1 / 23

SWIFT for Corporates Top 10 Considerations

SWIFT for Corporates Top 10 Considerations. Leslie Diestel Senior Vice President, Global Product Management. New York Cash Exchange Wednesday, June 1, 2011. What we’ll cover. What is SWIFT for Corporates? Who’s using it? Top 10 Considerations for Corporates… Where to go for help?

murray
Download Presentation

SWIFT for Corporates Top 10 Considerations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SWIFT for CorporatesTop 10 Considerations Leslie Diestel Senior Vice President, Global Product Management New York Cash Exchange Wednesday, June 1, 2011

  2. What we’ll cover • What is SWIFT for Corporates? • Who’s using it? • Top 10 Considerations for Corporates… • Where to go for help? • Questions 1

  3. What is SWIFT for Corporates? 2

  4. SWIFT for Corporates enables corporates to exchange financial information (payments, securities orders, reporting) with their financial institutions through one highly secure, standardized communication platform, as opposed to multiple bank proprietary connections 3

  5. Introduced 1998 Treasury Counterparty Introduced 2007SCORE Introduced 2001MA-CUG Bank A Corporate A Bank B Corporate B Bank C • Each bank sets up its own environment – Corporates can join several MA-CUGs • No usage restrictions • Access to all banks on SWIFT • Message usage limited to treasury deal confirmations • Each bank joins the SWIFT administered CUG - Corporates access all banks in SCORE • Limited usage restrictions The Corporate access story 4

  6. Who’s using it? 5

  7. Corporates on SWIFT Number of registered corporate entities Geographic split Asia Pacific 565 10% Americas 402 19% 282 71% 181 108 EMEA Source: SWIFT 6

  8. Corporates on SWIFTBreakdown by industry sector* (*) using the Industry Classification Benchmark (ICB) Source: SWIFT 7

  9. Who’s using it? Source: SWIFT 8

  10. What are corporates using on SWIFT? Source: SWIFT

  11. Top 10 considerations for corporates 10

  12. Top 10 considerations 1). Timing… • Bank consistency and SWIFT readiness • Differing agreements • Differing implementation processes • Leader or follower 2). Planning… • Position SWIFT within your overall treasury strategy and operation • Set out well defined steps towards ultimate goal • Don’t rush! 11

  13. Top 10 considerations 3). Value of bank neutrality… • SWIFT frees you from proprietary bank (host-to-host) channels • Potential lower maintenance/upgrades for multiple bank software channels, pipelines, VANs, etc. • Resulting in potential cost savings 4). Efficiency gains… • Maintaining multiple channels/pipelines to multiple banks with multiple procedures and passwords takes time, both for treasury and IT.

  14. VAN Accounts payable Accounts payable Accounts receivable Accounts receivable Treasury Treasury Other Other Internet A single standardized gateway Multiple bank channels Single, standardized gateway Corporate Corporate host to host X Leased line e-banking Y Standardized gateway e-banking Z • High cost • No global visibility on cash • Impossible to centralize • Global visibility on cash • Lower cost • Increased control and security • Reduced risk Source: SWIFT 13

  15. Top 10 considerations 5). Working capital optimization… • SWIFT facilitates visibility cash from your global banks • Single SWIFT interface/pipeline vs. multiple bank connections in multiple formats makes integration and visibility easier to manage 6). Business recovery… • SWIFT allows you to shift payment files from one bank to another • No need to switch from one bank’s proprietary connection to another

  16. Top 10 considerations 7). SWIFT connectivity options • Direct (Alliance Access) • Indirect (SWIFT Service Bureau) • Alliance Lite 8). FileAct… • FileAct is SWIFT’s file transfer channel that transports files in a wrapper or envelope • Any file can be transported in FileAct • Consistent and single file transfer channel to all your banks

  17. VPN VPN SWIFT connectivity options Direct connection Global corporate (25+bn turnover) Millions payments/year Manage your own SWIFT connection VPN Network partners Indirect connection Very large corporate (1–25 bn turnover) Hundred thousands payments/year Outsource SWIFT connection Internetor VPN Service bureau or Member/Concentrator Alliance Lite Large corporate (500 million–1 bn turnover) +/- 200 transactions/daySimple solution Web server Internet Work flow SWIFTAlliance SWIFT Source: SWIFT 16

  18. Top 10 considerations 9). Soft cost benefits… • Treasury operations typically have soft costs tied up in testing, maintaining, and upgrading multiple proprietary bank products and connections • Time and resources 10). Peer experience… • Treasury peers/practioners (similar industry or size) • Case studies • Industry groups

  19. Where to go for help? 18

  20. Sources of advice and support • Banks • Details of SCORE services are available by your banks • Service Bureaus or Consulting Firms • Details of approved service bureaus and the services available on SWIFT website • SWIFT • SWIFT themselves have resources who work with corporates looking to use SWIFT standards an connectivity 19

  21. SWIFT for Corporates Websitehttp://www.swift.com/corporates Case Studies White Papers Implementation Guides Source: SWIFT

  22. SWIFT for Corporates Communityhttp://www.swiftcommunity.net/corporates 1400+ members Forums Blogs Source: SWIFT

  23. Questions? 22

More Related