swift welcome: serving sri lanka to achieve financial stability and market competitiveness

Eddie Haddad, Managing Director, Asia Pacific, SWIFT

SWIFT Welcome:Serving Sri Lanka to achieve financial stability and market competitiveness

2

Sri Lanka: Achieving financial integration; increasing market competitiveness

3

SWIFT in Sri Lanka

Over 3 last years growth: 9.4% in line with GDP

200k to 9m 22%

Since 1994 – 37 live institutions in 2014

Highest traffic in Payments and Securities

4

Sri Lanka is ranked 15th in APAC for total sent FIN Traffic and 16th for

received FIN Traffic

SWIFT total FIN traffic in Sri Lanka

Weight per market in Sri Lanka YTD 2014

(traffic sent)

47.3% Payments

(3.4% growth)

40.4% Securities

(-2.3% growth)

8.2% Trade (-4.2% growth)

3.1% Treasury(-7.6% growth)

Average of 7% FIN growth per year from 30 + banks connected

SWIFT messaging cost has been reduced to 10% of what it was two decades ago…..

5

Q2 Update 2014 - Services Availability

Services Q2 2014July YTD

2014Target 2014 YTD Status

FIN Core 99.992% 99.996% 99.99% ü

SWIFTNet Core 100.000% 100.000% 99.99% ü

ACCORD 99.996% 99.998% 99.96% ü

Euro1/Step1 99.988% 99.995% 99.95% ü

MNM 99.999% 99.999% 99.95% ü

CREST service 100.000% 100.000% 99.95% ü

TSU 100.000% 100.000% 99.90% ü

Sanctions 99.962% 99.984% 99.90% ü

Lite2 99.991% 99.993% 99.90% ü

6

IR 680

7

Corporate

Accountspayable

Accountsreceivable

Treasury

Other

Standardised

gateway

SWIFT for Corporates a single, standardised gateway

Corporate

e-banking Y

host to host X

e-banking Z

VAN

Internet

Leased line

Accountspayable

Accountsreceivable

Treasury

Other

Multiple bank channels Single, standardised gateway

– Lower cost– Transparency and view on

cash– Increased control and security– Reduced risk

– High cost– No global visibility on cash– Impossible to centralise– Challenge of multiple

connectivity channels and formats

SOURCE ： International Chamber of Commerce

BPO : A new payment term instrument that supports increase demand for trade financing

8

1950

1960

1970

1980

1990

2000

2010

2020

0102030405060708090

100

OALC

USD 2 trillion

USD 6 trillion

USD 33 trillion

Payments Market InfrastructuresSystems live on SWIFT

75 HVP systems (>240 Million pymts/year in 2014)29 LVP systems (>20 Billion pymts/year in 2014)

2000+ banks in 90+ countries

Central & Eastern EuropeAlbaniaAzerbaijanBosnia & HerzegovinaBulgariaCroatiaHungaryRomaniaRussiaLatviaPolandSerbia

North AmericaCanada

Central & Latin AmericaBahamasBarbadosChileCMCAColombia (service bureau)Dominican Rep. ECCBEl SalvadorGuatemalaHondurasTrinidad & Tobago Venezuela

Western EuropeDenmarkIceland NorwaySwedenSwitzerland UK

EurozoneTarget 2EBA Clearing (2 HVP, 1 LVP)AustriaBelgiumGermanyGreeceItaly (2 LVP) SpainIrelandThe Netherlands

Middle EastLebanonBahrainIsraelJordanKuwaitPalestineQatar

AngolaAlgeriaBotswanaBEACCOMESAEgyptGambiaGhana

KenyaLesothoMauritiusMoroccoNamibiaNigeriaSierra LeoneSouth AfricaSADC

Swaziland TanzaniaTunisiaUganda ZambiaZimbabwe BCEAO

Status_May 2014

HVP only

LVP only

Both HVP and LVP

9

GlobalIPFAEurogiro

Africa

Asia Pacific - LIVE

AustraliaFijiHong KongMacaoNew ZealandPhilippinesSingaporeSri LankaThailandTaiwan (USD & RMB)Papua New Guinea

Asia Pacific - NEWBrunei (Q3, 2014)India (end 2014)Malaysia (2015)

Update

80+ SMI 64 countries

Securities Market InfrastructuresLive on SWIFT

10

AfricaEgyptKenyaSouth AfricaZimbabweNigeria

Asia PacificAustraliaChinaHong KongIndiaIndonesiaJapanKoreaNew ZealandSingaporeSri LankaThailand

Central & Eastern EuropeArmenia KBulgariaCroatiaCzech RepublicHungaryKazakhstanPolandRomaniaRussian FederationSlovakiaSloveniaUkraine

North AmericaCanadaUSA

Central & Latin AmericaArgentinaBrazilChileMexicoEcuadorUruguay

Western EuropeDenmarkEstoniaLatviaLithuaniaNorwaySwedenSwitzerlandUnited Kingdom

EurozoneAustriaBelgiumFinlandFranceGermany GreeceIrelandItaly LuxemburgNetherlandsPortugal Spain CyprusMalta

Middle EastDubaiIsraelKuwait KLebanonQatarTurkey

Status YTD 2014  

Legend Size Count

< 10,000 msgs S 23

10,000 - 1,000,000 msgs M 20

1,000,000 - 10, 000,000 msgs L 13

>10, 000,000 msgs XL 8

�⃰ Countries’ SMI is connected but currently no securities traffic

Taking considerations of all services, i.e. FIN, IA, FA

FATF 16

Quality

Business intelligence for Compliance

Sanctions list service

Sanctions KYC AML

Processing services

Traffic analysis

Standards

Data repository

KYC registry

AML testing & tuning

Scree-ning

TestingTraffic

restriction (RMA)

Financial Crime Compliance Services RoadmapLiveDevelopmentQualificationExploration

11

Commonchallengesuniquesolutions

12