Transcript SWIFTNet Technical Discussions

SWIFTNet solution for
bulk payments processing
in Albania
Joëlle Lockman
Business Manager
Banking Market Infrastructures
Tirana, 17 November 2004
Slide 1
Agenda
SWIFTNet expands the options
SWIFTNet solution for ACHs
SWIFTNet interfaces
Recommended configurations and related costs
Pricing
Benefits for ACHs and financial institutions
Slide 2
how SWIFT is helping the
industry improve efficiency and
reduce costs in the area of low
value / retail payments
Slide 3
SWIFTNet expands the options
Speed
Interactive queries
and commands
Central database
viewing
InterAct
Browse
High-value
payment by payment
FIN
Moderate
Volumes
FileAct
Bulk payments
Reporting
Huge
volumes
Slide 4
SWIFT provides a total solution
for payments and settlement systems
Banking
Automated clearing Real-time gross
correspondents
houses
settlement systems
Settlement
instructions
Payments
R-t cash reporting
Bulk payments
Real-time query/control
Bulk payments
Central securities
depositories
Settlement
instructions
Settlement instructions
DVP instructions
Real-time query/control
Reporting
Real-time query/control
Reporting
FIN FIN Copy
InterAct
FileAct
Slide 5
SWIFTNet infrastructure for SSP
Bank B
Bank A
SWIFTNet
Internal
payment system
SWIFTNet FIN
SWIFT interface
payment message
SWIFTNet
FIN Copy
SWIFTNet FileAct
settlement
authorisation/
Real-time reporting
request
refusal
SWIFTNet Browse
SWIFTNet InterAct
On-line visualisation of
information
Real-time cash reporting
Payment module (PM)
Central SWIFT interface
Payment processing
Bank A
Bank B
Information & control
module (ICM)
SWIFTNet services
FIN/FIN Copy
Slide 6
SWIFTSolution for bank-to-ACH
Status – October 2004
Live
EBA STEP2
Euro Giro
Plan
BACS (UK)
BGC (SE)
EPN (US)
GIRO (SI)
InterPay (NL)
ACH (TZ)
Slide 7
Agenda
SWIFTNet expands the options
SWIFTNet solution for ACHs
SWIFTNet interfaces
Recommended configurations and related costs
Pricing
Benefits for ACHs and financial institutions
Slide 8
SWIFTNet FileAct addresses
your present end-to-end bulk payment needs
Automated
Clearing
House
Financial
Institution
SWIFTNet
FileAct
SWIFTNet
FileAct
 Standardised file
transfer platform
Financial
Institution
SWIFTNet
FileAct
 Support of existing
file formats
 Global reach
Customer
 Highly secure and
cost effective
Customer
Slide 9
SWIFTNet solution
for 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
ACH
Solution for bank-toACH bulk payments
– Decides on use of InterAct,
Browse and FIN
– Develops and sells bulk
payments processing service
■ Financial institutions access ACH
over existing SWIFTNet
connectivity
SWIFTNet FileAct
Slide 10
SWIFTNet Services for bulk payment solution
SWIFTNet Browse
• Provides https-based access to
visual content on webservers
from desktops
SWIFTNet InterAct
• Interactive message
exchange between two parties
SWIFTNet FileAct
• Interactive exchange of files
between two parties
SWIFTNet FIN
• Standard store&forward
messaging for single instructions
Closed User Group
• Ensured restricted access to the
service
Complemented with SWIFTNet PKI and SWIFTXML standards
Slide 11
Three complementary core SWIFTNet
messaging services
Messaging
SWIFTNet
InterAct
Secure, reliable, and STP-oriented.
Appropriate for exchange of individual
structured financial messages and short
reports.
File transfer
SWIFTNet
messaging
SWIFTNet
FileAct
SWIFTNet
Browse
Secure, reliable, and flexible.
Appropriate for exchange of batches of
structured financial messages and
large reports
Browsing
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.
Slide 12
All solutions are based on SWIFTNet FileAct
Sender
File transfer
status
Receiver
1
File transfer initiation
2
Actual file transfer
3
Delivery notification (optional)
File transfer
status
■ Authenticity, integrity, confidentiality, non-repudiation
■ Flexible central routing
■ Any type of file up to 250Mb, compression supported
Slide 13
SWIFTNet FileAct is used in real-time
and store-and-forward mode
Store-andforward file
transfer
Real-time
file download
Typically used to reach a
large number of
counterparties
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
Slide 14
Key characteristics of SWIFTNet FileAct
Highly
secure





