SWIFT gpi objective: deliver a better customer payment experience

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

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

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

5. Convenient and ubiquitous 5. Convenient and ubiquitous 6. Open and inclusive (global reach) 6. Open and inclusive (global reach) The objective is to first fix these key pain points

Note regarding prices: it will be at the discretion of each SWIFT gpi member to decide the pricing strategy vis-à-vis its customers, including other financial institutions

SWIFT gpi – Business Forum Switzerland – 7 March 2017 3 SWIFT gpi concept

Messaging technologies Accessible by any bank

Faster, same day use of funds*

Transparency of fees Still reach non-initiative SLA rulebook banks End-to-end payments tracking Core transaction banks Remittance information transferred unaltered Reaching any bank (*) within the timezone of the receiving gpi member

Tracker

Directory Observer

SWIFT gpi – Business Forum Switzerland – 7 March 2017 Value-added product 4 suite SWIFT gpi customer credit transfer – Value proposition for banks

 Increase operational efficiency in your customer claims and Reduce investigations management Costs  Ability to do cash forecasting and optimise your liquidity management

 Enhance customer satisfaction by offering speed and Delight transparency in cross-border payments Customers  Build a reputation of leader in global payments innovation

 Retain and attract new customers Grow Business  Sell payments services to third parties

SWIFT gpi – Business Forum Switzerland – 7 March 2017 5 SWIFT gpi customer credit transfer – Value proposition for corporates

Treasury & Cash Management . Reduced settlement time . Leverage investment opportunities . Higher visibility for capital and credit management . Reduced FX risk SWIFTgpi

 Same day use of funds Budgeting, planning and  Transparency of fees forecasting . Enhanced predictability and traceability  End-to-end payment tracking . Greater planning and decision making . Improved reconciliation and forecast  Unaltered remittance information reporting

Accounting & core functions . Better cash flow management . Speed and visibility on critical payments . Certainty for buyers and sellers . Transparency on bank fees . Reduced exception handling & investigations

SWIFT gpi – Business Forum Switzerland – 7 March 2017 6 SWIFT gpi product suite

Directory Tracker Observer

• Providing operational info on gpi . End-to-end payments tracking database to . Business Intelligence dashboard showing members, BICs, currencies, cut-off times monitor progress of a gpi payment bank compliance with gpi SLA. • Essential reference data to calculate best . Allows to track a payment’s path in real . Ensure control, monitoring and enforcement gpi payment route time, obtain transparency on deducts and of SLA, and, consequently, service quality confirmation that payment was credited

Availability Availability Availability December 2016 via SWIFTRef . GUI: November 2016 . Approach to be finalised: Q4 2016 • MT 199 / API: Q1 2017 . Basic version: April 2017 . Advanced version: Q4 2017

SWIFT gpi – Business Forum Switzerland – 7 March 2017 7 SWIFT gpi is live! 100 224 75% gpi member banks Countries of all payments traffic on SWIFT

21 12 60+ Banks Banks exchanging Country corridors successfully piloted live gpi payments e.g. US – China, UK – Denmark, UK – Italy, UK – Netherlands

SWIFT gpi – Business Forum Switzerland – 7 March 2017 8 SWIFT gpi member banks

AMERICAS EMEA APAC 90+ member banks sending payments 20% 52% 28% into more than 224 countries and

 ABN AMRO Bank  CaixaBank  Industrial and Commercial  Sberbank territories;  ABSA Bank  Canadian Imperial Bank of Bank of China  Siam Commercial Bank  Agricultural Bank of China Commerce  ING Bank  Silicon Valley Bank representing over  Alfa-Bank  China Construction Bank  Intesa Sanpaolo  Skandinaviska Enskilda Banken  Australia and New Zealand  China Merchants Bank  Intl. FCStone  Société Générale Banking Group  Citibank  Investec  SpareBank 1 75% of all SWIFT  Axis Bank  Commonwealth Bank of Australia  Itaù Unibanco  Standard Bank of South Africa  Banco Bilbao Vizcaya  Commerzbank  JPMorgan Chase Bank  Standard Chartered Bank cross-border Argentaria  Crédit Agricole  Kasikornbank  Sumitomo Mitsui Banking  Bangkok Bank  Crédit Mutuel-CIC Banques  KBC Bank Corporation  Bank of America Merrill Lynch  Credit Suisse  KEB Hana Bank  Swedbank payments  Bank of China  CTBC Bank  Lloyds Bank  Tadhamon International Islamic  Bank of Communications  Danske Bank  Mashreq Bank Bank  Bank of New York Mellon  DBS Bank  Maybank  TMB Bank  Bank of Nova Scotia  Deutsche Bank  Mizuho Bank  Toronto-Dominion Bank  Bank of the Philippine Islands  DNB Bank  National Australia Bank  UBS  Bank of Tokyo-Mitsubishi UFJ  Ecobank  Natixis  U.S. Bank  Banco Bradesco  E.Sun Commercial Bank  Nedbank  UniCredit  Banco Santander  Erste Group Bank  Nordea Bank  United Overseas Bank  Banco de Crédito del Peru  Fifth Third Bank  Oversea-Chinese Banking  Wells Fargo  Banco do Brasil  FirstRand Bank Corporation  Banorte  Handelsbanken  PKO Bank Polski  Banque Européenne  Helaba Landesbank Hessen-  Promsvyazbank d’Investissement Thüringen  Rabobank  Barclays  HSBC Bank  Raiffeisen Bank International  ICICI Bank  Resona Bank SWIFT gpi – Business Forum Switzerland – 7 March 2017 Bidvest Bank 9  BNP Paribas  IndusInd Bank  Royal Bank of Canada  Budapest Bank  Royal Bank of Scotland live on gpi

SWIFT gpi strategic roadmap

v1 DLT Showcase Fast track v2 go live PoC at Sibos 202 + gSRP live

2015 2016 2017 2018 2019

Tracking Improve cross-border payment Identify, Go MT 202 Track to v1 Design Build, test send + receive scope live COV non-gpi Customer Credit Transfer mandatory?

Enable digital transformation Identify Scope (vision workshops) Stop / Recall Payment Design Build, test Go live FAST TRACK

Rich Payment Data Design Build, test Go live, commercialise v2 International Payment Assistant Design Build, test Go live, commercialise

Additional Payment Services Continuous exploration and co-creation with financial, corporate and fintech industry

DLT PoC for real-time v3 Scope Design Build, test Go live? Explore new technology nostro reconciliation v4 Identify new clearing model To be confirmed

SWIFT gpi – Business Forum Switzerland – 7 March 2017 10 Question 1: What are the key benefits of gpi for you?

A. Reduction of cost due to less 43% claims and investigations? 33% B. Offer better payments services to your end customer? 20% C. Position yourself as leader in innovation? 5% D. All of these three

All of these three

11

Reduction of costOffer due better to... paymentsPosition se... yourself as leade... Question 2: What are the key components of gpi that would improve the cross-border payments experience for you and your customers? 70% A. Business rules? B. Payments tracker? C. New technologies (e.g. DLT)? 20% 10%

Business rules? Payments tracker? 12

New technologies (e.g. D... [email protected] www.swift.com Download SWIFTgpi App on your iPad

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