building your iso 20022 implementation roadmap€¦ · the richer functionality of iso 20022 to the...
TRANSCRIPT
for ISO 20022
Building your ISO 20022
implementation roadmap
Kris Vanholst
SWIFT
9 June 2015
Agenda
• ISO 20022 adoption trends
• Industry harmonisation
• Implementation considerations
• Building an ISO 20022 implementation roadmap
• ISO 20022 on SWIFT
2
Market Infrastructures – Global ISO 20022 adoption
200 initiatives Under discussion > planned > rollout > live
90 countries
FX
Europe Asia Pacific
Americas
Middle East & Africa
Market Infrastructures – Global ISO 20022 adoption
200 initiatives Under discussion > planned > rollout > live
90 countries
SWIFT is
not
mandating
migration
SWIFT will
continue
to support
FIN
1 2
ISO 20022 adoption - context
Financial
institutions
Comply with MI
Internal optimisation
Flexible services to
customers
MI FI FI customers Market
infrastructures
Enable new services
Streamline end-to-end
business processes
Facilitate regional
integration
5
Agenda
• ISO 20022 adoption trends
• Industry harmonisation
• Implementation considerations
• Building an ISO 20022 implementation roadmap
• ISO 20022 on SWIFT
6
7
Less variation,
more global
market practice
Provide a predictable
environment for
MI communities
(versions, release
mgmt..)
Best practice sharing for community
adoption & implementation
1
2
3
Towards a harmonised use of ISO 20022
SWIFT’s community management
FMIs are ready to collaborate with SWIFT and one another to realise greater
harmonisation, according to the maturity of their ISO 20022 initiatives:
SWIFT’s Community Management – What? Principles for harmonisation framework
FMIs need to collaborate
and co-ordinate their efforts
to minimise fragmentation.
SWIFT will play a
co-ordinating role and provide
a platform to drive
harmonisation
Why? How?
What?
Implementation roadmap by Sibos
Publish standards
information in a
consistent format
Remain up-to-date
with ISO 20022
standards release
Adhere where
possible
to global market
practice
Synchronize
standards
upgrades with
industry
MT release cycle
1 2 3 4
SWIFT’s Community Management – Who? Principles for harmonisation framework
• APCA
• ASX
• Banca d’Italia
• Bank of Canada
• Bank of England
• Canadian Payments
Association
• Clearstream
• Colombia ACH
• Deutsche Bundesbank
• DTCC
• EBA
• ECB
• Euroclear
• Hong Kong Interbank Clearing
• IPFA
• JASDEC
• National Bank of Belgium
• NSD Russia
• Reserve Bank of
South Africa
• SADC
• SGX
• The Clearing House
• US Federal Reserve
• VP Securities
SWIFT’s Community Management
Benefits for Financial Institutions
10
Predictability of process
End-to-end solution
Single window
Seamless integration of MI specifications with local
SWIFT footprint
• Development and
budget cycle alignment
(already ingrained from
MT process)
• Unified approach for all MIs
Agenda
• ISO 20022 adoption trends
• Industry harmonisation
• Implementation considerations
• Building an ISO 20022 implementation roadmap
• ISO 20022 on SWIFT
11
A bank’s ISO 20022 landscape
Your participation to
Market
Infrastructures
2017 2016 2015 Step2
EURO1/
STEP1
Baltic CSDs
ACH CENIT (CO)
Securities
2018
& beyond
Payments
12
Impact?
Different timelines
Different scopes
Different sets of messages
Different market practice
Different MI adoption
strategies
Different roll-out
approaches
MT
20022 Live
Adopt Implement
& Test
Phase 1
Like-for-like
Use
Full usage
of MX
Full MX
‘Like-for-like’ = an approach that reduces
the richer functionality of ISO 20022
to the functionality currently covered
by the MT messages.
It is an intermediate step towards full
implementation of ISO 20022.
L I V E
Nov 2017
MI adoption strategies
Example: ISO 20022 HVP adoption strategy
TARGET2 & EURO1/STEP1: Interim ‘like-for-like’
HVP MI
strategy
propri
etary
End
ISO
20022
Live
Implement/
Test Use New services
Start
Introducing ISO 20022 is typically a first step towards
- Elimination of proprietary standards
- Potential launch of new or updates services or
functionalities
L I V E
CSD strategy
MI adoption strategies
Example: ISO 20022 CSD adoption strategy
Replacement of proprietary standards
A bank’s ISO 20022 landscape
Your participation to
Market
Infrastructures
2017 2016 2015 Step2
EURO1/
STEP1
Baltic CSDs
ACH CENIT (CO)
Securities
2018
& beyond
Your customers
(corporates and banks)
2016 2017 2015 2018
& beyond
Payments
15
A bank’s ISO 20022 landscape
16
Market Infrastructures
2017 2016 2015 Step2
EURO1/
STEP1
Baltic CSDs
ACH CENIT (CO)
Payments
Securities
2018
& beyond 2016 2017 2015 2018
& beyond
How to
prepare, plan
& budget for
MI imple-
mentations
How to
internalise
ISO 20022
in your
infrastructure
How to offer
flexible
services to your
customers
Agenda
• ISO 20022 adoption trends
• Industry harmonisation
• Implementation considerations
• Building an ISO 20022 implementation roadmap
• ISO 20022 on SWIFT
17
Design to-be model
A phased approach to implementation
Building an ISO 20022 roadmap
Make an overview of all initiatives
1
Identify & involve all stakeholders
2
Review As-Is 3
Gap analysis 4
Consider implemen-tation options
5
18
What are the gaps to be addressed and what are the constraints
Work out implementation plans (iterative process)
Understand impact on business applications, shared services, infrastructure and integration
Get visibility on current and future ISO 20022 initiatives in other geographies & business areas
Address current and future requirements by leveraging technology
Translation at the edge, core system revamp, silo based …
6
Roadmap for implementation
Engage with all stakeholders across business lines and departments to ensure a holistic view
7
Cost / ROI
Risk
ISO 20022
landscape
Company
Strategy
Internal ongoing &
planned Projects
Local markets
Global Market
Client requirements
Knowledge base
FTE Availability
Regulations
Deadlines
Making an informed ISO 20022 decision
ISO 20022 impact assessment service
Build a strategic roadmap for your organisation
Governance, process flows
Build on ISO 20022 business model
Sizing of systems and connections,
Recovery and resiliency
Middleware, manual processing,
connectors & converters
Design your strategic ISO 20022 infrastructure by
applying an enterprise architecture approach, putting
four views on an organisation together
Business processes &
activities use..
