Session2 swift 2-presentation-26-mar-2013
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The Common Global Implementation (CGI) provides a forum for financial and non-financial institutions to progress corporate-to-bank ISO 20022 implementation topics and activities in payments. CGI aims to simplify implementation for corporates by developing common templates for ISO 20022 messages like pain.001, pain.002, and camt messages. Over 70 financial and non-financial member institutions collaborate on the CGI deliverables and implementation guidelines to promote widespread adoption of ISO 20022.
Session2 swift 2-presentation-26-mar-2013
- 1. The Way Forward Implementation Roadmap Common Global Implementation (CGI) 1 Introduction ISO 20022 Landscape ISO 20022 Adoption by Corporates Q&A Common Global Implementation (CGI)
- 2. Mission & Objective • Provides a forum for financial institutions (banks and bank associations) and non-financial institutions (corporates, corporate associations, vendors and market infrastructures) to progress various corporate-to-bank implementation topics on the use of ISO 20022 messages and to other related activities, in the payments domain. • Simplify implementation for corporate users and thereby promoting wider acceptance of ISO 20022 as the common XML standard used between corporates and banks. • Achieved through consultation, collaboration and agreement on common implementation templates for relevant ISO 20022 financial messages, leading to their subsequent publication and promotion in order to attain widespread recognition and adoption. 2
- 3. Drivers • CGI is driven by customer demand for multibank coordination of implementations – Intended specifically for global, multi-country, multi-bank and multi- instrument implementations that the participating banks can commonly accept as ONE of their implementations. – Focused on the general message structure and then successful creation of individual transactions that can be executed by the participating banks. – Published and endorsed from appropriate communities. – Engaged through active corporate partnership. “A corporate can use the same message structure for all their payments with all of their transaction banks reaching any payment system across the globe.” 3
- 4. ISO 20022 message flows covered 4 Debtor Agent (Payer’s Bank) Creditor Agent (Payee’s Bank) Debtor (Payer) Creditor (Payee) Customer Credit Transfer pain.001 Customer Payment Status Report pain.002 Account Reporting camt.052 / camt.053 / camt.054 Customer Direct Debit pain.008 Customer Payment Status Report pain.002 Account Reporting camt.052 / camt.053 / camt.054 Interbank Clearing & Settlement
- 5. Account Report (camt.052) template to include intra- day bank account activity Statement (camt.053) template to include end of period bank account activity Debit/Credit Notification (camt.054) template template to include detail notification reporting Appendix A – Uses cases and examples 5 WG3 Direct Debit & Mandates WG2 Cash Management Reporting WG1 Credit Transfer & Payment Status Credit Transfer (pain.001) template to include ACH and wires (domestic and international) and cheques/drafts Appendix A – Clearing system classifications Appendix B – Country specific data requirements Appendix C - Country specific Purpose codes Payment Status Report (pain.002) template with process flow Direct Debit (pain.008) template to include any electronic debit transaction Appendix B* – Country specific data requirements Appendix C*- Country specific Purpose codes Mandate Initiation Request (pain.009)* Mandate Amendment Request (pain.010)* Mandate Cancellation Request (pain.011)* Mandate Acceptance Report (pain.012)* * Not published CGI Working Group deliverables WG4? Bank Account Management 15 Account Management (acmt) messages covering account opening, account maintenance, account closing, mandate management.
- 6. Financial Institution Members In total 34 FI members (Contributing & Observers) –Bank of America Merrill Lynch –Barclays –BBVA –BNP Paribas –BSK, Bankenes Standardiseringskontor –Citibank –Commerzbank AG –Danish Bankers Association –Danske Bank –Deutsche Bank –DnB NOR –HSBC –ING Bank –J.P.Morgan –Nordea Bank –Payments Council –Raiffeisen Bank International –Royal Bank of Scotland –Santander –SEB –Standard Chartered Bank –Sydbank A/S –UniCredit Bank 6
- 7. Non-Financial Institution Members In total 37 Non-FI members (Contributing & Observers) 7 –AITI –BBP –Bottomline Technologies –CBI Consortium –Exalog –General Electric –GXS –IKEA –Netilys Consulting –Nets –PwC –SAP AG –Siemens –SIX Interbank Clearing –Sungard –SWIFT –TIS –Traxpay –UTSIT –Visma Software International AS –XMLdation –Zanders
- 8. 8 Source: SAP - April 2012 SAP implements CGI
- 9. 9 Microsoft implements CGI Source: Microsoft – September 2011
- 10. 10 Sungard implements CGI Source: Sungard – October 2010
- 11. 11 Citi implements CGI Source: Citi – February 2013
- 12. 12 Citi implements CGI Source: Citi – February 2013
- 14. The Way Forward Implementation Roadmap Common Global Implementation (CGI) 14 Key Challenges & Trends in the Payment Market ISO 20022 Landscape ISO 20022 Adoption by Corporates Implementation Roadmap
- 15. Define country / regional / community specific practices Agree on harmonised practices Ensure common understanding What How Document • Scenarios • Examples Initiative at country/regional/ community level ISO 20022 Message Usage Guidelines Message Implementation Guidelines Define • Rules • Guidelines The road to implementing ISO 20022 15
- 16. Bank guidelines National and regional guidelines Common Global Implementation guideline (CGITemplate) ISO 20022 standard and business model (Message Definition Report) Derived From Consistent With The road to implementing ISO 20022 16
- 17. Implementation roadmap example 17 Source: CPA ISO 20022 Strategy and Roadmap Consultation - July 2012
- 18. Implementation Considerations - 1/2 18 When migrating to new standards such as ISO 20022 the following should be considered: Vendor application readiness – Central clearing & settlement systems, and back-office applications of participants may not be ISO 20022 ready and may not fully leverage the features of ISO 20022. Standards training – IT and operations staff of participants, operators and vendors may need ISO 20022 training to implement and manage the standard Counterparty readiness – For an institution and its customers to fully benefit from ISO 20022 its counterparties must also be ready to accept and understand the new standard. For this reason it is better for market infrastructures to collectively migrate to new standards simultaneously and in a coordinated fashion.
