a6 corporate-to-bank integration - from the fog to the cloud - final · 2014-09-12 · current...
TRANSCRIPT
Corporate-to-Bank Integration: from the Fog to the Cloud
Citi Treasury and Trade Solutions | Channel and Enterprise Services
Dmitry Simakov EMEA Head of Client Connectivity and Information Citi Treasury and Trade Solutions [email protected]
61% 10%
29%
Trends illustrated Transaction volume and value Split by initiation channel, Citi, EMEA region
Growth of active clients Year on year (2014 v 2013) growth in active clients population at Citi, EMEA region
�1%
�53%
�14%
Online Banking Integrated File-based solution
Integrated Message-based solution
66%
33%
1%
Online Banking Integrated File-based solution
Integrated Message- based solution
Volume of initiated transactions
Overall $ value of initiated transactions
Current landscape is foggy…
EDIFACT PAYMUL Generic
X509 v3
HTTPS
ANSI X12 820
BAI2
ISO 20022 XML v2
FTP/S
Connect:Direct
PGP
SWIFT MT940
EDIFACT DIRDEB
SAP IDOC
AS2
ISO 20022 XML v3
PKI DES3 SHA1 &MD5
EDIFACT FINSTA
SFTP
BANSTA
EDIFACT PAYMUL CRG
BAI1
SWIFTNet FileAct
SAP MT940
TDCompress MT942
SMIME
VPN
The solution is…
Standardization
Security
File Formats Specifications and testing
Connectivity
?
Standardization of Connectivity • SWIFT continues to be
the most popular choice of standardized bank-neutral connectivity
• Some slowdown in adoption pace at around 2012 was recovered by the introduction of SWIFT Alliance Lite 2
• Local bank-neutral networks, such as eBICS and CBI continue to be in use by local markets
SWIFT Corporate Access Registered Corporates
55 108
181 282
402
579
726
902
1035
1208
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Standardization of File Formats Share of file formats CitiConnect for Files processed transactions
ISO XML 54%
SAP IDOC 18%
EDIFACT 16%
Other 12%
EMEA ISO XML – 69%
ASIA ISO XML – 48%
LATAM ISO XML – 34%
North America ISO XML – 28%
• Share of ISO XML based transactions now exceeds 50% of global transaction volumes processed by Citi’s integrated file channel
• Adoption of ISO XML standard is global, not limited to Europe
• The effort of Common Global Implementation (CGI) group help in further standardization of ISO XML messages
3SKey A multi-bank and multi-network personal digital identity solution
• Main use cases: – Digital signature for file-based communication – Authentication for online banking applications
• Over 25 banking groups subscribed
• Over 30,000 tokens issued
Standardization of Security Mobile Technologies
• Can we replace security devises all together with the mobile technologies? – Dynamic password sent via SMS – Apps to generate dynamic password or challenge/
response
Standardization of Specifications and Testing SWIFT MyStandards A collaborative web platform to better manager standards in the financial industry
• Supports ISO 20022 XML and SWIFT MT messages, with ability to customize the schema for bank-specific requirements
• Allows generating consistently looking and easily comparable formatting guidelines for all participating banks
• Over 35 banking groups and vendors subscribed
Now with Readiness Portal Testing in the cloud for faster customer onboarding
• Readiness Portal allows to test ISO XML or SWIFT MT messages against the specifications published by a bank in a consistent bank-neutral user interface
Standardization of Integration
Lift the fog, move to the
Cloud
Combine all streams of standardization in one cloud-based solution
Introducing SAP Financial Services Network (FSN)
Corporations Banks
Pro
cess
ing
Sys
tem
s
Con
nect
or
ER
P C
onne
ctor
ER
P
Direct
Networks
Platform Services
SAP Private Cloud
SAP Financial Services Network
Pay
men
ts
Sta
tem
ents
Rem
ittan
ce
Cre
dit C
ards
Mon
itorin
g &
Ale
rting
Oth
er S
ervi
ces
Business Cockpit
TMS
Middleware or
FTP Server
SAP® Financial Services Network is an innovative cloud-based network that offers a single connection point across multiple services, businesses, and financial institutions.
SAP FSN – the benefits Benefits for Corporates • Multi-bank, reduced counter-party risk
• Low IT costs – FSN connectivity built into ERP
• Real-time transactions and visibility
• Future-proof solution
• Better working capital and liquidity management
Benefits for Bank • Rapid adoption across corporate base
• Streamlined and accelerated implementation
• Lower operating and client acquisition costs
• Positive client relationships through value-add apps
• Future-proof solution
• Ease of complying with regulatory / market changes
Key Features • Ready connection between Corporates and their
Banks for interchange of messages related to financial services – including payments, payment status, and statements
• Cloud-based file format transformation the integration with multiple business partners without on-site hardware or custom development
• Security from the Ground Up - Multi-tenant architecture isolates each bank and corporate from all others
• Pay-as-you-go subscription model
• Scalable network can deliver existing services while supporting the development and deployment of new ones
SAP FSN - idea shaped by co-innovation The foundation
• First public announcement of Financial Services Network solution 19th April 2012 with Citi and Royal Bank of Scotland
• In October 2012 another 5 banks announced support of the FSN
• Co-innovation program under way with more Banks, Non-Bank Financial Institutions and Corporates
Collaboration of Citi and SAP
• SAP FSN solution to take advantage of Citi's market leading global footprint of 90+ countries with ISO 20022 XML
• Citi worked with SAP on building a Client On-boarding and Support model
• In collaboration with the SAP FSN team, Citi has identified key industry trends in regards to connectivity and security protocols
SAP FSN – Citi experience The milestones achieved
▲ Completed all connectivity and processing development
▲ Full testing complete in all 3 environments: – UAT (User Acceptance Testing) – CTE (Client Test Environment) – Production
▲ Citi is fully integrated with SAP Financial Services Network and is ready to support upcoming pilot clients
Pilot
▲ Multiple clients engaged in pilot: – Multi-national corporations – Active in 20+ countries – Working with 5+ banking partners
▲ Pilots clients expected to go live this year
Summary
The Financial Services Network emerges as strategic initiative for the banks and service providers to establish closer relationships with corporate customers
The industry strives to satisfy the demand and address the challenges of corporate-to-bank integration through standardization
Together we can make the difference, lift the fog and elevate the corporate-to-bank integration to the next level