Ravishankar

1
STP in Financial Supply Chain Emerging
Standards, Technologies Practices IBA
FINSIGHT Payments Summit 2009

• Ravishankar
• Group EVP Country Head
• Cash Management Direct Banking

2
Financial Supply Chain Management
RTGS Transfers
Export Finance
Demand Drafts
FX Remittances
Finished Goods
Letters of Credit
FX Trading and Risk solution
MIS Faster, Accurate, Standard
Sales
E- Collect
Import Financing
Debit/Credit/Cards / Electronic/Mobile Payments
Liquidity Services
Physical Collections
Investment Management
3
Supply Chain Management Challenges
4
Supply Chain Management Solutions
5
Banks may use different formats
Bank 1
IFX Format
Proprietary Format
Bank 2
Customer A
SWIFT MT 101
Bank 3
6
And so will Customers
IFX Format
Customer A
Bank 1
Proprietary Format
Customer B
SWIFT MT 101
Customer C
7
ISO20022 A unified global standard

• UNIFI - ISO20022
• Global Industry standard
• Inter-operability between FIs, Governments,
  Corporates, Intermediaries etc.
• Being adopted and supported by banks and
  financial application providers all over the
  world SEPA, SWIFT, JP Morgan, SAP, Oracle,
  ISTH, Euro clear, etc.
• Will enable clients to integrate core treasury,
  payable and receivable applications with buyers,
  suppliers and banking partners
• Advantages in Payments for clients
• Improved STP
• Standardized access to the Global Payments
  Landscape.
• Enhanced Information Capture Better
  Reconciliation
• Better Intra-day payment information management
  enabling improved cash positioning and
  reconciliation

8
ISO 20022 What does it cover?

• PAYMENTS Credit Transfers, Cheques, Direct
  Debits
• Services Payment Initiation, Clearing and
  Settlement, Cash management between parties
• CARDS Debit cards, prepaid cards, charge cards
  and Credit cards
• Services ATM processing, transactions and
  messages between acquirers, merchants customers
• TRADE SERVICES Collections, LC, Guarantees,
  Documentary Credit
• Services Covered Open Account Trading,
  Reconciliation, Remittances, e-Invoicing,
  pre/post shipment financing
• SECURITIES Equities, Fixed income, Funds,
  Derivatives
• Services Issuance, Pre-trade, Initiation,
  Post-trade, Clearing and Settlement, Custody,
  Collateral management, account management
• FOREX Spots, Swaps, Forwards, Currency Options
• Services Pre-trade, trade, post-trade
  instructions and notifications, trigger events,
  third party notifications, clearing and
  settlement

9
Convergence tables for single format
TWIST
Proprietary
OAGi
ISO 20022 Core Payment Kernel
SWIFT MT
IFX
10
ISO 20022 Integrates Communication
Core Payment Kernel
IFX
MT 101
ISO 20022
MT 101
Core Payment Kernel
IFX
11
Economic Downturn- An Opportunity to Learn

• Shared Service Models
• Consolidation of Cash Management Systems / Banks
• Cash Pooling
• Consolidation of Bank accounts across countries
  and banks
• Host to Host Integration
• Multiple systems within group companies
• Accounting systems to Bank systems

• International partnerships
• Federal Reserve Bank Equens tie-up for US -Eur
• SEPA
• Standardized Formats
• SWIFT, MULTICASH, EDI, BAI-2
• ERP Integrations
• Zero authorization
• STP capability
• Cross Border/Intra country Retail Payment
  Platforms
• Faster settlement systems
• RTGS, NEFT, NECS, CTS

Corporates
Banks
12
Adoption Trends
Web-enabled, Universal payment channel

• India Leapfrog
• RTGS
• NEFT
• Stock Exchange Settlements
• India Laggard
• B2B exchanges
• B2C/P2P - Electronic/ Payments
• Card based Payments
• INDIA FUTURE
• ISO 20022

Multi-bank access through single, standard open
channel
Direct EDI enabled channel/Proprietary Networks
Low Integration/Automation Capability
High Integration/Automation Capability
13
Govt Large Business
B2B,B2C,B2G,B2E
RTGS Online
Single Sign-On
Multi Factor and Biometrics
Multi Security
B2B,B2C,B2G,B2E
Mid size Business
Multi Factor
P2P, P2B,G2P,B2P
Individuals Small Business
Two Factor
Cards E-commerce M-commerce
E-commerce M-commerce Supply Chain
E-commerce Supply Chain Online Exchanges
14
THANK YOU