1. IBOS - Making Cross-border banking easier
IBOS Value Proposition
IBOS - Making Cross-border banking easier
Addressing Customer Detriments and meeting Customer Needs in International Banking

3. IBOS Services
Contact network for responding in pre-sales phase and in production, including on RSPs
Streamlined Account Opening
Hands-on adoption of new customers
Customer service in local language and English
Transparent and competitive pricing
Local payment, cash management and treasury services
Local payments based on MT101
Cross-border payments based on MT101 and MT103
Previous-day balance and transaction reporting
Intraday balance and transaction reporting
Automated Cross-Border Zero-Balancing in Euro

4. Permissible/Imper-missible and why
IBOS Service
Contact network for responding in pre-sales phase and in production, including on REPs
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Customer goes international, needs banking services but has no knowledge of which banks exist, what the relevant services are, pricing etc., but relies on their own main bank at home to assist them.
Customer wants their main home bank to help them, inform them about services available locally and how to control them from the head office, and to facilitate getting the relevant services and control processes in place.
IBOS Business Development organisation exists to meet these needs, and should be staffed up so as to respond promptly and accurately to BD colleagues at the other banks.
Slow response to a referral.
Impermissible – sunset rule should apply: all referrals should at least be acknowledged same-day.
Backlog of referrals.
Impermissible – BD organisation should be staffed up to deal with the size of the flow.
BD operation is a box in a process flow, with decision-making elsewhere.
Impermissible – BD operation needs to have sufficient mandate and expertise to deal with referrals through to go-live, and not just to compile files to pass on to other parts of the bank.

5. IBOS Value Proposition
IBOS Service
Streamlined account opening
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Very hard to know what banks exist in a foreign country, which will accept their account, what papers will need to be produced, how to go about it and how long it will take.
Introduction to a bank who will either say no quickly, or lay out the process, paperwork and timing to get an account open.
Either a quick ‘No’ based on sector-based criteria from each AHB, or knowledge of where it makes no sense to hold a local account. Alternatively the ability to open a resident or non-resident account, publication of what Background Documents are needed, assistance with filling out the Account-Opening Documents, and an overview of the process and timing.
Non-resident accounts not accepted where regulations forbid it specifically, or where onerous reporting requirements pertain.
Permissible under such circumstances where they are shared by all local banks, but not where other banks in the same country offer it.
An earnings threshold is imposed where this is meaningfully higher than the size of client at which it makes sense for the client to hold the account.
Impermissible – the AHB should be willing to open an account for every client for whom it makes sense for the client to have the account, and AHBs should set their Standard Domestic Pricing with this in mind.

6. Permissible/Imper-missible and why
IBOS Service
Hands-on adoption of new customers
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Customer may have no knowledge of payments, clearings, local business conditions in foreign countries.
Customer entering a new market needs advice on local conditions and ways of receiving and making payments, so as to work out the right set of services for them.
IBOS Business Development Desk at each AHB is staffed up with sufficient local knowledge of their market, and with access to relevant specific expertise in needed, to give the customer the comfort they want that an appropriate set of services is being offered – and then to go ahead and get the services set up and live.
N/A
There are no permissible gaps in this area.

7. Permissible/Imper-missible and why
IBOS Service
Customer service in local language and English
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Customer wants to be able to communicate with all banks used, from the center, and also wants its subsidiaries and local offices to be able to communicate with the banks where they have their accounts.
Contacts at every bank that are accessible and speak English, and contacts for each subsidiary or local office who are accessible at their local bank and speak local language as well as English.
IBOS banks deploy an organisation that is accessible to the customer both centrally and locally, and speaks English and local language.
After initial onboarding, the customer is serviced entirely at a branch with no ongoing link to the IBOS team or designation of the customer as an IBOS customer.
Impermissible – wherever the client is serviced on an ongoing basis, the AHB needs to have it registered as an IBOS account with the name of the HB shown. The AHB must then ensure that their own IBOS team and the HB team are kept informed about important developments, and that IBOS pricing, terms and conditions continue to be applied.

8. Permissible/Imper-missible and why
IBOS Service
Transparent and competitive pricing
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Pricing for international banking services can be hard to obtain, difficult to understand, and contain elements that turn out to be a far bigger component of total cost than anticipated. Cross-border payments can be charged as a percentage of face value.
Comprehensive information on prices, and a guide to the main drivers of cost in each country. Cross-border payments subject to flat fees. Costs for electronic reporting to be not such as to negate the value of having it.
IBOS AHBs all supply Standard Domestic Pricing, which is comprehensive and incudes flat fees for cross-border payments and a ceiling on costs for electronic reporting. IBOS AHBs supply Condensed Standard Domestic Pricing, showing main drivers of cost. IBOS AHBs offer Platinum/Gold/Silver Pricing for large customers.
IBOS payments attract fees that are a percentage of face value.
Impermissible – this is a prime value point.
Fees for supplying MT94n reports are pitched at a high level (e.g. $100 per account per month).
Impermissible – dissuades the customer from using the service and is defensive.

