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Wed 14 Oct 2015 Wed Issues The official daily newspaper of Sibos 2015 Singapore I 12-15 October

Keeping the We’re not all the To improve your Sibos crown jewels safe same! experience and help you page 4 page 9 navigate the conference, Sibos Issues now previews the key sessions of the day ahead

BIG ISSUE DEBATE INNOTRIBE Which The return of risk startups Geopolitical, will step regulatory and up to the technology risks Challenge? explored and examined at today’s Mentors explain what it takes big issue debate. for startups to succeed, at Sibos “It is not the strongest of the species that and beyond. survives, nor the most intelligent that sur- vives. It is the one that is most adaptable to change.” While this quote can no longer be Identifying the “next big thing” confidently credited to Charles Darwin, it re- in financial technology is a sig- tains its resonance as a response to risk and nificant challenge for financial uncertainty. institutions, given the growing im- Today’s Big Issue Debate, ‘Disruption, portance of technology in the de- geopolitics, and finance: managing the Wu Jianmin, member, Foreign Policy Advisory Group, Chinese Foreign Ministry Blythe Masters, CEO of Digital Asset Holdings velopment and delivery of finan- risks’, takes a close look at the drivers of cial services – and the thousands change to the global capital markets, trans- disciplines in 27 years at JP Morgan. Masters Exhibitions. Ambassador Wu has represent- of startup companies that have action banking businesses and, ultimately, served as CFO of JP Morgan’s investment ed China in a number of European countries, proliferated in the past few years. the international financial system. bank and its head of global commodities busi- to the European Community, and to the Startups face their own chal- Geopolitical risks, unprecedented levels ness, before assuming responsibility for the United Nations in New York. lenges, too, particularly in gain- of regulatory reform and innovations in corporate and investment banking unit’s reg- Ambassador Wu’s perspectives on for- ing access to decision-makers digital technology are changing banks’ op- ulatory affairs, where she oversaw strategies eign affairs will be accompanied by the at financial institutions and to erating environment in unpredictable and to address the range of complex regulatory thoughts of Robert Guest, foreign editor at investors, such as venture cap- unknowable ways. The task facing today’s changes. Masters’ experience in the regulato- The Economist, who will use his experience italists and business angels. An panellists is to flag the biggest risks and to ry sphere has also given her insight into the as a correspondent in South Africa and idea may look good on paper or identify possible strategies for survival and approach of regulators and policy makers on Washington to comment on the tools being exist inside someone’s head, but growth for the future. technological change in the banking sector, used to pursue foreign policy objectives, unless it can be articulated to a Guided by Financial Times chief foreign notably in the fields of counterparty exposure, ­including sanctions. n target market, it won’t get far. affairs columnist Gideon Rachman, three ex- cyber attacks, settlement and systemic risk. The 12 finalists in today’s In- perts in their respective fields will draw on Foreign affairs expertise is brought to the notribe Startup Challenge Finale their deep wells of experience, with the aim panel by Wu Jianmin, currently a member have come through a near year- of helping Sibos delegates understand the of the Foreign Policy Advisory Group of the TO LEARN MORE … long process during which they risks to their particular businesses. Chinese Foreign Ministry, special research have received coaching and ad- Blythe Masters, CEO of Digital Asset Hold- fellow of Counsellors’ office of the State Disruption, geopolitics and vice from financial industry rep- ings, a company that brings 21st century Council, member and vice president of the finance: managing the risks resentatives, venture capitalists, technology to existing financial infrastruc- European Academy of Sciences and honor- Wednesday 14 October – marketing gurus and other ex- ture, gained experience in a wide variety of ary president of the International Bureau of 11:30-12:30 continued on page 2 Clearstream Your gateway to T2S

Find out more at our stand! E22 Level B2

Sibos,Ad Sibos powered 272x67mm by 07.2015SWIFT. RZ.indd 1 www.sibos.com www.swift.com27.07.15 11:32 WHAT’S ON INNOTRIBE Which startups will step up Big Issue Debate/Plenary Plenary room to the Challenge? 11:30-12:30 Disruption, geopolitics and continued from page 1 finance: Managing the risks

Compliance Forum perts. Being involved in financial technol- Another Challenge coach, Mike ­Sigal, Conference room 2 ogy startups wasn’t always this way, says chief executive of automated cash-­ 08:00-09:00 SWIFT Institute meets the Com- Leda Glyptis, director, head of EMEA In- forecasting and management tool Cash- pliance Forum novation Centre, BNY Mellon. She joined flower, agrees on the need for founders to 09:00-09:45 Securities transparency: Is this BNY Mellon in 2010 from Great East Lon- develop a convincing narrative. “Startups the next frontier? don Software Company, a bespoke finan- often need advice on how to make their 10:15-11:15 Compliance back to the future cial solutions provider. “I like to say I was story understandable, interesting and involved in financial technology before it compelling to financial industry players.” Corporate Forum was famous,” she says. “It was a difficult In the early stages of the Startup Chal- Conference room 1 journey. There was no love and cookies lenge, says Marcus Treacher, head of in- 08:30-09:00 Corporate Forum Opening like you get in Innotribe.” novation and global payments and cash ­Address Day 1: Shaping the Glyptis, a Startup Challenge coach, be- management at HSBC, the critical ele- future of treasury and trade lieves one major risk for startup founders ment is to learn how to tell a story in a 09:00-09:45 The future of corporate bank- – who inevitably devote a great deal of way that is understood by the people to ing – What do corporate clients time and energy to realising a personal whom they are speaking. In a very crowd- expect from banks? 10:15-11:15 Treasury management practices vision – is that they can become “so close ed financial technology marketplace, he in Asia: Which key models prevail to their products that they forget to tell a says, startups have to be “clear and com- in the region? story”. It is important, she adds, for start- fortable” about the kinds of people and 14:00-15:15 ERP vs TMS vs Excel – Friends or ups to think about the problem they are organisations with which they can work. rivals? trying to solve. “If you ask an entrepre- But it’s not a matter of mastering Standards Forum neur what problem their product or appli- the art of product marketing. Sigal says 15:45-17:00 Innovating in payments and cash cation is designed to solve, it is rare that startup companies have to appreciate management using ISO 20022 they have an answer.” It could be that that “when they are pitching to investors, they have not yet articulated an answer, those individuals are customers for the Standards Forum or that they are so enthused by the ca- company’s equity, not its product”. 09:00-09:45 A little less conversation, a little pabilities of the technology they haven’t Rather, to make a story credible, the more action: Standards and thought of the use case. startup has to understand the nature of effective compliance financial institutions and the regulatory 10:15-11:15 Progress report: New ISO 20022 Story time obligations they increasingly have to fulfil. regulatory compliance initiatives continued on page 5 13:00-13:45 Compliance focus: Finding the The initial rounds of the Startup Chal- needle by standardising the lenge focus on validating the proposals’ payments haystack business models. After that, mentors and 14:00-14:45 Beyond messages: ISO 20022, judges help the contestants to tell their APIs and the PSD2 story, Glyptis explains. Pitching to inves- tors is difficult, she says, and startups Innotribe need to tell a story that is memorable 09:15-10:00 Innotribe day opening I was involved in financial technology and also credible for the audience. “They 12:45-13:45 Why banks need FinTech hubs before it was famous. There was no love 14:00-17:00 Innotribe Startup Challenge have five minutes to persuade the Inno- Finale tribe audience that they deserve to be a and cookies like you get in Innotribe. 17:00-19:00 Innotribe 2015 Startup Challenge flourishing business. As Innotribe coach- winner announcement es, we ask them: ‘What will you tell the audience?’” Leda Glyptis, director, head of EMEA Innovation Centre, BNY Mellon Diversity Conference room 3 09:30-10:15 Despite what you heard, colour does matter 10:15-11:15 How to create and sustain a diverse talent pipeline

Payments Conference room 4 10:15-11:15 Capturing new payments transactions opportunities from developing trade corridors

Securities Workshop A 14:00-15:15 Asset servicing: Issuer to inves- tor automation Workshop C 15:45-17:00 The future outlook of funds distribution in Asia

SWIFT Institute SWIFT stand 14:00-14:30 Risk management in the age of disruption 14:30-15:00 How and why China’s domestic Startups can securitisation market will leap- frog the West underestimate 15:00-15:30 Transparency in securities trans- actions and custody chains how complex the financial industry Correction is and exhaust Yesterday’s Sibos Issues mistakenly ­included a photo of Jo Van de Velde, head their resources by of product development at ­Euroclear, losing focus. instead of Nathan Van de Velde of the ­University of Leuven, in an article on Mariano Belinky, managing partner, ­financial crime compliance (page 5). Santander InnoVentures FROM SLUGGISH TO SUPERCHARGED. Start profiting from real-time payments in no time Publisher: Sven Bossu, SWIFT Managing editor: Alan Rowan, SWIFT with a partner who’s been there before. Sibos Issues is written and produced by Asset International on behalf of SWIFT Advertising contact: Stephanie Gerniers, SWIFT; [email protected]; +32 2 655 4734 Printed by Innovative Print Solutions Pte Ltd Legal notice: SWIFT © 2015 Reproduction is authorised with acknowledgement of source. All other rights reserved SWIFT, the SWIFT logo, Sibos, Accord, SWIFTReady, and SWIFTNet are registered trademarks of SWIFT. Photographs feature SWIFT employees, customers and partners. aciworldwide.com/immediate-payments

Sibos, powered by SWIFT. Sibos Issues 2 www.sibos.com www.swift.com The greater the challenge, the more important your partner.

