SWIFT GPI Making your cross-border payments faster, more transparent and traceable Kai Liu Senior Solution Architect SWIFT JAPAN May, 2017 Agenda 1. What is the current adoption of GPI globally? 2. What is the value proposition for your customers? 3. How to integrate GPI with your local SWIFT Infrastructure? 4. Implementation Details May 2017 - GPI 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 May 2017 - GPI 3 1- What is the adoption of SWIFT gpi? 100+ member banks AMERICAS EMEA APAC sending payments into more than 224 20% 52% 28% countries and territories; ABN AMRO Bank CaixaBank Industrial and Commercial Sberbank representing over 75% ABSA Bank Canadian Imperial Bank of Bank of China Siam Commercial Bank Agricultural Bank of China Commerce ING Bank Silicon Valley Bank of all SWIFT cross- Alfa-Bank China Construction Bank Intesa Sanpaolo Skandinaviska Enskilda Banken Australia and New Zealand China Merchants Bank Intl. FCStone Société Générale border payments Banking Group Citibank Investec SpareBank 1 Axis Bank Commonwealth Bank of Australia Itaù Unibanco Standard Bank of South Africa Banco Bilbao Vizcaya Commerzbank JPMorgan Chase Bank Standard Chartered Bank 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 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 Bidvest Bank ICICI Bank Resona Bank May 2017 - GPI BNP Paribas IndusInd Bank Royal Bank of Canada Budapest Bank Royal Bank of Scotland live on gpi Agenda 1. What is the current adoption of GPI globally? 2. What is the value proposition for your customers? 3. How to integrate GPI with your local SWIFT Infrastructure? 4. Implementation Details May 2017 - GPI Value for banks Reduce Costs Delight Customers Grow Business Increase operational Significantly increase Retain and attract new efficiency in your customer customer satisfaction by customers claims and investigations offering speed, certainty, management transparency and a Sell payments services to confirmation of credit for third parties Ability to do cash cross-border payments forecasting and optimise your liquidity Build a reputation of management leader in global payments innovation May 2017 - GPI 6 Value for corporates Accounting & core Budgeting, planning Treasury & Cash functions and forecasting Management Better cash flow Enhanced predictability and Reduced settlement time management traceability Leverage investment Speed and visibility on Greater planning and opportunities critical payments decision making Higher visibility for capital Certainty for buyers and Improved reconciliation and and credit management sellers forecast reporting Reduced FX risk Transparency on bank fees Reduced exception handling & investigations May 2017 - GPI 7 SWIFT gpi: secure, faster, traceable & transparent cross-border payments Intermediary Your bank bank 2 Traceable End-to-end payment tracking gpi a1700db1-90b2-4948-83d8-6309c5c34a3d Invoice SWIFTgpi Your company Rulebook $ 1 Faster payments Same day use of funds* Beneficiary’s bank Beneficiary Transparent fees 3 Full remittance data Deducts and FX 4 Unaltered reconciliation info May 2017 - GPI *Within the time zone of the receiving gpi member New services in the pipeline: Rich payment data Request for cancellation International Payment Assistant Account number ? STOP BIC ? Passport required ? Beneficiary ? SWIFTgpi SWIFTgpi SWIFTgpi Rich remittance information, invoices, Stopping unsolicited payments Validation of payments before execution compliance documents, etc. (double payment, manual errors, fraud) v2 – Q4 2017 - 2018 May 2017 - GPI Agenda 1. What is the current adoption of GPI globally? 2. What is the value proposition for your customers? 3. How to integrate GPI with your local SWIFT Infrastructure? 4. Implementation Details May 2017 - GPI gpi payment flow as is 1. Identify as gpi & route payment 2. Generates 103 with UETR which will create transaction in payments tracker 1. Pass-through UETR in a new MT103 2. Update status in tracker 1. Credit the payment 2. Confirm to tracker MT103 +UETR MT103 + UETR Originator BANK 1 BANK 2 BANK 3 Beneficiary Status update (MT199/API) Payments tracker SWIFTgpi May 2017 - GPI How GPI MT103 looks May 2017 - GPI How to implement gpi automated flows ? Bank payment application Alliance Access Middleware Alliance Entry to multiple AMH payment Alliance Lite2 systems Other interface Unique transaction references ? SWIFT gpi Corporate to Payments Bank Confirming payments ? Tracker Transactions Tracking of payments ? ePortal Routing decisions ? May 2017 - GPI Inform corporate clients ? 