European Trend for CSMs and Its Impact on SWIFT SENT
undefined
European Trend for CSMs –
what does this mean for SENT?
Judit Baracs, Senior Account Director Payments Markets CEE
9 June 2011, Bucharest
VocaLink
(GB)
KIR
(PL)
Dias
(GR)
SIA-SSB
(IT)
RPS
(IE)
Iberpay
(ES)
Bankserv
(ZA)
Equens
(NL)
EBA
(EU)
ICCREA
(IT)
FINA
(HR)
ACH
(UG)
Borica-Bankservice
(BG)
Equens
(IT)
BGC
(SE)
Eurogiro
(EU)
CSA
(AT)
RPS
(DE)
BECS
(AU)
LVP System
(NZ)
ACH
(CO)
Low value payment systems on SWIFT
ACH
(TZ)
2
Nets
(NO+DK)
More than 7 billion transactions on SWIFT already
G
l
o
b
a
l
m
a
r
k
e
t
r
e
a
c
h
•
Thousands banks
•
600+ corporates
•
19+ Retail payments systems (e.g.: ACHs)
•
60+ high value payment systems (e.g. : Target2)
•
Closed business community
•
Single security
an
d file transfer
•
Non-repudiation (proof of sender)
•
Reliability and availability (
99.999% uptime)
C
o
s
t
e
f
f
i
c
i
e
n
c
i
e
s
•
Supports both proprietary or standard format
•
Same infrastructure for all currencies
•
Credit transfer, direct debit, cheque
•
Flexible exchange method to cope with each
local clearing community requirement
I
n
t
e
r
o
p
e
r
a
b
i
l
i
t
y
a
n
d
f
l
e
x
i
b
i
l
i
t
y
Benefits of using SWIFT
C
o
m
p
a
r
e
d
t
o
V
P
N
s
•
Predictability of costs (rebate based vs surcharge
based for VPNs)
•
Clearer TCO on SWIFT side – mutualisation of
means, prices decreasing over time
•
Any additional traffic has indirect impact on banks
SWIFT tiering
•
24/7 availability
•
Business and technical support included
•
Security is a must and part of base offer –
delivery and authentication options available
•
SWIFT includes an insurance coverage
S
W
I
F
T
P
r
e
m
i
u
m
s
e
r
v
i
c
e
•
SWIFT allows connecting to exogenous
systems (EACHA framework/EBA Step2)
•
SWIFT allows connectivity to Settlement
Systems (TARGET2)
•
Minimizes footprint at the bank side (reuse of
SWIFT infrastructure) and FTE spending for
maintenance and monitoring
•
Minimizes up-front set up and negotiations
between parties
•
Span of messaging services available
E
x
p
a
n
s
i
o
n
a
n
d
r
e
u
s
e
Benefits of using SWIFT
5
The Romanian banks’ vision
A total solution for payment and settlement systems
•
Correspondent banks
•
ReGIS (HVP)
•
SAFIR (Securities)
•
TARGET2 (HVP)
•
SENT (LVP)
•
Regulatory Reporting
•
…
Benefit from SWIFT’s security, reliability, availability
while reusing their existing infrastructure
+ 1-2 other
Networks
(Card network,…)
HVP: High Value Payments
LVP: Low Value Payments
SENT pricing via SWIFTNet
•
New price model common for all LVP MIs, the exact price level will be
function of market conditions (LVP MI volumes, traffic patterns)
•
T
h
e
p
e
r
t
r
a
n
s
a
c
t
i
o
n
f
e
e
i
n
S
E
N
T
f
o
r
p
a
y
m
e
n
t
s
i
n
f
i
l
e
s
(
w
i
t
h
o
r
w
i
t
h
o
u
t
i
m
a
g
e
s
)
i
s
0
.
0
0
0
7
E
U
R
/
t
r
a
n
s
a
c
t
i
o
n
–
10,000 payments for 7 EUR
–
100,000 payments for 70 EUR
–
1 million payments for 700 EUR
–
10 million payments for 7,000 EUR
•
Bulk payments, but with no need to count transactions, SWIFT will
divide the file (size) by the set transaction size
•
SENT CUG would be reverse billed, banks pay for files sent &
received – TransFonD does not pay
•
Increased security and reliability of file transfer
•
Decreases the per message SWIFT infratsructure costs, a step
further for higher global tier
6
Why move to the additional SENT SWIFT
channel?