Secured with SWIFTNet PKI (managed certificates)
Encryption, authentication and integrity control
Non-repudiation
Closed user group control
SIPN
Highly
reliable




Highly available operations
Store-and-forward
Delivery notification
Highly reliable file transfer protocol
Flexible


Any file content (structure and character set)
Files size up to 250 Mb
Other


Lower priority vs. SWIFTNet InterAct / SWIFTNet FIN
Flexible central routing
Slide 15
Three complementary core SWIFTNet
messaging services
Messaging
SWIFTNet
InterAct
Secure, reliable, and STP-oriented.
Appropriate for exchange of individual
structured financial messages and short
reports.
File transfer
SWIFTNet
messaging
SWIFTNet
FileAct
Secure, reliable, and flexible.
Appropriate for exchange of batches of
structured financial messages and
large reports
Browsing
SWIFTNet
Browse
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.
Slide 16
SWIFTNet Browse overview
Service user
Service provider
SWIFTNet
Workstation
(running SWIFTAlliance
WebStation and a standard
Browser)
Web Server and
SWIFTNet Link*
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
* Typically used in conjunction with SWIFTAlliance Gateway
Slide 17
SWIFTNet Browse overview
SWIFTNet Browse transparently combines two communication mechanisms
Service user
HTTP-S channel
only authenticates the
system of the end user
Service provider
Using non-managed Web certificates
HTTP-S
User access rights
SWIFTNet
Mr E.Grieg
User
ok? Limits
E.Grieg
F.Chopin


75,000
50,000
InterAct/FileAct
Workstation
Web Server +SNL
InterAct / FileAct
channel authenticates
the end user
Using managed SWIFTNet PKI certificates
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.
Slide 18
Key characteristics of SWIFTNet Browse
(when used with SWIFTNet InterAct/FileAct)

Highly secure
& reliable



Standard
technologies
Thin client
Single
Window
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


Client uses standard browser to navigate
HTTP-S for screens and InterAct for transactions or
FileAct for file transfers

Service provider does not install software at
client side

Re-utilisation of existing SWIFTNet infrastructure
Slide 19
Three complementary core SWIFTNet
messaging services
Messages
SWIFTNet
InterAct
Secure, reliable, and STP-oriented.
Appropriate for exchange of individual
structured financial messages and short
reports.
Files
SWIFTNet
messaging
SWIFTNet
FileAct
SWIFTNet
Browse
Secure, reliable, and flexible.
Appropriate for exchange of batches of
structured financial messages and
large reports
Browsing
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.
Slide 20
SWIFTNet InterAct is used in real-time
mode query & response
Real-time
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
Slide 21
Key characteristics of SWIFTNet InterAct





Secured with SWIFTNet PKI (managed certificates)
Encryption, authentication and integrity control
Non-repudiation
Closed user group control
SIPN
Highly
reliable



