Slide 1 SWIFTNet solution for bulk payments processing in Albania Joëlle Lockman Business Manager...

SWIFTNet solution for bulk payments processing in Albania

Joëlle LockmanBusiness Manager

Banking Market InfrastructuresTirana, 17 November 2004

Agenda

SWIFTNet expands the optionsSWIFTNet expands the options

SWIFTNet solution for ACHsSWIFTNet solution for ACHs

Recommended configurations and related costsRecommended configurations and related costs

Benefits for ACHs and financial institutionsBenefits for ACHs and financial institutions

SWIFTNet interfacesSWIFTNet interfaces

PricingPricing

how SWIFT is helping the industry improve efficiency and reduce costs in the area of low value / retail payments

Speed

Hugevolumes

Moderate Volumes

High-valuepayment by payment

FIN

Interactive queriesInteractive queriesand commandsand commands

Bulk paymentsBulk paymentsReportingReporting

Central databaseCentral database viewingviewing

InterAct

Browse

FileActFileAct

SWIFTNet expands the options

SWIFT provides a total solutionfor payments and settlement systems

Automated clearing houses

Bulk payments

Real-time gross settlement systems

Settlement instructions

FIN FIN Copy InterAct FileAct

Central securities depositories

DVP instructions

Real-time query/control

Reporting

Settlement instructions

Real-time query/control Real-time query/control

Reporting

Banking correspondents

Payments

Bulk payments

R-t cash reporting

Settlementinstructions

Bank A Bank B

payment messagepayment messageSWIFTNet SWIFTNet FIN CopyFIN Copy

Central SWIFT interfaceCentral SWIFT interface

Payment processingPayment processingBank ABank A Bank BBank B

SWIFTNet servicesSWIFTNet services FIN/FIN CopyFIN/FIN Copy

settlement settlement

requestrequest

authorisation/ authorisation/

refusalrefusal

SWIFTNetSWIFTNet

Payment module (PM)

Information & controlInformation & control module (ICM)module (ICM)

Internal Internal payment systempayment system

SWIFT interfaceSWIFT interface

SWIFTNet BrowseSWIFTNet Browse

On-line visualisation of On-line visualisation of informationinformation

SWIFTNet InterActSWIFTNet InterAct

Real-time cash reportingReal-time cash reporting

SWIFTNet FileActSWIFTNet FileAct

Real-time reportingReal-time reporting

SWIFTNet infrastructure for SSP

SWIFTNet FINSWIFTNet FIN

SWIFTSolution for bank-to-ACH

Live EBA STEP2EBA STEP2 EuroEuro GiroGiro

Plan BACS (UK) BACS (UK) BGC (SE)BGC (SE)EPN (US)EPN (US)GIRO (SI)GIRO (SI)InterPay (NL)InterPay (NL)ACH (TZ)ACH (TZ)

Status – October 2004

Agenda






PricingPricing

SWIFTNet FileAct addressesyour present end-to-end bulk payment needs

FinancialInstitution

Customer Customer

FinancialInstitution

AutomatedClearingHouse

Standardised file transfer platform

Support of existing file formats

Global reach

Highly secure and cost effective

SWIFTNet FileAct

SWIFTNet FileAct

SWIFTNet FileAct

SWIFTNet solutionfor bank-to-ACH bulk payments

■ ACH acting as a service provider:

– Administers its dedicated SWIFTNet closed user group

– Defines use of FileAct in many-to-one or many-to-many topology

– Decides on use of InterAct, Browse and FIN

– Develops and sells bulk payments processing service

■ Financial institutions access ACH over existing SWIFTNet connectivity

Solution for bank-to-ACH bulk payments

SWIFTNet FileAct

ACH

SWIFTNet InterActSWIFTNet InterActSWIFTNet InterActSWIFTNet InterAct• Interactive messageInteractive message

exchange between two partiesexchange between two parties

SWIFTNet FileActSWIFTNet FileActSWIFTNet FileActSWIFTNet FileAct • Interactive exchange of files Interactive exchange of files between two partiesbetween two parties

SWIFTNet Services for bulk payment solution

SWIFTNet BrowseSWIFTNet BrowseSWIFTNet BrowseSWIFTNet Browse• Provides https-based access to Provides https-based access to

visual content on webservers visual content on webservers from desktopsfrom desktops

SWIFTNet FINSWIFTNet FINSWIFTNet FINSWIFTNet FIN• Standard store&forward Standard store&forward

messaging for single instructionsmessaging for single instructions

Closed User GroupClosed User GroupClosed User GroupClosed User Group• Ensured restricted Ensured restricted access to the access to the

serviceservice

Complemented with SWIFTNet PKI and SWIFTXML standards

Three complementary core SWIFTNet messaging services

SWIFTNet InterAct

SWIFTNet FileAct

SWIFTNet Browse

SWIFTNet messaging

Messaging

File transfer

Browsing

Secure, reliable, and STP-oriented. Appropriate for exchange of individual structured financial messages and short reports.

