Making ISO 20022 work - Victor Abbeloos

SWIFT Business Forum

Frankfurt 2015

Making ISO 20022 work

Victor Abbeloos, Senior Manager, SWIFT

Frankfurt, 22 April 2015

for ISO 20022

Making ISO 20022 work

Agenda

• Global adoption trends

• Industry harmonisation

• Implementation considerations

• Focus on TARGET2/EBA EURO1/STEP1

3

SWIFT is

not

mandating

migration

SWIFT will

continue

to support

FIN

Market Infrastructures – Global ISO 20022 adoption

Payments and securities initiatives

200 initiatives Under discussion > planned > rollout > live

90 countries

Europe Asia Pacific

Americas Middle East &Africa

ISO 20022 adoption - context

Financial

institutions

Comply with MI

Internal optimisation

Flexible services to

customers

MI Banks Banks’ customers Market

infrastructures

Enable new services

Streamline end-to-end

business processes

Facilitate regional

integration

6

Agenda



• Implementation considerations for financial

institutions


7

8

Less variation,

more global

market practice

Provide a predictable

environment for

MI communities

(versions, release

mgmt..)

Best practice sharing for community

adoption & implementation

1

2

3

Towards a harmonised use of ISO 20022

SWIFT’s community management

Agenda



• Implementation considerations


9

A bank’s ISO 20022 landscape

Your participation to

Market

Infrastructures

2017 2016 2015 Step2

EURO1/

STEP1

Baltic CSDs

ACH CENIT (CO)

Securities

2018

& beyond

Your customers

(corporates and banks)

2016 2017 2015 2018

& beyond

Payments

10

A bank’s ISO 20022 landscape

11

Market Infrastructures

2017 2016 2015 Step2

EURO1/

STEP1

Baltic CSDs

ACH CENIT (CO)

Payments

Securities

2018

& beyond

Your customers

(corporates, branches

and banks)

2016 2017 2015 2018

& beyond

How to

prepare, plan

& budget for

MI imple-

mentations

How to

internalise

ISO 20022

in your

infrastructure

How to offer

flexible

services to your

customers

12

Two approaches to implementation

ISO 20022

adoption

Strategic Global

Tactical

Specific

Agenda



• Implementation considerations for financial

institutions


13

Standards

High Value Payment System (HVPS) guidelines

14

Agreement about how global standards should be used to meet local or specific business needs

and/or regulatory requirements in order to guarantee efficient execution of a financial transaction.

What?

> Ensure that ISO 20022-

based RTGS is

Implemented consistently

Why?

Example: High Value Payment System (HVPS) guidelines

> ‘Like-for-like’ backward

compatibility with existing

(MT) standard

How?

Sponsored by

Payments

Market

Practice

Group (PMPG)

What?

> Formal usage guidelines

> Translation rules to/from MT

> Communication flows

MyStandards

> Published on

MyStandards

> Documentation

(PDF, XLS)

> Processable formats

(XSD)

Available today!

pacs.008

pacs.009

pacs.010

• Closed user group

• Message validation

• PKI based security

• Archival and retrieval

• Copy services

• Support ISO 20022

Authorisation

request Authorisation

response

pacs

008/009/010

(copy)

Payment

Instruction Autorised/settled

Payment Instruction

Sender Notification

pacs.008

pacs.009

pacs.010

xsys.002

xsys.001

Abort Notification

xsys.003

SWIFT’s offering for HVP MIs adopting ISO 20022 Tomorrow’s SWIFTNet Copy environment

Based on T2 implementation

MT

20022 Live

Adopt Implement

& Test

Phase 1

Like-for-like

Use

Full usage

of MX

Full MX

‘Like-for-like’ = an approach that reduces the richer

functionality of ISO 20022 to the functionality

currently covered by the MT messages.

It is an intermediate step towards full

implementation of ISO 20022.

L I V E

Nov 2017

Target 2/EURO1/STEP1 ISO20022 adoption strategy

o MT/FIN Y-Copy to InterAct SWIFTNet Y-Copy

ISO

20022

Live

Adopt Implement/

Test

Phase 1 Use

Phase 2

Start

Participant

timeline Decision/

Define

strategy

Implement

tactical or

full usage

of MX

Phased /

Like for Like

approach

Full MX

Full MX

Participants timeline

Full MX usage phase

Nov 2017 2020? Now

Adopt

Decision/analysis phase Imple-

ment

Use-

Phase

1

Implement/test Like-for-like Use-

Phase

2

Implementation approaches

A

B

A strategic approach

A tactical approach

SWIFT

FOR

ISO20022 18

SWIFT services to support your strategic roadmap

19

o Customized ISO 20022

Impact Overview – your

landscape

o Workshop to establish full

‘as-is’, ideal solution cross-

check through ‘think inside

the box’ approach

o Impact Analysis on

business flows, processes

and messaging patterns

o Recommendations on

future operational model

Our Solution Your Benefits Your Challenges

o Accelerate, reduce risk

and cost

o Create a well-informed

ISO 20022

Implementation

Roadmap

o Adopt best-in class

practices in line with

international practices

upcoming initiatives

o Business,

Implementation and

Standards expertise

directly from the source

and rely on quality that

you can trust

o Get a full internal & external

overview of all ISO 20022

initiatives that impact your

organization

o Centralize business, technical

and standards knowledge

o Establish your global ‘as-is’;