Highly available operations
Store-and-forward
Delivery notification
STP
oriented


Message validation (central application level)
XML-based
Other



Short messages (max 100 K; recommended < 20 K for RT)
Higher priority vs. SWIFTNet FileAct
Flexible central routing
Highly
secure
Slide 22
www.swift.com
Download our business brochure
from swift.com
Slide 23
Agenda
SWIFTNet expands the options
SWIFTNet solution for ACHs
SWIFTNet interfaces
Recommended configurations and related costs
Pricing
Benefits for ACHs and financial institutions
Slide 24
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
Slide 25
Communication topology for
person-to-application file transfer (only)
Service user
Service provider
SWIFTAlliance
Gateway
User
workstation
File
transfer GUI
FileAct
SWIFTAlliance
WebStation
browser
(1)
W2K / UNIX
SWIFTNet
Business
application
W2K
Customer
(1) SWIFTNet FileAct for the file transfer in push and pull modes
SWIFT
Slide 26
Communication topology for person-toapplication messaging, file transfer, browsing
Service user
Service provider
SWIFTAlliance
Gateway
User
workstation
(1)
InterAct and
FileAct
(2)
W2K / UNIX
SWIFTAlliance
WebStation
browser
W2K
Business
application
SWIFTNet
Browse (https)
(3)
Web server
(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
Customer
SWIFT
Slide 27
Agenda
SWIFTNet expands the options
SWIFTNet solution for ACHs
SWIFTNet interfaces
Recommended configurations and related costs
Pricing
Benefits for ACHs and financial institutions
Slide 28
SWIFTAlliance Gateway – Licensing & pricing
‘An easy step approach’
16,000$
6,500$
2,850$
SWIFTAlliance
Starter Set
Benefits :
-FileAct out-of-the
box
-1 user
Price :
4,750$
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)
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
Availability: as of May 2004
Slide 29
Configurations
■ Recommended configuration for participants :
– SWIFTAlliance Starter Set
Base fee 4.750 USD
■ Recommended configuration for Service
Provider :
– SWIFTAlliance Gateway Single Window
Base fee is 30,000 USD + 1 SAB 2,250 USD
Slide 30
SWIFTAlliance Starter Set (SAS)
What is it ?
■ A software that leverages the SAE/SAA platform to provide out-ofthe-box file transfer and browsing capabilities
Benefits
■ A software that allows the customer for a “controlled evolution to
more services”
■ “Evolutionary” software solution
Characteristics
SAE/SAA
SAB
■ SAS, SAA/SAE & SNL run on the same system
■ Allows one concurrent operator (SAB)
SAS
■ SAS is available on Windows and AIX/Solaris
SNL
■ SAS include the SAB software
Slide 31
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
Slide 32
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
Slide 33
www.swift.com
Download our technical brochure
from swift.com
Slide 34
Agenda
SWIFTNet expands the options
SWIFTNet solution for ACHs
SWIFTNet interfaces
Recommended configurations and related costs
Pricing
Benefits for ACHs and financial institutions
Slide 35
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.
Slide 36
FileAct pricing example for a file sent by large
Albanian institutions at ramp-up
■ A file of 10,000 low-value payment instructions
of 200 bytes each, compressed at a ratio of
80%, results in a file of 700K which costs per
global tier:
– GT 1: 18.32 euro / file; 0.0018 euro / instruction (1)
– GT 1: 16.61 euro/file; 0.0017 euro/ instruction (2)
– 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.
Slide 37
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:
– GT 1: 1.18 euro / file; 0.0012 euro / instruction (1)
– GT 1: 1.02 euro/file; 0.0010 euro/ instruction (2)
– Annual cost per year (70.000 transactions/year):
236 euro/year (1) or 204 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.
Slide 38
FileAct pricing example for a file sent by
medium Albanian institutions at ramp-up
■ A file of 7,000 low-value payment instructions of
200 bytes each, compressed at a ratio of 80%,
results in a file of 500K which costs per global
tier:
– GT 1: 13.52 euro / file; 0.0014 euro / instruction (1)
– GT 1: 12.24 euro/file; 0.0012 euro/ instruction (2)
– Annual cost per year (1.400.000 transactions/year):
2,704 euro/year (1) or 2,448 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.
Slide 39
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:
– GT 1: 0.38 euro / file; 0.004 euro / instruction (1)
– GT 1: 0.29 euro/file; 0.003 euro/ instruction (2)
– Annual cost per year (20.000 transactions/year):
760 euro/year (1) or 580 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.
Slide 40
FileAct pricing example for a file sent by small
Albanian institutions at ramp-up
■ 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.
Slide 41
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
Slide 42
Agenda
SWIFTNet expands the options
SWIFTNet solution for ACHs
SWIFTNet interfaces
Recommended configurations and related costs
Pricing
Benefits for ACHs and financial institutions
Slide 43
Addressing your present and future needs
Extending your SWIFT benefits
from single payments (RTGS, wholesale)
to bulk payments (ACH, retail)
1 Standardising the communications layers:
- To reduce number of proprietary links
- To help remote access to your ACH business
2 Standardising the end-to-end transactions:
- To reduce number of proprietary
formats and increase end-to-end STP
Slide 44
Immediate cost savings
through 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
Slide 45
Benefits for service providers
Leverage 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
Slide 46
Benefits for Automated Clearing Houses
software
lines
hardware
testing
legal
maintenance
support
project management
back-up
procurement
release qualification
education
software
maintenance
disaster take-over
exercises
documentation
Slide 47
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
Slide 48
What the first SWIFTNet-based
Automated 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
Slide 49
Thank you !
Questions and answers
Slide 50