Secure, reliable, and flexible. Appropriate for exchange of batches of structured financial messages and large reports

Secure browsing with standard internet technologies. Appropriate for data exchange in thin-client browser-based financial solutions. To be used with SWIFTNet InterAct and FileAct.

All solutions are based on SWIFTNet FileAct

File transfer initiation

Delivery notification (optional)

Sender Receiver

Actual file transfer

File transfer status

File transfer status

1

2

3

■ Authenticity, integrity, confidentiality, non-repudiation

■ Flexible central routing

■ Any type of file up to 250Mb, compression supported

Real-time file download

SWIFTNet FileAct is used in real-time and store-and-forward mode

Typically used to reach a large number of counterparties

Store-and-forward file

transfer

Typically used in the context of person-to-application solutions (with SWIFTNet Browse)

■ Example:

■ Used in store & forward mode by service provider as sender of files

■ Directory delivered to (requested by) participants in real-time pull mode

Store-and-forward file

transfer

Key characteristics of SWIFTNet FileAct

Any file content (structure and character set) Files size up to 250 MbFlexibleFlexibleFlexibleFlexible

Highly Highly securesecureHighly Highly securesecure

Secured with SWIFTNet PKI (managed certificates) Encryption, authentication and integrity control Non-repudiation Closed user group control SIPN

Highly Highly reliablereliableHighly Highly reliablereliable

Highly available operations Store-and-forward Delivery notification Highly reliable file transfer protocol

Lower priority vs. SWIFTNet InterAct / SWIFTNet FIN Flexible central routingOtherOtherOtherOther


SWIFTNet InterAct

SWIFTNet FileAct

SWIFTNet Browse

SWIFTNet messaging

Messaging

File transfer

Browsing




SWIFTNet Browse overview

Service user

Workstation(running SWIFTAlliance

WebStation and a standard Browser)

Web Server andSWIFTNet Link*

Service provider

SWIFTNet Browse enables secure browser-based access (over SIPN) from an operator using a standard browser and SWIFTAlliance

WebStation to a service provider’s web server

SWIFTNet

* Typically used in conjunction with SWIFTAlliance Gateway

SWIFTNet Browse overviewSWIFTNet Browse transparently combines two communication mechanisms

Service user

Workstation Web Server +SNL

Service provider

SWIFTNet Browse allows to initiate InterAct or FileAct exchanges via a secure browser link. By doing so sensitive data can be exchanged with all the security

and reliability inherent to the SWIFTNet platform, while preserving the benefits of a browser-based environment.

SWIFTNet

HTTP-S

InterAct/FileAct

HTTP-S channel only authenticates the system of the end user

Using non-managed Web certificates

InterAct / FileAct channel authenticates

the end userUsing managed SWIFTNet PKI certificates

E.GriegF.Chopin

User access rights

User ok? Limits

75,00050,000Mr E.Grieg

Key characteristics of SWIFTNet Browse (when used with SWIFTNet InterAct/FileAct)

Highly secure Highly secure & reliable& reliable

Highly secure Highly secure & reliable& reliable

Integration with SWIFTNet InterAct / FileAct for security sensitive data

HTTP-S exchanges secured with web-certificates for non-sensitive / un-structured exchanges

Closed User Group control SIPN

Standard Standard technologiestechnologies

Standard Standard technologiestechnologies

Client uses standard browser to navigate HTTP-S for screens and InterAct for transactions or

FileAct for file transfers

Re-utilisation of existing SWIFTNet infrastructureSingle Single

WindowWindowSingle Single

WindowWindow

Thin clientThin clientThin clientThin client Service provider does not install software at

client side


SWIFTNet InterAct

SWIFTNet FileAct

SWIFTNet Browse

SWIFTNet messaging

Messages

Files

Browsing




Real-time query &

response

SWIFTNet InterAct is used in real-time mode query & response

Used either in the context of person-to-application solutions (with SAB) or application-to-application (with SAG)

■ SWIFTNet InterAct Q& R: interactive exchange of information for messages that are time-critical and need an instant response

■ New message types will be introduced as ISO XML messages for SWIFTNet InterAct : cash management standards

■ Access to the web server through SWIFTNet Interact:

– Managing the payments queue

– Liquidity management

– Management of reservation and limits

Key characteristics of SWIFTNet InterAct

Highly Highly securesecureHighly Highly securesecure

Secured with SWIFTNet PKI (managed certificates) Encryption, authentication and integrity control Non-repudiation Closed user group control SIPN

Highly Highly reliablereliableHighly Highly reliablereliable

Highly available operations Store-and-forward Delivery notification

Message validation (central application level) XML-based

STP STP orientedoriented

STP STP orientedoriented

Short messages (max 100 K; recommended < 20 K for RT) Higher priority vs. SWIFTNet FileAct Flexible central routing

OtherOtherOtherOther

Download our business brochurefrom swift.comwww.swift.com

www.swift.com

Agenda






PricingPricing

Our file transfer interfaces provide ...