With the increasing velocity of change, the difference between who succeeds – and who merely survives – will be defined by clear thinking, quick decisions and rapid reflexes. This is where SIX Securities Services comes in.

As one of Europe’s few truly international post-trade service providers, we have learned to adapt to rapidly changing landscapes, carve out our own innovative path and deliver industry-recognised performance. The result is satisfied customers who enjoy having us to help steer them to success. Solutions for the future. Now.

Securities Services Sibos stand C47 CORPORATE FORUM Keeping the crown jewels safe Corporate treasuries in Asia are making strategic and operational changes to manage uncertain market and regulatory conditions.

With volatility of asset values increas- ity’ – recorded that 10% of Indonesia’s The SWIFT KYC Registry – a central ing and the US dollar in the ascendant exporters and 571 of Korea’s small and utility for onboarding and other compli- against most currencies, particularly medium-sized exporters were hit, with ance-related documents – is also seen emerging market currencies, corporate Indonesia’s loss reckoned at US$3 bil- as valuable for corporates because it treasurers are making strategic changes lion. Sri Lanka’s publicly-owned Ceylon offers a lower cost model for handling to their operations to better handle the Petroleum Company lost US$600 million, know-your-customer (KYC) requirements resulting risk. while China’s Citic Pacific took a US$2.4 than in-house development of similar “We live in a very volatile environ- billion hit. Understandably, many corpo- systems. “It was initially aimed at banks, ment today,” says John Wong, group rates remain cautious about straying into but nonetheless the corporates want head of transaction banking, Maybank. the more exotic reaches of the deriva- in,” says Blair. “A lot of treasurers think “The escalating value of the renminbi has tives markets. But not all. things like this are the best thing since somewhat stopped now and we see more “Corporates shouldn’t touch struc- sliced bread, because getting involved currencies devaluing against the dollar, tured notes with a barge pole,” says David with KYC and bank account management so some clients will keep US dollars for Blair, managing director of Acarate Con- operations add no value for treasurers.” longer.” sulting. “Western multinationals won’t Peter Wong, founding chairman of the touch them. Emerging market companies Adapting to new realities International Association of CFOs and use them because they or their manage- Corporate Treasurers (IACCT) in China ment are not comfortable with using for- With the scope of banks’ services to cor- and director of PwC, says the response wards, derivatives or options.” porate treasurers increasingly defined by corporate treasurers needs to go be- by Basel III’s capital adequacy rules and yond the tactical. “We’re at the start of Many hands make light other regulatory controls – such as the an appreciation of the US dollar before work restraints on proprietary trading under the Federal Reserve interest rate actu- the US Dodd-Franck Act’s Volcker Rule – ally moves upward. As such, treasurers At many Asian corporates, boardroom Asian corporates are looking for support are being forced to take a more strate- understanding of risk management poli- from a wider range of sources. gic view of the implications. It’s strategic cies and processes overseen by treasury because currency fluctuations not only staff has evolved considerably post-cri- affect translation risk, but also economic sis, in no small part as a result of those risk,” he explains. losses. That has had a positive effect of Historically banks have sold corpo- greater scrutiny by the c-suite leading rate clients tailored derivatives to hedge to a more strategic consideration of the We need to innovate in terms of the specific risks arising from currency and treasury function. Consequently, chief fi- interest rate movements, but during the nancial officers and treasurers are taking systems we supply to support clients’ financial crisis many of these contracts greater steps in financial risk manage- backfired. Around US$530 billion was ment, but – as a cost centre – the trea- supply chain, treasury and payments estimated lost by 50,000 non-financial sury is often constrained in its efforts to firms in 12 economies in 2008 as a re- upgrade operations and technology. needs. sult of trading in structured products, Maybank’s Wong observes, “This is according to the International Monetary one of the weakest links in the whole Fund (IMF). Ostensibly acquired as an treasury process. Among my clients, John Wong, group head of transaction banking, Maybank insurance policy, these instruments be- probably less than 20% have a treasury came dangerous to hold in volatile mar- management system (TMS). I think there The IACCT’s Wong says, “Because pro- Spreading business can sometimes kets. is a huge room for great improvement on prietary trading is increasingly restrict- create tension with banks, which are of- A 2009 IMF report – ‘Exotic Deriva- this side. In the past, a TMS was mainly ed, banks have to consider carefully how ten under pressure to realise greater tives Losses in Emerging Markets: Ques- used to handle tasks such as placing day- much FX capacity they can offer to clients. profitability from clients in a low-yield tions of Suitability, Concerns for Stabil- to-day deposits, but now it has expanded This is becoming a precious commodity. environment. Blair says, “Banks want to more in terms of applications to provide Therefore, it is becoming more challeng- lend, but then they want some FX flow, cash-flow forecasting and FX hedging ing for corporates to find counterparties.” some cash management business, and so ­analysis.” In the past, corporates may have on. Even large corporates can struggle to To take advantage of the advanced sourced risk management solutions from do that with 15 banks.” functionality of today’s TMSs, corporate a small number of core banking relation- In uncertain and evolving market con- treasurers also require more efficient, ships. Now, they are now looking at mu- ditions, however, new approaches are straight-through connectivity to support tualisation and diversity to manage risk. necessary. For Maybank’s Wong, the data flows to and from bank-supplied ap- Soon says, “We are trying to diversify challenges faced by corporate clients plications. According to Nicholas Soon, our banking partners. In terms of our sys- require changes from their transaction regional treasury manager at British tems, we are trying to be more bank-ag- banks in three main areas. “Firstly, we American Tobacco Asia Pacific Treasury nostic. In terms of how we allot business, need to deepen our understanding of cli- Service Centre, SWIFT connectivity can we are trying to use a wider spread of ents’ FX needs,” he says. “Secondly, we improve access to information and thus banking partners, rather than focussing need to work more closely on a national support independent decision-making in on a few. Although, our cash manage- level with industries. Thirdly, we need to the treasury. “While [connecting] means ment business is currently held by two innovate in terms of the systems we sup- more responsibility for us, it is also help- banks, we are currently conducting a re- ply to support clients’ supply chain, trea- ing to manage counterparty risk,” he quest for proposal which could increase sury and payments needs.” n says. our number of suppliers.”

TO LEARN MORE … Treasury management practices in Asia: which Treasurers are being forced to take a key models prevail in the more strategic view. region? Wednesday 14 October – Peter Wong, founding chairman, International Association of CFOs and Corporate 10:15-11:15 Treasurers (China)

Sibos, powered by SWIFT. Sibos Issues 4 www.sibos.com www.swift.com INNOTRIBE Which startups will step up to the Challenge? continued from page 2

Startup companies’ products can- startup companies are trying to not be commercialised without an reinvent the wheel or want to understanding of this, says ­Sigal. take on multiple geographies or “Startups often lack this under- products. They can underesti- standing and that is one of the mate how complex the financial reasons Innotribe was created – it industry is and exhaust their re- acts as a bridge between startups sources by losing focus. Regula- and the financial industry.” tion is one of these complexities: limits on access to customer Welcome to my world data, or regulatory and licens- ing schemes are very specific to When considering an investment banking and need to be properly in a startup company, Santand- understood upfront.” er InnoVentures, Santander’s In that sense, banks can bring US$100m financial technology a good value proposition to venture capital fund, asks three startups, he adds, not only in the questions to “ascertain the stra- form of capital and commercial tegic interest of the relation- collaboration, but also in terms ship”, says managing partner of regulatory guidance and even Mariano Belinky. These ques- testing with customers. Com- tions are: what value does this bined, these resources can help company bring to our customers to create new intellectual prop- and to the bank; will the invest- erty, he says. When we are looking at startups we are looking ment enable Santander to differ- Often, explains Glyptis, a start- entiate or do something better; up company will have great belief for ideas that can work reliably with significant and what value can Santander in the technology and product, add to the startup? “Positive an- but they may not have thought values and volumes. swers to these questions means sufficiently deeply about how to the investment is worth consid- integrate the product into the Marcus Treacher, head of innovation and global payments and cash management, HSBC ering, we then move forward market. A new idea or product into a broader due diligence ex- has to be able stand up to com- requires multiple talents and are not steeped in the rules and and where banks are, and this ercise, that may or may not be petition, several of the Innotribe inputs. But that is why competi- regulations of financial institu- generates a healthy exchange of ultimately conducive to an in- Challenge judges concur, which tions such as the Innotribe Start- tions. At the same time, many ideas between the two.” n vestment,” he says. also requires that startups are up Challenge exist. Since 2011, the established players find it hard- The investment is of course flexible enough to make changes Innotribe Startup Challenge has er to think outside the box,” says one step in the journey. But to the product or overall strategy brought the SWIFT community Treacher. “Banking is a numbers to take that step successfully, should they be required. After all, in direct contact with more than and scale game and when we TO LEARN MORE … startups have to show they are the market won’t stand still, chal- 650 fintech startups from around are looking at startups we are prepared for the long haul and lengers can arrive from many an the world, leading to multiple col- looking for ideas that can work Innotribe Startp not run out of steam. “A key unexpected quarter. laborations and partnerships. reliably with significant values Challenge Finale feature of success for startups Evidently, turning an idea into “Many people in the startup and volumes. There is a natural Wednesday 14 October – is focus,” says Belinky. “Some a business is a challenge that world are genuinely fresh and gap between where startups are 14:00-17:00

