Poland Community Briefing2nd of December 2014, Warsaw

DP 183: SWIFT2020: Strategic direction

Discussion Paper – DP 183

Confidentiality: Level 2 – Distribution to national member groups allowed

December 2014

2006-2010

▪ FIN, InterAct, FileAct growth

▪ 50% Price Reduction

▪ Distributed Architecture

▪ FIN Renewal

▪ HSM Replacement

▪ FIN, InterAct, FileAct growth

▪ 50% Price Reduction

▪ Fixed Fee

▪ Distributed Architecture

▪ 100% FIN Growth

▪ 50% Price Reduction

▪ SWIFTNet Phase 2

▪ Alliance Lite2

▪ AMH

▪ Integration services (T2S connector, IPLA)

▪ Alliance Lite

▪ Alliance Integrator

▪ SWIFTNet capabilities to Access

▪ Business Intelligence, SWIFTRef, Sanctions, Matching

▪ MIRS

▪ Solutions: TSU, SWIFT Remit, FIX, Proxy voting

▪ Business Intelligence

▪ Solutions:– Cash reporting– E&I

2001-2006 2011-2015

Messaging & Platform

Software Business

Shared Services

Momentum from previous strategies

Board_Dec2014_NMG_Briefing_Material_V3 3

DP 183

SWIFT business model

Disruptive forces…

cyber threat

regulation andmarket change

technology revolution

geopolitical challenges

changing customer behaviour

new competition

Platform investments Operational excellence

FIN growthPricing measures

ISO 20022T2S, CLS, GLIIA & FA growth

Real Time Payments

Many-to-Many Market Infrastructures

AMH Cloud

Integration Services

BI, RefData, MyStandardsFaster/Deeper Compliance CB

Compliance for Securities?Services

MIRSBI, RefData, MyStandards

Services

Messaging

Software Business

Shared Services

Core

MIs

Compliance

Forward looking: SWIFT2020 – “What?”

Board_Dec2014_NMG_Briefing_Material_V3 6

DP 183

Consultation Phase 2

March ‘14 Board Offsite

June ‘14 IR

December ‘14 DP

June ‘15 ER

Strategy Exploration Strategy Definition

Consultation Phase 1

− Share Board offsite outcome− Gather community perspectives on the

baseline and five areas for exploration− Capture community needs and prioritise

− Highlight any gaps/ additional opportunities

− Consult based on key questions outlined in the DP

− Refine strategic direction & finalise recommendations

SWIFT2020 Timeline

Board_Dec2014_NMG_Briefing_Material_V3 7

DP 183

Feedback from you so far

• Core Payments and Securities

• CSD’s & Payment MI’s

• Corporates

• Faster & Deeper Compliance• RTP• Broader

Compliance

• P2P

70 consultation meetings worldwide• 500+ community representatives• 200+ financial institutions

Continued emphasis on core business activities

Address evolving needs of market infrastructures

Focus on Compliance Services

Deliver on SWIFT2015 strategy and prepare for

SWIFT2020

2015 priorities

Invest in our core business

• Cyber Security– Continue investing in prevention and detection– Additional supplier due diligence activities– Keep ramping up our cyber recovery capabilities – Further strengthen our internal intelligence capability

• FIN renewal– Start moving BICs (users) to the renewed FIN back-end component (Slice Processor or SP) – Progress development of the control component (SCP)

• Technology Lifecycle– Refresh of network equipment, Hardware Security Modules (HSMs), server hardware, database

and middleware for core SWIFTNet platform components, and provisioning infrastructure

Focus on Compliance Services

• KYC registry service launch

• Sanctions Screening service enhancements:

– Screening of all transaction formats and message types (incl. securities messages)– Extend fine-tuning capabilities to cater for more complex clients

• Sanctions Testing– Launch peer assessment capabilities

• Compliance Analytics – Provide richer information and more flexibility for larger clients – Provide more standardised reports for smaller clients

• Qualify potential new services including Name/client screening, FATF 16, List Management, AML Testing & Tuning and RMA evolution

• Launch a dedicated effort to support the Securities industry, including the set up of a Securities Compliance Working group

Address evolving needs of MIs

• Focus on Market Infrastructures– Protect existing traffic– Grow new markets– Develop segment-specific value propositions

• Roll out Products & Services Roadmaps including: – Messaging– Software and Shared Services– Services portfolio

– Community standards management

• Position SWIFT platform as natural choice for ISO 20022– Business-focused events and thought-leadership

Supporting ISO 20022

Patrik NeutjensISO20022 Programme Director

How many ISO 20022 initiatives are adopting ISO 20022?

128 Under discussion > planned > rollout > live

EuropeOceania

AmericasAfrica

90 countries

ISO 20022 PaymentsSecurities Trade Services51%Foreign Exchange

42%

4% 2% 1%

Cards

15

Now

2015

2015 - 2017

> 2017

ISO 20022 impact

MyStandards

HVP SecuritiesPayments LVP LVP & HVP FX

Aware?

Prepare?

Budget?

Impact?

A bank’s perspective

CPA

SADC

PASA[EFT]

New BOJ-Net

NPPReserve Bank of Australia

FFI

VP Lux

IPFA

Corporate-to-bank

VP Securities

2015 - 2017

Baltic CSDs

NSD Russia

Brunei

TSE & Jasdec

Step2

Euro1

HKMA

Thank you