■ Technical interoperability. SWIFTNet FileAct establishes compatibility between the interfaces

■ Easy integration with file transfer middleware. Support of Sterling Commerce’s CONNECT, IBM MQSeries and other middleware products

■ Manual and automated operations. WebStation-based GUI and Gateway-based automation

Communication topology forperson-to-application file transfer (only)

(1) SWIFTNet FileAct for the file transfer in push and pull modes

SWIFTNet

(1)

SWIFT

Service user

User workstation

W2KW2K

SWIFTAllianceWebStation

browserbrowser

Service provider

CustomerCustomer

BusinessBusinessapplicationapplication

Filetransfer GUI FileAct W2K / UNIXW2K / UNIX

SWIFTAllianceGateway

Communication topology for person-to-application messaging, file transfer, browsing

(1) SWIFTNet InterAct for information updates and transaction input(2) SWIFTNet FileAct for the file transfer in push and pull modes(3) SWIFTNet Browse for information browsing, status monitoring

SWIFTNet

Browse (https)

InterAct and FileAct

(3)

(2)

(1)

SWIFT

Service user

User workstation

W2KW2K

SWIFTAllianceWebStation

Service provider

Web serverWeb server

BusinessBusinessapplicationapplication

W2K / UNIXW2K / UNIX

SWIFTAllianceGateway

CustomerCustomer

browserbrowser

Agenda






PricingPricing

SWIFTAlliance Gateway – Licensing & pricing ‘An easy step approach’

Profile 1 :“WebStation Concentration”

Benefits :-Flexible SAB deployment-From 5 till 320 concurrent users

Price :Starts at 7,500 (5 users)

Profile 2 :“Automated “

Benefits :-Off-the-shelf application integration using Agents(FTA or TDA for < 200 InterAct or FileAct per day)-Flexible SAB deployment-From 1 till 320 concurrent users

Price :Starts at 14,000$ (1 User, 1 Agent)

Availability: as of May 2004

Profile 3:“Single Window”

Benefits :-Can reside in DMZ-Scalability & resource optimisation-Resilience -Off-the-shelf application integration using Agents(FTA or TDA)-Flexible SAB deployment-From 5 till 320 concurrent users

Price :Starts at 30,000$ (5 Users, 1 Agent, 1 Host Adapter)+Traffic license

SWIFTAllianceStarter Set

Benefits :-FileAct out-of-the box-1 user

Price :4,750$

2,850$

6,500$

16,000$

Configurations

■ Recommended configuration for participants :

– SWIFTAlliance Starter Set Base fee 4.750 USD

■ Recommended configuration for Service Provider :

– SWIFTAlliance Gateway Single WindowBase fee is 30,000 USD + 1 SAB 2,250 USD

SWIFTAlliance Starter Set (SAS)What is it ?■ A software that leverages the SAE/SAA platform to provide out-of-

the-box file transfer and browsing capabilities

Benefits■ A software that allows the customer for a “controlled evolution to

more servicesservices”■ “Evolutionary” software software solution

Characteristics

■ SAS, SAA/SAE & SNL run on the same system

■ Allows one concurrent operator (SAB)

■ SAS is available on Windows and AIX/Solaris

■ SAS include the SAB software

SAE/SAA

SAS

SAB

SNL

Participant configuration with SAS

■ SAA & SAE users need one SAB user

■ SWIFTAlliance Starter Set (SAS)

– One concurrent user

– Manual File Transfer

– Cost: USD 4.750 one time + USD 1.350 per year

Contractual / Administrative efforts

■ All : Install SWIFTNet connectivity -> done

■ Participants : order SWIFTNet SAB, SAS or SAG -> 4 weeks

■ Service provider : order SAG -> 4 weeks

■ All : Complete MSSF(*) Form to activate Service at SWIFT (= ordering SWIFTNet FileAct ) -> 3 weeks

