SWIFT gpi for corporates Cross-border payments, transformed Oct, 2018 Spotlight on cross-border payment challenges Martin Schlageter Peter Claus-Landi Brooke Tilton Michel Verholen Head of Treasury Operations Director banking initiatives Vice President, Treasury Operations Director, Global Treasury Center Roche General Electric Viacom Zoetis Speed Transparency Tracking Remittance information “Critical business “Many times we don’t “I’m not able to tell when the “We miss information regarding requires faster payment have visibility on the fees money hits the beneficiary’s the invoice and the payer execution” lifted along the way” bank account” for timely reconciliation” SWIFT gpi for corporates - October 2018 2 Time for SWIFT gpi SWIFTgpi Faster payments 1 Same day use of funds* Accessible by any bank Traceable End-to-end payment tracking 2 & payment confirmation Core transaction SLA rulebook banks Transparent fees 3 Deducts and FX Reaching any bank Full remittance data 4 Unaltered reconciliation info Accessible by any corporate SWIFT gpi for corporates - October 2018 3 SWIFT gpi: secure, faster, traceable & transparent cross-border payments Intermediary Traceable Your bank bank 2 End-to-end payment tracking & payment confirmation gpi a1700db1-90b2-4948-83d8-6309c5c34a3d Invoice SWIFTgpi Your company Rulebook $ 1 Faster payments Same day use of funds* Beneficiary’s bank Beneficiary 3 Transparent fees Deducts and FX 4 Full remittance data Unaltered reconciliation info SWIFT gpi for corporates - October 2018 4 *Within the time zone of the receiving gpi member SWIFT gpi is dramatically speeding up cross-border payments! +90% < 1 day end-end SWIFT gpi for corporates - October 2018 5 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 SWIFT gpi for corporates - October 2018 6 Getting started with SWIFT gpi Gpi for corporates (g4C) pilot Advanced 3 Multi-bank / multi-channel Payments Tracking 12 banks . Corporate generates unique transaction reference (UETR) . gpi Standards for FIN & ISO 11 corporates . Harmonised tracking details across banks Testing 2 Payments tracker in bank portals . Visibility through unique transaction reference (UETR) + 14 banks . Real -time transaction status updates Live . Detailed bank fees & FX rates . Beneficiary payment confirmation Corporate 1 gpi Payments . Same day payments . Unaltered remittance information Standard . Visibility on bank fees (on request) 67 banks . End-to-end traceability (on request) Live SWIFT gpi for corporates - October 2018 7 Banks and corporates are integrating gpi Automated channels 12 banks & 11 corporates in pilot MNC MT 101/ pain.001 MT 199 /pain.002 H2H 55 banks APIs with gpi APIs live or in implementation ERP / TMS gpi connector Front-end Back-end applications applications SME Web portal e-Banking portal 14+ portals live SWIFT gpi for corporates - October 2018 8 Recap End-to-end C2B/B2C gpi flows & g4C confirmations gpi payments tracker MT 101 + UETR, pain.001 + UETR(s) 3 TMS/ERP 1 2 4 MT 103 + UETR & MT 103 + UETR & STI:001 STI:001 MT 199 + UETR & STI:003 / pain.002 + UETR(s) * Beneficiary Ordering corp Instructing gpi Agent g4C confirmations Corporate generates and includes UETR in the payment 1 . Delivered to beneficiary bank as non- instruction (MT 101 – unitary payment / pain.001 – unitary and gpi bulk payments) . Delivered to beneficiary bank as gpi . Beneficiary has been credited 2 Bank creates MT103 including UETR generated by the . Transaction was rejected corporate . Payment has left gpi 3 Tracker delivers B2C specific confirmations to Instructing bank 4 Instructing bank relays back to ordering corporate (MT 199* / pain.002) as-it-happens *Banks can send pain.002 instead of MT 199 (single transaction confirmation as-it-happens) in mutual agreement with their corporate pairs. SWIFT will not support testing or perform format SWIFT gpi for corporates - October 2018 9 validation in pain.002 in the scope of Early Adopters Phase Pilot participants SWIFT gpi for corporates - October 2018 10 g4C – a common canvas for multi-banked corporates Corporate-specific Common approach for payment Standards payment statuses reporting (transparency) FIN & ISO Default MT 101, MT 199 (gpi) pain.001, pain.002 Delivered to beneficiary bank Date & time 26 April 2018 – 18:00 CET gpi status Credited Confirmation of credit to beneficiary Status originator Save with us Bank (SBWUDE33) Instructed Amount 125.000 USD Rejections and currency Confirmed Amount 101.020 EUR Out of gpi and currency de Banca Mexicana Cash bank bank Save with us