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SOGE_1507_SIBOS_GTB_SGSS_272x186_EVENEMENTIEL_DAY3.indd 1 04/08/2015 12:11 Sibos, powered by SWIFT. Sibos Issues 5 www.sibos.com www.swift.com COMPLIANCE FORUM Levelling the payments Processing payments for playing field third-party payment providers Differences in compliance expectations is relatively high put banks at a disadvantage to new risk for banks. payment service providers. Will new Patricia Jouan, head of compliance, rules go far enough? financial crime, Societe Generale

Online payment providers have been impact of new tools and technologies on The penalties and punishments for springing up at a rapid rate in recent their compliance obligations. banks not meeting compliance require- decades, with a notable recent surge ac- ments have been severe. Understandably, companying the interest in cyber-curren- Regime change required? this tends to make them cautious about cies, in the wake of Bitcoin’s launch and how they interact with and provide services ensuing notoriety. Part of the popularity of the blockchain – to non-bank payment service providers. This trend does not seem to be slowing a chronological account of all Bitcoin (or “The growing trend of internet com- either, as advances and innovations such other) transactions recorded in a public merce and the emergence of non-bank as ApplePay and blockchain-based tech- ledger – lies in its decentralised struc- payment services providers, combined with nologies continue to gain momentum and ture, which in theory removes the need the evolution in ways to settle transactions, popularity throughout the world. These for third-party validation, for example carry significant risk in terms of financial developments have aided overall eco- from a bank or clearing house. Because crime,” says Patricia Jouan, head of com- nomic growth through the surge of online of this decentralisation and the fact it pliance, financial crime at Societe Generale. purchases and are now playing a growing can be run by non-bank payment service Working with the new PSPs requires role in the retail payment market. providers (PSPs) or alternative payment banks to adjust their level of vigilance to As a result, major banks and financial providers (APPs), a blockchain-enabled ensure the end-beneficiaries are legit- institutions are exploring and investing payments process can be largely unregu- imate and not conducting any activities in innovations with a view to maintaining lated and devoid of many of the financial that would violate AML, ATF or sanc- and developing their own payments solu- crime compliance checks to which the tions rules. “Processing payments for tions. A critical consideration for such banking system is expected to adhere. third-party payment providers is relative- heavily regulated entities is the potential While payment services that are pur- ly high risk for banks because the PSPs pose-built for ecommerce have strong are themselves processing payments for appeal, especially to millennials, they someone else. At present, there is no reg- expose their customers to risks in a way ulatory framework for what is a high-risk that regulated entities do not – in part regulation governing financial institu- area for banks,” says Jouan. because these payment service provid- tions. Non-bank payment service provid- ers are not always subject to the same ers, which are typically technology com- Regulatory shift level of regulation as banks and other panies performing payment functions, financial institutions. “Consumer protec- would not be covered by regulation spe- For the time being, banks must ensure their tion has been identified as one of the key cific to financial institutions,” Burke adds. KYC processes are strong when dealing areas where banks are at a regulatory “This can lead to an environment where with these non-bank payment providers. disadvantage compared to APPs,” says payment service providers that are not fi- But the supervisory framework for Cheryl Gurz, emerging technology seg- nancial institutions may have regulation PSPs is beginning to change as regulators ment manager, treasury services, BNY extended to them through their financial become more aware of the risks, notably in Mellon. In the US for example, APPs and institution relationship.” the area of anonymity and virtual curren- banks also fall under different regulators. cies. Some PSPs are even taking it upon “As entities regulated by federal financial Competitive disadvantage themselves to implement AML solutions in regulatory agencies, banks have to meet anticipation of greater regulatory scrutiny. more rigorous data protection standards A key attraction for many users of on- “Banks will be more comfortable es- than the APPs, which are regulated by line payments is anonymity. This feature tablishing relationships with third-par- the Federal Trade Commission,” explains has helped to launch digital currencies ty PSPs once they are regulated. These Gurz. and alternative online payment services providers will become more numerous as Non-bank payment service providers over the past five years. Ultimately, the internet commerce grows, so regulation are not always as heavily regulated in ­anonymity afforded by third-party pay- is inevitable,” says Jouan. financial crime compliance disciplines ments services leaves them open to the “Banks need full confidence in their rela- such as anti-money laundering (AML), risk of facilitating money laundering and tionships with customers. If policies and pro- anti-terrorist financing (ATF) and know terrorist financing, as well as increasing cedures for fighting financial crime are not your customer (KYC). “In some jurisdic- opportunities for other illegal activities. reviewed regularly, a bank can face signifi- tions, there is no fiduciary regulation for In contrast, KYC rules mean banks cant challenges in terms of AML and sanc- non-bank payment service providers,” must be fully aware of the nature and tions regulations. The good news is that the says Carolyn Burke, vice-president, inter- motivations of the other party in the current situation is likely to change because national cards and Canadian payments relationships they form, finding out for regulators are aware of the problems.” regulatory initiatives, at the Royal Bank example why an account is being set up As regulators begin reappraising the of Canada. and what it is being used for. Increasingly, regulatory framework for non-bank pay- While they are not subject to the same banks are required to know their custom- ment service providers, banks hope new rules as banks, tech-based challengers ers’ customers too. rules will level the playing field, hold- are still subject to regulatory oversight, These regulatory requirements can be ing tech firms to the same standards as depending on the kind of payments ser- seen as putting banks at a disadvantage. themselves. vices they offer. While banks deploy resources to meet “The question isn’t whether the space “Generally speaking, regulations gov- stringent financial crime compliance will see more rules and regulations; it’s erning payments have been a subset of rules, their non-bank competitors in the more a matter of whether the rules and payments market are focused on techno- regulations in the space apply equally to logical innovation and platform and com- all players,” says Gurz. n munication enhancements. “Banks also have to meet regulato- ry requirements related to privacy and Consumer protection has been data security as part of the ongoing pro- TO LEARN MORE … grammes of examination, enforcement identified as one of the key areas where action, and other forms of oversight car- SWIFT Institute meets the ried out by regulatory agencies,” contin- Compliance Forum banks are at a regulatory disadvantage. ues Gurz. “APPs, on the other hand, come Wednesday 14 October – under review and potential sanctions only 08:00-09:00 Cheryl Gurz, emerging technology segment manager, treasury services, BNY Mellon if they experience an actual data breach.”

Sibos, powered by SWIFT. Sibos Issues 6 www.sibos.com www.swift.com COMPLIANCE FORUM Strengthening the securities value chain Securities market players are getting to grips with the need for greater end-to- end transparency.

To guard against the risk of lenged by the timeframe for lators is that securities market financial crime in the securi- making the necessary changes firms conduct sufficient due dil- ties markets, regulators across to their processes. Once decid- igence to ensure they know ex- ­major jurisdictions are putting ed, sanctions are enforced al- actly who they are dealing with together a robust framework most immediately, albeit with a at every step of the process. that calls for greater transpar- small grace period. “Whether you are a global ency. There is also an ­increasing New approaches to the im- custodian, a bank, broker-dealer, dialogue between regulators position of sanctions are also or working in the funds indus- and the industry to develop a being introduced. In the past, try, you have a contractual ob- co-ordinated response across sanctions were more likely to ligation to the next entity in an the securities value chain. For many securities market participants, financial crime com- pliance can have a ‘Russian doll’- like feel about it: once you’ve dealt with one layer, there always The difficulty is identifying the seems to be another waiting un- derneath. There has been a huge beneficial owners. increase in the use of financial sanctions globally, accompanied Olivier Goffard, head of group compliance and ethics, Euroclear by regulatory pressure on banks and other financial institutions to sential. This is particularly chal- taking efforts similar to yours to maintain strong defences against lenging for those of us who work measure its approach.” financial crime. Large fines have in a global and cross-border en- been levied against major finan- vironment,” he explains. Come together cial institutions for taking in- In Europe, the Fourth sufficient measures to prevent ­Anti-Money Laundering (AML) To help the global community of sanctions breaches, which have Directive is also set to increase securities service providers, cus- served to underline regulators’ the workload for the securi- todians and intermediaries step vigilance and resolve. ties market industry, in part up to the new levels required by The spotlight is falling on the through a requirement for reg- the evolving regulatory frame- securities industry, as concerns ulated firms to set up registers work, the International Securi- mount about the lack of trans- to record the ultimate beneficial ties Services Association (ISSA) parency in securities holding owners of businesses. The new has created a set of 17 financial chains. For the most part, reg- regime will also bring into force crime compliance principles. ulators are looking to reinforce new customer due diligence re- ISSA said it believes that “the existing requirements, but they quirements and obligations to securities custody and settle- are also asking firms to go fur- report suspicious transactions. ment industry must now reas- ther than before, by identifying “The difficulty is identifying sess and enhance the financial and monitoring counterparties the beneficial owners in the crime compliance framework and clients. sense of an end-investor. More- within the cross-border interme- over, how can we identify who diated securities supply chain”. Layers of complexity that end-investor will be in all The principles intend to pro- of the hundreds of thousands of vide global guidance on the es- Despite understanding the need transactions we process?” says tablishment and maintenance of for such measures, meeting these Goffard. cross-border securities custody requirements can be a tough The Fourth AML Directive relationships, whilst counter- ask for the securities market. You will no longer be able represents part of a global ef- ing the risks of money launder- Sanctions are both complex and fort to implement principles ing, terrorist financing, market far-reaching, according to ­Olivier to rely on some categorical and recommendations on AML abuse, corruption, fraud and the Goffard, head of group compli- and counter terrorist funding evasion of sanctions. ance and ethics at Euroclear. assumptions with regards to laid out in 2012 by the Financial “If you think about the secu- “In Russia, roughly 20 institu- Action Task Force (FATF), an in- rities business as a chain, chains tions have been sanctions-listed your counterparts. ter-governmental body. In par- are only as strong as their weak- by the regulators,” says Goffard. ticular, the rules on identifying est link,” Freis adds. “There is a “It might sound easy to ensure James Freis, chief compliance officer, Deutsche Börse the beneficial owners of legal dependency in this market on we are not dealing with them, entities will force securities par- others in the chain, and people but if those 20 firms have a con- be effected by freezing assets, intermediated securities chain,” ticipants to ask more questions in this industry need to come trolling stake of 50% or more whereas now there are more says James Freis, chief compli- and conduct further due dili- together and strengthen this in other institutions, these con- bans on financing which, for ex- ance officer at Deutsche Börse. gence as to who stands behind chain, and deliver the type of trolled institutions also have to ample, prohibit supporting the “From a financial crime com- their customer relationships. information flows that provide be considered sanctioned as issuance of new securities that pliance perspective, we’ve seen “Fundamentally you will no greater transparency.” n well. Out of those 20 Russian would benefit an entity named that the risk can come from longer be able to rely on some companies that have been list- on a sanctions list. The evolu- further down those tiers rath- categorical assumptions with ed, we came up with a list of tion of new methods of impos- er than the direct contractual regards to your counterparts,” many thousands of affiliated ing sanctions means firms must counterpart: from the issuer says Freis. “The very fact that companies. So making those anticipate new requirements on side, through the intermediar- you are dealing with another TO LEARN MORE … lists and making sure we are us- a regular basis. ies and the end-investor, and bank that is a regulated entity ing the right providers is a drain even the persons standing be- and has similar obligations is not Securities on resources.” A 360-degree view hind them. All of those entities enough. You have to take a risk- transparency: is this On top of the complexity of or persons can be sources of based approach, understanding the next frontier complying with sanctions re- At the core however, a funda- risk for us. Having a 360-degree how that institution goes about Wednesday 14 October – quirements, firms are also chal- mental expectation from regu- view of each organisation is -es- its business and whether it is 09:00-09:45