■ Set-up Closed User Group -> 3 months

* MSSF = Message Service Subscription Form

Download our technical brochurefrom swift.comwww.swift.com

www.swift.com

Agenda






PricingPricing

FileAct pricing example for a file sent by large Albanian institutions on year 1

■ A file of 6,000 low-value payment instructions of 200 bytes each, compressed at a ratio of 80%, results in a file of 400K which costs per global tier:

– GT 1: 11.91 euro / file; 0.0012 euro / instruction (1)

– GT 1: 10.78 euro/file; 0.0011 euro/ instruction (2)

– Annual cost per year (300.000 transactions/year):

2,382 euro/year (1) or 2,156 euro/year (2)Note:This includes managed file transfer, user-to-user PKI authentication, user-to-SWIFT encryption, routing, integration, (1) non-repudiation of emission (extra charge included above) and delivery notification (extra charge included above), (2) does not include non-repudiation and delivery notification.

FileAct pricing example for a file sent by large Albanian institutions at ramp-up




– Annual cost per year (6.000.000 transactions/year):

3,664 euro/year (1) or 3,322 euro/year (2)

Note:This includes managed file transfer, user-to-user PKI authentication, user-to-SWIFT encryption, routing, integration, (1) non-repudiation of emission (extra charge included above) and delivery notification (extra charge included above), (2) does not include non-repudiation and delivery notification.

FileAct pricing example for a file sent by medium Albanian institutions on year 1

■ A file of 350 low-value payment instructions of 200 bytes each, compressed at a ratio of 80%, results in a file of 25K which costs per global tier:




236 euro/year (1) or 204 euro/year (2)


FileAct pricing example for a file sent by medium Albanian institutions at ramp-up




– Annual cost per year (1.400.000 transactions/year):



FileAct pricing example for a file sent by small Albanian institutions on year 1

■ A file of 100 low-value payment instructions of 200 bytes each, compressed at a ratio of 80%, results in a file of 10K which costs per global tier:




760 euro/year (1) or 580 euro/year (2)


FileAct pricing example for a file sent by small Albanian institutions at ramp-up







I wish to assess the cost savings of using SWIFTNet FileAct vs. existing file transfer

■ Via your relationship manager– Request the Bulk Payments/FileAct pricing simulator

– Calculate the real FileAct fees and compare to your existing TOC of existing proprietary links

Agenda






PricingPricing

Extending your SWIFT benefitsfrom single payments (RTGS, wholesale)

to bulk payments (ACH, retail)

Addressing your present and future needs

XML Payments

Standards

Standardising the end-to-end transactions:

To reduce number of proprietaryformats and increase end-to-end STP

2

SWIFTNet

FileAct

1 Standardising the communications layers:

To reduce number of proprietary links

To help remote access to your ACH business

Immediate cost savingsthrough re-use of SWIFTNet connectivity

Re-use of SWIFTNet IP connectivity

Re-use of SWIFTNet Link and SWIFTNet PKI

Re-use of SWIFTAlliance WebStation

including File transfer GUI (free of charge)

Re-use of SWIFTAlliance Gateway

adding file transfer interface (FTA, C:D) or host adapter (RAHA)

Re-use of SWIFTNet expertise

No fixed fees per correspondent

volume-based SWIFTNet FileAct fees

Benefits for service providersLeverage the industry platform … SWIFTNet

■ Focus on your core competencies and increase your key differentiators

■ Extend your reach

■ Migrate from proprietary messaging to standardised messaging without impacting your STP formats and practices

■ Outsource deployment, management and evolution of network, messaging and security services

Benefits for Automated Clearing Houses

hardwarehardware

softwaresoftwarelineslines

maintenancemaintenance

support

release qualification

testing

back-up

disaster take-overexercises

legal

softwaremaintenance

project management

procurement

education

documentation

What our customers say (June 2004)

“The co-operation agreement with SWIFT fits perfectly with our strategy to lower entry and transaction costs and to expand the Eurogiro offering.”

Henrik Parl, Managing Director, Eurogiro A/S

What the first SWIFTNet-basedAutomated Clearing House says

"Combining the strengths of our partners SIA and SWIFT, we have been able to launch our new pan-European retail payment clearing house (STEP2) within a record timescale of 10 months. With STEP2 in place, banks in Europe now have a new platform that enables them to further develop their retail payments business in accordance with customer needs in the Single Euro Payments Area. Using SWIFTNet was an obvious choice to allow for open access by a very large number of banks.”

Gilbert Lichter, Secretary General of EBA

Questions and answers

Thank you !

Slide 1 SWIFTNet solution for bulk payments processing in Albania Joëlle Lockman Business Manager...

Documents

Transcript of Slide 1 SWIFTNet solution for bulk payments processing in Albania Joëlle Lockman Business Manager...