cbf2013.cpa services.final

CPA, ISO20022, Standards and Swift Services – What’s New?, What’s Next? Canadian Business Forum Pat Antonacci, Managing Director, Sales Services, SWIFT Pan-Americas

Michael Hoganson, Director, Client Services & Payment Operations , Canadian Payments Association April 2013

SWIFT Services – Drill Down & Case Studies

SWIFT Services Overview

CPA – ISO20022 and SWIFT Engagement

2

Agenda

SWIFT Business Forum - Canada 8 April 2013

SWIFT Services – Drill Down & Case Studies

SWIFT Services Overview

CPA – ISO20022 and SWIFT Engagement

3

Agenda


Presented by: Michael Hoganson, Director CSPO,

Payments Operations and Technology

CANADIAN PAYMENTS ASSOCIATION • The CPA is responsible for implementing the

CPA’s statutory mandate, as outlined in the Canadian Payments Act: Operate national clearing & settlement

systems for payments (e.g., LVTS, ACSS) Facilitate the interaction of its systems with

other systems (e.g., CDSX, CLS) Facilitate the development of new payment

methods and technologies (e.g., PINless POS)

• The CPA is a “public purpose” corporation – in

addition to supporting its members, the CPA has interests and objectives that extend beyond those of its membership.

• The CPA has a statutory duty to promote efficiency, safety and soundness of its clearing and settlement systems, and take into account the interests of users in fulfilling its mandate.

VISION 2020 PAYMENT STRATEGY PILLARS: 1. Support the Growth of Electronic Payments; 2. Drive Efficiencies in Payments; 3. Modernize the CPA Regulatory Framework; 4. Enhance the CPA Exchange, Clearing and Settlement

Systems; and 5. Expand Value-Added Services.

The CPA has 118 members which are classified as follows: REQUIRED MEMBERS • Bank of Canada, banks, authorized foreign banks, CDIC designated “bridge

institutions” ELIGIBLE MEMBERS • Centrals, trust companies, loan companies and other entities that accept deposit

transferable by order of a third part (excluding locals that belong to a central), • Life insurance companies, cooperative credit associations, securities dealers,

trustees of qualified trusts, and qualified corporates on behalf of money market mutual funds,

The CPA Board of Directors is chaired by a representative from the Bank of Canada. All classes of members are represented on the Board and the minster of Finance appoints three independent directors.

BE IT RESOLVED THAT ISO 20022 be the long term goal for electronic payment standards for clearing and settlement through the CPA and that the CPA develop a roadmap and transition strategy including an impact assessment to facilitate the acceptance of the ISO 20022 standard.

KEY DRIVERS FOR ADOPTION: • the need to support interoperability for payments domestically between

financial institutions and their customers and for future cross border payments as Canada’s international markets expand and diversify;

• the need for more remittance information in order to better identify the underlying obligation for the payment, support automated reconciliation and reduce manual processing; and

• the need to reduce the cost associated with managing and supporting multiple payment standards.

PROBLEM STATEMENT To define an adoption strategy and develop a transition roadmap that will meet the needs of CPA members and stakeholders. GUIDING PRINCIPLES

Speed to Market (Reusability) Strong Governance Leverage experience of others Iterative Standards Deployment Flexibility

2013 2015 2014 2016

Define and Implement Standards Management & Communication Programme (Ongoing Operations) * Perform and facilitate work items * Define criteria for determining coexistence end date * Assess work tools/solutions available * Draft and implement communication strategy for education of members and stakeholders * Participate in Standards forums at home and abroad

Phase 1: Define ISO Standard

and Usage Guidelines

AFT

Phase 2: Adoption and Coexistence

LVTS

EDI

End date to be defined at later date

PHASE 1 KEY DELIVERABLES Payment message standard(s) and usage guidelines; Communications and education program; Supporting operational framework; Investigate new opportunities; and Establish evaluation criteria for Phase 2 (adoption & coexistence)

NEXT STEPS Finalize project plan Establish working groups (members and stakeholders) Information sharing with other jurisdictions

Leveraging SWIFT’s expertise in strategic and operational direction for adoption of ISO 20022;

Trusted CPA Partner ; Extensive knowledge-base related to

best practices for national implementations;

SWIFT’s commitment to operating in and understanding the local market; and

Extensive analytical and technical expertise and resources.

