slide 1 how swift can help you with sepa? vincent questiaux sepa program manager 3rd sepa...

How SWIFT can help you How SWIFT can help you with SEPA?with SEPA?

Vincent QuestiauxSEPA Program Manager

3rd SEPA Conference, WarsawOctober 2007

Agenda

SEPA Testing ProgrammeSEPA Testing Programme

SWIFTNet Bulk Payments SolutionSWIFTNet Bulk Payments Solution

Be ready for SEPA – SWIFT TrainingBe ready for SEPA – SWIFT Training

Interoperability supportInteroperability support

SAL IBank internalCSM internal

SAL IIBank-to-Bank

SAL IIIBank-to-CSM

SAL IVBank-to-CSM-to-Bank

…

EPC Testing phases

SEPA Testing programmes for the EPC Testing phases

Note: SAL stands for Self Assessment Level in the EPC SEPA Testing Framework

…CSM specific business & operational testing programmesCSM specific business & operational testing programmesCSM specific business & operational testing programmes

…CSM specific business & operational testing programmesCSM specific business & operational testing programmesSpecific business & operational testing programmes bilaterally agreed

…CSM specific business & operational testing programmesCSM specific business & operational testing programmesEnd-to-end operational testing programmes within and across CSM communities

…CSM specific business & operational testing programmesCSM specific business & operational testing programmesBank or CSM internal Application testing programmes

SecetiSeceti

Dresdner BankDresdner Bank

Deutsche Bank Deutsche Bank FortisFortisHypo VereinsBankHypo VereinsBank

ING BankING Bank

JPMorgan ChaseJPMorgan Chase

Natixis Natixis

NordeaNordea

Intesa San PaoloIntesa San Paolo

SEBSEB

Société Générale Société Générale

UBSUBS

ABN AmroABN Amro

Bank of AmericaBank of America

Bank Austria CreditanstaltBank Austria Creditanstalt Banco Bilbao, Vizcaya Argentaria (BBVA)Banco Bilbao, Vizcaya Argentaria (BBVA)

Banco Popular EspañolBanco Popular Español

Banco Santander Central HispanoBanco Santander Central Hispano

Caisse Nationale des Caisses d’EpargneCaisse Nationale des Caisses d’Epargne

CitiGroupCitiGroup

CommerzbankCommerzbankCredit Mutuel (CIC)Credit Mutuel (CIC)

Created at SIBOS 06, the STAG provide advice and guidance to develop the SEPA Testing Programme

SEPA Testing programme is an initiative of the SEPA testing Advisory Group (STAG)


SAL IIBank-to-Bank

SAL IIIBank-to-CSM

SAL IVBank-to-CSM-to-Bank

EPC Testing phases

ISO Standard rules testing

A common SEPA Testing Programme to support SEPA Standards Compliance testing

Testing EPC rules

for SEPA

Testing CSM Market

Practices

File exchange headers Testing

…CSM specific business & operational testing programmesCSM specific business & operational testing programmesCSM specific business & operational testing programmes

…CSM specific business & operational testing programmesCSM specific business & operational testing programmesSpecific business & operational testing programmes bilaterally agreed

…CSM specific business & operational testing programmesCSM specific business & operational testing programmesEnd-to-end operational testing programmes within and across CSM communities

IberPayIberPay

DiasDias

SIBSSIBS

EquensEquens

STETSTET

VocaLinkVocaLink

EuroSICEuroSIC

Cooperation agreement between the CSMs and SWIFT

Reduce testing programmes overlap and promote interoperability with their members

SecetiSeceti


SAL II SAL III

Bank/CSM Testing with the CSMs and with theSEPA Testing Programme

File Exchange Headers

Core SEPA Standard

Non SEPA Service Messages

EPC SEPA Scheme rulebooks and Implementation Guidelines V2.3 (TVS)

Standards under discussion

Iber

pay

spec

ific

ST

ET

spec

ific

….

Equ

ens

spec

ific

AOS StandardEPC SEPA Scheme rulebooks

and Implementation Guidelines V2.3 (TVS)

Business and Operational Testing

CSM Market Practices Standards submitted to the EPC for endorsement

SWIFT SEPA Testing Programme value proposition

Standards

Proprietary messaging

Proprietary protocol

Value

Bulking SEPAMessages

EPC SEPA Additional Optional

Services (AOS)

Core SEPACompliance

StandardisedCSM

topologies

SEPA AOS

compliance

MessagingInteroperability

Additional Optional Services (AOS) (White Fields)

Non SEPA Service reports CSM specific fields

CSM specific fields

Value added services

Standardised File exchange header

Core EPC SEPASchemes

SEPA CSM market practice CSM market practices

Core SEPA (Yellow Fields)

Release 1.x

Future

Pragmatic testing approach with proven testing methodology

Testing strategy Testing strategy – Extensive coverage of EPC rules for SEPA – Testing the ability of the application to generate valid SEPA

messages

– Testing the robustness of the application to receive messages

– Validation of more than one rule per test case, if possible

– Specific CSM test cases roadmap Structured testing methodologyStructured testing methodology

– Identification of logical and physical Test Cases (Word/XML files)– Decision tables and equivalence patitioning techniques, with

value boundaries analysis

Optimised test cases to reduce the effort while offering the coverage required for the SEPA compliance certification

Internal Internal Application Application

Testing Testing

Standards Standards Compliance Compliance

Testing Testing

Operational Operational Readiness Readiness

TestingTesting ACHACH

BilateralBilateral

Simulation Test and Qualification Service for SEPA (STaQS)

