SWIFT Essentials Alex Bagin, Senior Account Director, Mena SWIFT Middle East Conference, Dubai, Mar 2010

The products and services you will be able to explore during this conference Accord Matching Workers’ Remittances Business Intelligence Corporate Access 3SKey Sanctions Lite 2 SWIFTRef data Support packages SWIFT Consultancy Services Dubai Hub Training/ Certification SWIFT Innotribe SWIFT Essentials 2012

Global and regional networking Security, Standards, Liability, Resilience, Availability, Reach SWIFT Essentials 2012

SWIFT FIN message availability 99,997% 210 Countries 10,060 live users - Latest peak day: 19,992,265 messages on 1 December 2011 SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Key principles - Eligibility criteria Supervised Financial Institutions Closed User Groups / Corporates Members CREST Participants Non shareholding Members Securities System Participants SWIFT Community Sub-members Payments System Participants Trading Institutions Participants in MA-CUGs Brokers & Dealers IMI’s Corporates Central Depositories & clearing Institutions Treasury Counterparties SWIFT Community Financial Market Regulators Recognised Exchanges for Securities & related financial Instruments Securities Market Data Providers Money Brokers Securities Electronice Trade Confirmation Service Providers Fund Administrators Treasury ETC Service Providers Registrar & Transfer Agents Securities Proxy voting Agencies Subsidiary Providers of custody & Nominee Services Travellers Cheque Issuers Trust or Fiduciary Services Companies Non-Supervised Entities active in the financial industry Representative Offices Non shareholding Financial Inst.

Traffic Distribution Feb 2012 SWIFT Essentials 2012

SWIFT2011 in review -50% 2006-2010 -20% 2011 SWIFT Lowering the costs Consultation with customers and community – As shared in with you in December in IR 518. The feedback we have received is rich and insightful. We shared it with you in December in IR If we had to summarise it in a few words, it would be: focus on growing your core business and build on your core competences; maintain security and resilience; and lower prices and usage costs. Trends in our technology and business environment – As explained in more detail in the DP. Both are changing rapidly, forcing us to adapt and innovate. If SWIFT is to continue to grow and deliver price reductions to its community, it needs to look beyond business as usual and adapt both what it does and how it does it. Evaluation of our SWIFT2010 strategy – Before moving ahead to our next strategy, we felt it was essential to look back at SWIFT2010 and look for lessons learned from its implementation. 15% rebate 2012 SWIFT Essentials 2012

Our Portfolio Applications Standards Messaging Connectivity Solutions Service Applications Standards Messaging Connectivity Solutions Service SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Standards Messaging Connectivity Solutions Service SWIFT Portfolio Training FIN Corporate connectivity SNL Partners Fileact BI Accord Trade services Connect Bronze MX RTGS Standards Messaging Connectivity Solutions Service Applications ISO15022 ISO2022 FIN - MX MY Standards Connect Gold Interact Sanctions Consulting Services Browse Workers remittances Connect silver 3Skey Bulk Payments SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Accord for Treasury Single-slide overview Applications Deal Confirmations: (MT 300,305,306,320, 330,340,341,360, 361,362,392) Accord Subscribers (>450 in 70 countries) Banks Brokers Custodians Fund mgrs Corporates… Accord subscriber or non- subscriber SWIFT Copies of confirmations Real-time reporting & exception handling Integration available for various Back-Office Systems Accord Real-time Confirmation Matching Service Availability of >99.97% last 5 years >90K msgs/hour observed matching capacity Common matching rules + user-defined rules Financial Liability for Matching results SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Standards Messaging Connectivity Solutions Service Applications SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Standards MyStandards is complementary to the Standards Developer Kit (SDK). It will help customers to: browse and search MT and MX message definitions collaborate with counterparties by creating and sharing usage guidelines compare usage guidelines set by market practitioners analyse the impact of versions on message definitions and usage guidelines generate (customised) documentation and processable outputs. SWIFT Essentials 2012

Standards Messaging Connectivity Solutions Service Applications SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Connectivity options, adapted to your needs Direct connection Global corporate (25+bn turnover) Millions payments/year Manage your own SWIFT connection VPN VPN Network partners Indirect connection Very large corporate (1–25 bn turnover) Hundred thousands payments/year Outsource SWIFT connection VPN Internet or VPN Service bureau or Member/Concentrator Alliance Lite and Lite2 Simple solution Also available for DR site Web server Internet Work flow SWIFTAlliance SWIFT

