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How to offer flexibility for subsidiaries but enforce standard policies moving forward?
Reconciliation of related data and settlement of fees is time consuming and prone to errors
Complex documentation management will result in increased charges
Transparency is not optimal and will result in differences between the banks and treasurys
records
With different technology solutions, more challenging to on-board subsidiaries and banks
Improve
control
Accelerate
decisions
Consolidate
information
Standardise
bank
interface
6
Industry standards
Developed by international standardisation bodies
Trade Finance instruments
(E.g. UCP 600, URDG 758, ISP98, URC 522, URBPO)
MT standards
(for L/Cs, Demand Guarantees, Collections)
MT 798
MT 7XX
Documents
UCP 600
URDG 758
ISP98
MT 798
Documents
Buyer
Seller
Buyers
bank(s)
Sellers
bank(s)
FIN MT 7xx
FIN MT 798
FileAct
Public Domain
2
Industry standards for Bank Payment Obligation
Bank
Payment
Obligation
Commercial
Buyer
Seller
Any channel /
any format /
any solution
Bank portal
SWIFT's SCORE
Paper
Trade
Matching
Application
SWIFT's Trade Services
Utility (TSU)
Any other inter-bank
trade matching
application (TMA)
Any channel /
any format /
any solution
Bank portal
SWIFT's SCORE
Paper
11
MT 7XX
ISO 20022
MT 798
ISO 20022
Internet
Internet
Buyers
Issuing banks
Application,
amendment,
Inter-bank flows
Sellers
Advice, confirmation,
amendment,
MT 7XX
ISO 20022
MT 798
ISO 20022
Internet
Internet
Buyers
Issuing banks
Application,
amendment,
Inter-bank flows
Sellers
Advice, confirmation,
amendment,
14
Corporate-to-Bank
Bank-to-Corporate
Applicant
MT 798<770>
MT 798<700>
MT 798<701>
Bank
APPLICATION
ISSUANCE NOTIFICATION
MT 798<772>
MT 798<707>
MT 798<771>
MT 798<700>
MT 798<701>
AMENDMENT REQUEST
AMENDMENT NOTIFICATION
AMENDMENT ACCEPTANCE
NOTIFICATION
DISCREPANCY ADVICE
MT 798<749>
COMPLIANCE
MT 798<773>
MT 798<707>
MT 798<736>
MT 798<748>
MT 798<750>
ADVICE NOTIFICATION
MT 798<753>
MT 798<754>
MT 798<731>
MT 798<732>
MT 798<733>
MT 798<734>
MT 798<755>
MT 798<756>
IMPORT PAYMENT
SETTLEMENT ADVICE
MT 798<757>
15
Corporate-to-Bank
Bank-to-Corporate
Bank
MT 798<774>
MT 798<700>
MT 798<701>
MT 798<776>
MT 798<707>
Beneficiary
AMENDMENT ADVICE
AMENDMENT ACCEPT/REFUSAL
ADVICE
MT 798<735>
MT 798<780>
MT 798<710>
MT 798<711>
MT 798<737>
PRESENTATION RESPONSE
MT 798<751>
MT 798<752>
A U T H O R I S A T I ON A D V I C E N O T I F I CA T I O N
MT 798<753>
MT 798<754>
COMPLIANCE
ADVICE
NOTIFICATION
MT 798<731>
MT 798<732>
MT 798<733>
MT 798<734>
MT 798<755>
MT 798<756>
PAYMENT
ADVICE
NOTIFICATION
TRANSFER REQUEST
MT 798<782>
MT 798<720>
MT 798<721>
MT 798<758>
MT 798<722>
TRANSFER ADVICE
EXPORT PAYMENT
SETTLEMENT ADVICE
16
Corporate-to-Bank
Bank-to-Corporate
Applicant
APPLICATION
NOTIFICATION
AMENDMENT REQUEST
AMENDMENT NOTIFICATION
MT 798<777>
MT 798<778>
CLAIM NOTIFICATION
MT 798<779>
MT 798<781>
MT 798<783>
Bank
MT 798<766 >
MT 798<769>
17
Corporate-to-Bank
Bank-to-Corporate
Bank
ADVICE
AMENDMENT ADVICE
PAYMENT CL AIM
MT 798<714>
Beneficiary
MT 798<712>
CLAIM ACKNOWLEDGEMENT
18
COMMON GROUP
Corporate-to-Bank
Bank-to-Corporate
Applicant
Bank
C H A R G E S S E T T L E M E N T N O T I CE
MT 798<788>
MT 798<799>
MT 798<793>
MT 798<790>
MT 798<794>
MT 798<791>
F R E E F O R M AT
MT 798<789>
MT 798<799>
FREE FORMAT
Corporate-to-Bank
Bank-to-Corporate
Bank
MT 798<793>
MT 798<790>
MT 798<794>
MT 798<791>
Beneficiary
C H A R G E S S E T T L E M E N T N O T I CE
MT 798<788>
MT 798<799>
F R E E F O R M AT
MT 798<789>
MT 798<799>