Data that must be
collected, organized,
safeguarded,and distributed using..
Applications such as custom or
off-the-shelf software tools that run
on…
Technology such as computer systems and
networks
ISO 20022 solution design service
MyStandards
& readiness
portal
MI multi-format documentation
MI integration components (XSDs, deployment packs)
MI CUG set-up & joining
MI self-service internet testing
MI
A
MI
B
You
Your customers
+ Compare and analyse versions
+ Compare and analyse market practice of multiple market infrastructures
+ Create your own internal and customer guidelines
+ Offer your customers the same easy onboarding experience
MyStandards
& readiness
portal
MyStandards for you and your customers
Agenda
• ISO 20022 adoption trends
• Industry harmonisation
• Implementation considerations
• Building an ISO 20022 implementation roadmap
• ISO 20022 on SWIFT
28
Onboarding process
• Member-Administered Closed User Group (MA-CUG)
– Market Infrastructure – setting up the CUG
• Join SWIFT
• Service approval request (to SWIFT Board)
• Service administration agreement
• Define service features – Service Profile Form (SPF)
– Participants - joining the CUG
• Join SWIFT
• Fill out Message Service Subscription Form (MSSF)
– Service bureau customers mention the SNL of the SB
• Service administrator (the MI) approves/rejects
• All information available on swift.com > Ordering
29
Before (current behaviour)
• All fields shown
After (with injected business usage guidelines)
• Fields specified in usage guidelines shown
Nordics and Baltics Access user group – May 2015 – Confidentiality: SWIFT community 31
Alliance Access
Optional patch/release 7.1.00
MyStandards
ISO 20022 Adoption Summary of potential back office integration models
33
MI
over
ISO 20022 MX
B/O
MT or Internal
formats
SWIFT
Interface
MX
generation
B/O is adapted to
fully adopt MX MX
B/O stays MT based.
MT/MX mapping is
handled in separate
middleware
MT/MX
mapping
package
MI
Over
ISO 20022 MX MT
MT format
Middleware
SWIFT/
Other interface B/O
MX
MT/MX
mapping
package
MI
Over
ISO 20022 MT
MT format
SWIFT Interface B/O
MX
B/O stays MT based.
MT/MX mapping is
handled by the
SWIFT interface
Web Platform
Access
Financial Applications
Gateway
My Applications
Alliance Portfolio Overview ISO 20022 support
34
Integration
Back-Office
Support
GUI support
Management
All manual operations
support ISO20022
InterAct & FileAct
real-time and store-and-forward
Retry mechanism for real-time
RMA available
Custom integration via
Integration Platform
XMLv2 supports ISO20022 over
MQHA, SOAPHA and File transfer.
New developers guide focuses on
ISO20022 and XMLv2
Routing via specific
routing keywords
Access support for ISO 20022
Good to know
• Deployment Packages
– Are service specific
– Can be obtained from
• www.swift.com download centre
• MyStandards
– Are required for
• Manual entry
• Pretty display/printing
• Validating for STP flows that a message is part of the service
35
Access support for ISO 20022
What is not available “out-of-the-box”
• Reference Data
– Bank File is today FIN oriented
– No directory with DN’s to be used
• Reach Plus directory is under development
• Processing content of FileAct messages
– Bulk/debulk
– Custom signatures
• No message validation like for FIN (for STP flows)
– Only validation for proper XML
– No syntax validation
– No semantic validation
• Limited GUI support for messages with extensions
36
Why SWIFT for ISO 20022?
Efficient community
management
Resilient messaging platform
Standards expertise
Unequalled contribution to ISO 20022
SWIFT - the trusted source for your ISO 20022 initiative
Trusted consulting partners for more ISO 20022 initiatives globally than anyone else
Only worldwide value-added network designed specifically for ISO 20022
Highest standards of reliability, availability and security
Selected as platform provider for key ISO 20022 initiatives in payments and securities
Forty years of community expertise Unique tools and established processes to support communities
for ISO 20022
Questions ?