Damien

Dugauquier

As the Commercial Director

(Corporates) for ASEAN,

Damien is based in Singapore

and is responsible for SWIFT

commercial activities for non-

financial institutions in the

ASEAN region. Damien

represents SWIFT at various

Conferences on Treasury,

Cash Management and Trade

Finance.

The Presenter:

Corporate-to-Bank

SWIFT Integration

CS Lucas Webinar

Damien Dugauquier, Commercial Director –

Corporates (damien.dugauquier@swift.com)

June 2016

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

Who is SWIFT

SWIFT for

CorporatesCorrespondent banks

Cash management

Treasury management

Trade Finance

Correspondent banks

Cash management

Treasury management

Trade Finance

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

SWIFT versus

multiple bank

channelsCorporate

Accounts

payable

Accounts

receivable

Treasury

Other

Standardised

gateway

Corporate

e-banking Y

host to host X

e-banking Z

VAN

Internet

Leased

line

Accounts

payable

Accounts

receivable

Treasury

Other

Multiple bank channels Single, standardised gateway

▼ Multiple Banking

Relationships

▼ Expensive and Complex

▼ Multiple File Formats

▼ Multiple Channels

▲ Flexibility to select

banking partners

▲ Scalable and Interoperable

▲ Single File Format

▲ Single channel

Benefits of

SWIFTCash visibility Know where your cash is

Control of cash Central control to move cash

Consistent payment processes Same process and controls globally

Standardized bank comms Easier to connect banks

Single interface to banks Reduce IT risk and cost

Single interface to G/L Reduce IT costs

Global coverage SWIFT standards used globally and

across Asia

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

Mo

de

lsCash visibility ranked as #1 priority

Operational efficiency and costs

Risk management

Ch

alle

ng

es

Centralization of treasury and

operations

Automation of processing and reconciliation

Ta

rg

ets

ERP and TMS

investments

Harmonisation of

file formats

Consolidation of

connectivity

channelsE

na

ble

rs

Trends in

treasury

operations

How does it

work

13

SWIFT interface

(e.g. Lite2)

AutoClient

VPN SWIFTNet

AllianceLite2

Server

/emission /reception /error/archiveTMS

ERP

Corporate back-office

Standardized formats for:

• Fund transfers (payments)

• Confirmations (FX, placements)

• Cash positions (bank statements)

Standardized formats for:

• Payroll, ACH payments,

telegraphic transfer, …

• Reconciliation (bank statements)

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

Corporate-to-

bank

connectivity

options E-banking/Letters Host-to-Host SWIFT

Automation/manual • Manual • Partial automation • Full automation

Formats• Bank interface / bank

template

• Banks proprietary formats • Standardized SWIFT

formats

Cost• Internal cost (manual

work)

• IT cost to develop format

and H2H with each banks

• SWIFT cost

Channel • No integration between

ERP/TMS and banks

• Multiple channels between

SAP/TMS and banks

• One channel to all banks

Flexibility• Additional tokens /

templates per bank

• No flexibility • Can reuse single channel

and standardized formats

with all banks

Risk

• Operational risks

• Downtime

• Operational risks (control

and IT)

• Downtime

• Reduce operational risks

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

• Cost of developing and maintaining Host-to-Host or semi-

automated systems, e.g. macro in Excel

Operational

savingsIT

savings

Financial

benefits

Additional

benefits

• Time spent on e-banking

• Time spent on manual reconciliation

• Time spent on investigation/fixing of rejected payments

• Time spent on Excel

• Time spent creating payment files, emails, paper

instructions

• Working capital optimization and growth avoidance

# basis points improvement, % slow down in growth, Use un-

invested cash, Reduce overdraft and borrowing cost

• Interest on payments released later

# days * overnight interest

• Transaction efficiencies

Fees for rejected payments, savings on new cash

management mandate, savings on TTs

• Avoidance of fraud, Less control points, Less

documentation, …

• Flexibility to change banks

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

Typical project

milestones

Implementation

3-9 months

Joining Process

1-2 months

1. Submit join SWIFT request

2. Provide documents required

for KYC:.

• Certificate of incorporation (with copy in

English if original document in local

language),

• The Latest annual report with external

financial auditor's opinion

• The copy of the identity cards (passport) or

driver's license of the two security officers

• The list of authorised signatures having the

authority to sign on behalf of the company,

• The original Technical Configuration form

(Undertaking e-form) duly signed,

• The recommendation letter from a SCORE

Financial institution located in a FATF

member country

3. SWIFT code attribution

1. Deployment of SWIFT Alliance

2. Back-office enhancement & Discussion with banks

3. Test and go live

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

Typical

Corporate

Journey on

SWIFT

MT940 (& MT101) MT101 and ISO20022 MT300, MT320, MT798

Cash visibility and

reconciliation

Standardization and

automation of Payments

Treasury operational

excellence

Automate the reception

of bank statements &

potentially centralize

treasury payments

Automate and

standardize the

processes for all

payments

Benefits

• Consolidated and reliable

view on cash positions

• Enables auto-reconciliation

Systems

TMS, ERP, dashboards

Benefits

• Scalability and bank

agnostic

• Reduce operational risks

• Reduce costs

Systems

ERP

Automate and digitize the

communication with

banks for other treasury

activities

Benefits

• Reduce operational risks

• Reduce costs

• Better control and visibility

Systems

ERP, TMS, other systems

Agenda 1. Who is SWIFT

2. Advantages of using SWIFT over e-banking

3. Treasury trends, integration with Treasury Management system and functionalities

4. Pros and Cons

5. Building your business case

6. On-boarding process and timeframe

7. Typical journey of a corporate on SWIFT

8. Q&A

CS LUCAS SOLUTION

A 360° solution for treasury, hedging and

investment activities of a company.

ABOUT CS LUCAS

Established 1996

Intuitive – Workable – Exceptional Value

In-depth multi-industry experience

Client Industry

SMRT Corporation Transportation

ComfortDelGro Corporation Limited Transportation

CapitaMalls Asia Limited Real Estate/REITs

Ascendas Land Singapore Pte Ltd Real Estate/REITs and Public Sector

Singapore Deposit Insurance Corporation Ltd Financial Services/Public Sector

British Malayan Trustee Limited Financial Services/Trusts

Crown Rising International Limited Financial Services/Fund Management

Sembcorp Financial Services Pte Ltd Financial Services

MOH Holdings Pte Ltd Public Sector

Singapore Petroleum Company Limited Oil & Gas

Tata NYK Shipping Pte Ltd Shipping

RGE Pte Ltd Commodities

Natsteel Holdings Pte Ltd Construction

International Container Terminal Services, Inc. Transportation/Logistics

Metro Pacific Investments Corporation Holdings/Investment Firm

CLIENT AND INDUSTRY

Clients include public sector agencies and well-

established companies from different industry sectors.

KEY FEATURES

Designed to centralise and facilitate collaborative

work, increases the productivity.

Straight-through

processing

Accounting system

integration

Real-time connectivity

E-banking platform

integration

Online collaboration

Multi-currency support

Auditable trail

Institutional grade

securityScalability

www.cslucas.com