FREE FORMAT
19
20
Use of FileAct
Export L/Cs:
Commercial documents
23
Use of
MT 798 for
Use of
MT 798 as
Live
Usage
Multi-bank
Solution
ArcelorMittal
International
Export LCs
Exporter
Live
Misys
Alcatel-Lucent
Guarantees
Exporter
Live
Surecomp
Saudi Aramco
Export LCs
Exporter
Live
In-house
Metro Group
Buying
Import LCs
Importer
Live
In-house
Mets Finance
Export LCs
Exporter
Live
GlobalTrade
Corporation
Reliance
Industries
Import LCs
Export LCs
Importer and
Exporter
2013
In-house
Safran
Guarantees,
LCs
Importer and
Exporter
2013
GlobalTrade
Corporation
Voith
Guarantees,
Export LCs
Importer and
Exporter
2013
Surecomp
24
and more
25
Bank-to-bank standards
Corporate-to-bank standards
Corporate-to-bank standards Bank
Vendor
Trade Finance
Solution
Vendor
China Systems
Eximbills Enterprise
China Systems
Customer Enterprise
CSI
BankTrade
GTC
Misys
Trade Innovation
Plus
@GlobalTrade
Corporate
Misys
Pinnacle
Solutions
Incorporated
(PSI)
Synergy Trade
Services Corporate
Surecomp
COR-TF
MIT
CREDOC
Sopra
Evolan IB
Pinnacle
Solutions Inc.
(PSI)
Synergy Trade
Services
Surecomp
DOKA 5, IMEX
(conformance statement)
Corporates
Trade Finance
Solution
26
27
Rules
Messages
MT Cat4/7 standards
ISO 20022 standards
Identity
Channel
Solutions
SWIFTReady vendors
In-house development
29
Major issues
for banks:
Corporate using a
vendor platform
forcing banks to
adopt proprietary
formats, security
and rules
Corporate using a
vendor BIC and the
MT798 standards
on the bank-tobank FIN service
Corporate using MT
798 standards with its
own BIC in SCORE
Increased
vendor and
technical costs
Increased
operational
costs
Additional
customer-specific
operational
practices for banks
to develop
Increased
legal
complexity and
costs
Parties need to
develop vendorspecific contractual
arrangements
Parties need to
develop corporatespecific contractual
arrangements
Parties need to
develop vendorspecific contractual
arrangements
Standardised SCORE
agreement for cash and
trade
Increased KYC
risks
Lack of visibility on
corporate identity,
resulting with likely
KYC issues
Standardised SWIFT
registration for corporates
and re-use of BIC by
corporate
30
Corporate re-using
its FI BIC and the
MT7xx messages
on the bank-tobank FIN service
Increased
vendor and
technical costs
Proprietary
development: so
packaged solutions
and costs cannot be
shared
Not following
industry
standards and
best practices
Dependency on
single vendor
solution: less
competition and
technical lock-in
Increased
legal
complexity and
costs
Parties need to
develop vendorspecific contractual
arrangements
Parties need to
develop corporatespecific contractual
arrangements
Corporate cannot
benefit from
standardised legal
documentation
Standardised SCORE
agreement for cash and
trade
Increased KYC
risks
Lack of visibility on
corporate identity,
resulting with likely
KYC issues
Standardised SWIFT
registration for corporates
and re-use of BIC by
corporate
Scenarios:
Major issues
for
corporates:
Corporate using a
vendor BIC and
the MT798
standards on the
bank-to-bank FIN
service
Corporate using MT
798 standards with its
own BIC in SCORE
Re-use SWIFT
connectivity in use for
treasury and cash
management
31
32
Bank-to-Bank
MT 7nn
Processing Bank 1
Advising Bank 1
Applicant
Lead Bank
Processing Bank 2
Advising Bank 2
Processing Bank 3
34
Bank-to-Bank
MT 798
Processing Bank 1
Web GUI / Host-to-Host /
FIN / FileAct
Issuing Bank 1
Processing Bank 2
Lead Bank
Beneficiary
Issuing Bank 2
Processing Bank 3
35
Benefits
36
Corporates
Banks
37
38
Do you have
Redundant & manual
interventions?