Sibos, powered by SWIFT. Sibos Issues 7 www.sibos.com www.swift.com PAYMENTS Rising to the challenge Regulatory and competitive changes are testing the ability of correspondent banks to adapt to new circumstances.

Correspondent banking has a history respondent banking model? Not neces- ificities. “Now there is a need for central- of reinvention. Not for the first time, it is sarily, says Edouard de Lencquesaing, isation to ensure data integrity,” he says. being asked to rise to new challenges, in CEO of the European Institute for Finan- Noting that the move to real-time pay- this case enhanced compliance and risk cial Regulation, a transaction-banking ments can actually create tensions with management requirements, as well as veteran who has also witnessed changes KYC compliance, de Lenquesaing never- the potential opportunities and evolving to the industry from within over the past theless acknowledges the pressure on competitive dynamics stemming from few decades. “Correspondent banking correspondent banks to maintain their technological advances. has long been evolving between two cul- capacity to reinvent themselves to tack- Yesterday’s panel discussion – ‘Re-­ tures,” he says. “At the centre of one was le new competitive challenges. “New inventing correspondent banking’ – the relationship manager. At the centre entrants are driving expectations in con- highlighted the challenges for banks in sumer payments, bringing ease of use, demonstrating the value of their pay- immediacy of transfer, transparency of ments services, in comparison with nim- pricing and end-to-end tracing capabili- ble but very lightly-regulated competi- ty,” he says. tors. As panel members acknowledged, there is an urgent need to respond to Strategic responses evolving demand, but there is a resolve to invest in payments services, while The burden of financial crime compliance maintaining the security levels that both might rest heavier on correspondent customers and regulators expect. banks than their less-regulated compet- itors, but this has not limited their ca- “An indispensable link” pacity for adding value to clients, both individually and collectively. Initiatives The discussion took place at a time when such as the Single Euro Payments Area correspondent banking has been re- have simplified and ‘domesticated’ - pay ceiving a far higher press profile than it ments flows that would have previously has traditionally been accustomed to. In passed through correspondent banking the past few months, prominent central channels, but also offer opportunities bankers have joined the debate on the fu- for banks to build new services on top ture of the industry. of their core functionality, as do the re- Earlier this year, writing in the Finan- al-time payments projects springing up in cial Times in his capacity as chair of the various jurisdictions. Financial Stability Board, Bank of En- Looking at the overall operating en- gland Governor Mark Carney, together vironment for correspondent banks, with World Bank CFO Bertrand Badé, Marcus Sehr, head of institutional cash, described correspondent banking as “an Global Transaction Banking, Deutsche important service, and in many devel- Bank, sees the challenge as to define the oping economies … more than that: an business case for meeting a broader set indispensable link to the international of client requirements. “If you approach banking system.” But they also acknowl- the business purely from a de-risking edged the challenges for correspondent perspective, you may find that exiting segments of the business leaves you un- The biggest able to provide comprehensively for cli- ent needs,” he says. The de-risking route demand from may appeal to players who are either not confident about managing the risk clients is to know or who believe they do not have the ap- how we read It is necessary not just to be able petite for the necessary investment. But Sehr insists commitment yields results: the regulatory to process a payment, but also to “Transaction banking is still a business that demands scale,” he says. roadmap. understand its logic, purpose, and Today, more than ever, scale also en- compasses the ability to monitor, antici- Marcus Sehr, head of institutional cash, traceability. pate and respond to regulatory changes. Global Transaction Banking, Deutsche Bank Anyone who wants to stay in the business Edouard de Lencquesaing, CEO, European Institute for Financial Regulation has to keep an ear to the ground. “The Emerging market demands biggest demand from clients is to know banks posed by a financial crime regu- of the other was the ‘circuit engineer’, how we read the regulatory roadmap,” For Rob Green, head of group treasury latory framework that expects them to the payment expert creating value in says Sehr. “Our clients count on us to payments market infrastructure, Fir- know their customer’s customer, even optimising payment circuits and mini- provide clarity on which regulations are stRand, South Africa, correspondent when that customer is remote and infor- mising clearing constraints relating to relevant, what it means specifically for banking has always evolved to meet the mation is scarce. timing and risk,” he notes. Today, says de them and then to provide the data to sup- demands of the day. “The business has In May, Lesetja Kganyago, governor of Lencquesaing, real-time payments and port their own compliance. To meet that changed radically over the last 20 years the South African Reserve Bank, address- financial crime compliance priorities add demand, you need to be something of and will no doubt adapt to new chal- ing delegates to the SWIFT African Re- to the complexities of this latter func- an all-rounder; not just good at the hun- lenges arising from changing customer gional Conference, observed that, “Con- tion. “It is necessary not just to be able dred-metre dash.” requirements, regulatory demands for cerns have been raised about the general to process a payment, but also to under- Moreover, a distinction should be made greater transparency and the opportuni- reduction in correspondent banking rela- stand its logic, purpose, and traceability,” between the impact of competition on re- ties arising from real-time payment tech- tionships, and related financial services he says. tail and wholesale payments, according nologies,” he says. globally.” Correspondent banks have already to Christian Westerhaus, global co-head In addition, the demand from emerg- Correspondent banking businesses to- adjusted their operational infrastructure of client products & solutions, Global ing markets for greater reach as well as day must deal with a more complex risk to meet stricter know your customer Transaction Banking, Deutsche Bank. access to credit and product will only in- management environment; and, from an (KYC) requirements, says de Lencque- “What we have defined as correspondent crease, says Green. “As yesterday’s pan- operational perspective, the potential of saing. Banks have largely shifted away banking goes beyond the pure means of el session confirmed, the correspondent non-bank payment platforms using tech- from the classic decentralised approach transporting the funds,” he says. “You banking business remains attractive to nology innovation to carve out their own to maintaining customer files, whereby have to talk about reach. Do you connect scale providers so long as they keep their market niches. each ‘application’ had its own reference to all the right clearing schemes? Do you eye on what lies ahead for their custom- Does this require a rethink of the cor- file system, focusing on functional spec- have a holistic product suite?” ers,” he adds. n

Sibos, powered by SWIFT. Sibos Issues 8 www.sibos.com www.swift.com DIVERSITY We’re not all the same! Business leaders should embrace cultural diversity and use it to commercial advantage.