9. Permissible/Imper-missible and why
IBOS Service
Local payment, cash management and treasury services
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Customer requires extensive local services to run their business, possibly including paying-in services for their outlets across the country, and support for daily in-country cash management.
Customer needs to have a full-service local bank with the range of capabilities needed to deal with the local market environment and clearing systems. The bank needs to offer the requisite local eBanking tools.
All AHBs are full-service with the local networks and capabilities required to deliver on the customer needs. Since the AHB offers the IBOS cross-border services as well, the customer can have local and cross border banking under one roof.
The AHB is a one-branch operation.
Impermissible – contradicts a prime IBOS value point.
The AHB has good regional coverage in a large country.
Permissible – IBOS’ rules allow more than one bank in a country that is large and has regional banking markets.

10. Permissible/Imper-missible and why
IBOS Service
Local payments based on MT101
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
The customer wants to control all outgoing payments from the central office.
To have an eBanking tool through which domestic payments can be initiated off local accounts.
IBOS MT101 Guaranteed Service Level includes the options for local payments where the endpoint is in the same country as the account, and the technical specification allows a choice of execution by both high- and low-value clearings, if such options exist.
Local payments by MT101 can only be executed by the local high-value system because of data format incompatibility.
Permissible as long as no other bank in the country can do it either e.g. US NACHA format.
Payment routing is defined by amount.
Permissible if these are the local clearing rules e.g. above EUR50,000 is high-value, and below is low-value.
Multiple Mt101s and chaining of MT101s – with single debit – not supported.
Permissible – if the customer has such volumes as to need a file-based service, a different option from MT101 is required.

11. Permissible/Imper-missible and why
IBOS Service
Cross-border payments based on MT101 and MT103
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Customer has accounts around the world and wants to move money quickly and cheaply in between them.
Near-real-time cross-border Treasury payments, charged at the sender end with a flat fee, and credited in full at the payee end. Payments should be initiated from an eBanking tool.
The IBOS MT101 Guaranteed Service Level, and the IBOS MT103 Guaranteed Service Level - both initiated via an eBanking tool at the Host Bank - enable the customer to send money from HB to AHB, AHB to HB, and between different IBOS AHBs on a ‘SHA’ fee basis with no deductions and in near-real-time.
Host Banks who have no eBanking tool through which the customer can initiate IBOS GSL payments.
Impermissible – the HB cannot deliver the IBOS value.
IBOS payments attracting fees that are a percentage of face value.
Impermissible – all IBOS payments (intercompany or third-party) should attract one flat fee.
A fee for crediting IBOS intercompany payments.
Impermissible – there can be a flat fee for crediting IBOS third-party payments but crediting IBOS intercompany payments must be free-of-charge.

12. IBOS Value Proposition
IBOS Service
Previous-Day Balance and Transaction Reporting
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Customer wants visibility over bank accounts and transactions from a central office or treasury centre.
Electronic reports either daily, or upon movement, from each bank, visible in an eBanking tool.
Every Account-Holding Bank can send MT940 either daily, or upon movement, or both, to any Host Bank, and supplies a guide as to the service options available, and how each field will be completed depending upon the transaction type.
An AHB has no MT940 capability.
Not permissible – it is one of the basics.
No MT940 General Information supplied.
Impermissible – the Host Bank needs to be able to tell the customer which service options are available.
No grid supplied of how fields 61 and 86 will be populated for common local transactions and for IBOS cross-border transactions.
Impermissible – the customer needs this information or they will not be able to code their own IT systems to reconcile the account.

13. IBOS Value Proposition
IBOS Service
Intraday Balance and Transaction Reporting
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Customer wants to know their liquidity position at all times.
Electronic reports, either to a known schedule or upon request, from each bank, visible in an eBanking tool.
Account-Holding Banks can send MT941 (Balance) or MT942 (Transactions) either to a published schedule or upon receipt of a request sent through the HB to them by MT920:
where the report will contain meaningful information
where the report is timed to coincide with batches received by the AHB from local clearings
No intraday reporting at all
Permissible only where local batch clearings are processed after the customer can mobilize the funds
No MT941 Balance reports
Permissible where MT942 is produced: MT941 can be misleading and usually needs to be supplemented by MT942
No ability to respond to MT920
Permissible if the AHB publishes a schedule of when MT942 is sent and which clearing batches will be in each report

14. IBOS Value Proposition
IBOS Service
Automated Cross-Border Zero-Balancing in Euro
Customer Detriments
Customer Need
IBOS Value Point
Example Service Gap
Permissible/Imper-missible and why
Customer has Euro accounts in several EU countries, for its subsidiaries to conduct day-to-day business, and is incurring debit interest on some balances, and earning little or no credit interest on others.
Customer wants to bring all balances together every day, in full, at their main bank, as one credit or debt position.
IBOS DZero brings the full daily available balance in Euro from each Account-Holding Bank into the Host Bank, every day.
A Euro-In country where IBOS has an IBOS Account-Holding Bank but it does not offer DZero
Impermissible – Euro-In countries do not have exchange controls so the service is feasible.
Regulations that impose extra costs on the implementation
Permissible – if such costs can be shown to be the inevitable result of the applicable regulations on the Account-Holding Bank.

15. IBOS Value Proposition
IBOS BANKS
Network Co-Ordination
IBOS Association has a central support office in London, which coordinates the streams of work and the definitions of messages and processes that make IBOS a truly effective network.
IBOS Association
Golden Cross House,
8 Duncannon Street,
London WC2N 4JF
SENIOR TEAM
Bob Lyddon
General Secretary
Tom Nicholas
Guaranteed Service Level Officer