13 Implement gpi fast and smooth, with minimal impact on bank’s Bank applications payment application Alliance Access Middleware Alliance Entry to multiple gpi Connector AMH payment Alliance Lite2 systems Other interface Software (*) Independent of the FIN interface SWIFT gpi Corporate to Generate transaction reference Payments Tracker Bank Generate gpi confirmations Transactions Access to gpi Tracker (API) ePortal Access to gpi Directory (API) Determine if a gpi route is possible Customisable, to speak the language of May 2017 - GPI (*) The listed features are tentative 14 your application GPI Connector Introduction Mandatory SWIFT software to communicate with gpi Tracker (using API) What is Hosted at customer premises Connector Acts as the interface between backoffice applications to gpi Tracker Connector Expose gpi Tracker API to backoffice applications Functions Requires configuration to setup connectivity to Tracker Customer Burden of gpi technical compliance placed on customer (UETR, type code) needs All integration handled in bespoke manner May 2017 - GPI gpi – client architecture types Multiple Own payment PaymentPayment Payment systems, SystemsSystems FIN geographically Systems distributed, FIN interface FIN interface multiple currencies. Vendor FIN No corporate PaymentPayment Payment information SystemsSystems Systems Payment exception Payment SystemsPayment management Systems FIN Own Corporate web Systems PaymentPayment application FIN interface SystemsPayment updated via FIN interface Systems Middleware Middleware Systems FIN MT199 FIN consolidates Corporate FIN interface multiple BO, FIN interface Portal Corporate web Vendor application PaymentPayment transaction Payment connector gpi queries Tracker SystemsSystems status DB via API Systems API Updates Corporate Portal API Queries May 2017 - GPI 16 License gpi connector Service gpi connector installation and gpi high level flow configuration (2 md) gpi MT msg Normal MT msg FIN service Proprietary msg SAA AMH gpi MT103 3rd party S/W gpi MT199 Customer applications gpi connector (API) Embedded gpi tracker Or Standalone API gateway Customers need to develop its back office based on “gpi specification” and fulfill gpi SLA requirements SWIFT May 2017 - GPI 17 License IPLA + gpi connector Service gpi connector installation and gpi connector with additional integration configuration + Integration services gpi MT msg Normal MT msg FIN service Proprietary msg Alliance Access Normal gpi MT199 MT103 gpi MT103 MQ File Integration SOAP solution API gateway Customer applications gpi connector Customers need to fulfill gpi SLA requirements (API) FileAct Eg: trigger a status update Embedded Auto Sent gpi tracker Or Standalone gpi directory Process Benefits of gpi No RESTful Possible unchanged _ API development hybrid model MT103 format + + SWIFT May 2017 - GPI 18 Tracker screen: In progress transaction May 2017 - GPI 19 Tracker screen: Completed transaction May 2017 - GPI 20 Legend: = Moment of receipt of MT103 gpi Integration – Safety Net (IPLA only) gpi = Unconfirmed MT103gpi = Time covered in one Safety Net cycle = Available time to confirm MT103gpi Business Day N Business Day N+1 gpi cut-off Safety Net time gpi cut-off Safety Net time • Multiple cut-offs (depending on currency) • Cut-off < Safety Net time < EOD • Non-business days retrieved from Calendar (IPLA only) • Cut-offs and Safety Net time configurable May 2017 - GPI 21 Tracker database is accessible via 3 channels each bank can choose its preferred ways to connect: could be a mix of the 3 GUI MT199 API How to . N/A . MT199 sent to SWIFT’s tracker . API query, over SWIFTNet, report BIC (TRCKCHZZ) same contents than MT199, status? JSON format How to get . Visualization of the transaction . MT199 sent from Tracker BIC . API query/response status and details in a Graphical (one message per event) status