swift welcome address by alain raes
TRANSCRIPT
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WelcomeAlain Raes, Chief Executive, APAC & EMEA SWIFT
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Malaysia: Leading ASEAN with digital transformation and standardisation
Malaysia Traffic Insights - 2015
Key Highlights of Malaysia
20+ millionFIN messages per year (2015)
79+ thousandFIN messages per day (Year to date Dec 2015)
+5%Increase in FIN traffic (Year to date Dec 2015)
Malaysia Traffic Insights - 2015
Trade
Treasury
Securities
Payments
Growth rates based on Year to date December 2015 vs 2014 Average Daily Messages
EMEA Americas Asia Pacific
Total SWIFT Malaysia ASEAN
5.3% 8.9% 9.3% 6.6% 3.9% 5.8%
8.6% 10.5% 24.7% 10.7% 5.8% 16.7%
3.2% 7.5% 17.8% 6.3% 11.5% 1.2%
-5.0% -6.1% -3.2% -4.4% -6.8% -4.4%
6.7% 9.4% 15.4% 8.4% 5.0% 9.5%
Full year 2015 FIN Traffic growth at a glance
<-10% -10% to 0% >0%
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Malaysia: Leading ASEAN with digital transformation and standardisation
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US/ UK NMGs - Business Intelligence Insights 13
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2020 Strategy - Grow the core, build the future 16
SWIFT 2020 – Strategic priorities
Messaging
Software& Connectivity
Shared Services
Many-to-ManyMarket Infrastructures
CORE
COMPLIANCE
MIs
2020 Strategy - Grow the core, build the future 17
SWIFT 2020 – Strategic priorities
Messaging
Software& Connectivity
Shared Services
Many-to-Many
Market Infrastructures
Global & Key Clients
Small & Medium Banks
Investment Managers
Custodians & Investment Banks
Corporates
Funds ecosystem
RTGS and Central Banks
Real-Time Payment Systems
Central SecuritiesDepositories
Translating S2020 to SWIFT APAC Priorities
Trends
Renewal
• Fighting financial crime, monitoring & control, compliance recommendations.
• FATF, Basel III, FATCA, FCPA, AML, Sanctions
• ASEAN Economic Community (AEC), CIPS, Pacific payment system
• Increasing international connectivity of infrastructures• ISO 20022 adoption
• Demand for safer and more reliable infrastructure• Cyber threats increasing• CPMI-IOSCO PFMI & Annex F for CSPs
• Real-time 24-7• Convergence btw high & low value
Payments
• New systems: ISO 20022 messaging – rapidly growing interest in XML messaging capabilities
• Multi-currency clearing, PvP• Extended operating hours (e.g. HK RMB 20.5 hrs)
• CPMI-IOSCO Principles• Regulatory reporting• T+2
• ASEAN Economic Community (AEC)• Regional harmonization: ABMF, ASEAN Link, HK-CN,
TW-SG, CSIF cross-border DVP• ISO 20022 adoption
• CPMI-IOSCO & Annex F for CSPs
• Issuer to investor CA announcement • Funds hub implementation• Collateral management• OTC clearing
Securities
• Aging technology• New technology (distributed ledger)• Regional ambition-collaboration• ISO 20022
Regulation & compliance
Regionalisation
Resiliency & reliability
Real-time
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Translating S2020 to SWIFT APAC Priorities
Trends
Renewal
• Fighting financial crime, monitoring & control, compliance recommendations.
• FATF, Basel III, FATCA, FCPA, AML, Sanctions
• ASEAN Economic Community (AEC), CIPS, Pacific payment system
• Increasing international connectivity of infrastructures• ISO 20022 adoption
• Demand for safer and more reliable infrastructure• Cyber threats increasing• CPMI-IOSCO PFMI & Annex F for CSPs
• Real-time 24-7• Convergence btw high & low value
Payments
• New systems: ISO 20022 messaging – rapidly growing interest in XML messaging capabilities
• Multi-currency clearing, PvP• Extended operating hours (e.g. HK RMB 20.5 hrs)
• CPMI-IOSCO Principles• Regulatory reporting• T+2
• ASEAN Economic Community (AEC)• Regional harmonization: ABMF, ASEAN Link, HK-CN,
TW-SG, CSIF cross-border DVP• ISO 20022 adoption
• CPMI-IOSCO & Annex F for CSPs
• Issuer to investor CA announcement • Funds hub implementation• Collateral management• OTC clearing
Securities
• Aging technology• New technology (distributed ledger)• Regional ambition-collaboration• ISO 20022
Regulation & compliance
Regionalisation
Resiliency & reliability
Real-time
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Reinventing correspondent bankingMaking Real World Change
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Correspondent banking model is under pressure
Customers and regulators push for better payments service
Banks rationalize their correspondent banking networks
Digital innovators offer new disruptive solutions
End customers increasingly demanding
Domestic payments going real-time
Regulatory intensity and increasing costs
Network rationalization
Enhanced value proposition
Disintermediation
Global payments innovation initiative – January 2016
Global payments innovation initiative – January 2016 23
Global payments innovation initiative (gpii)
Global reachprovided by banks connected to domestic payments systems
SLA rulebookwith customer at centre
of value proposition
Smart collaboration(e.g. enhanced compliance practices,
optimised intraday liquidity flows)
Embrace innovation(e.g. peer-to-peer messaging,
real time settlement mechanism)
Global payments innovation initiative (gpii)
Bank access channelsDomestic payment systems
SWIFT
Bank access channelsDomestic payment systems
SWIFT
Existing SWIFT messaging
Bank access channelsSWIFT for corporates
Bank access channelsSWIFT for corporates
Accessible by any bank
Differentiate vsnon-gpii banks
Still reach non-gpii banks
Reach any bank
Operational qualityOpen model
Existing SWIFT messaging
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1. ABN AMRO Bank2. Australia and New Zealand Banking Group3. Banco Bilbao Vizcaya Argentaria4. Bank of America Merrill Lynch5. Bank of China6. Bank of New York Mellon7. Bank of Tokyo-Mitsubishi UFJ8. Natixis9. Banco Santander10. Barclays11. BNP Paribas12. Citibank13. Commerzbank14. Credit Suisse15. Danske Bank
16. DBS Bank17. Deutsche Bank18. Ecobank19. FirstRand Bank20. HSBC21. Industrial and Commercial Bank of China22. ING Bank23. Intesa Sanpaolo24. JPMorgan Chase25. KBC Bank26. KEB Hana Bank27. Lloyds Banking Group28. Maybank29. Mizuho Bank30. National Australia Bank
31. Nordea Bank32. Oversea-Chinese Banking Corporation33. Raiffeisen Bank International34. RBC Royal Bank35. Royal Bank of Scotland36. Sberbank37. Skandinaviska Enskilda Banken38. Société Générale39. Standard Chartered40. Sumitomo Mitsui Banking Corporation41. TD Bank42. UniCredit43. UBS44. United Overseas Bank 45. Wells Fargo
45 leading banks sign up to SWIFT’s global payments innovation initiative
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Malaysia: Leading ASEAN with digital transformation and standardisation