Poland Community Briefing 2 nd of December 2014, Warsaw

DP 183: SWIFT2020: Strategic direction Discussion Paper – DP 183 Confidentiality: Level 2 – Distribution to national member groups allowed December 2014

▪ FIN, InterAct, FileAct growth ▪ 50% Price Reduction ▪ Distributed Architecture ▪ FIN Renewal ▪ HSM Replacement ▪ FIN, InterAct, FileAct growth ▪ 50% Price Reduction ▪ Fixed Fee ▪ Distributed Architecture ▪ 100% FIN Growth ▪ 50% Price Reduction ▪ SWIFTNet Phase 2 ▪ Alliance Lite2 ▪ AMH ▪ Integration services (T2S connector, IPLA) ▪ Alliance Lite ▪ Alliance Integrator ▪ SWIFTNet capabilities to Access ▪ Business Intelligence, SWIFTRef, Sanctions, Matching ▪ MIRS ▪ Solutions: TSU, SWIFT Remit, FIX, Proxy voting ▪ Business Intelligence ▪ Solutions: –Cash reporting –E&I Messaging & Platform Software Business Shared Services Momentum from previous strategies Board_Dec2014_NMG_Briefing_Material_V3 3 DP 183

SWIFT business model

Disruptive forces… cyber threat regulation and market change technology revolution geopolitical challenges changing customer behaviour new competition

Platform investments Operational excellence FIN growth Pricing measures ISO T2S, CLS, GLI IA & FA growth Real Time Payments Many-to-Many Market Infrastructures AMH Cloud Integration Services BI, RefData, MyStandards Faster/Deeper Compliance CB Compliance for Securities? Services MIRS BI, RefData, MyStandards Services Messaging Software Business Shared Services Core MIs Compliance Forward looking: SWIFT2020 – “What?” Board_Dec2014_NMG_Briefing_Material_V3 6 DP 183

Consultation Phase 2 March ‘14 Board Offsite June ‘14 IR December ‘14 DP June ‘15 ER Strategy Exploration Strategy Definition Consultation Phase 1 −Share Board offsite outcome −Gather community perspectives on the baseline and five areas for exploration −Capture community needs and prioritise −Highlight any gaps/ additional opportunities −Consult based on key questions outlined in the DP −Refine strategic direction & finalise recommendations SWIFT2020 Timeline Board_Dec2014_NMG_Briefing_Material_V3 7 DP 183

Feedback from you so far Core Payments and Securities CSD’s & Payment MI’s Corporates Faster & Deeper Compliance RTP Broader Compliance P2P 70 consultation meetings worldwide 500+ community representatives 200+ financial institutions 70 consultation meetings worldwide 500+ community representatives 200+ financial institutions

Continued emphasis on core business activities Address evolving needs of market infrastructures Focus on Compliance Services Deliver on SWIFT2015 strategy and prepare for SWIFT priorities

Invest in our core business Cyber Security –Continue investing in prevention and detection –Additional supplier due diligence activities –Keep ramping up our cyber recovery capabilities –Further strengthen our internal intelligence capability FIN renewal –Start moving BICs (users) to the renewed FIN back-end component (Slice Processor or SP) –Progress development of the control component (SCP) Technology Lifecycle –Refresh of network equipment, Hardware Security Modules (HSMs), server hardware, database and middleware for core SWIFTNet platform components, and provisioning infrastructure

Focus on Compliance Services KYC registry service launch Sanctions Screening service enhancements: –Screening of all transaction formats and message types (incl. securities messages) –Extend fine-tuning capabilities to cater for more complex clients Sanctions Testing –Launch peer assessment capabilities Compliance Analytics –Provide richer information and more flexibility for larger clients –Provide more standardised reports for smaller clients Qualify potential new services including Name/client screening, FATF 16, List Management, AML Testing & Tuning and RMA evolution Launch a dedicated effort to support the Securities industry, including the set up of a Securities Compliance Working group

Address evolving needs of MIs Focus on Market Infrastructures –Protect existing traffic –Grow new markets –Develop segment-specific value propositions Roll out Products & Services Roadmaps including: –Messaging –Software and Shared Services –Services portfolio –Community standards management Position SWIFT platform as natural choice for ISO –Business-focused events and thought-leadership

Supporting ISO Patrik Neutjens ISO20022 Programme Director

How many ISO initiatives are adopting ISO 20022? 128 Under discussion > planned > rollout > live Europe Oceania Americas Africa 90 countries ISO Payments Securities Trade Services 51% Foreign Exchange 42% 4% 2% 1% Cards

15 Now > 2017 ISO impact MyStandards HVP Securities Payments LVP LVP & HVP FX Aware? Prepare? Budget? Impact? A bank’s perspective CPA SADC PASA [EFT] New BOJ-Net NPP Reserve Bank of Australia FFI VP Lux IPFA Corporate- to-bank VP Securities Baltic CSDs NSD Russia Brunei TSE & Jasdec Step2 Euro1 HKMA

Thank you