When James Sun was faced panies have tended to regard At Sibos, Sun claims he will of- with an outrageously discrimi- diversity largely as a matter of fer delegates with ambitions to natory comment from a casting internal policy, closely associ- become leaders of multinational director on Donald Trump’s ‘The ated with recruitment and hu- companies a new strategic ap- Apprentice USA’ his desire to man resources issues, Sun ob- proach, using empirical evidence be an ardent diversity advocate serves. “However, there is a new and data points to show how diver- was born. trend of using diversity as an sity can influence market growth Not only did Sun become the offensive weapon to gain mar- strategies. Diversity should be first Asian-American contestant ket share. Due to globalisation, viewed as an outward-looking and finalist on the business-fo- multinational companies have strategy, led from the c-suite, he cused talent show, but his pas- to embrace and understand says. “Markets are shifting quick- sion as a campaigner and speak- cultural, geographic, and demo- ly and cultures are colliding. The Multinational companies have er have since taken him on a new graphic positions in any market CEO who understands this will be and unexpected path, sharing a they want to be in. I will discuss able to effectively lead their com- to embrace and understand new and refreshing approach to how to leverage your people to panies into the next 20 years.” diversity with audiences across achieve this goal and give real Commercial awareness of de- cultural, geographic, and the world. proof points for generating a re- mographic differences will only demographic positions in any Sun’s speeches focus on the turn on investment.” become more important, asserts value of differences in culture, In the finance sector, the De- Sun. Firms operating in global- market they want to be in. race, and beliefs subscribing to pository Trust & Clearing Corpo- ised industries such as finance the idea that we’re all the same ration (DTCC), the US post-trade must take greater account of James Sun and should simply try to ‘fit in’. utility, has set an example as to increased cultural diversity with- He combines personal experi- how a multinational organisation in the workforce. “Differences to turn cultural diversity to their force. And last, they will need to ences with a study of human be- can use the recruitment from a in work ethics and religious dif- advantage? Sun offers three pri- integrate and develop a diverse haviour that analyses millions of diverse talent pool as part of its ferences are hot-button topics orities for consideration: First, workforce, particularly in terms data points around online ethnic efforts to generate a return on worldwide. This increased cul- financial leaders will need to im- of culture and age differences. n social dynamics. investment. The DTCC describes tural diversity also has produced prove their ability to foster and its diversity and inclusion poli- many benefits as companies gain support cross-cultural business Return on investment cy as “sound business practice new insights into different cul- ventures (even in a domestic and … necessary as we move our tures from a management and a market). Second, they will need TO LEARN MORE … Sibos delegates will not only business forward”. In 2013, the marketing standpoint,” says Sun. to develop leaders who are pas- hear how Sun handled the cast- DTCC was named a Best Place sionate about communicating Despite what you ing director, but will also gain to Work by the Human Rights Three priorities and managing across cultures, heard, colour does an insight into how to recog- Campaign, a leading US LGBT and interested in unleashing the matter nise diversity as a key strategic, (lesbian, gay, bisexual, and trans- In what ways should business creativity and innovation poten- Wednesday 14 October business asset. In the past, com- gender) civil rights organisation. leaders adapt to their strategies tial of a culturally diverse work- 09:30-10:15

DIVERSITY Are you aware of

muted. Some inclinations in how we doing things are learned and your ‘blindspots’? habit forming, she points out, and not always in our own inter- est. “It used to be seen as okay to Acknowledging unconscious biases is a good hire only one’s friends and fami- ly members or those with some starting point for embracing cultural diversity. connection to us,” says Banaji. “Now we don’t do that as much. We believe that to be successful we must cast our net broadly be- Another way in which aware- day’s session performed in line cause a diversity of talent cannot ness of diversity can help busi- with past results. be found in our own inner circles. nesses, says Harvard University “The concept of implicit bias “Awareness is the first step in social psychologist Professor is the idea that good and even determining whether a bias is We believe Mahzarin Banaji, is by recognis- smart people are not aware of even worth changing or not. A ing blindspots, or hidden biases, the workings of their mind. As healthy bias, for instance, of pre- that to be within people. Yesterday, Bana- such they make errors in their ferring one’s own place of work ji hosted a workshop in which decisions that lead to less than to that of a competitor, should successful we she called on “many decades of optimal choices,” explains Bana- not be removed.” research” on the science of im- ji, whose workshops use hands- Banaji adds that other bias- must cast our plicit bias to highlight how bias- on tests to help attendees learn es that business leaders may net broadly. es can get in the way of sound about the bias in their own want to correct can be discov- financial and personal decisions minds and discuss the different ered using tests available at ­ Professor Mahzarin Banaji and why organisations fail to ways in which they might try to implicit.harvard.edu “We can as- hire the best talent. Evidence of ‘outsmart’ their own biases. sess what needs to be changed the need for banking executives Awareness of unconscious and what does not by confront- to raise their awareness was to biases is a good starting point ing the disparity between our be found in the fact that Sibos for organisations looking to conscious values and our perfor- delegates who submitted to Pro- embrace cultural diversity, says mance on tests like the Implicit fessor Banaji’s tests in yester- Banaji, but those biases can be Association Test,” she says. n

Sibos, powered by SWIFT. Sibos Issues 9 www.sibos.com www.swift.com SWIFT INSTITUTE Banks at risk In a world of few certainties, banks must continue to evolve their early- warning systems.

The term ‘Brave New World’ – borrowed harness social intelli- from Aldous Huxley’s literary vision of gence to sense and a dystopian future – is often applied to respond to changes significant changes in the corporate or before irreversible financial ecosystem. In the world of risk tipping points are management, a brand new environment crossed.” really is taking shape. Financial organisa- And while banks tions were once structured for stability might feel some- and scale but are now having to radically what immune to think how they assess risk, challenged by market shocks because of the increased new market entrants, changing regula- amount of capital they are now required tion and emerging technologies. to hold under Basel III, they still need to be Alan Laubsch, director of Financial Net- aware of longer-term threats to their busi- work Analytics, believes that the days of nesses. “Many banks are overwhelmed centralised structures and linear reporting by complexity and internal systems. This lines to satisfy risk requirements are num- puts them at great disadvantage to start- bered, with banks seeking to build in em- ups, which are often more effective at ployee-aware corporate cultures which go leveraging big data and designing for the further than simply ticking compliance box- customer experience,” he says. “Banks To compete, banks must nurture a es. He says: “Traditional predict-and-con- must wake up from ‘the matrix’ to em- trol governance will fail to keep up with the brace the real world, to shift attention healthy innovative culture with external increased complexity and pace. In this ac- from inside to outside. To compete, banks focus and launch innovative products celerating world, organisational agility and must nurture a healthy innovative culture peripheral vision are essential.” with external focus and launch innovative that delight clients. This ‘agility’ is particularly important for products that delight clients.” established financial institutions that want Alan Laubsch, director, Financial Network Analytics to be able to withstand challenges from Learning from failure new competitors and new technologies. financial organisations. But the risks to banks around the world now have limited “Emerging start-ups increasingly threaten Taking a lead from consumer electron- banks are not purely from being out-ma- room to make monetary policy more ex- much larger entrenched incumbents,” says ics and internet giants, investing in “de- noeuvred on product innovation. Devel- pansive because governments are already Laubsch. “To compete, organisations must lightful” products should be the aim for opments in the financial markets over the having to deal with exceptional levels of past eight years have triggered a wave of debt. “Anaemic growth and continued high new regulation and fired the starting pis- unemployment rates have been increas- tol on a recruitment drive for compliance ing pressures for political actions, which specialists. Compliance officers are being gives energy to protectionism and political deployed across banks, many ensuring populism. Central banks have continued that new and existing products meet the on their path of expansive policies, provid- needs of both regulators and clients. But ing strong support to the financial / credit it would be a mistake to overplay their cycle, while the economic cycle is lacking role, says Laubsch. strength. The increasing gap between cy- “Banks must remember that compli- cles suggests rising risks for asset price ance is not risk management. Risk man- correction with possible negative implica- agement does not mean avoiding failure. tions for the real economy,” he says. Rather, it lies in the ability to learn quickly And, despite the recent volatility in from small failures by acting quickly on global markets, Bergqvist suggests great- ambiguous signals,” he says. “As [popular er macro-economic risks are on the hori- economics author] Tim Harford puts it in zon for the coming 12 to 18 months. He his book ‘Adapt’ ‘the art of success is to says: “Events this part year confirm a fail productively’. Given that failures will higher probability that there will be peri- occur, it’s critical to decouple risks, so that ods of substantially worse market liquidi- a single failure does not sink the ship.” ty and diminished market depth. Away from challenges stemming from “There are several driving forces. Firstly, regulation and innovation, shifts in and the risk absorption capacity of the financial shocks to the geo-political landscape will system is worse today than ever before, always occupy the minds of risk manag- partly due to new regulation and require- ers. Huge monetary policy stimuli across ments being imposed on financial institu- the world coupled with lower energy pric- tions. Secondly, internal systems have been es have sheltered what remains a fragile adapted to new risk management methods. recovery from a relapse into crisis. The US Thirdly, there is a larger element of market growth picture is looking positive and the players buying securities to hold until ma- green shoots are starting to emerge in turity and lastly, quantitative easing poli- Europe. However, the prospect of further cies have forced a search for returns with difficulties in the emerging and recently a one-sided approach to risk.” developed markets is a very real threat, In a complex and fast changing world, say economists. we should perhaps expect new sources of risk to emerge on a regular basis. But Shifts and shocks as Laubsch’s vision for a brave new world for risk management suggests, the tools Robert Bergqvist, chief economist at Nor- and the methodologies are available to dic bank SEB, says the outlook for econ- help banks and other financial sector or- omies such as China is characterised by ganisations to anticipate and respond. n structural and cyclical slowdowns. He explains: “Beijing’s recent decision to devalue the Chinese yuan is partly based on growth concerns, although the TO LEARN MORE … People’s Bank of China is also preparing for the yuan to become fifth reserve cur- Risk management in the rency underpinning IMF-managed Special age of disruption Drawing Rights.” Wednesday 14 October – Bergqvist warns that many central 14:00-14:30

Sibos, powered by SWIFT. Sibos Issues 10 www.sibos.com www.swift.com SWIFT INSTITUTE Investing by numbers New approaches to securitisation are required if the market is to thrive in both established and new markets.

