I so want to know about ISO 20022

Transcription

1 I so want to know about ISO Mike Lewis, Regional Sales Manager, SWIFT Warren Davey, Executive Vice President, GTreasury Agenda Introduction: ISO Refresher Who is using ISO Why ISO SWIFT & ISO Q&A 1

2 Why ISO 20022? Payments Treasury & Trade 1973 Securities only 1984 Securities only Proprietary MT ISO 7775 ISO ISO Paper-based Proprietary syntax Point-to-point One size fits all SWIFT only FIN MT: Computer-processable versions of telexes Reference standard Electronic Open, neutral syntax End-to-end transaction Market practice SWIFT + other organisations 3 What is ISO 20022? single standardisation approach (methodology, process, repository) to be used by all financial standards initiatives Recipe to create financial standards Body of content Business / Conceptual Defines business meaning of financial concepts, e.g., Credit Transfer Logical Defines e.g. credit transfer messages, to execute the business process Physical Defines physical syntax, e.g. XML Business models Data dictionary Catalogue of messages 4 2

3 Maintenance process built on strict business justifications and review process - leading to new versions of the messages ISO message catalogue + SWIFT User Handbook More than 20 submitting organisations, besides SWIFT MyStandards 18 Business Areas - EXAMPLE PAIN = Payment initiation = used in Corporate-to-bank PACS = Interbank clearing and settlement = used in HVP and LVP MI SESE = Securities settlement = used in Securities MI SEMT = Securities management = used in Securities MI More than 320 messages, covering payments, securities, trade services, FX, cards 5 Standards are created globally and used locally: market practice and variants PACS -pacs FI to FI Customer Credit Transfer HVP-guidelines T2 implementation guidelines Bank s T2 implementation with customers/bank s internal specification ISO messages Global market practice Local market practice Bankspecific practice 6 3

4 Standards are created globally and used locally: market practice and variants How to create, share and test market practice? Removing optional elements Make optional elements mandatory Limit options Restricting data types Reducing code lists Based on community needs MyStandards Readiness Portal 7 Agenda Introduction: ISO Refresher Who is using ISO Why ISO SWIFT & ISO Q&A 4

5 Who is using ISO 20022? A free IOS tablet app, (also as PDF and highlevel slide presentation) that provides an overview of initiatives adopting ISO ISO Brought to you by the ISO Registration Authority Facilitating adoption and fostering dialogue > 65 initiatives Information provided by initiative* owners Covers all regions & business segments Easy to use, contribute to and maintain * Initiatives who plan to adopt the official ISO messages registered on 9 ISO is being used by MIs around the globe Compliance with regulation/harmonization ENTER Globalization/alignment with other major initiatives Modernization/upgrade of [end-to-end] services Renewal of legacy systems Reputation Interoperability for MI-members with multiple MI-connections 10 5

6 High value payments in USA headed to ISO Low value payments are likely to follow Americas Fedwire / CHIPS High-value payments ACH Low value bulk payments The Federal Reserve and The Clearing House have agreed to migrate from their legacy format to ISO Timeline 2015/ TBD Detailed planning Finalize planning & announce specs Develop & test Customer testing Begin rollout Rollout complete & sunset legacy NB: The Clearing House -> Real Time Payment in ISO20022 (EU: Instant Payment/UK Faster Payment) Pilot Q NACHA has an XML-ACH Remittance Opt-in program that allows participants to transmit ISO payment remittance information for B2B transactions via the ACH network. RTP Real-time retail payments TCH s RTP solution is fully ISO based and enters into pilot phase Q Drivers for adoption Global momentum Global competition Cost savings and processing efficiency Consistent and rich data Interoperability Agility to meet evolving needs New, innovative products Source: Lipis Advisors 11 ISO Adoption Payments MI & initiatives (some examples) From discussion to implementation FI CPA, CA UK DK BY SEPA,EU US retail division of FRB Fed & TCH, US T2, EU JO CH XK CNAPS2, CN Zengin, JP BOJNet, JP EC Live IPFA CO PE CL BR ZA SA SADC IN CIPS, CN KH VN BD MY BN TH SG ASEAN AU PG NZ Snapshot Dec