- 19. Implementation Considerations - 2/2 19 Standards related areas for which rule books and guidelines will likely require development: • Payment instruments • Rejections, returns, status reports, request for cancellations, reversals, i.e., any kind of exception handling • Currency conversion • Multiple character set handling • Financial reporting, confirmations and statements • Regulatory reporting • Exceptions and investigations • Compliance requirements • Cross-border payment charges claiming • Format conversion / translation • Security
- 20. ISO 20022 - Version History 20 Ver. Date V01 Sep 2005 1st Version V02 Sep 2006 CoreCreditTransferInitiation (pain.001.001.01) and its two variants STPCreditTransferInitiation (pain.001.002.01) and EUSTPCreditTransferInitiation (pain.001.003.01) were replaced by the single harmonized CustomerCreditTransferInitiation (pain.001.001.02) V03 Mar 2009 • BatchBooking indicator moved from GroupHeader to PaymentInformation level. • PaymentInformationIdentification element made mandatory. • Grouping element removed. • ClearingChannel element removed • Adjustments to PaymentTypeInformation elements • CashAccount element adjusted, BBAN and UPIC elements made external codes • A number of adjustments applied to StructuredRemittanceInformation • The NumberOfTransactions and ControlSum elements added optionally at PaymentInformation level. • CreditorSchemeIdentification element added at PaymentInformation level. V04 Apr 2012 • Signature element added to ChequeInstruction. • SupplementaryData component added at Level 1 of message. • UnitCurrency element added to ExchangeRateInformation. • CashAccountType codes made external. • Tax Type component added to TaxAmount. • InstructionForDebtorAgent element added to PaymentInformation. pain.001 CustomerCreditTransferInitiation
- 21. 21 Corporates Correspondents Market Infrastructures Market Practice Groups Manage releases Set and follow market practice Understand and implement specifications Provide usage guidelines Provide usage guidelines MyStandards
- 22. MyStandards … a collaborative web platform to better manage standards definitions and usage in the financial industry Content Features Managing standards with MyStandards 22
- 23. The Platform 23 MyStandards 2. Analyse 1. Browse 3. Publish 4. Collaborate 5. Implement Standards Editor 3a. Browse 3b. Capture 3c. Edit Off-line – Local PC On-line – Web Browser
- 25. 25 MyStandards – Usage Guidelines
- 26. 26 MyStandards – Changes in next release 2012 2013
- 27. The Way Forward Implementation Roadmap Common Global Implementation (CGI) 27 Key Challenges & Trends in the Payment Market ISO 20022 Landscape ISO 20022 Adoption by Corporates The Way Forward
- 28. The Way Forward … with ISO 20022 28 • ISO 20022 is the enabler • Corporate-to-Bank / Bank-to-Corporate – Transition to later ISO 20022 version – Alignment with CGI – Facilitate through Thailand Payments Market Practice Group – Consideration of other business areas • Direct Debit & Mandate Management • Account reporting • Account Management • Trade Services (Bank Payment Obligation, Guarantees/Standbys, etc) • Bank-to-Bank – Adopt as part of market infrastructure renewal/update – Integral to future ASEAN cross border flows • Education and Training – Community Awareness ISO 20022
- 29. Questions Thank you 29 David Dobbing Business Manager Banking & Payment Standards SWIFT 8 Marina View Asia Square Tower 1, #28-04 Singapore +65 6347 8000 +65 6347 8052 +65 6347 8099 +65 8500 8056 david.dobbing@swift.com www.swift.com T D F M W E Kiyono Hasaka Lead Standards Specialist Banking & Payment Standards SWIFT 8 Marina View Asia Square Tower 1, #28-04 Singapore +65 6347 8000 +65 6347 8064 +65 6347 8099 +65 8686 6172 kiyono.hasaka@swift.com www.swift.com T D F M W E