Credito Routing Bank optional Save with us Bank FX information USD to EUR exchange rate: 1.22 Deducts Cash bank: - 20 EUR information Charge code SHA SWIFT gpi for corporates - October 2018 11 SWIFT gpi for corporates (g4C) Tentative Pilot group Early Adopters General availability Feb – Oct 2018 Oct 2018 – Mar 2019 Q1 – Q2 (TBC) Pilot group Group 2 UETR optional in g4C service 10: Gpi banks Score +20 10: Corporates SWIFT corporates +1900 Early adopters Corp L2BA* Corp gpi Banks Pilot vendors +160 . FIS . Bellin Corp . Calypso . SAP . Datalog . Opus Capita Corp . IT2 . AccessPay . Broadridge . Kyriba Corp . ABK . Gtreasury H2H . SAP Corp corporates Corp SWIFT gpi for corporates - October 2018 *list of Lite2 partners (not confirmed participants) 12 Early adopters timeline Tentative dates Nov Dec Jan Feb Mar Apr May Phase 1 Phase 2 Phase 3 Early adopters onboarding Implementation and testing Production flows Readiness assessment, project Pre-bilateral Bilateral testing Community testing Controlled live (production) Live (general availability) definition Business pairing readiness with SWIFT (Bank/Corporate) Sibos Kick-off g4C CUG Test catalogue Readiness g4C CUG Conclusions (date & location TBD) (Test & training) (gCAT) declaration (Production) Live preparation UETR optional in MT 101 SWIFT gpi for corporates - October 2018 13 Unparalleled growth in adoption, traffic and corridors Very large community 270+ 200+ 80+% banks committed to implement, countries covered SWIFT cross-border payments 49 top 50 banks signed represented Millions live payments 77 600+ 80+ Mio 30+% banks live country corridors payments sent as gpi since go cross-border MT103 35 top 50 banks live - 500K payments/day sent as gpi . Over 50% of SWIFT gpi payments are credited to end beneficiaries Delivering within 30 minutes . real value More than 100 billion USD are being sent daily via gpi . Banks are saving costs thanks to quicker investigations handling and a significantly reduced number of payment enquiries SWIFT gpi for corporates - October 2018. Positive reactions from corporates 14 77 banks are live, with more than 180 banks in the implementation phase 77 gpi banks live Nordea Bank Danske Bank Alfa-Bank State Savings Bank of Ukraine DNB Bank Royal Bank of Canada SEB E.SUN Commercial Bank ICICI Bank Bank of Nanjing Scotiabank Ebury Shanghai Rural Commercial Bank ING Barclays China Guangfa Bank BIDV Canadian Imperial Bank of Commerce Rabobank China Minsheng Bank Shanghai Pudong ABN AMRO Bank China Merchants Bank Turkiye Garanti Development Bank Associated Foreign Exchange Commerzbank HSBC BNP Paribas Bankasi Bank of Communications Ping An Bank National Bank of Wells Bank of New KBC Bank Raiffeisen Bank Bank of China Bank of Jiangsu Shinan Bank Citi Kuwait Fargo York Mellon Natixis International China Zheshang Bank Al Baraka Bank China Construction Bank JPMorgan Chase Deutsche Bank ICBC Bank of Hangzhou Société Générale Crédit Mutuel-CIC Bank al Ethiad China CITIC Bank Sumitomo Mitsui Bank of America Merrill Lynch Commercial Bank CTBC Bank BBVA UniCredit Banking Corporation Intesa Sanpaolo of Kuwait Siam Commercial Bank National KB Kookmin Bank Banco Santander Vietcombank Commercial Bank OCBC MUFG Bank Bangkok Bank Mashreq DBS Bank Bank Standard Chartered FirstRand ABSA Bank National Australia Bank Nedbank Standard Bank Westpac ANZ Commonwealth Bank of Australia SWIFT gpi for corporates - October 2018 15 270+ global transaction banks signed up AME-UK EMEA Asociación Popular de Ahorros y Crown Agents ABN AMRO Bank Budapest Bank National Commercial Bank Préstamos Byblos Bank National Microfinance Bank Danske Bank ABSA Bank Access Bank CaixaBank Associated Foreign Exchange DNB Bank Natixis BAC International Bank Afriland First Bank Central Africa Building Society Ebury Nedbank Banco BISA Global Reach Partners Akbank Central Cooperative Bank NIC Bank Banco Bradesco GPS Capital Markets Al Baraka Bank Citco Bank Nova Ljubljanska Banka Banco Davivienda HiFX Alawwal Bank Commercial Bank of Kuwait Onpex Bank Banco de Chile Piraeus Bank HSBC Alfa-Bank Commerzbank Banco de Credito del Peru IFX Ameriabank CRDB Bank PKO Bank Polski Banco del Estado de Chile NTL FCStone Arab National Bank Crédit Agricole Privat Bank Banco del Pacífico Crédit Libanais Qatar National Bank J.P. Morgan BBVA Banco de Reservas de la República Lek Securities Corp. Banco BIC Portugues Crédit Mutuel-CIC Rabobank Dominicana Lloyds Bank Banco de Crédito Credit Suisse Raiffeisen Bank International Banco Galicia MMG Bank Corporation Cooperativo DenizBank