Technical
What is the right
sourcing model for
SWIFT infrastructure?
Implementation
How to get to an easy
integration of your
applications & SWIFT
40
Conclusion
41
Conclusion
Multi-banking in trade finance is now a reality
All trade banks in the world use SWIFT's MT7xx standards with
their correspondent banks
The leading trade finance banks are now extending the use of
those standards to the corporate world through the MT 798; all
leading vendors have adopted the MT 798
The MT 798 can be used on any channel (Internet, SWIFT) and
with any software solution; the SWIFTReady certification ensures
inter-operability between competitive vendor solutions
The growing adoption by all leading players confirms the
immediate relevance of the MT 798 industry standards to the trade
finance market
Avoid vendor lock-in by pushing back on proprietary portals/formats
42
Contacts
43
Country
Bank of America
Banque Saudi Fransi
Bayerische Landesbank
BHF Bank
BNP Paribas
BNY Mellon
Citibank
CM CIC
Commerzbank
Crdit Agricole CIB
Danske Bank
Deutsche Bank
Gulf International Bank
HSBC
ING
JP Morgan Chase
KBC
LBBW Landesbank Baden Wrttemberg
Natixis
Nordea
RBS
Riyad Bank
Samba
Socit Gnrale
Standard Chartered
The National Commercial Bank
UBS AG
Market adoption of the MT 798 standards
Unicredit
US
SA
DE
DE
FR
US
US
FR
DE
FR
DK
DE
SA
HK
NL
US
BE
DE
FR
FI
US
SA
SA
FR
SG
SA
CH
AT
Paul Johnson
Shafeek H. Al-Manameen
Florian Seitz
Edith Babuscio
Eric Henry
Andres Ramos
Fran Martell
Tony Croizer
Sven Mueller
Patrick Boiteau
John Enemark
Frank Bothe
Mathew Silva
Kate Han
Egbert Jansen
Merlin Dowse
Karen Sterckx
Rolf Seidel
Olivier Laborde
Soren Andresen
Deborah Seliski
Medhat Sanuri
Abdulkader A. Bazara
Corinne Bakok
Ashutosh Kumar
Omar Yassine
Erwin Freiburghaus
Markus Wohlgeschaffen
44
Solution
Contact
Joel Schrevens, Digby Bennett
joel@chinasystems.com
digby@chinasystems-me.com
+32 475 904413
Selene Chan, James Tindall
schan@banktrade.com
jtindall@banktrade.com
+ 44 7941 325716
Misys TI Plus
Stphane Nouy
Stephane.Nouy@misys.com
+33 (0)1 53 00 70 13
Jean-Luc Spinardi
sales@mitsa.ch
+ 41 213 188 181
Evolan IB
DOKA 5, IMEX
Pinnacle
Solutions
Incorporated (PSI)
Marina Singlard
msinglard@sopragroup.com
+33 5 6573 4651
Murray Freeman
Murray.freeman@surecomp.com
+1 201 716 1236
Ralph Carbone
Pinnacle Solutions Inc.
PSIXRCA@psi-nj.com
45
Solution
GlobalTrade Corporate
Pinnacle
Synergy Trade
Solutions
Services (TS) Multi-bank
Corporate Site
Incorporated (PSI)
COR-TF
Contact
Jacob Katsman, Nick Pachnev
katsman@globaltradecorp.com
pachnev@globaltradecorp.com
+1 416 627 8520 / +1 416 661 8520
Olivier Berthier, Stphane Nouy
Olivier.Berthier@misys.com
+65 6416 4095
Stephane.Nouy@misys.com
+33 (0)1 53 00 70 13
Ralph Carbone
Pinnacle Solutions Inc.
PSIXRCA@psi-nj.com
Murray Freeman
Murray.freeman@surecomp.com
+1 201 716 1236
46
47