Highvalue payments clearing and bulk payments processing

1
High-value payments clearing and bulk payments
processing

• Walter Pfeffer - Oesterreichische Nationalbank
• Joëlle Lockman - SWIFT, Banking Industry
• André Casterman - SWIFT, Marketing

200203_Warsaw_JL_ACA_v6
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Agenda
The customer perspective
Addressing your needs
SWIFTs solution for high-value payments clearing
SWIFTs solution for bulk payments processing
Benefits
SWIFTNet implementation for ARTIS
3
Payments clearing (March 2002)
FIN Copy
SWIFTNet
FIN
Australia Azerbaijan Bosnia Herzegovina Canada Cro
atia Denmark EBA (EURO1) EBA (STEP1) EgyptFrance
Germany (RTGSplus) HungaryIreland
Latvia Luxembourg MauritiusNew
Zealand NorwaySlovenia Spain (SPI) Sweden UK
NewCHAPS ( )
UK (Enquiry Link) Germany (RTGSplus)
Belgium ECB (TARGET) Finland Germany Greece Italy
Netherlands South Africa Spain (SLBE) Switzerland
Thailand Venezuela
Live
Austria (ARTIS) NYCH South Africa (BOP)
Bulgaria Namibia Ghana Jordan
Austria Barbados Malta
Implementation
Albania Philippines Cameroon Romania
Italy Zimbabwe
Australia Slovenia EBA Italy
(BI-REL) France (C.R.I.)

Discussion
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HIGH VALUE PAYMENTS CLEARING AND BULK PAYMENTS
PROCESSING
Walter.Pfeffer_at_oenb.co.at
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HIGH VALUE / BULK PAYMENTS

• MORE RESPONSIBILITY AT MI
• MI/CB HAVE TO CHANGE FROM VISITORS TO
  EXPERTS IN THAT FIELD
• MORE SERVICE AT THE CENTRAL POINT
• MORE LANGUAGES NEED TO BE SPOKEN AND MORE
  CULTURES NEED TO BE UNDERSTOOD

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HIGH VALUE / BULK PAYMENTS

• SETTLEMENT OF BULK PAYMENTS IN DIFFERENT
  WAYS THAN VIA RTGS
• MORE AND MORE CLEARING VIA CENTRAL
  ACCOUNTS, WHERE MARKET MEETS

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Agenda
The customer perspective
Addressing your needs
SWIFTs solution for high-value payments clearing
SWIFTs solution for bulk payments processing
Benefits
SWIFTNet implementation for ARTIS
8
Extending our product portfolio to meetnew
business and service needs
Business needs Real-time information and control
Lower operational costs Industry-standard
solutions
Service needs Higher speed and throughput Increase
d reliability, availability, security and
support Flexible and cost-effective
communications platform
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SWIFT provides a total solutionfor your national
payments systems
FIN FIN Copy InterAct FileAct
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Agenda
The customer perspective
Addressing your needs
SWIFTs solution for high-value payments clearing
SWIFTs solution for bulk payments processing
Benefits
SWIFTNet implementation for ARTIS
11
SWIFTs extended product portfolio
FIN
Standard store-and-forward messaging for single
instructions
FIN Copy
Configurable application to copy selected fields
to a central system
InterAct
Real-time messaging forquery / response and
transaction input
FileAct
Real-time file transfer forbulk data and reports
Browse
On-line information visualisation
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FIN Copy
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SWIFTs solution forhigh-value payments clearing
Payment instructions
Institution A
Institution B
Real-time query and control Reporting and browsing
FIN Copy
Interface to SWIFTNet
Central database
Central application
Legend FIN/FIN CopyInterAct/FileAct/Browse
Payments system
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SWIFTNet expands the options
Speed
Interactive queries and commands
Central database viewing
InterAct
Browse
High-value payment by payment FIN
Bulk payments Reporting
FileAct
Hugevolumes
Moderate Volumes
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SWIFTNet expands the optionsfor interactive
query / response
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Deutsche Bundesbank RTGSplusInformation and
Control Service (ICS)
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Agenda
The customer perspective
Addressing your needs
SWIFTs solution for high-value payments clearing
SWIFTs solution for bulk payments processing
Benefits
SWIFTNet implementation for ARTIS
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SWIFTNet solutions forbulk payments processing
Solution for Automated Clearing Houses
Solution for bank-to-bank bulk payments
processing
Target business communicationmodels
Supported payments formats
Any
Any
SupportingSWIFTNet releases
SWIFTNetrelease 3 live
SWIFTNetrelease 4 live as of September 2002
ACH
FI
Financial institution
Automated Clearing House
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SWIFTNet solutions forbulk payments processing
Solution for Automated Clearing Houses
Solution for bank-to-bank bulk payments
processing
Target business communicationmodels
Supporting SWIFTNetcapabilities

• Release 3
• Interactive messaging
• Interactive file transfer
• SWIFT-managed PKI security
• Free-format content
• Browsing (https)

• Release 4
• Store-and-forward messaging
• Store-and-forward file transfer
• Non-repudiation on files
• XML message syntax validation of XML

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SWIFTNet FileAct

• Transfer of large and multiple files (max. 250 Mb
  per file, max. 1Gb per transfer)
• Transfer is negotiated
• Incorporates all the security built around
  InterAct
• File size enforced at central level
• Pulling capability
• Files can signed and/or encrypted

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Future XML bulk payments standardInitial
concepts
Why

• To add functionality beyond current MT102, 102,
  104
• To improve end-to-end processing
• To link new corporate-bank standards in XML with
  the XML reporting messages
• Based on UML models and XML syntax
• Business experts panel performed business
  modelling using SWIFTs methodology
• EBAs pan-European ACH (STEP2) as initial adopter
• Open to any ACH and commercial banks

How
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SWIFTNet provides a total solutionfor your
national payments systems
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Agenda
The customer perspective
Addressing your needs
SWIFTs solution for high-value payments clearing
SWIFTs solution for bulk payments processing
Benefits
SWIFTNet implementation for ARTIS
24
Do it yourself the IT icebergor leverage the
industry solution SWIFT !
software
lines
maintenance
hardware
support
testing
project management
back-up
legal
procurement
software maintenance
release qualification
disaster take-over exercises
education
documentation
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Benefits for financial institutions

• Single re-usable connection
• Standard security implementation
• Re-usable technical expertise
• Single contract and service management
• Common technical integration in user environment
• Future-proof

ACH
RTGS
CSD
Correspondents
SWIFT
Financial institutions
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Agenda
Customer requirements
Addressing your needs
SWIFTs solution for high-value payments clearing
SWIFTs solution for bulk payments processing
Benefits
SWIFTNet implementation for ARTIS
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SWIFTNET IMPLEMENTATION FOR ARTIS

• LONG HISTORY AS EARLY ADOPTER OF SWIFT
• COST REDUCTION USE OF STANDARD
  TECHNOLOGY AND EQUIPMENT ( IP, XML, PKI )
• LIQUIDITY MANAGEMENT (EU-RTGS, EBA,
  CLS, CORRESPONDENT ACCOUNTS )

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High-value payments clearing andbulk payments
processing
Questions and answers