WHY LEVERAGE SWIFT CONSULTING SERVICES?

SWIFT Services – Drill Down & Case Studies SWIFT Services Overview CPA – ISO20022 and SWIFT Engagement

12

Agenda


SWIFT Services

13 SWIFT Business Forum - Canada 8 April 2013

Benchmark

Implement

Support

Advise

Operate

Train

Bene

fits

Reduced costs

Reduced risk Enable growth Enable

compliance

Your

ch

alle

nges

Regulation Efficiency Performance New initiatives

SWIF

T of

fer

Adopt best practices Benchmarking Efficiency Reduce TCO Access to expertise

SWIFT Services End-to-end project management


Analyse Design Implement Test Roll-out Operate

Consulting

Training

Reduce operating cost Proactive risk mitigation Outsourcing expertise

Operations

Post-project support Access to self-support tools and engineers Proactive monitoring and problem avoidance 24x7 availability

Support

Standards Build up in-house knowledge and expertise Educate to grow Reduce TCO

Infr

astru

ctur

e

Hea

lth

-ch

eck

Monitoring / alerting

Messaging

Incident SMS notification

Online monitoring tool

Connectivity

Operational status

24/7

Su

pp

ort

Cen

tres

Asia Pacific

EMEA

Americas

Business Continuity Rehearsals

Troubleshooting course

Named Contact & Service Manager

SWIFT Support Services Reducing operational cost and risk

Mu

lti-c

hann

el

Remote

Emergency on-site

Phone

Online Case Manager

E-mail

Chat (to come)

Knowledge Base

SWIFT Business Forum - Canada 8 April 2013 15

SWIFT Training +1

30 co

untri

es w

orld

wid

e

+20,000 participants trained per year

15 languages +5

0 co

urse

s +1,000 sessions per year

8.6/10 customer satisfaction

+250 users certified

4 learning channels

SWIFT Training What’s new? Introduction to Financial Sanctions

ISO 20022

Deploying Alliance Access

Release 7.0 troubleshooting boot camp

Optimise your Release 7.0 environment

Alliance – disaster recovery

SWIFT audit guidelines

SWIFT in 90 minutes

T2S in 90 minutes

ISO 20022 in 90 minutes

Off-shore RMB guidelines Web

cla

ss

Introduction to SWIFT in the payments market

Optimising your Alliance resilience SWIFT Business Forum - Canada 8 April 2013 16

SWIFT Consulting Services Supporting your initiatives and priorities


Get valuable market insights and benchmarking

Ease implementation of Industry initiatives

Implement best practices

Efficiently manage SWIFT operations

Maximise STP and reduce back-office costs

Capitalise on your existing SWIFT infrastructure

Your challenges 1,000+ projects

550+ clients 75+ countries

Expertise

Access to 2,000 specialist across SWIFT

15 years industry experience

Why SWIFT

Global & local hubs

17

SWIFT Services – Drill Down & Case Studies SWIFT Services Overview CPA – ISO20022 and SWIFT Engagement

18

Agenda


SWIFT Consulting Services Portfolio Get valuable market insights and benchmarking

Benchmark

Business Intelligence Cost of ownership

Ch

alle

ng

es

Efficiency

Performance

Ben

efits

Reduced costs

Reduced risk

Enable growth

Offerin

g


Business Operations

19

Has there been a shift in the payment or trade corridors worldwide, and if so, where?

What are the most promising markets where I can grow my business

Which currencies are growing the fastest and in which markets?”

What is your ranking and growth rate in specific markets or corridors?”

How does your reach compare with peers of similar profile?

What is the profile of different players in payments business?

How well are you (or your clients) monitoring your accounts and liquidity?

Can you quickly detect shift in transaction patterns and apply corrective measures?

How does your level of reciprocity compare with your peers?