Standards Messaging Connectivity Solutions Service Applications SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Messaging SWIFT Essentials 2012

Standards Messaging Connectivity Solutions Service Applications SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Service Support Standard Standard Plus Premium Premium Plus Premium Custom SWIFT Essentials 2012

Consultancy Service Domains we cover Payments Cash reconciliation Payments STP Exceptions and investigations Market Infrastructure connectivity Corporate access SEPA Securities Corporate Actions Funds processing Custodian / sub-custodian Customer connectivity Wealth management Support of ISO 20022 Other areas Trade Finance MT to MX migration Competitive Analysis Adoption of ISO standards SWIFT Organizational Alignment Market practice Infrastructure Capacity Resilience XML and web services support Proprietary connectivity displacement Middleware layer Hubbing Treasury Foreign exchange Money market Derivatives Syndicated loans Collateral management SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

SWIFT integration - Customer challenges Service Consulting services SWIFT integration - Customer challenges Data Formats Business Processes Technical Adapters SWIFTNet Message flows The missing pieces …. Technical adapters -- how the systems communicate with one another Data formats – business documents and data versus SWIFT standards for MT, MX Message flows – understanding the different services and levels of delivery Business processes – no relationship between the several messages involved in a single business transaction Business Applications SWIFT interface Where do I find the knowledge to do this? SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Dubai Technical Consultancy Hub Service Dubai Technical Consultancy Hub Success story in MENA, many consultancy projects delivered in 2010 -2011 Centre of Technical expertise Go Local SWIFT Essentials 2012

SWIFT Training – anywhere, any time Service SWIFT Training – anywhere, any time Web class SWIFT eTraining On-site training Classroom courses SWIFT Essentials 2012

Using SWIFT Certification Programme Service Using SWIFT Certification Programme Formal certificate upon successful completion of an exam Knowledge test on SWIFT topics SWIFT for Corporates Specialist Alliance Operator Alliance Administrator Security Officer SWIFT Essentials 2012

Standards Messaging Connectivity Solutions Service Applications SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Watch Portfolio - Analysers Online insights into your business Solutions Watch Portfolio - Analysers Online insights into your business On-demand analysis of data via SWIFT.com Monthly data updates including customer data and SWIFT totals 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 insights into market trends Value Analyser – providing insights into amount & currency information SWIFT Essentials 2012

“SWIFT for Corporates” Solutions Multiple bank channels Standardised gateway Corporate SWIFTNet Accounts payable receivable Treasury Other Single gateway Corporate VAN Accounts payable receivable Treasury Other host to host X Leased line e-banking Y Internet e-banking Z Corporates doing multibanking have several ways/methods of communicating with Banks SWIFT value proposition is to reduce cost by eliminating the various communication layers and reducing it to one single communication channel, reduce lines, rental contracts, devices, etc… High cost Low security Manual input Global visibility on cash Lower cost Increased control and security Reduced risk SWIFT Essentials 2012

The 3SKey solution Solutions (1a+b) Corporate user obtains an inactive token from a bank 2 User activates the token on 3SKey portal (2) John = 45678 3 4 Token associated (registered) with several banks (3) (4) 5 CRL check Token used to sign messages – bank verifies signature and revocation status (5)(6) 6 Operates PKI and portal, issues certificates Activates token, associates with bank, signs Distributes token, associates user, verifies signatures 1a) Swift issues credentials on USB tokens using SWIFT PKI Tokens are distributed by 3Skey subscribed banks to coproprate end users 2) Corporate end-users activate their token through 3SKey web portal An anonymous certificate is generated on the 3Skey token 3) The user registers credentials with a first bank which performs the identity control and associates the person with the certificate 4) Subsequently the corporate representattive can register to a second bank using the same token 5) And 6) The user can now start using the 3Skey to sign data or on-line banking services which will verify the signature Banks do the registration. SWIFT 3SKey is sold to the banks not the corporates When needed the end-user or its administrator can access the 3SKey portal to manage its certificates John SWIFT Essentials 2012

Solutions Applications SWIFT Middle East Conference, Dubai, Mar 2010 SWIFT Essentials 2012 SWIFT Middle East Conference, Dubai, Mar 2010

Service SWIFT Essentials 2012

Sibos 29 Oct. to 2 Nov. 2012, Osaka 16 to 20 September, 2013, Dubai SWIFT Essentials 2012

Shoukran Q & A SWIFT Essentials 2012