benelux forum 2014 - asp model for corporates

How the ASP model changes the corp-2-bank landscape

ASP model for corporates

La Hulpe, March 2014

Benelux forum

Corporates today

+ Overview

+ Segmentation

ASP model - intro

+ Lite2 an converter

+ Cloud applications

+ Benefits

ASP model – beyond connectivity

+ 3Skey, SWIFTref and other applications

3Skey zoom-in

More than corporates ?

2

Agenda

New corporates in 2013 173 (20% vs. 2012)

20%

10% 70%

Americas

Asia Pacific

EMEA

Traffic (FIN 31% FileAct 41% Q4 2013 vs. Q4 2012)

Bank adoption

803 banking groups

offering corporate connectivity

46 banking groups certified

573 banks (BIC8)

117 countries

Corporate adoption (BIC8)

3SKey: 36 banking groups

BPO: 55 banking groups

72%

FORTUNE Global 500 (top 25)

On SWIFT

3

Corporate Adoption - Summary

Per corporate turnover & banking partners

Corporates by

annual turnover (USD)

Corporates by

number of banking partners

$1-10Bn

28%

>$10Bn

31%

<$1Bn

41%

>20 banks 13%

10 to 20 banks 21%

5 to 9 banks 29%

<5 banks 37%

>$10Bn 30%

$1-10Bn 34%

<$1Bn 36%

37% of SWIFT-connected corporates

deal with less than 5 banks

36% of SWIFT-connected corporates

have a turnover < $1Bn

4

Corporate connectivity

5

Typically very large

corporates (F500–F2000)

Small corporates OUT of SCOPE for

SWIFT messaging

Mid Tier market with mix of:

- Multi banked corps

- Corp. buying all-in cloud services

- But also corps with plain vanilla cash mgt

Larger corp. projects

- More complex clients

- Clients looking for ‘best in class’ assembly of total solution

’

Small corporates

- Mono or duo bank clients

- Plain vanilla cash management

New market

- Private infrastructure

- Lite2 and Converter

- MyStandards

- SWIFT services like Accord,

sanctions screening, …

SWIFT Offering Corporate dynamics

Mid-tier

Corporate market (EMEA) Segmentation and strategy

- Lite2 and Converter

- ASP model for cloud applications

- MyStandards

- 3Skey for authentication

- SWIFTref product suite

Corporates today

+ Overview

+ Segmentation

ASP model - intro



+ Bank benefits


+ Messaging, 3Skey, SWIFTref

3Skey zoom-in


6

Agenda

Massive growth in cloud applications

50% report agility and

scalability as key

drivers

70% see cloud as

bringing better TCO

“When customers choose cloud applications they expect rapid low-cost implementations, they also expect application integrations to work right out of the box, even when the applications are from different vendors….”

7

Larry Ellison, Oracle

Customer expectations are changing Cloud applications

Massive take-up in cloud apps

& SWIFT complexity

SWIFT services “in the cloud”

through partner cloud apps

8

o Multiple SWIFT services delivered in simple way

o Faster corporate implementation

o Deeper penetration mid-tier segment (cloud)

o Partnership with cloud application providers

SWIFT offering for cloud applications Why is SWIFT looking into the subject ?

Virtualisation pack

• No need for USB tokens on Autoclient

• Replaced by channel certificate

• VPN boxes (set of 2)

• Internet connectivity

• Ideal for Virtual environments

So

lution

Converter Plugin for Lite2

• New connectors (File / MQ / Web services)

for back office systems

• File / message transformations

• SWIFT protocol aware (create parameter files

on the fly)

• Easy integration with back office systems

So

lution

Autoclient Alliance Lite2

Work flow

SWIFTNet msg

SSL in VPN tunnel

Web server

ERP

CRM

TMS

AutoClient

(Automated

Transfers)

Co

nve

rte

r

WS

MQ

File

1

1

2

2

9

On premises connectivity recap Lite2 / Converter

10

PARTNER CLOUD APPLICATION

Corporate A Corporate B Corporate …

SWIFT ASP Lite2 bridge

MY

STANDARDS

REF

DATA

ACCORDTMSanctions TM

ASP model What is it ?

3SKEY SUBSCRIPTION

SWIFT Messaging for corporate customer

- Domestic & international cash mgt,

treasury, trade, securities messaging

- Bank reach

3SKey for corporate customers

- Provides high level of security

(authentication, integrity, non repudiation)

- One token for all parties

ASP

Internet, leased line,

proprietary, …

SWIFT secure network

Lite2 ASP messaging (simple SWIFT messaging)

- One connection to all banks (DOM & INT)

- One set of standards

Simple usage of other SWIFT components

- 3Skey / SWIFTref and other

Key components SWIFT community

11

ASP model - examples

12

Secure & reliable connectivity

to +10.000 financials

institutions worldwide

Multi-bank cash management

and workflow cloud application

in the Netherlands.

