Exceptions and Investigations
Automate your payment enquiries to
save cost and improve customer service
Agenda
•
•
•
•
•
Your challenges, our solution
SWIFT Exceptions and Investigations
Community adoption and Task Force
Cost / benefit
Practical steps
Exceptions and Investigations
2
Payment enquiries challenges
Save
costs
Only 5% automated
Labour intensive
Comply
with
regulation
Reduce
risk
Improve
customer
service
Growing volumes
due to FAFT SR7
Payments under
investigation
Long turn-around
time
No transparency
on enquiry status
Exceptions and Investigations
3
SWIFT E&I value proposition
Today
SWIFT E&I
Mainly
unstructured MT
Case
mgmt
application
Labour intensive
Fax, e-mail,
letter, …
• High cost
• Payments pending investigation
• Customer complaints
Exceptions and Investigations
•
•
•
•
STP
Structured MX
Cost savings
Reduced risk
Improved customer service
Regulatory compliance
4
E&I brings significant benefits
Benefits calculation at banks with enquiry automation of 0 to 15%, 25.000 – 85.000 enquiries/year
Cost saving: 10 - 17 EUR / enquiry
Staff cost savings
thanks to automation
Correspondent
invoice savings
Exceptions and Investigations
- 4 staff at Asian bank
- 8 staff at Austrian bank
- 14 staff at Scandinavian bank
Avoid higher charges on free format
enquiries (up to 50%)
5
The SWIFT E&I solution
Choice of
case
management
application
•
•
•
•
Easy E&I from SWIFT (service + application)
SWIFTReady E&I applications from vendors
E&I as a service from service bureaux
Your own case management application
Standards
16 XML messages
4 workflows (Claim Non Receipt, Unable To Apply, Modification, Cancellation)
Rulebook
Service and standards usage
Messaging
Exceptions and Investigations
InterAct
6
Example E&I workflow: Claim non receipt
Debtor
Bank A
Bank B
Creditor
Bank C
MT103
MT103
Payment
stuck
Payment?
Claim Non Receipt
Data is correct.
Re -assign to ‘B ’
Claim Non Receipt
Data is correct.
Re-assign to C
Notification
Notification of case Claim Non Receipt
assignment
Resolution
Statement
Resolution
Resolution
Exceptions and Investigations
7
E&I is easy to implement
On-site
Manual message creation
 Alliance Messenger
“Try & buy”
version available
Case
Management
application
Case management application
 Easy E&I from SWIFT
 Choice from SWIFTReady vendors
E&I as a service
• Connected via service bureau
• No own case management application
• Low enquiry volumes
=> Choice from service bureaux
Exceptions and Investigations
Case
Management
application
Service bureau
8
Easy E&I
Powered by
End-to-end
solution
Easy
E&I
Case
management
application
Start now,
automate later
Cost effective
Exceptions and Investigations
 Subscription to E&I
 Case management application
 Access to e-training





SWIFTReady + extra functional qualification
Self installable
Runs in user or automated mode
Handles MT and MX standards
Integrates with Alliance Access and Entry
 Off-the-shelf version, includes GUI
 Extended version, integrates with
payment application
 EUR 32,000 off-the-shelf version
 EUR 76,000 extended version
9
114 E&I adopters
10
Presentatio
n title –
Client or
event – dd
Example of customer adoption
Exceptions and Investigations - Q4 2009
11
E&I industry task force
Rationale
Concept
Goal
• Strong concentration FIN
enquiry traffic:
22 banks do 50%
• Committed large banks to
drive community adoption
• Align migration timeframes
between members
• Chaired by a member
Bank
• Exchange experience to
support each others go live
• Supported by SWIFT
• Motivate missing
counterparties to join
• Clear business case for
large banks
• Small & medium banks
need their large
correspondents
• Monthly meetings/calls
Members
On-boarding criteria
BNY Mellon, Citi, HSBC,
ICBC, Standard Chartered,
RZB
Contact
B.Kirkpatrick – BNY Mellon:
b.kirkpatrick@bnymellon.com
Exceptions and Investigations
• Help increase industry
awareness
• Open to banks and corporates
• Committed to be live and operational with E&I within year
following on-boarding
• Find Task Force member ready to exchange inquiry
volumes with you and to support your application for
discussion/approval by the Task Force
Cost / benefit considerations
Costs
• SWIFT costs
• Registration fee (EUR 2,000 one-time)
• Fee per enquiry message sent (InterAct real-time price)
• Case management application
• Software (eg.: 32 KEUR - Easy E&I)
• Integration with payment application
• Project cost
• Project management
• Training
• Testing, go live, roll out
Benefits
• Save costs
• Staff cost savings from automation
(# FTE * FTE cost)
• Avoid correspondent invoicing
(# enquiries * current invoice cost * 50%)
• Communication cost savings from
reduction of telephone and fax
• Comply with regulation and avoid cost
by handling increase in volume, due to
FATF VII, without need to add more staff
• Reduce risk by better control on cash
positions, less pending payments, less
processing mistakes
• Improve customer service from
shorter case resolution time, transparency
on case status
Exceptions and Investigations
13
Practical steps
2
1
Define
Explore
product
proposition
and obtain
approval
opportunity to
use SWIFT’s
solution
SWIFT to
explain impact,
framework,
market
evolution
SWIFT to help
with business
case and ROI
calculation
SWIFT can do
business
assessment
SWIFT can
support with
choice case
management
application
Exceptions and Investigations
3
Enable
connectivity,
applications,
on-boarding,
legal
contracts
Put case
management
application in
place
Subscribe to
E&I
4
Prepare
Operations
and Product
teams
Internal and
counterparty
testing
Prepare
correspondent
roll-out team
5
Actively
use SWIFT
as channel
SWIFT can
help with test,
go-live and
roll-out
Time
Document new
processes,
train staff
14
More information?
• Contact your SWIFT relationship manager
• Contact us at swiftforbanks@swift.com
• Check out www.swift.com
Exceptions and Investigations
15