New opportunities for the ambitious service provider SWIFTNet connectivity

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New opportunities for the ambitious service
provider SWIFTNet connectivity
Wim Raymaekers
SWIFT Regional Conference, 6-8 March 2006
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Agenda

• Business drivers
• SWIFT toolkit for Service Providers
• Example scenarios
• Conclusion

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Extending reach over the years
Users
Messages (millions)
Countries
2.299
2.048
7.667
7.527
7.465
7.199
7.125
1.817
6.797
6.557
202
200
198
6.176
196
192
1.533
189
178
5.511
5.229
164
1.274
150
4.625
137
1.059
126
937
812
688
603
518
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Extending reachEmbracing the business community
Corporates
Securities
Banking andPayments
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Extending reach - Our goals
Institutional
Geographical
Corporate
CIO/COO
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Toward a new corporate access model
Multitude of MA-CUGs
Single many-to-many CUG
Bank A
Bank A
Corporate A
Bank B
Bank B
Corporate
Corporate B
Bank C
Bank C
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Increasing our market access capability
SWIFT (as a company)
SWIFT sales support business partners
400 newfinancial institutions
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Customer segments and value proposition
4,000 prospective institutions
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New revenues for Service Providers

• New revenues
• 60 KEUR/year/customer
• 20 KEUR connectivity
• 20 KEUR consulting
• 20 KEUR financial products
• OFAC filters
• EBA Step ll file handling
• Target 2 applications
• CLS Third Party Services
• Transaction engines
• Data aggregation services

SWIFT Member
Smaller bank
Financial transactions services
SWIFT connectivity services
BIC
Investment manager
BIC
BEI
Corporate
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Work session

• Do you already service institutional clients?
• What drives outsourcing?
• What are attractive customer segments?
• What revenues can be made, from connectivity and
  add-ons?

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Agenda

• Business drivers
• SWIFT toolkit for Service Providers
• Example scenarios
• Conclusion

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Member/Concentrator

• Role of Member one-stop-shop
• Act as general contact
• Handle SWIFT administration
• Pay SWIFT invoices, with freedom how to charge
  serviced user
• Arrange for connectivity
• Via Members connection
• Via Service Bureau
• Give access to User Handbook
• Assist in doing business over SWIFT

Purpose New programme for Members to act as
Service Provider and give its customers access to
SWIFT, without that those customers need to deal
with SWIFT

• Eligibility
• Member, Sub-member
• Customer any eligible user, not already in
  Members group

• Tools incentives from SWIFT
• Promotion on swift.com
• Business plan with sales force
• Access to information portal
• Financial incentive scheme
• SWIFTAlliance as outsourcing platform

• Registration
• Via swift.com
• Cost none

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Significant incentives from SWIFT

• Price reductions
• Membership
• BIC registration
• Logical Terminal
• SWIFTNet PKI and ICCs
• Shared Security Officers
• SWIFT destination (SWIFTAlliance Access)
• No traffic aggregation
• Implicit benefits
• No minimum invoice
• No need to buy User Handbook

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Process

• Apply as Member/Concentrator

SWIFT User
SWIFT User
SWIFT Member
Customer
Customer
Electronic delivery channel
SWIFTNet

• Receive invoice of serviced user

• User appoints Concentrator

• Order for serviced user

Process as seen from Member/Concentrators point
of view
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Implementation options
a) Re-using banks platform
Member

• Sales
• Customer relationship

Members Infrastructure
BIC
Members channel
Serviced user

• Technical connectivity
• Administration

b) Administered by service bureau
Member

• Sales
• Customer relationship

Service Bureau
Service bureau channel
BIC
Serviced user

• Technical connectivity
• Administration
• (outsourced)

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SWIFTAlliance as outsourcing platform
Member/Concentrator
Branch
Branch
Interface
Third-party client
Gateway
Messenger
Browser
Access
Application
WebStation
Legend
New
Existing
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Work session

• Do you see value in Member/Concentrator?
• For the user / client
• For the provider / concentrator
• How would you organise your service?
• Partner with Service Bureau
• Use Alliance as outsourcing platform

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Agenda

• Business drivers
• SWIFT toolkit for Service Providers
• Example scenarios
• Conclusion

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Example 1 Payments for smaller banks

• Large payments bank
• Provide access to SWIFT for smaller banks, for
  international payments and access to Market
  Infrastructures
• Works for new clients and existing shared
  connections
• SWIFT cost per customer(average for 50 smaller
  banks under Member/Concentrator)6 KEUR/year

Correspondent banks
SWIFTNet
Member/Concentrator
Market infrastructure
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Example 2 Securities outsourcing

• Securities transactions specialist
• Insourcing operations of investment managers
• SWIFT cost per customer(average for 25
  investment managers under Member/Concentrator)7
  KEUR/year

Custodian banks
SWIFTNet
Member/Concentrator
Central Securities Depository
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Example 3 Corporate access
Member/Concentrator

• Cash management bank
• MA-CUG
• Member/Concentrator
• Large corporate customers connect directly
• Smaller corporates connect via service bureau
  partnerSWIFT cost per corporate (average for
  25 corporates under Member/Concentrator) 8
  KEUR/year

MA-CUG
MA-CUG
SWIFTNet
Service Bureau channel
Service Bureau
Many-to-many corporate CUG
Connectivity and admin outsourced by Member
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Work session

• Which scenario is most appealing?
• Do you see other scenarios?

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Agenda

• Business drivers
• SWIFT toolkit for Service Providers
• Example scenarios
• Conclusion

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Are you an ambitious Service Provider?
Client can access SWIFT and does not deal with
SWIFT
Can you afford to stay behind?
Member/Concentrator can increase client
stickiness and revenues