1COPYRIGHT NAME OF COMPANY

TMS + SWIFT= 3Presented by

Mike Lewis, SWIFT

Bob Stark, Kyriba

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Today’s Discussion

How TMS + SWIFT = 3:

1) Improved visibility – cash, liquidity, exposures

2) Standardized controls – bank accounts, payments

3) Risk reduction – fraud, FX hedging

4) Lower costs – IT, multiple systems, increased productivity

Improved Visibility

5 Benefits to Visibility

1) Know where your cash is

2) Understand (and mitigate) risks cash is exposed to

3) Optimize use of cash

4) Reduced risk of fraud

5) More accurate cash flow forecasts (less variance)

Questions to ask

Does your organization have a good Global Cash Position worksheet readily available?

Is your process for obtaining your Global Cash Position automated?

If your processes are manual, what are the risks associated with errors?

How much time and money is being spent to maintain multiple connection points to your counterparties – not only for internal systems/personnel but also in banking fees?

Could your personnel be repurposed if you automated your processes with a single point of connectivity to your counterparties?

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Solution: TMS + SWIFT = 3

TMS + SWIFT gives ability to cost effectively reach any bank to download any format for daily reporting

- MT9xx, XML CAMT, BAI2, etc.

Hidden benefit: Many organizations struggle with automating the “final 20%”

- Banks “with only an account or two” can also be connected with limited cost and effort

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Solution: TMS + SWIFT = 3

Hidden pockets of liquidity are valuable:

1) Complete cash picture (value in aggregation)

2) Allow full risk analysis for liquidity/operational/financial risk management

3) Enable accurate cash forecasting

Cannot reconcile what you can’t see

Without 100% visibility, do you NOT forecast for those geographies/businesses?

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Solution: TMS + SWIFT = 3

Visibility also extends to payments:

1) SWIFTNet offers (4) levels of payment acknowledgement

2) SWIFT GPI gives additional transparency (beyond the ACKs) into status of the payment

Visibility certainty that payments have goneability to position cash more quickly

Standardized Controls

Bank Connectivity (the inefficient way)

Does this look familiar?

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Standardized Controls

Multiple banking portals is inefficient

- Wasted time, finding your key fob, slightly different workflows, etc.

Bigger issue is inconsistent controls

- Each bank portal will have different security and ways of entering/approving payments

- Unlikely to align with your payment policy

Consistency is the key: standardize controls across all payments, in all geographies, by all people, within all payment systems

One of the reasons why organizations choose payment factories

You Your banks

Payment Initiation

Payment Approval

Payment Documentation

Payment Transmission

Payment Request

Standardized Controls

Standardized Controls

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TMSERP

Standardized Controls

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TMSERP

Document Attachment

Single Source of

Record

Automated Confirmations

One Set of Approvals

Consistent Security Protocol

One Set of Limits

Real-time Visibility

Encrypted Transfer

Risk Reduction

Risk Reduction

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TMSERP

Less systems minimizes opportunity for internal/external fraud Fraud preys upon weaknesses in controls and visibility

Increases ability to screen payments: internally and externally

Risk Reduction

Screening payments is as much about compliance with internal policies as it is about preventing fraud

What you should be screening:

1) Sanctions Lists (e.g. OFAC)

2) BIC Verification – ensuring BIC you’re paying is who you think it is

3) Payment Policies – payments to North Korea, 1st

payment to a new bank account, irregular amounts

Reduced Costs

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How to reduce connectivity costs

1) Don’t DIY – TMS + SWIFT offers pre-built integration to banks and pre-build formats

2) Reduce systems – TMS + SWIFT can support payment factories & payment centralization (ERP to TMS to SWIFT)

3) Increased productivity – re-direct time spent on connectivity monitoring, manually connecting to banks, screening for fraud

4) Centralize visibility through TMS (reduce portal users)

Tips and Tricks to be successful

Getting your ducks, errr, banks in a row!Develop a strategy

Tier your bank structure between big banks and small banks

Contacts banks in order of the bank on-boarding plan

Start Communication Early

Have a kick-off call with each bank

Complete SOWs, as required

Identify Bank Implementation Team

Open a SWIFT test pilot connection

Discuss files naming convention and hierarchy

Meet regularly with the banks

Set a regular meeting schedule, depending on phase

Corporate PM and Bank PM should meet separately

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Conclusions

Visibility is more achievable with TMS + SWIFT

Payment controls can be strengthened through standardization and consistency

Screening for unauthorized payments is easier with centralized technology

There is an opportunity to reduce costs

Thank you!Presented by

Mike Lewis, SWIFT

Bob Stark, Kyriba