7 Status overview Payments MI some examples Initiative Status (Planned) live date EU-SEPA (33 countries) Live Singapore - FAST Live 2014 IPFA Live 2010 IN - RTGS Live 2013 SADC (LVP) Live 2016 DK Intraday and Real-time Live 2013 JP - New-BOJNet Live 2015 Brunei LVP Live 2014 ASEAN Under discussion To be determined TH ITMX e-payments - LVP Under discussion To be determined CH Planned (phased) ( ) AU-LVP Planned (2017) CA-all payment systems Planned (2020) CN (HV and LV) Live 2013 RTGS Bangladesh Live 2015 Kosovo Live 2016 T2 Planned To be determined UK Planned To be determined USA (Fed and TCH) Planned (2020) Snapshot Jan ISO Adoption Real Time Payments initiatives From discussion to implementation (some examples) Finland Sweden - Bankgirot Payments Canada TCH, US TIPS - ECB France and Belgium Denmark - Nets EBA Instant Payment Poland Elixir Express Hungary SEPA SCT Inst Spain Netherlands Honk Kong SG - FAST AU- NPP Snapshot Jan

8 Status overview RTP initiatives some examples Initiative Status (Planned) live date SEPA SCT Inst (33 countries) Planned (2017) Singapore - FAST Live 2014 DK Intraday and Real-time Live 2013 AU- NPP Planned (2017) CA-all payment systems Planned (2020) Spain Planned (2017) TCH Planned (2020) Finland Planned (2017) Sweden (Bangkirot) Live 2012 TIPS - ECB Investigation (2018) EBA Instant Payment Planned (2017) Honk Kong Planned (2018) Poland Live 2012 France Planned (2017) Belgium Planned (2017) The Netherlands Planned (2019) Snapshot Jan A summary : The power of ISO Open, neutral methodology to develop standards Everyone can participate Greater automation Rich, structured data Ease of integration Scenario-based standards facilitating market practice Re-usable message components, electronic message formats (XML Schema s), character set End-to-end business-centric approach The standard is being used! Syntaxindependent model Future-proof Allows for interoperability Data dictionary approach allowing referencing by other standards 16 8

9 Agenda Introduction: ISO Refresher Who is using ISO Why ISO SWIFT & ISO Q&A ISO adoption in the corporate-to-bank space (some examples) NO CA BE IE NL DK SE DE FI RU Over 100 members (corporates and banks) defining common global implementation guidelines MX PA CO US UK BM MQ FR MC IT PT BR SEPA ES Based on CGI guidelines AT LU LI HU KW SA ZA SK CH AE LB MU QA OM SWIFT for Corporates Cash management HK CN SG KR JP PH MY AU NZ Snapshot Jun

10 SWIFT standards and ISO How to manage market practices? Collaboration and best practice sharing in market practice groups SWIFT has unique market practice expertise and tools to mitigate risk MyStandards Tools (MyStandards & Readiness Portal) to create, compare, publish, share, harmonize, implement and test market practices Services to help communities assess, analyse, map, create and maintain practices 19 ISO for Trade - SWIFT BPO/TSU DK SE FI US PE CA CL AR BR GB NL FR ES MA GH BE SI IT NG CH AT DE TR BG LB GR JO SA SO KW OM PK QA IN LK UAE KE MY MU ZA CN TH SG VN JP KR TW HK PH ID AU This map shows countries where one or more banks are sending/receiving ISO based BPO/TSU transactions. Snapshot Mar

11 21 SWIFT standards and ISO Complete portfolio of ISO standards All relevant business domains Registration authority Contributor to content SWIFT is the golden source of ISO knowledge In-depth knowledge of models, data dictionary and messages SWIFT has unparalleled expertise in ISO adoption Supports communities with adoption Contributes to market practice groups Insights into global adoption SWIFT has tools and services for standards & market practice management MyStandards & Readiness Portal 22 11

12 SWIFT standards and ISO expertise Get access to experienced standards experts who: have developed the ISO standards Are up-to-date on global and local market practice Know the tools and methodology inside out - Strategy and impact assessment - - Standards analysis - Message and market practice design Reduce time & cost for ISO standards adoption, specification and implementation More than 100 standards projects for more than 70 clients. Involved in all major ISO initiatives around the world 23 ISO is live & planned for many MIs around the globe SWIFT is not mandating migration, communities decide if and when they want to adopt ISO SWIFT will continue to support FIN 24 12

13 Agenda Introduction: ISO Refresher Who is using ISO Why ISO SWIFT & ISO Q&A Mike Lewis, SWIFT Warren Davey, GTreasury 13