•
Price = cost saving, lower TCO than proprietary network cost (when
compared)
•
Easy technical project
–
no change to normal files, you just
change the directory
where you
send/receive the files (for the automation to pick up/send the files)
–
More secure and reliable network with financial guarantee for files
•
Preparation for any file-based project (domestic or international)
•
Preparation for the future: SEPA
7
8
Conclusion
Reliable,
secure,
global reach,
cost effective
solution
Assist
TransFonD
in reducing
costs and focus on
value added
offering
Enable
standardisation
of the
end-to-end
domestic and
international
ACH
transactions
A partnership between TransFonD and SWIFT
adds value to the Romanian banking community
and to your bank
Contact details of Stephan Kraft, your country
manager
S
t
e
p
h
a
n
K
r
a
f
t
Senior Account Director
SWIFT Austria GmbH
Fischhof 3/6
1010 Vienna, Austria
tel: +43 1 740 40 2374
mobile: +43 664 636 2090
email:
stephan.kraft@swift.com
9
Thank you
The European trend for Customer Service Managers (CSMs) and its implications for the SWIFT System for ElectrONic Transfer (SENT) are discussed in this presentation by Judit Baracs. It covers low-value payment systems on SWIFT, benefits of using SWIFT, predictability of costs, SWIFT's connectivity advantages, and the vision of Romanian banks for payment and settlement systems.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
European Trend for CSMs what does this mean for SENT? Judit Baracs, Senior Account Director Payments Markets CEE 9 June 2011, Bucharest
Low value payment systems on SWIFT Nets (NO+DK) Eurogiro (EU) BGC (SE) KIR (PL) Equens (NL) RPS (DE) VocaLink (GB) CSA (AT) RPS (IE) FINA (HR) EBA (EU) Borica-Bankservice (BG) Dias (GR) Iberpay (ES) SIA-SSB (IT) ICCREA (IT) Equens (IT) BECS (AU) ACH (CO) ACH (UG) ACH (TZ) Bankserv (ZA) LVP System (NZ) More than 7 billion transactions on SWIFT already 2
Benefits of using SWIFT Thousands banks 600+ corporates 19+ Retail payments systems (e.g.: ACHs) 60+ high value payment systems (e.g. : Target2) Global market reach Supports both proprietary or standard format Same infrastructure for all currencies Credit transfer, direct debit, cheque Flexible exchange method to cope with each local clearing community requirement Interoperability and flexibility Closed business community Single security and file transfer Non-repudiation (proof of sender) Reliability and availability (99.999% uptime) Cost efficiencies
Benefits of using SWIFT Predictability of costs (rebate based vs surcharge based for VPNs) Clearer TCO on SWIFT side mutualisation of means, prices decreasing over time Any additional traffic has indirect impact on banks SWIFT tiering Compared to VPNs SWIFT allows connecting to exogenous systems (EACHA framework/EBA Step2) SWIFT allows connectivity to Settlement Systems (TARGET2) Minimizes footprint at the bank side (reuse of SWIFT infrastructure) and FTE spending for maintenance and monitoring Minimizes up-front set up and negotiations between parties Span of messaging services available Expansion and reuse 24/7 availability Business and technical support included Security is a must and part of base offer delivery and authentication options available SWIFT includes an insurance coverage SWIFT Premium service
The Romanian banks vision A total solution for payment and settlement systems Correspondent banks ReGIS (HVP) SAFIR (Securities) TARGET2 (HVP) SWIFT SENT (LVP) Regulatory Reporting + 1-2 other Networks (Card network, ) Benefit from SWIFT s security, reliability, availability while reusing their existing infrastructure 5 HVP: High Value Payments LVP: Low Value Payments
SENT pricing via SWIFTNet New price model common for all LVP MIs, the exact price level will be function of market conditions (LVP MI volumes, traffic patterns) The per transaction fee in SENT for payments in files (with or without images) is 0.0007 EUR/transaction 10,000 payments for 7 EUR 100,000 payments for 70 EUR 1 million payments for 700 EUR 10 million payments for 7,000 EUR Bulk payments, but with no need to count transactions, SWIFT will divide the file (size) by the set transaction size SENT CUG would be reverse billed, banks pay for files sent & received TransFonD does not pay Increased security and reliability of file transfer Decreases the per message SWIFT infratsructure costs, a step further for higher global tier 6
Why move to the additional SENT SWIFT channel? Price = cost saving, lower TCO than proprietary network cost (when compared) Easy technical project no change to normal files, you just change the directory where you send/receive the files (for the automation to pick up/send the files) More secure and reliable network with financial guarantee for files Preparation for any file-based project (domestic or international) Preparation for the future: SEPA 7
Conclusion Enable Assist TransFonD in reducing costs and focus on value added offering standardisation of the end-to-end domestic and international ACH transactions Reliable, secure, global reach, cost effective solution A partnership between TransFonD and SWIFT adds value to the Romanian banking community and to your bank 8
Contact details of Stephan Kraft, your country manager Stephan Kraft Senior Account Director SWIFT Austria GmbH Fischhof 3/6 1010 Vienna, Austria tel: +43 1 740 40 2374 mobile: +43 664 636 2090 email: stephan.kraft@swift.com 9