“The problem with securitisation is forming investors of true credit risk, just China doesn’t that you can’t turn a letter into a num- as speed limits are a necessary compo- ber,” says Ann Rutledge, founding princi- nent of vehicular traffic regulation,” the have to make pal of R&R Consulting, adjunct assistant joint paper declares. the same professor of finance at the Hong Kong University of Science and Technology, New market, new mistakes. former credit rating agency staffer, and approaches global authority on securitisation. Ann Rutledge, founding principal, Once a popular if arcane way of raising Securitisation markets around the world R&R Consulting funds from investors, by effectively sell- share some common principles, but also ing future cash flows generated by ring- differ according to legal and regulatory pulled the plug at short notice due to is- not an inevitable part of the market. fenced balance sheet assets, securitisa- variations between jurisdictions, as well sues relating to the approval and registra- “Typically, China prefers to emulate what tion became a dirty word as the financial as investor comfort and appetite. While tion process. Approval was finally granted has worked in the West, but securitisa- markets plunged into disarray in 2007-8. US reforms have helped market activity to Ping An and other second-tier banks in tion does not work in practice in the US Future payments from sub-prime mort- pick up since the crisis, Europe has not early 2015, paving the way for banks to and China doesn’t have to make the same gages were bundled together and mar- rebounded. However, industry initiatives repackage loans, creating much-needed mistakes,” she says. n keted as gold-plated investment opportu- to develop a more “simple, transparent, space on their balance sheets. Ping An nities, despite the high risk of default by standardised” framework for European finally issued RMB3.1 billion of collater- mortgage holders known colloquially as securitisation and new proposals con- alised loan obligations in February. NINJAs (no income, no job or assets). In- tained in the European Commission’s Rutledge believes securitisations can TO LEARN MORE … vestors did not see the risks until it was Capital Markets Union initiative may help play a positive role in the next phase of too late, therefore incurring massive loss- to drive a recovery in the market. Chinese economic growth, by accelerat- How and why China’s es, because these structured transactions In China, which has been slowly nur- ing the velocity of cashflows in the econ- domestic securitisation had been given the stamp of approval – a turing its own securitisation market for omy, but says the country must find its market will leapfrog the AAA-rating, typically only granted to the around a decade, Rutledge expects an- own path. The inadequacies of current west most solid of issuers, such as G-7 sover- other path to be taken in pursuit of mar- benchmarking processes for securitisa- Wednesday 14 October – eigns – by credit rating agencies. Post-cri- ket liquidity and investor transparency. tions seen in the US and elsewhere, are 14:30-15:00 sis, as the US authorities looked to reform Rutledge, who has presented to regula- the securitisation market, fingers were tors and legislators the world over and pointed at the conflicts of interest raised has set courses and exams on credit rat- by the ratings agencies’ business model; ing and structured finance, recently com- the issuer pays for the rating, so the agen- pleted a paper for the SWIFT Institute cy, it is argued, is incentivised to assign about the prospects for a different kind high ratings to win future business. of securitisation model in the Chinese fi- Rutledge sees things differently. In a nancial markets. critique of the rating agency industry – ‘A Progress in China has been gradu- Real Fix for Credit Ratings’ – co-authored al since the late 1990s, when four asset with Bob Litan of the Brookings Institu- management firms were formed by the tion, a Washington-based think tank, she government to acquire and resolve a points out that the ‘issuer-pays’ model portfolio of non-performing loans on the had been in place for around 40 years balance sheets of state-owned commer- before the collapse of the US sub-prime cial banks. The legal underpinnings for mortgage market provided a catalyst for investment in securities backed by loans a global financial crisis. Rather, Rutledge and mortgages were put in place in the asserts that the letters-based scoring sys- early-to-mid 2000s, but the global finan- tem that was grafted onto securitisation cial crisis called a halt to further devel- deals from the more vanilla government opments in the Chinese securitisation and corporate bond market is fundamen- market until 2012, when regulators devel- tally unsuited to the evolving dynamics oped a new framework with similarities of complex asset-backed transactions. to the US model, which was authorised “Investors never saw what the agencies and rolled out in 2013. saw. The information on which the ratings Activity has been brisk and innovative were based never flowed into the market, in the two years since - Chinese banks so investors could not reverse engineer issued asset-backed securities worth them,” Rutledge says. RMB277 billion (US$43 billion) in 2014 While a corporate bond pays out the – notwithstanding various bumps in the same interest and principal payments per road as issuers explore the boundaries of far corners bond to all investors, Rutledge and Litan the nascent Chinese market. explain, structured credits are “backed by One difference to the traditional US pools of receivables, such as mortgages model is that deals can be listed and Helping you see global markets as more familiar than foreign. or loans, frequently with different tranch- traded on exchange, rather than bought That’s the power of a local neighbor, connecting you with over es with different claims on the cash flows direct and held to maturity by investors. 200 countries, multiple time zones and 140 currencies worldwide. generated”. And because the credit qual- A particularly high-profile deal was that ity of a securitisation or other structured listed on the Shenzhen Stock Exchange bofaml.com/yourcorner product is driven by the cash collected in September 2013 by the small loans on a specific pool of receivables or other subsidiary of Chinese e-commerce giant assets: “that cash must be counted”. For Alibaba Group, which raised RMB3 billion the US securitisation market to regain by securitising SME loans. In theory, this its previous levels of liquidity, Rutledge exchange-based approach also provides and Litan call for regulators to intro- a numerical value on which potential in- duce a framework for delivering a single, vestors can base their decision, albeit transparent and numerical benchmark somewhat dependent on secondary mar- for securitisations and other structured ket liquidity. credits. “Such benchmarks are a neces- Ping An Bank was due to list Shanghai For marketing disclaimer, visit bankofamerica.com/disclaimer. ©2015 Bank of America Corporation 02-15-0957.H sary component to a prudent system of Stock Exchange’s first-asset backed secu- capital regulation and for accurately in- ritisation last June, until the central bank

CAD-02-15-0957_H.indd 1 7/8/15 3:14 PM Sibos, powered by SWIFT. Sibos Issues 11 www.sibos.com www.swift.com SECURITIES Getting the message A wider appreciation of the costs of inefficiency is driving automation initiatives for corporate actions right across the globe.

A lack of automation in corporate completeness, which can translate into ­actions continues to frustrate market missed opportunities, and sometimes participants, however positive devel- hard, financial losses.” opments in Asia are demonstrating the A lack of automation between market power of technology and standardisation infrastructures and investors could poten- to make meaningful progress. tially have the most profound consequenc- Corporate actions events involve a es. “As communication between these two Some smaller markets are not yet chain of communications between issu- occurs later in the chain, errors occurring ers, agents, exchanges, central securi- at this point can have significant financial seeing high enough volumes to make a ties depositories (CSDs), clearing ­houses, consequences,” says Philippe Ruault, head custodians, registrars and ultimately of clearing and custody products, BNP strong case to invest in automation. investors. Their importance lies in the ­Paribas Securities Services. information they convey about the finan- In addition, the rights of minority Philippe Ruault, head of clearing and custody products, BNP Paribas Securities Services cial health of the issuer and / or the value shareholders or foreign investors are of their stock, for example a dividend, a ­often the source of various risks when tions processing in a centralised manner rate actions automation initiatives. As rights issue or a stock split. using manual processes. For example, de- via infrastructure organisations and to Asia continues to rollout enhancements With so many links in the chain, and so livery of corporate actions event by phys- minimise paper documents by integrat- to corporate actions processing, it poses many different participants involved, it is ical mail poses a high risk that a share- ing technologies and standards, in par- the question: could these models be rep- perhaps understandable that the commu- holder will receive the initial information ticular to introduce e-voting and e-proxy licated through the rest of the world? nication of corporate actions is automat- about an event after it has finished. voting technologies,” says Putyatinskiy. NSD’s Putyatinskiy believes they can. ed to varying degrees between different The NSD has also taken steps to in- “It’s all about information exchange. The participants and according to diverse An end to the paper trail troduce international formats for annual only question is gathering and sharing technical formats and standards. But with- general meeting notifications. correct data about business cases, suc- out integrated and automated processes There is now a huge drive to deliver Once considered a strictly back-office cess stories, and in terms of corporate ac- in place, risks can stem from mistimed an- ­automated corporate actions standards concern, the industry has seen an evolu- tions, the community has already started nouncements or from misinterpretation across multiple markets. “Existing pro- tion of corporate actions reform that takes the wonderful work of harmonising ISO of messages, leading to confusion and de- cedures for corporate actions based on full account of the importance of getting 20022,” he says. lays in the execution of corporate actions. paperwork were inefficient and costly information through to front-office con- According to Chueh, the further adop- sumers. “The industry has realised that tion of more integrated automated mod- corporate actions go beyond operational els will depend on how successfully reg- efficiency, as there are larger financial ulators and market infrastructures will risks linked to delayed or inaccurate cor- engage with issuers with the right mix of porate action reporting,” says Chueh. ‘carrot and stick’ measures. “From a reg- This has attracted the attention of ulatory perspective, exchanges can look both regulators and industry associ- to leverage their market position and ations. For example, the International mandate issuers to use more electronic ­Securities Services Association‘s ‘Global and standardised corporate actions com- Principles for Corporate Actions’ – which munications tools,” adds Chueh. details best practices for the processing “As an added incentive, the CFO offices of corporate actions – have been widely of issuers can reduce costs and increase adopted. Furthermore a wide range of efficiency by publishing their corporate initiatives are under way, particularly in events through the electronic platforms Asian jurisdictions, with the aim of up- provided by the exchanges. In return, grading their market infrastructure and ­exchanges and CSDs can offer better cut- stepping up their efforts to adopt corpo- off times for publishing and provide addi- rate actions standards and automation. tional reporting tools back to the issuers, Earlier this year, SWIFT announced it delivering deeper insight on shareholder is working with banks and market infra- behaviour.” structures to develop a framework for In Europe, initiatives toward higher using the ISO 20022 message standard rates of automation have typically been to improve harmonisation and integra- undertaken at a national level. However, tion of corporate actions processes, a recent project has recently provided amid concerns of fragmentation between pan-European impetus, now that market ­jurisdictions. “Market infrastructure infrastructures are obliged to comply ­operators see this as a ‘best in class’ with a certain level of automation and practice, often coupled with a need to compliance with the European Corporate meet regulatory requirements, but also Joint Working Group standards before Larger financial risks linked to delayed an added value service differentiator for joining TARGET2 Securities, Europe’s both issuers and investors,” adds Chueh. new securities settlement platform. or inaccurate corporate action reporting. Banks are playing their part too. In “The fact that larger markets have 2013, Standard Chartered rolled out a really been incentivised to automate is Jyi-chen Chueh, head of custody services, Standard Chartered Bank new corporate actions platform across 49 great news. Some smaller markets are countries in Asia, Africa and the Middle not yet seeing high enough volumes to East. Last year, it was one of several banks make a strong case to invest in automa- Moreover, a lack of automation can when measured against international to partner with the Singapore Exchange tion, but as they grow we expect to see have a snowball effect for each sub- standards,” says Sergey Putyatinskiy, to implement an ISO 20022 corporate them adopt the automated process,” sequent link in the chain, according to chief information officer at the National actions service between issuers, the ex- says BNP Paribas’s Ruault. n Jyi-chen Chueh, head of custody services Securities Depository (NSD), the CSD to change and local custodians. “The results at Standard Chartered Bank. “It amplifies the Moscow Exchange. have exceeded our initial expectations in the manual capture of information, in- The NSD has made a number of ef- terms of straight-through processing and creases the chances of interpretation dis- forts in improving corporate actions pro- processing turnaround time,” says Chueh. TO LEARN MORE … crepancies and requires additional and cessing and has signed a memorandum costly controls that slow down the overall of understanding with the China Central ‘Carrot and stick’ Asset servicing: issuer to flow of information,” says Chueh. “This ­Depository and Clearing to further ad- investor automation ultimately impacts investors, in terms vance efficiency. “The key points of our In addition to Singapore, Australia and Wednesday 14 October – of information timeliness, accuracy and reforms are to organise corporate ac- Japan have both implemented corpo- 14:00-15:15

