The Power of Business Analytics
Sibos 2010 Amsterdam
Bart Claeys, SWIFT
Neal Livingston, Standard Chartered Bank
26 October 2010
Agenda
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Your challenge
Your solution
Business analytics at Standard Chartered
The power of business analytics
Q&A
Your challenge
2009 Market volatility and events…
… which continues in 2010
Your Challenge
• Get insights to respond to mission critical questions
• To know where to get the insights and to trust these
• And even if you know
• It’s often
– Incomplete
– Outdated
– Time consuming
– Expensive
– Questionable quality-wise
Our Solution
SWIFT
has
a solutionsolution
for analysing
and reporting
your
SWIFT
has
a UNIQUE
for analysing
and reporting
SWIFT
messaging
activity,
withwith
fast fast
andand
direct
access
to
your
SWIFT
messaging
activity,
direct
access
tobusiness
businessanalytics
analyticsabout
aboutyour
yourcompany
companyand
andthe
theglobal
global
financial industry
• Reliable
• Actionable
• Secure
• Global
• Cross-market
• Up-to-date
The Power of Business Analytics: Getting Insights into the
Financial Market
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted
6
Importance of Business Analytics for
Standard Chartered
Risk Mgt &
Compliance
Performance
Management
Balance
Sheet &
Capital
Management
SWIFT's Role in the Information Supply Chain
Consistent and reliable reporting
Value creator across the information supply chain
Indicator of economic and financial activity
Facilitate usage and adoption of standards
Central source of data
How Standard Chartered Uses Watch?
Group-wide
Management
Client &
Competition
Insights
Product &
Network
Management
Benefits in More Granular Information
Pricing & Value-Added Services
Business Flow Management
Currency
&
Value
Credit Facility Management
Continuous Improvement
The Bigger Picture
57A
(Bene Bank)
56
(Intermediary
Bank)
Charge Type
(Ben/SH/Our)
Source of image: mentalfloss.com
Watch – Online Insights into Your Business
Watch helps you to:
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Monitor global trends and see how you evolve
Optimise your relationship network and reciprocity
Perform customer risk analysis
Identify business opportunities
Benchmark your operational performance
Target cost savings
Watch Portfolio - Analysers
Online insights into your business
• On-demand analysis of data via SWIFT.com
• Monthly data updates including customer data and SWIFT totals
Traffic Analyser – including your market share and all
correspondents
Value Analyser – providing insights into amount
& currency information
Message Cost Analyser – helping you with cost
allocation, savings & forecasting
Billing Analyser – defining your total cost of ownership
in SWIFT
Market Analyser – providing your rankings and
performance benchmarks
Watch Portfolio - Reports
Online insights into your business
• Pre-defined reports downloaded from SWIFT.com
• Monthly data updates
Today on SWIFT.com
• FIN traffic distibution by market / region
• FIN country market share
• FIN traffic costs
• FIN counterparties BIC11
More to come…
• Benchmarking reports
• Peer comparison
• Customised reporting
Watch Value Analyser
Online insights into amount & currency
•
Ordering possible NOW!
•
First data publication planned for December 2010
Allowing you to:
• Monitor your institution’s liquidity per market, per corridor and
currency
• Cross-charge more effectively
• Perform customer risk analysis and respond to compliance
requirements
• Size the opportunity to develop multi-currency products
• Identify your market share per currency and its related growth
vs the market
Visit the Watch demo stand and see a glimp of your institution’s total value
Watch Value Analyser
Creating new insights
What is your focus?
YOU
YOUR
NETWORK
THE INDUSTRY
16
Value Analyser
Monitor your business
• What is the total European import/export vs China financed through LCs?
• What is the total value? For which currencies?
European import/export vs China through LCs
Source: Watch Market Analyser
• Perform a similar analysis for each business line, country, entity…
Did you
know?
Value Analyser
Evaluate customer reciprocity
•
Who are my top counterparties? Is reciprocity respected?
Transaction Amounts
Volumes
Source: Watch Traffic Analyser
“Reciprocity analysis can show different results when
looking at currency or amount”
Value Analyser
Track performance of correspondent network
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How can we optimise our correspondent network?
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Can we consolidate our EUR clearing activity ?
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Is our correspondent compliant with bilateral currency agreements?
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Can we improve our messaging efficiency?
“We are now receiving
GBP payments from our
counterpart. Why?”
Source: Watch Value Analyser
Did you
know?
Value Analyser
Perform customer/liquidity risk analysis
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What is our top10 counterparty exposure? In which direction?
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Is our exposure increasing/decreasing from a value perspective?
Top 10 exposure
56%
31%
of 2010 Total
Transaction
Transaction Volumes
Amounts
Source: Watch Traffic Analyser
• Perform a similar analysis for each business line, country, currency…
Value Analyser
Benchmark against the industry
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What is the market exposure towards a specific country?
•
How is it evolving? Do we have a similar exposure?
•
Should we take any measures to manage the risk?
Transaction flow evolution vs Greece
Source: Watch Market Analyser
Value Analyser
Benchmark against the industry
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What are the most common currency flows in specific corridors?
•
Can we leverage this information for business development purposes?
“Should we envisage
developing multi-currency
products in Europe?”
…
Source: Watch Value Analyser
“Should we adapt our
pricing policy for USD
payments?”
Watch – Business Intelligence only from SWIFT
Key features:
• SaaS model – Software as a Service
• Unique source
• From a neutral and trusted party
• Monthly updates of high-quality data
• Historical data (prior two years + current year-to-date)
• Under evaluation: daily, intra-day traffic analysis
More Information
• Want to know more of Watch @ Sibos?
– Ask your SWIFT relationship manager
– Visit the Watch demo stand
– Receive a sample of your institution’s currency & value data
• Want to follow-up after Sibos?
– Ask your SWIFT relationship manager
– Watch@swift.com
• Other Q&A?
Questions & answers
?
Thank you