and common end solution

o Design future-proof ISO

20022 Implementation

ISO 20022 Impact Assessment

for Banks

20

o Deep expertise on each of

4 layers – business, data,

application, technology

o Multi-format assistance to

match your needs –

assessment, best practice

sharing, co-creation

workshops, detailing

specific aspects

o You hire a consultant, and

get the full company

o One-stop-shop, from

knowledge to implementation

o Pragmatic approach, scalable

to meet your needs

o Effectiveness combined with

efficiency

o Design, Implementation and

Standards expertise directly

from the ISO 20022 source

Our Solution Your Benefits Your Challenges

o Discover the architectural

capabilities required to support

the ISO 20022 business

advantages

o Ensure tactical solutions align

with long-term architectural

strategy

o Governance of company-wide

changes

o Apply a single data model across

your portfolio

ISO 20022 Solution Design

for Banks

SWIFT services to support your strategic roadmap

MyStandards

& readiness

portal

MI multi-format documentation

MI integration components (XSDs, deployment packs)

MI CUG set-up & joining

MI self-service internet testing

MI

A

MI

B

You

Your customers

+ Compare and analyse versions

+ Compare and analyse market practice of multiple market infrastructures

+ Create your own internal and customer guidelines

+ Offer your customers the same easy onboarding experience

MyStandards

& readiness

portal

MyStandards for you and your customers

ISO 20022

impact

assessment

service

Solution

design

service 1.

2.

Full MX usage phase

Nov 2017 2020? Now

Adopt


ment

Use-

Phase

1


Phase

2

Strategic

interface

choice

(AMH, Access /

IPLA, SIL)

Temporarily

shielding

(HVP

Converter)

Integration of other

MI flows based on

ISO 20022

MyStandards

3.

Implement

mapping for

other MI

practices

22

Participants products and services timeline


Full MX usage phase

Nov 2017 2020? Now

Adopt


ment

Use-

Phase

1


Phase

2

A

B


A tactical approach

23

Implementation approaches

• ISO20022 messages for

High Value Payments

• T2 ‘Like-for-like’ message

format overview

HVP Readiness Services

Awareness

2. T2/E1 Business Analysis

Implementation

Analysis • Business Flows

• Messaging services

• Format & protocol

• Shared services

(sanctions screening, archiving,…)

• Infrastructure architecture

Design YOUR internal Business case:

implementation/transformation efforts

1. Training

• Install and configure HVP Converter

• Integrate back office application

with HVP converter

• Certify readiness and compliance

• Assist with testing and Go-Live

SWIFT for ISO 20022 - Products and services to

support a tactical approach

3. HVP Converter

High-level view of HVP Converter

Connectivity: AFT, MQHA, SOAPHA

MT Usage Guidelines Validation tentative

Block 4 – MX mappings

FIN to InterAct mediation

MT:103(+),202(COV),204,900,910

pacs.008,009,010,camt.054

MT:ACK,012,019

MX: ACK,xsys.002,xsys.003

HVP MX Usage Guidelines Validation

AU

DIT

Reuse the existing connectivity

Provide mappings according to

HVP T2 specifications, available in

MyStandards

Mediate FIN to InterAct and vice

versa – make ISO 20022 adaption

transparent to FIN aware back-

office

Validate MT messages against HVP

T2 specifications

Validate MX messages against

HVP Usage Guidelines

Pre

mis

es

SW

IFT

Ne

t

SWIFT FOR ISO20022 25

Why SWIFT for ISO 20022?

Efficient community

management

Resilient messaging platform

Standards expertise

Unequalled contribution to ISO 20022

SWIFT - the trusted source for your ISO 20022 initiative

Trusted consulting partners for more ISO 20022 initiatives globally than anyone else

Only worldwide value-added network designed specifically for ISO 20022

Highest standards of reliability, availability and security

Selected as platform provider for key ISO 20022 initiatives in payments and securities

Forty years of community expertise Unique tools and established processes to support communities

for ISO 20022

Making ISO 20022 work - Victor Abbeloos

Economy & Finance

Transcript of Making ISO 20022 work - Victor Abbeloos