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SWIFTRemit

SWIFTRemit. Middle East Conference 2012 Abu Dhabi. Olivier Denis , Senior Product Manager. Agenda. Opportunities and challenges. The SWIFTRemit value proposition. The voice of the customers. Innovation driven by market demand. Remittance A cross-border low-value

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SWIFTRemit

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  1. SWIFTRemit Middle East Conference 2012 Abu Dhabi • Olivier Denis, Senior Product Manager

  2. Agenda Opportunities and challenges The SWIFTRemit value proposition The voice of the customers Innovation driven by market demand

  3. Remittance A cross-border low-value person-to-person payment 440 Billion USD pa

  4. Your opportunity Transaction fee and forex income Cross-selling Customer acquisition and retention

  5. Your market challenges • New players: • Regulated PSP’s & exchange • Mobile Network Operators (MNO’s) • New technologies • ATM • Mobile • Reguatory requirements • KYC requirements (FIN CEN records & report) • Consumer protection: - dispute resolution up to 60 days on service delivery (Dodd Frank and CFPB)(*) - reduce remittances price to 5% • Operation quality • Lack of service level consistency • Difficulty to maintain connectivity/ protocols • Complexity of settlement process Need for more quality, more interoperatibility and more compliance at lower cost !

  6. Agenda Opportunities and challenges The SWIFTRemit value proposition The voice of the customers Innovation driven by market demand

  7. SWIFTRemit value proposition • Support inter-operability independent from payments types & retail networks • Multi-provider / multi-channel solution • Enable different business models bilateral vs.“ hub & spoke” • Reduce costs • Provide scalability Multi channels/networks support • Support complianceDispute resolution & KYC • Provides service transparency to customer • Commercially & brand neutral The first global Open Standards platform for remittances & pension payments MNO’sParticipant BanksParticipant Industry standards & consistent service levels Exchange Houses Agents MTO’sParticipant

  8. SWIFTRemit - A common framework Business development Inter-operabilityStraight-through processing FileAct Messaging service ISO20022 messagesfor payment instructions Contract template for Business agreement Directorywith Reference Data Rulebookfor service conditions

  9. SWIFTRemit service A dedicated SWIFT community Rules and guidelines Reference data Agents Participants Participants Agents Sender Beneficiary FileAct store & forward ISO 20022 Distribution network Sending country Distribution network Receiving country cover payment Settlement Agent End-to-end service conditions SWIFTRemit_Sibos2011

  10. XML standards Subsets of ISO 20022 XML payments clearing and settlement messages: • Payment instruction (pacs.008) • Status (pacs.002) • Return (pacs.004) Architecture Distribution network Receiving country Agent Participant Participant Agent Sender Beneficiary Pacs 008.001.01 FIToFICustomer Credit Transfer Distribution network Sending country Pacs 002.001.01 Payment Status (Accept/Reject) Pacs 004.001.01 Return

  11. What does it require? For initiation/termination of remittance txt Build in-house or outsource to SWIFT/ SWIFT partner Customer Your institution Teller Network connectivity Integration in Back- office systems Integration in Front office systems E-banking ATM To process XML messages and exhange files To batch and orchestrate payment instructions Mobile Workers' Remittances/SWIFTRemit 11 Call-desk

  12. Part of the SWIFTReady Label Program SWIFTPartner solutions With a certified customer reference Americas Asia Pacific EMEA SWIFTRemit_Sibos2011 12

  13. Agenda Opportunities and challenges The SWIFTRemit value proposition The voice of the customers Innovation driven by market demand

  14. SWIFTRemit community Banco Guayaquil Banco do Brasil 72 participants 15 Agents across 39 countries, of which 28 certified live

  15. Customers insights The benefits of SWIFTRemit.. • Standardised definitions • Use of a technical framework similar to SEPA (ISO 20022 XML pacs) • Availability of a centralised info database – free of charge • Complements Alliance Integrator • The benefits of SWIFTRemit.. • “…use the same infrastructure we have deployed for other payment methods, such as SEPA” • “A common set of arrangements with each new partner. You don't need a different communications set up with each new bank you want to send remittances to.” • “…from a compliance and identification perspective..the ability with ISO 20022 to receive payment status updates.” • “ The combination of rulebook, standards, and network means time to market is reduced” • “..its extensibility to other types of payments” • Each new agreement at 80% lower cost • Time to set-up new counterpart reduced from 6 to 2 months

  16. Agenda Opportunities and challenges The SWIFTRemit value proposition The voice of the customers Innovation driven by market demand

  17. Mobile payments are “hot”Every week, a new mobile payments eco-systems is launched Some of the 360+ examples

  18. SWIFTRemit enabling mobile payment eco-systems 4.7B mobile phones > 3B unbanked people > 1B bank accounts Mobile Banking / Mobile eco-systems Mobile Banking / Mobile eco-systems ISO20022 messages Reference Data Directory

  19. SWIFTRemit mobile … • Extending your retail network • to service customers in rural areas • Developing new products • authorizing “cash pay out” via mobile • enable a mobile banking channel for remittances • Improving your service level • provide inter-operability between different mobile eco-systems

  20. ATM market trends and market value • ATM are financial retail channel with unique asset to develop financial services at lost cost in merging countries • Mainly used for customers with credit/debit card (affluent segment - high end consumer ) • Increase reach and service in rural areas - 24/7 availability • Speed of deployment compared to branches for cash service • Convenient and cost effective channel to serve underbanked Technology evolutions • ATM P2P payments applications • ATM cardless cash pay out • ATM with biometric customer authentication • ATM with mobile customer authentication

  21. ATM is seen by banks as channel number 1 for touch point to customers in Asia and Emerging countries

  22. SWIFTRemit enables ATM networks for cash pay-out Pay- out process ATM networks Pay- in process ( SWIFTRemit) • ATM network Messaging guidelines and rules in SWIFTRemit to instruct cash pay-out on ATM networks

  23. SWIFTRemit Benefits For yourcustomers TRANSPARENCY COST & TIME Service quality FLEXIBILITY Multiple products and channels For you COMMERCIALLY & BRAND NEUTRALITY SCALABILITY operations

  24. Thank you!

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