Sibos, powered by SWIFT. Sibos Issues 12 www.sibos.com www.swift.com STANDARDS FORUM Shine a light Data standardisation is a pre-requisite to improving transparency and aggregation.

The drive for transparency and stabili- 25 local operating units (LOUs) endorsed ty in financial markets is supported by by the ROC to issue LEIs and maintain the a myriad of industry guidance, market associated reference data. rules, and international and national reg- “The global framework built up around ulations. Harmonisation of data and pro- the legal entity identifier is an excellent cesses, based on international standards, example of a public and private collabo- is also playing a key role in supporting ration on a global scale. Today, the global these over-arching objectives. implementation of a single standard for The regulatory response to the finan- the LEI, under a single oversight, gover- cial crisis has been very far reaching. nance and operating model, is a reality,” Overall, we have witnessed a significant says William Hodash, managing director increase in the oversight and regulation for business development at the Deposi- of financial institutions by national gov- tory Trust & Clearing Corporation, the US ernments as well as the introduction of post-trade utility, who has been instru- regional and global regulatory initia- mental in establishing the Global Markets tives aimed at increasing transparen- Entity Identifier (GMEI) utility together cy and reducing risks in global financial with SWIFT. The GMEI utility has issued markets. Supervisory and rule-setting some 190,000 of the 390,000 LEIs is- bodies ranging from the Financial Sta- sued so far. “LEIs issued by any of the bility Board and the Basel Committee endorsed LOUs anywhere in the world on Banking Supervision to the Financial are issued under the same operating Action Task Force have variously drafted principles and are accepted by all regula- new frameworks governing banks’ capital tors that have recordkeeping and report- and liquidity levels, derivatives trading, ing rules requiring reporting parties and clearing and reporting, the prevention of counterparties to be identified by LEIs, ” money laundering and terrorist financ- says Hodash. ing, benchmark-rate setting, and market GLEIF’s Wolf points out that the LEI infrastructure risk and default manage- is being increasingly widely adopted, as ment, to name but a few. a result of national and regional imple- For regulated financial institutions, mentations of regulation. He sees two the result has been a torrent of require- additional dimensions to the future de- ments to understand, implementation velopment of the LEI. First, more uses deadlines to meet and data to collect, are being found for the existing identifier, monitor and report. Both the regulators way beyond its early adoption in trade

The LEI is not the goal in itself, but it helps to get transparency into the market.

Stephan Wolf, CEO, The Global Legal Entity Identifier Foundation and the regulated are in agreement that reporting for OTC derivatives. For exam- FX swaps and overnight index. “Our ob- Re-using existing international stan- standards have a critical and very practi- ple, the European Insurance and Occupa- jectives for this reporting are for the dards is fundamental to the project, cal role to play in ensuring new rules can tional Pension Authority has mandated ECB and other euro area central banks to explains ECB business project manager be implemented in a timely, comprehen- the use of the LEI for all its reporting have a clear understanding of the effect Josep Puigvert. “The reporting is based sive and effective way. But we are now requirements by end-June 2016. “Anoth- of monetary policy transmission mech- on an ISO 20022 XML schema and some seven years on from the collapse of Leh- er important step currently under con- anisms (for example, how changes in in- 90% of the metadata elements are al- man Brothers that precipitated the crisis. sultation is the extension of the LEI to terest rates are feeding through) and to ready in use by the reporting agents,” Which standards are helping and how? Is include hierarchical information (direct increase the overall transparency in the he says, adding that this has greatly it all still talk, or are there tangible results parent and ultimate parent), ensuring money markets”, explains Jean-Marc eased not only the development of the and valuable outcomes? even deeper transparency,” he says. This ­Israël, head of division, monetary and fi- project, but also its acceptance in the information is sought by regulators and nancial statistics at the ECB. Until now, market. “The market will have access “A public good” others too. “Risk and compliance manag- the ECB has only had annual reporting of to the aggregated data in the future, so ers at banks are also very interested in full second-quarter money markets data, there are real benefits for participants The publication of ISO 17442: 2012, the this information,” says Wolf. published with a three month lag, so this in terms of greater visibility and trans- standard for the financial services legal daily reporting closes an important gap. parency.” n entity identifier (LEI), was an early suc- Re-using existing cess. For the first time, the industry has standards a common, internationally agreed stan- dard for identifying legal entities, using a Collecting the data needed for market unique 20 digit code. This makes it pos- oversight and transparency is only part ESMA backs ISO 20022 for MiFID reporting sible to accurately associate, aggregate of the story. Aggregating and analysing and process data based on a legal entity the increasing volumes of transaction The European Securities and Markets Au- of the study it has been concluded that ISO owner, without the need to check name data now being reported is a challenging thority (ESMA) has published its final report 20022 is most suitable due to the high level variations. Stephan Wolf, CEO of The task for regulators and others – and inter- on regulatory technical standards for the of compliance with envisaged legal require- Global Legal Entity Identifier Foundation national standards are critical to achiev- second Markets in Financial Instruments ments as well as its performance and exten- (GLEIF), explains: “The LEI is not the goal ing this. Directive (MiFID II) and Markets in Financial sibility capability. Based on the feedback to in itself, but it helps to get transparen- Next year, The European Central Bank Instruments Regulation (MiFIR). With assis- a public consultation paper, as well as re- cy into the market. It’s a public good.” A (ECB) will start to receive daily reporting governance framework and a Regulatory of money market transactions, initially tance from external consultants, ESMA has sults of the above study, ESMA has decided Oversight Committee (ROC) have been from the 53 largest institutions in the conducted a study to assess which tech- that transactions and instrument reference set up under a strictly neutral and feder- euro area. The reporting requirements nical format is most appropriate for the data should be reported under MiFIR in a ated charter, endorsed by the Financial cover the whole spectrum of money mar- transaction and reference data reporting common XML format and in accordance Stability Board. GLEIF coordinates some ket instruments – secured and unsecured, under this regulation. Following the results with ISO 20022 methodology.

Sibos, powered by SWIFT. Sibos Issues 13 www.sibos.com www.swift.com INNOTRIBE Cities of the future FinTech hubs are competing – but could soon be collaborating.

