Corporate-to-Bank Connectivity

with SWIFT Integration

Bernard De Groeve
Global Manager Strategic Partnerships, S.W.I.F.T.

Thilo Liebermann
Business Solution Architect, SAP AG
Agenda

1. S.W.I.F.T.

2. Corporate-to-Bank Connectivity with SWIFT Integration

3. Service Offering for Banks

4. Conclusion
Agenda

1. S.W.I.F.T.

2. Corporate-to-Bank Connectivity with SWIFT Integration

3. Service Offering for Banks

4. Conclusion
 SWIFT History

1973 SWIFT is founded by 239 banks in 15 countries….

Corporate Connectivity - 220108

 SWIFT Today: Financial Community

Banks • Broker/Dealers
founded SWIFT • Central Depositories &
Securities Market 1973 Clearing Institutions
Data Providers • Exchanges

87
20
Fund Administrators …

19
20

40
02
9 Money Brokers
MA-CUGs 2001 198

2000 1990 • Registrars & Transfer

Securities MIs Agents
• Custody Providers
19
1999 92
Treasury Counterparties
and Service Providers Investment
98

19
Managers
19

95
• Payments Mis
• Proxy Voting Agencies Trading
• Non-Shareholding Institutions
Financial Institutions …

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 SWIFT Business Dimensions

Who Business role

Cooperative society From international correspondent banking
Commercially driven To new business areas such as Treasury,
Trade, Securities …
Provide secure messaging
To new participants such as securities
Develop global message industry, clearing institutions, corporate …
standards
To real time infrastructures (RTGS) …
Provide global bank community
forum To regional market infrastructures …

SWIFT in numbers today :

> 8,100 users in > 208 countries
> 16,000,000 messages on peak days
> 99,999 % network availability
Corporate Connectivity - 220108
Agenda

1. S.W.I.F.T.

2. Corporate-to-Bank Connectivity with SWIFT Integration

3. Service Offering for Banks

4. Conclusion
 Corporates on SWIFT (via SCORE)

Use: Treasury Management

# Registered corporates • Monitor accounts and obtain global visibility on
cash
268 • Manage liquidity and pool cash company-wide
• Do financial risk management
• Invest surplus cash

181 Use: Cash Management

• ACH payments, disbursement files, check files,
lock box receipts, ACH data receipts
• Payments and collection factory: Receive account
108 statements and advices, pay suppliers, debit
customers, salaries, …)

55
22
Type of customers
• Large corporates with payment factory and ERP
integration

2003 2004 2005 2006 Okt 07 • Large corporates with central & regional treasury centers
• Mid-sized corporates with 3+ cash management banks

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 “SWIFT for Corporates” value proposition

Multiple bank channels Single gateway

Corporate Corporate

Accounts VAN Accounts

payable payable
host to host X
Accounts Accounts
receivable Leased line receivable
SWIFTNet
Treasury e-banking Y Treasury
Single
Internet gateway
Other Other
e-banking Z

• Cost to operate multiple channels and • Lower costs, increased productivity

formats, each different • Better STP and visibility on cash
• Difficult to obtain visibility on cash • Improved control and compliance
across banks and locations • Increased security and reduced risk
• Impossible to centralise payment
origination and control authorization

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 Typical implementation

FIN
payments (MT101), statements (MT940) and FX confirmations
(MT3xx)

Treasury
Workstation

Middleware SWIFTNet

ERP SWIFTNet Kit

FileAct
transport any format; payments files, iDOC, ISO20022, ACHs, BAI
formats, …

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 Customer testimonials
(5 year business case analysis)

Arcelor Mittal 600% ROI

DuPont 200% ROI BELCORP

GE 410% ROI
Together with your EADS
Iberia 280% ROI bank,
we can make a
business case
Novartis 120% ROI for you Microsoft

Petronas 410% ROI

Yves Rocher
T-Mobile 180% ROI

Swiss Re 4 x savings to investment

Corporate Connectivity - 220108

Agenda

1. S.W.I.F.T.

2. Corporate-to-Bank Connectivity with SWIFT Integration

3. Service Offering for Banks

4. Conclusion
SAP – SWIFT Product & Functionality

Product Architecture for Corporate to Bank Connectivity

Corporate IT Infrastructure SWIFT Network Banks

SAP R3/ERP SAP

Netweaver SWIFTNet Kit

AP
Mapping (incl. secure network
equipment)
AR
Bank PI SWIFTNet
CM Communication VPN
Management
(BCM)
Payroll SAP VPN
Integration
Package Windows PC
… for SWIFT
SAP – SWIFT Offering

Joint SAP-SWIFT Offering

Products Services

SAP Bank SAP Integration Pre-defined

Communication Package for Service Offering
SWIFTNet Kit
Management SWIFT for Banks

SAP-SWIFT
Joint Offering
 SAP-SWIFT Service Offering for Banks

Workshop Content

• Two-days workshop
• Modular Agenda
• Provided by experienced consultants (with possible support of banking expert)

Workshop Goal

• NO selling event !
• Inform banks on Corporate–to-Bank Connectivity

Target Audience

Business as well as IT, Bank IT/SWIFT-infrastructure staff and product managers for
transaction management, payment services, netting services, treasury, cash
management, sales, marketing, etc.