Market intelligence

Competitive position

Performance metrics

Some questions SWIFT BI can help you to answer…

SWIFT Consulting Services Portfolio Ease implementation of Industry Initiatives

Industry Initiatives ISO20022, DTCC, T2S, SEPA,…

Ch

alle

ng

es

Regulation

New initiatives

Ben

efits

Enable growth

Enable compliance


Standards Offerin

g

Business Operations Implementation

Integration Project Management

21

CPA and ISO20022


BE IT RESOLVED THAT ISO 20022 be the long term goal for electronic payment standards for clearing and settlement through the CPA and that the CPA develop a roadmap and transition strategy including an impact assessment to facilitate the acceptance of the ISO 20022 standard.

CPA Board Resolution (Oct 2011)

SWIFT Consulting Services Portfolio Implement Best Practices

Best Practice C

ha

llen

ges

Efficiency

New Products

Ben

efits

Reduce Risk

Reduce Cost


Business Operations Offerin

g

Solution Design Operational Excellence

Implementation

23

ICD was able to implement the end-to-end SWIFT connectivity in a few months

The SWIFT capabilities allows ICD to attract and keep up-market clients

The canonical data interface insulates the ICD portal from changes to the SWIFT formats

ICD is able to add SWIFT services rapidly in response to client demand

24 24

Institutional Cash Distributors SWIFT Enable a Web Portal

Implement SWIFT integration software on the ICD portal with a relatively small footprint

Implement integration with the back office using canonical data models

Add SWIFT business flows based on client demand

ICD clients were demanding SWIFT standard messaging for settlements and reconciliation but ICD had no SWIFT experience

ICD was a relatively small IT shop and didn’t have the capacity to support a full SWIFT connectivity

ICD had no experience with SWIFT and had no easy way to integrate their portal with the network

The solution The challenges The benefits

“….”


SWIFT Consulting Services Portfolio Capitalise on your existing SWIFT infrastructure

Capitalise C

ha

llen

ges

Efficiency

New Products

Ben

efits

Enable Growth

Reduce Cost


Solution Design Operational Excellence

Cost of Ownership

Reduce Risk

Offerin

g

26

The merged infrastructure increased the operational efficiency and reliability of both Banorte and IXE

The implementation was completed within the projected timeline and budget

SWIFT E2E management and implementation freed customer resources

Leverage of all SWIFT staff and operations to ensure a smooth transition

27 27

Banorte – Banco IXE SWIFT infrastructure and operations merger

Independent assessment of the Banorte and IXE infrastructures and operations

Evaluation of the operational impact

Design of a merged optimized SWIFT infrastructure

E2E implementation with engineers familiar with both the Banorte and IXE infrastructures

Combining the Banorte and IXE SWIFT infrastructures, connectivity, licensing, and operations

Optimizing the combined infrastructures without increasing risk

Limiting the reliance on the customer resources who were overloaded with multiple merger projects

The solution The challenges The benefits


SWIFT Consulting Services Portfolio Maximise STP and reduce back-office costs

Maximise STP C

ha

llen

ges

Efficiency

Performance

Ben

efits

Enable Growth

Reduce Cost


Business Operations Solution Design

Integration

Reduce Risk

Offerin

g

28

Operational Efficiency Delivering Results


SWIFT Consulting Services Portfolio Efficiently manage SWIFT operations

Manage SWIFT C

ha

llen

ges

Efficiency

Performance

Ben

efits

Compliance

Reduce Cost


System Care and Operational Consulting

Offerin

g

Reduce Risk

30

Adopt best practices Benchmarking Efficiency Reduce TCO Access to expertise

SWIFT Services End-to-end project management


Analyse Design Implement Test Roll-out Operate

Consulting

Training

Reduce operating cost Proactive risk mitigation Outsourcing expertise

Operations

Post-project support Access to self-support tools and engineers Proactive monitoring and problem avoidance 24x7 availability

Support

Standards Build up in-house knowledge and expertise Educate to grow Reduce TCO

Q&A

? SWIFT Business Forum - Canada 8 April 2013 32

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• Leave your business card if you have any follow-up questions 33 SWIFT Business Forum - Canada 8 April 2013

What’s next on the agenda


cbf2013.cpa services.final

Economy & Finance

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valueadded services

cpa hascanadian payments

cpa board of directors

cpa regulatory framework