The Power of Business Analytics Sibos 2010 Amsterdam Bart Claeys, SWIFT Neal Livingston, Standard Chartered Bank 26 October 2010

Your challenge Your solution Business analytics at Standard Chartered The power of business analytics Q&A Agenda

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critical questions To know where to get the insights and to trust these And even if you know It’s often –Incomplete –Outdated –Time consuming –Expensive –Questionable quality-wise Your Challenge

SWIFT has a solution for analysing and reporting your SWIFT messaging activity, with fast and direct access to business analytics about your company and the global financial industry SWIFT has a UNIQUE solution for analysing and reporting your SWIFT messaging activity, with fast and direct access to business analytics about your company and the global financial industry Reliable Actionable Secure Global Cross-market Up-to-date Our Solution

PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted6 The Power of Business Analytics: Getting Insights into the Financial Market

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 Business Flow Management Pricing & Value-Added Services Credit Facility Management Continuous Improvement Currency & Value

The Bigger Picture 57A (Bene Bank) 56 (Intermediary Bank) Charge Type (Ben/SH/Our) Source of image: mentalfloss.com

Watch helps you to: 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 – Online Insights into Your Business

On-demand analysis of data via SWIFT.com Monthly data updates including customer data and SWIFT totals Watch Portfolio - Analysers Online insights into your business Traffic Analyser – including your market share and all correspondents 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 Value Analyser – providing insights into amount & currency information

Pre-defined reports downloaded from SWIFT.com Monthly data updates Watch Portfolio - Reports Online insights into your business 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 Visit the Watch demo stand and see a glimp of your institution’s total value 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

16 What is your focus? THE INDUSTRYYOU YOUR NETWORK Watch Value Analyser Creating new insights

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? Source: Watch Market Analyser European import/export vs China through LCs Did you know? Perform a similar analysis for each business line, country, entity…

Transaction AmountsTransaction Volumes Value Analyser Evaluate customer reciprocity Who are my top counterparties? Is reciprocity respected? “Reciprocity analysis can show different results when looking at currency or amount” Source: Watch Traffic Analyser

Value Analyser Track performance of correspondent network “We are now receiving GBP payments from our counterpart. Why?” Source: Watch Value Analyser How can we optimise our correspondent network? Can we consolidate our EUR clearing activity ? Is our correspondent compliant with bilateral currency agreements? Can we improve our messaging efficiency? Did you know?

31% 56% Value Analyser Perform customer/liquidity risk analysis Transaction AmountsTransaction Volumes Top 10 exposure of 2010 Total Source: Watch Traffic Analyser What is our top10 counterparty exposure? In which direction? Is our exposure increasing/decreasing from a value perspective? Perform a similar analysis for each business line, country, currency…

Value Analyser Benchmark against the industry Source: Watch Market Analyser 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 Value Analyser “Should we envisage developing multi-currency products in Europe?” … “Should we adapt our pricing policy for USD payments?” Value Analyser Benchmark against the industry What are the most common currency flows in specific corridors? Can we leverage this information for business development purposes?

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 Watch – Business Intelligence only from SWIFT

Want to know more of 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 Other Q&A? More Information

Questions & answers ?

Thank you

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