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 Agenda Proposal - Day 1

09:00 Welcome

09:15 End-to-End Financial Supply Chain Management

10:30 Coffee Break

10:45 SEPA, More Than Just a Compliance Issue for Banks

11:30 SEPA Package

12:45 Lunch Break

13:45 Payment Medium Workbench and Data Medium Exchange Engine

15:00 Coffee Break

15:15 SAP Integration Package for SWIFT

17:00 End day 1

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 Agenda Proposal - Day 2

09:00 Wrap-Up Day 1

09:30 Host-2-Host connectivity via SAP NetWeaver PI

10:00 Coffee Break

10:15 SAP Bank Communication Management

12:15 Lunch Break

13:15 In House Cash

14:15 Coffee Break

14:30 SAP for Banking – Solution Portfolio

15:30 Discussion, Q&A

16:00 End Day 2

Corporate Connectivity - 220108

 SAP-SWIFT Service Offering for Banks

Value Proposition for SAP and SWIFT

• Get „a foot in the door“ (also in banks that are no SAP customers so far)
• Start discussion on SAP for Banking applications
• Be a trusted advisor (SWIFT & SAP)
• Discuss possible business models (referral / influencer) or additional services

Value Proposition for Banks

• Learning how to prepare for and take advantage of Corporate2Bank connectivity

•Understanding the impact of Corporate2Bank connectivity on banks’ infrastructure and

processes

•Understandingcorporate STP and opportunities for value-added services with SAP

and SWIFT solutions

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 First banks show interest in service offering…

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 Gained Momentum at SIBOS

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Agenda

1. S.W.I.F.T.

2. Corporate-to-Bank Connectivity with SWIFT Integration

3. Service Offering for Banks

4. Conclusion
 SAP-SWIFT Strategic Partnership

The SAP Financial Ecosystem with ‘SWIFT inside’:

“ Linking 30,000 companies running SAP to SWIFT’s 7,850 banks in
over 200 countries “ Léo Apotheker, Sibos 2005, Copenhagen

What’s in it for SAP ERP? SAP ERP integrated offering with SWIFT

• off-the-shelf solution for large & mid-size ERP clients

Corporate client SAP ERP 6.0 • standardization of global bank messaging
• single internal process & audit across firm for all banks
NetWeaver
Process Banks • visibility to global cash & optimized working capital
SAP Bank Communciation mgt

Accounts Integration
Payable SWIFTNet
interface High level entry into CFO / Treasurer of corporate

Accounts • SAP Integration Package for SWIFT upsells BCM software

Receivable
SWIFT •Swift integration is an additional CFO argument to upgrade to
Net SAP ERP 6.0
Treasury
•Simplified operations both with banks and internal stakeholders
SAP and auditors
Integration
Other Package • Upsell of additional treasury suite solutions
for SWIFT
==>> Joint sales process:
SAP leads in initial corporate sale engagement.
SWIFT supports SAP during sales process
Corporate Connectivity - 220108
 SAP-SWIFT Strategic Partnership

The SAP Financial Ecosystem with ‘SWIFT inside’:

“ Linking 30,000 companies running SAP to SWIFT’s 7,850 banks in
over 200 countries “ Léo Apotheker, Sibos 2005, Copenhagen

What’s in it for SAP Banking?

SAP Service Offering for Banks re. SWIFT:

Help banks to understand the operational impact for their clients

SAP Service Offering for
SWIFT connectivity using SAP solution for SWIFT

High level entry into transaction banking organization to

engage in discussion on:
Analytical Mgt
•Valueadded services from SAP using BRM & SWIFT as
Connectivity & Channel Mgt
foundation
Back-end & messaging Integration
•Resell / co-branding of SAP solution for SWIFT

•Architectingfront/mid/back office systems into different bank silos

and integration with SWIFT
Transaction banking processing:
•Simplifybank infrastructure with component based next
Value added services & infrastructure processing
generation model

==>> consulting based approach to upsell higher value

services and software from SAP Banking
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 SWIFT & SAP – Joint GTM

SAP leads – SWIFT supports

SWIFT supports sales process i.e. on regional level, with initial calls etc.

Selling together!

SWIFT supports process to identify added scenarios, business models

Corporate Connectivity - 220108

 Contacts & Next Steps

Contacts

SWIFT: Bernard De Groeve

SAP: Anders Widestrand / Thilo Liebermann

Next Steps

Follow-up with SIBOS leads

Talk to your prospects and customers about service offering

Individual follow-up with you account

Corporate Connectivity - 220108

Thank you! Any Questions?
Bernard De Groeve Thilo Liebermann
Global Partner Manager Business Solution Architect
Point Solutions & Packages
Global Banking LoB
S.W.I.F.T. SCRL
Avenue Adèle 1
SAP AG
B-1310 La Hulpe
Dietmar-Hopp-Allee 16
Belgium
69190 Walldorf

T + 32 2 655 4147
M +49 (171) 3363170
F + 32 2 655 4802 
T +49 (62 27) 7 - 68063
E [email protected]
E [email protected]
www.swift.com
www.sap.com