written consent