SWIFTStandards Smart Test Messages

A comprehensive and practical set of testing tools and services

SEPA BICPlusIBAN & Routing directories

Positioning the testing tools of the SEPA Testing Programme

Basic SEPA workflow (in & out) Free/scripted test cases Customisable test data Scheduling test execution Test results reporting Connectivity (SN FileAct) Hand-Holding Support +350 Test Cases EPC and CSM market practices EBA file headers support

Mandatory set of test cases Mandatory set of test cases for SEPA compliancefor SEPA compliance

Inbound message test only Free self testing only Customisable test data Manual test execution Test validation document No connection needed Hand-holdimg support 300+ messages EPC Core Standard only No file headers support

Useful test messages Useful test messages for SEPA testingfor SEPA testing

Simulation Test & QualificationSimulation Test & QualificationSmart Test MessagesSmart Test Messages

SEPA Testing Programme benefits The industry reference for testing SEPA core standards

Mitigate operational risk through extensive and optimised testing with high risk coverage level

Ensure “standard” interoperability by testing strictly the SEPA core standard with SWIFT as a neutral 3rd party, independent from any clearing channel.

Reduce the testing costs by testing the SEPA Standards compliance once with a programme that does not overlap with the CSM tests

Leverage existing investment with integrated testing tools that are easy to use

Test at your own pace thanks to services available 24/7d that allow standalone testing

Release 1.1.1 SCTCSM Market Practices

EBA File Headers support = completed

= to be completed

Release 1.0/1.1 SCTbank-to-bankTVS and ISODirectories

specifications

Release 1.1.2EBA File Headers Enh.

ITB for Partners

Release forSDD

SN FileAct 6.1

Corporate-to-bankAOS fields

File HeadersEPC rules

SEPA Testing Programme Deliverables timeline

July 07 July 07 Aug-Sep 07 Aug-Sep 07 2007-2008 2007-2008 Future Future Oct 07 Oct 07

157 early adopters registered (512 destinations) incl. 8 ACHs and 11 users start testing (Oct 07)

Agenda





The SWIFTNet Bulk Payments solution

Promoting market best practices and increased harmonisation

UNIFI ISO 20022 standards

SWIFTNet FileAct SWIFTNet InterAct for single/urgent messages

Standards1

Messaging2

Rulebook 3

SWIFTNet Bulk Payments is aiming at harmonising exchange of bulk payments, in order to decrease development costs and

facilitate interoperability between payments systems

SWIFTNet Bulk Payments is aiming at harmonising exchange of bulk payments, in order to decrease development costs and

facilitate interoperability between payments systems

Price per payment leg Pricing 4

The SWIFTNet Bulk Payments solution - pricing

Price per payment instruction Between 0.02 and 0.07 eurocent per payment instruction transported, which

means between 1,430 and 5,000 payments for 1 Euro Supporting different message formats without impact on prices Independent from compression level, payment length and file size

(min 100 payments/file) Close to actual payment business model

Determined by The annual volume of the community, closed user group of entities

encompassing the same set of business rules and common standards to clear a single currency

The annual volume of the institution within the closed user group

Contributing to the calculation of the global tier of the financial institution

Agenda





Interoperability - components and issues

Business rulesBusiness rules

StandardsStandards

InfrastructureInfrastructure Transport mechanisms and protocols File header and structure

Instrument def. Rulebook

Chosen syntax and version Opt. Implementation Guidelines

“Competitive” space = implementation considerations

Cooperative space = business rules and standards

Exchange Payload Header

CSM Market Practices

STAG identified interoperability enabler

Provides topology based expected layout of defined SEPA XML core messages

Supplements the EPC Implementation Guidelines

Endorsed by and published as an EPC document

Slide 19

CSM Market Practices – status

Exchange Payload Header - Status

Provides a generic solution and messaging layer-independent way of declaring the content of an exchange between parties and the structure of the exchange payload.

CommonHeadersRequirements

CommonLogicalModel

Service ProfilesGiovannini,

SEPA, ETC…

Specifications Service Profiles

Published on www.swift.com for public consultation. Next version available soon

published on www.swift.com for public consultation

deadline for comments set for 14th Sept little feedback to date except from STET and

EBA Requests for further information received from

inside SWIFT and some committed customers.

Slide 21

Exchange payload headers – Status

Next version will be issued based on the received feedback.

SWIFTNet FileAct – Header Info implementation

To date, two profiles are defined…

– Transaction count: allows automated pricing for Bulk Payments solution

– Payment file summary: allows for confidentiality, authorisation, based on summary (risk management), audit trail, etc…

… but the solution remains flexible: additional fields can be added (and usually taken from the logical Exchange payload header model).

Agenda




Interoperability support Interoperability support

Be ready for SEPA – what you need to know

How does SEPA impact your institution? What is this new ISO 20022 XML standard? How do I populate the SEPA XML credit

transfer and direct debit messages? What are the EPC implementation guidelines

and rules relating to these messages? How do these XML elements relate to the

MT 103? ….

SWIFT Training offeringOpen classroom and customised, on-site courses

Receive a good general understanding about SEPA and what it means for your financial institution

Learn about SWIFT's several new offerings in the context of SEPA

Understanding SEPA

AvailableUsing ISO 20022 standards for SEPA credit transfers

Receive detailed information on the ISO 20022 messages, flows, rules and guidelines

Learn how to correctly process the XML messages for

SEPA credit transfers

Using ISO 20022 standards for SEPA direct debits

Receive detailed information on the ISO 20022 messages, flows, rules and guidelines

Learn how to correctly process the XML messages for

SEPA direct debits

For information and registration: www.swift.com/training

AvailableJan 2008

slide 1 how swift can help you with sepa? vincent questiaux sepa program manager 3rd sepa...

Documents

testing sepa core standards

bankcsm testing

common sepa testing

sepa conference

free self testing

pragmatic testing approach

valid sepa messages

bank sal