Multi-bank cash management and

workflow cloud application with

Secure & reliable connectivity to

+10,000 financials institutions

worldwide

ASP model Cooperation between SWIFT and ASP provider

Cost efficient

14

ASP model Benefits

• Corporate has BIC8

• Bank KYC and contract rules

• Standardize authentication and signature

• SWIFT qualified application

• One-stop shop

• Testing

• integrates correctly with SWIFT

• Score compliant

• Reduce proprietary solutions and better utilise SWIFT channel

• Standardised formats

• Faster on-boarding

• Enhanced reach

• Straight-Through Processing (STP)

Increased revenue

Cost efficient

Risk mitigation

Automation

Corporates today

+ Overview

+ Segmentation

ASP model - intro



+ Bank benefits



3Skey zoom-in


15

Agenda

All you need to to identify a financial institution

to validate bank details (BIC, LEI, national bank identifiers,.)

to validate an IBAN or an IBAN/BIC combination

to derive the BIC, who issued a specific IBAN

to construct an IBAN from a BBAN

to clarify a bank’s adherence to SCT or SDD-schemes

to find the best routing path for a beneficiary bank (SEPA)

Beyond connectivity SWIFTref value proposition

Your institution

• Screening engine & user interface

• Centrally hosted and operated by SWIFT

• No local software installation & integration

• Real-time

• Sanctions List update service

17

Your correspondents

Beyond connectivity Sanctions screening

18

Publish

for your customers

Manage

your own specs

Consume

industry specs Reduce Costs

Increase Internal

Efficiency

Improve Customer

Experience

Beyond connectivity MyStandards

• Establishing efficient access control ‒ Security concerns

‒ Usability issues

‒ Complex solutions

• Enhancing customer experience ‒ Multiple and different tokens and devices

‒ Multiple systems and changing passwords

• Reducing costs in security solutions ‒ Investments to build infrastructure

‒ Integration costs

‒ Running and maintaining the solution

• Integrating controls and traceability ‒ Implementing tight workflows & controls

‒ Audit trails – who signed what and when

19

Challenges

Beyond connectivity Authentication and digital signature

Corporates today

+ Overview

+ Segmentation

ASP model - intro



+ Bank benefits



3Skey zoom-in


20

Agenda

21

For corporate users For banks and service providers

Password 1

Password 2

A global standard solution

to work with all banks and

applications

Reducing costs, increasing

security and enhancing

customer satisfaction

3SKey zoom-in What makes 3SKey different ?

22

ASP ASP APPLICATION

Customer

Banks

3SKEY SUBSCRIPTION

1 - Secure

channel

2 - Entity

verification

3- Token

authentication

4- Individual

verification

5- Non

repudiation

6 - Entitlements

management

7 - Signature

transport

● ● ● ● X X X

Secure ASP portal for end-user login

and/or data entry

3SKey zoom-in 3SKey within the ASP application - Authentication

23

ASP ASP APPLICATION

Customer

3SKEY SUBSCRIPTION

1 - Secure

channel

2 - Entity

verification

3- Token

authentication

4- Individual

verification

5- Non

repudiation

6 - Entitlements

management

7 - Signature

transport

● ● ● ● ● X X

Transport personal signatures

to 3SKey-ready banks

Verify signatories and provide non-

repudiation during approval workflows

Audit record: who signed what and when?

1 - Secure

channel

2 - Entity

verification

3- Token

authentication

4- Individual

verification

5- Non

repudiation

6 - Entitlements

management

7 - Signature

transport

● ● ● ● ● X o

3SKey zoom-in 3SKey within the ASP application – Signature to bank

Banks

24

ASP ASP APPLICATION

Customer

3SKEY SUBSCRIPTION

1 - Secure

channel

2 - Entity

verification

3- Token

authentication

4- Individual

verification

5- Non

repudiation

6 - Entitlements

management

7 - Signature

transport

● ● ● ● ● ● o

Offer mandate management services

towards corporates and/or banks

50 K max Treasury payments

100 K max Accounts receivables

250K max Supplier payments

Signatories database

3SKey zoom-in 3SKey within the ASP application – Mandate mgmt.

Banks

25

3SKey zoom-in 3SKey use cases

http://www.swift.com/corporates/video?item=Opus_1_asp

26

75% of SWIFT’s top 25 corporate

access providers have adopted 3SKey

First 2 cloud application providers

signed-up for Lite2 + 3SKey

Bank of Tokyo-Mitsubishi first to

sign for 3SKey in Asia Pacific Société Générale rolls out 3SKey in

over 90 countries on eBanking portal

Citi and DB promote

3SKey as industry

standard

3SKey zoom-in 3SKey use cases – SIBOS wrap-up

27

90+ countries

37 banking groups

~ 3,500 user groups (*)

22,000 active users

42,000 tokens

54 vendors

(*) Estimated based on # of user groups

3SKey zoom-in 75% of SWIFT’s top 25 banks offering corporate access

Corporates today

+ Overview

+ Segmentation

ASP model - intro



+ Bank benefits



3Skey zoom-in


28

Agenda

Global reach Complete E2E

processes

Formats

Low cost

Customer support

ASP

Scalable solution Ease of bank

onboarding

Integration of

Back-office Systems

Flexibilty

Your own BIC

Full approval chain & 29

More ASP’s ? More than corporates ?

The end …

[email protected]

Thomas Peeters

benelux forum 2014 - asp model for corporates

Economy & Finance