All around the globe, the number of fi- nal efficiencies to developing new reve- nancial technology (‘FinTech’) hubs has nue streams to reaching new customers. increased over the last few years. These But they may still need support in devel- centres of expertise, enthusiasm and in- oping those burgeoning relationships in a novation in the tech-savvy world are also way that adds real value to their custom- magnets for banks looking to form more ers and shareholders. UK FinTech players partnerships with technology startups. “Banks may realise they do not have Alongside the long-established glob- the infrastructure to handle innovation are really looking al tech capital of Silicon Valley, London that comes in from outside in terms of and New York have acquired reputations procurement and risk management – it’s to connect up to a as FinTech innovation hubs. Now, strong not that easy to onboard the technology. global network. economic growth and widening oppor- We work with people who actually under- tunities for financial services in Asia Pa- stand this,” says Gnirck. Lawrence Wintermeyer, CEO, Innovate cific have pulled attention East. Sydney FinTech hubs appeal to banks because Finance and Singapore in particular are making a they provide access both to new ideas name as thriving FinTech hubs, but com- and the processes to leverage them, but petition is building across the region. hubs have also caught the attention of Startupbootcamp FinTech began in governments and investors, enabling a London two years ago and expanded to healthy mix of stakeholders. “Hubs are Singapore earlier this year. “It is good special because you have the involve- to bridge a corridor between two very ment of the government, the regulator interesting financial eco-systems,” says and institutions themselves,” says Gnirck. Markus Gnirck, co-founder and COO. According to Gnirck, Singapore has a Gnirck’s FinTech accelerator, which is number of the key attributes that any funded by financial services firms such would-be FinTech hub would envy. First, as Lloyds Bank, Rabobank, UBS and Mas- it is a major financial market centre with American Express, HSBC and Suncorp and financial services inclusion, focused tercard, supports early stage startups. established links all around the world. Bank to found a new startup space called on ensuring that the needs of consumers It has taken 10 such firms specialising Second, it has an educated and entrepre- Stone and Chalk. PwC recently estimated are met in areas such as the peer-to-peer in payment, wealth, and block chain in- neurial talent pool from which to draw Australia’s technology startups could be lending space, and that SMEs are being novation into an intensive three-month the founders of tomorrow’s startups. contributing 4% of GDP by 2033. served by the universal banks. It also has programme. The aim is to equip the start- Third, it has the funding sources such as But Asia isn’t having it all its own way. a policy group on digital currency, block ups with the skills needed to present suc- business angels and venture capitalists Amsterdam, Berlin and Madrid were in- chain, and cyber-related topics. cessfully to Startupbootcamp FinTech’s (VCs) to see startups through their early cluded alongside Sydney and Singapore partners and networks to secure funding stages. “Finally, it has mentors and ex- in a list of ‘dark horse’ hubs drawn up Going global from investors, venture capital and insti- perts that are willing to spend time, ide- earlier this year. The UK government has tutions. ally pro-­bono, to help and to give advice endorsed London’s FinTech hub, backing Innovate Finance CEO Lawrence Winter- meyer believes there is potential for Fin- Tech hubs around the world to create an interconnected and inclusive global com- munity, supporting collaboration in order to attract funding and to create more in- novative solutions. “A lot of the capital is Hubs are special global. And a lot of the UK FinTech play- ers – whether in the remittance or peer- because you have to-peer space – have innovative solutions that look for scale, and quite often they the involvement of are looking to the East,” he says. “They are really looking to connect up to a glob- the government, al network.” But Wintermeyer has further ambitions the regulator for FinTech hubs. In light of the global na- and institutions ture of post-crisis financial regulation, he believes regulators should develop a themselves. framework to enable global FinTech hubs to work collaboratively in developing Markus Gnirck, co-founder and COO, solutions to regulatory problems. “On a Startupbootcamp FinTech practical level, digital is global,” he says. “Given this, it would be sensible for Fin- Tech hubs to have a regulatory role that Understanding innovation helps to use technology to improve trans- parency on know your customer and an- In Asia, Gnirck is working to increase ti-money laundering compliance. We are the interest that banks are showing in trying to drag as many regulators to the ­FinTech firms. For Asian bankers, one to entrepreneurs at any stage, depending a ‘FinTech Manifesto’ drafted by Inno- table as possible and learn how to be important route to innovation is by con- on the expertise they can offer,” he ex- vate Finance, an advocacy organisation more inclusive and to help solve as many necting to the growing number of entre- plains. representing the FinTech community. In global problems as possible.” n preneurial ecosystems that are springing addition to leading a delegation to Asia up in aspiring FinTech hubs across Asia Healthy competition to attract global partners, UK prime min- and beyond. “This is where we come in,” ister David Cameron said that Innovate says Gnirck. “We work closely with the in- Singapore recently received a govern- Finance manifesto’s objective to create TO LEARN MORE … novation departments where there is al- ment commitment of S$225 million 100,000 jobs “will ensure [UK is] a world ready a notion of FinTech, an understand- (US$167 million) to grow its FinTech leader in the development of financial Why banks need FinTech ing of innovation and a willingness to talk ecosystem. The investment will be used services technologies”. hubs to entrepreneurs to see if what they have to attract foreign players in financial Located in Canary Wharf, London’s fi- Wednesday 14 October – built meets their internal challenges.” services to base their innovation labs in nancial district, Innovate Finance aims 12:45-13:45 Once banks have started to make con- ­Singapore. to create an inclusive community global- tacts and build relationships in the Fin- Governments elsewhere are also ly. The organisation lobbies government Tech space, they soon gravitate toward showing support for their hubs. The New and regulators on behalf of members, ad- the startups working in the areas most South Wales government has rallied be- vocating FinTech’s disruptive potential in likely to address their particular needs, hind its FinTech hub in Sydney, collabo- providing solutions to the real economy. which might range from achieving inter- rating with partners including Amazon, It has policy groups focused on digital

Sibos, powered by SWIFT. Sibos Issues 14 www.sibos.com www.swift.com NEWS

Found on Twitter # #Sibos Sibos Sibos Standard Chartered @StanChart “There is a real need for #RealTimePayments, especially for #eCommerce showcases local businesses and FMCGs” – Karin Flinspach at #Sibos Andrew Deichler @AndrewDeichler At a cyber session @ #Sibos2015. Addressing a simulated ransomware attack. artistic talent Most organizations don’t have a plan in place until it happens Georgia Hanias @GeorgiaHanias Can a room of men solve financial exclusion for unbanked women? @gatesfoundation @copernicc pic.twitter.com/gUhlSwxAjc

Ghela Boskovich @Ghela_Boskovich Most amazing, inspiring, enlightening & thought-provoking session on #diversity #Blindspot. @Sibos. @swiftcommunity .@banaji THANK YOU!

Anne-Francoise Paris @annefparis Like Sibos, vendor risk management is also about collaboration! @Sibos #technology vendor risk management workshop

As in previous years, the concept of from global currencies to social media gal- collaboration has been widely aired axy and global security. in Sibos sessions this year. If its ex- All of the installations were created by act meaning leaves some delegates local artists, aged between nine and 22, scratching their heads, then spare a through a partnership between Sibos and thought for the artist tasked to visualise the Business Times Budding Artists Fund the concept. (BT BAF). The BT BAF is a Singaporean Three young Singaporean artists have initiative that aims to provide young peo- had a go – Razeen, aged 11; Husnul, aged ple from financially disadvantaged fam- 12; and Syahmi, aged 12 – and the result ilies with an opportunity to pursue arts is striking. A 1.5 metre long robotic arm, training and nurture their artistic talents. decorated in gold and reaching out to “It’s a local charity that believes that if a represent the workings of the business child is talented and interested in art, they world. It can be viewed outside the ­Sibos should be given the opportunity to devel- port BT BAF and partner beneficia- Restaurant on level 5. op that talent – that’s why we support this ries. Delegates wishing to buy one of The ‘Lets Work Together’ installation charity at Sibos,” says Sven Bossu, head of the installations should email their is one of 20 conceptual art projects dis- Sibos. bid to [email protected]. The auction played around the convention centre. The art projects are available to pur- closes today, Wednesday, at 7pm. Other projects visualise concepts ranging chase, and funds raised will be used to sup- n Seatbelts fastened for ISO 20022 harmonisation

YOUR PARTNER FOR EUROPEAN PROCESSING

Instant Payments CSM

Successive rounds of applause were those market infrastructure operators, • STET is very well positioned for delivering a pan-European heard in the early evening at the there were calls for the initiative to ex- Instant Payments CSM ­Standards Forum yesterday as represen- pand to include banks. tatives of 12 financial market infrastruc- “This is really a good start. The next • We have the building blocks today for delivering a clearing tures came together to publicly endorse step now is to include the banks and the service in line with market requirements a charter for consistent implementation participants,” said Göran Fors, head of of ISO 20022. sales and market development for asset • One step forward from our 24/6 Real Time clearing today “ISO 20022 is a very flexible stan- servicing at SEB. dard. That’s one of its strengths, but if SWIFT announced the endorsement it’s used in too many diverging ways it of the charter on Monday as the coop- Come and see us - STAND N43 - Exhibition Level 1 starts to lose its value as a standard,” erative continues to pursue consistent said Stephen Lindsay, head of standards implementation of ISO 20022. FMIs en- at SWIFT. dorsing the charter include Clearstream, STET is one of the leading processors in Europe providing Clearing and Settlement Discussions about a possible charter CLS, Euroclear, Hong Kong Interbank services in Real Time for the full range of payment instruments including Card transactions. began at Sibos 2014 in Boston, and 23 Clearing, National Settlement Depository Our annual processing volume is in excess of 15 billion transactions representing close to market infrastructures have been work- of ­Russia, VP Securities Denmark, ACH 52% share of euro payments cleared multilaterally in CSMs. A technical infrastructure to ing on the initiative over the past year. As ­Colombia, Bank of Canada, ­Canadian support PSPs in delivering innovative services to the European market. Sibos delegates gathered at the SWIFT ­Payments ­Association, Australian Contact us at [email protected] / +33 (0)1 49 00 23 00 / www.stet.eu Standards Forum to celebrate the en- ­Securities ­Exchange and the Southern dorsement of the charter by a subset of African ­Development Community. n

Sibos, powered by SWIFT. Sibos Issues 15 www.sibos.com www.swift.com We Turn Inclusion into Expansion

Mobile money is making financial inclusion a reality for underbanked people worldwide. For you, this represents a huge opportunity to target new customers eager for financial services. We’re making it simpler, more affordable and accessible for you to find your next billion customers.

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