1. Alliance Lite Sibos 2010 Amsterdam Dirk Van Achter, SWIFT
Alex Ozanne, Kleinworth-Benson
25 October 2010

2. SWIFT hasn’t solved all your problems yet?
Broker /
Dealer
Market infrastructure
Banks / Distributors
FTP
Your
institution
Corporates
Investment manager
Problem: dealing with multiple institutions means dealing with multiple systems and multiple formats.
No matter what you do, there is one underlying problem: too many bubbles, each with a different size and colour. Each bubble represents a different format, a different channel, a different system that you need to deal with. And this is not easy. It is time consuming, it is complex, it is fragmented
In other words you have to implement manage and maintain different communications channels and different formats, which eats into your revenues and your profitability.
In addition to this, as an investment manager you are dealing with an increasing number of asset types, a growing number of counterparties and escalating volumes; This in turn means you are exposed to higher risk and you have a bigger compliance burden.
Custodian
Funds’ administrator/ Transfer agent
Regulators

3. Multiple counterparties
Where it hurts
Multiple counterparties
Multiple connections
Lack of standards
Manual processing
Problem: lack of standards, manual processing, paper based,
Increasing volumes have exposed and created numerous areas of
operational inefficiencies and raised the cost of back-office support.
It is very hard to monitor the status of your instruction, manual processing
is error-prone and is costly, in terms of financial and human resources not
to mention the risk that you are faced with.
This is where it hurts..
FAX/Paper-based
Increasing volumes
Regulations

4. Multiple Counterparties – One Connection
Broker/ Dealer
Custodian
Regulators
Funds’ Administrator/ Transfer Agent
Investment Manager
Market Infrastructure
Corporates
Banks/ Distributors
Multiple Counterparties – One Connection
Broker /
Dealer
Market infrastructure
Banks / Distributors
FTP
Corporates
Investment manager
Problem: dealing with multiple institutions means dealing with multiple systems and multiple formats.
No matter what you do, there is one underlying problem: too many bubbles, each with a different size and colour. Each bubble represents a different format, a different channel, a different system that you need to deal with. And this is not easy. It is time consuming, it is complex, it is fragmented
In other words you have to implement manage and maintain different communications channels and different formats, which eats into your revenues and your profitability.
In addition to this, as an investment manager you are dealing with an increasing number of asset types, a growing number of counterparties and escalating volumes; This in turn means you are exposed to higher risk and you have a bigger compliance burden.
Custodian
Funds’ administrator/ Transfer agent
Regulators

5. Getting your low volume counterparties on SWIFT
Easy
Secure
Low cost
Worldwide
Great but how can you get all your counterparties onto SWIFT ?
Standardised
...many issues, one global solution!
Easy SWIFT access using Alliance Lite

6. Product AutoClient Business Integration Manual Browser Interface SWIFT
Web server
SSL
Work flow
SWIFTNet Interface
security
token
AutoClient
Business
Integration
Manual
Browser
Interface
SWIFT
Security
SWIFT
Managed
SWIFT
Messaging
SWIFT
Community
Alliance Lite
Customer
Internet
Alliance Lite
Central
Infrastructure
SWIFT
Network
Counterparties

7. Who is it for? New low volume SWIFT customers
Average < 200 items sent & received per day (< 4000 items/month)
1 item = 1 SWIFT message or 1 chunk (< 100 KB) of a FileAct file
Current release: All types of institutions
Banks & Financial Institutions
Corporates
Funds Distributors & Funds Transfer Agents
Investment Managers, Broker / Dealers
Next release
Browse services
Members of market infrastructures (e.g. TARGET2)
Q1 2011
SWIFT message = 1 MT or 1 MX message
FileAct files can be max. 20 MB size
FileAct files are counted in chunks of max. 100 KB. Example : a FileAct files of 250 KB would be counted as 3 chunks (3 items).

8. Distribution One box with 10 tokens and 1 CD Quickstart instructions
Install in 5 minutes
Includes
Own BIC on SWIFTNet
BICplusIBAN directory built-in
Free training and documentation

9. Easy to Order
Easy
Alliance Lite
Easy to Install
Easy to Use

10. Join SWIFT and Order Alliance Lite
Click to fill in the single order form No need for username/password to access it

11. Easy to Order
Easy
Alliance Lite
Easy to Install
Easy to Use

12. The only thing
you need to
connect to
SWIFT

13. Easy to Install

14. Easy to Order
Easy
Alliance Lite
Easy to Install
Easy to Use

15. Alliance Lite – Browser Interface
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted

17. Plug your SWIFT USB Token in the USB slot of your PC
You will be requested to
enter password of USB Token

19. Support for different SWIFT Message Types

20. IBAN to BIC look-up

21. Search, filter, drill-down
Multi-page
Print
Easy to use reports

22. Save in file format of your choice

23. Alliance Lite - AutoClient
PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted

24. Alliance Lite AutoClient
Your
counterparties
FIN MX
FileAct RT
SWIFTNet
Alliance Lite Central Infrastructure
Internet
File containing any MT Messages
CSV file
File with any content
Alliance Lite
customer

25. Alliance Lite: Attractive Price Model

26. Price As of €200 / month Pay-as-you-go €200/month plus €1 per item
All-inclusive Flat Fee €850/month
includes 4000 items/month
Wholesale & Resale Volume Discounts
As of
€200 / month

27. Attractive Pricing 1 EUR/item 850 200 Monthly billing 650 4,000
EUR/month
1 item = 1 MT or MX, or 1 FileAct chunk
of 100 KB, sent or received
1 EUR/item
850
Flat Fee
Pay as you go
200
Monthly billing
Items/month
650
4,000
Subscription for 1 year, tacitly renewed, cancellation with 3 months notice
A pay-as-you-go customer surpassing flat fee for 3 months in a row will be offered to switch

28. A Channel Island Initiative: A Bank’s Perspective

29. The Channel Islands, including Guernsey and Jersey are major offshore finance centres
Consisting of nearly 100 Banks providing a diverse range of Banking Services including retail banking, total wealth management, foreign exchange, also supporting other financial services businesses operating in the Islands including:
Fiduciary Services providing trust and corporate services to private client, corporate and institutional businesses
Investment Business providing a range of services including stock broking, investment advice and management, promotion, fund management and administration, and custody of assets to an international clientele
Insurance Business providing a range of insurance products and services, ranging from captive insurance company structures to intermediary services

30. Connecting the Financial Community
Corporates
Stock Exchanges
Kleinwort Benson
Broker-dealers
Investment managers
Banks
Fiduciary Services
Settlement systems
Government institutions
Clearing systems

31. How we use SWIFT for payments
Paying Bank
Kleinwort Benson
Sender’s Correspondent
MT103 Customer Transfer
Receiving Bank
Bank of Jersey
Typical MT103 USD Payment ( non cover)
Receiver’s Correspondent

32. Corporate Payment / Customer Transfer
Sender’s Correspondent
Trust Company
Paying Bank
Telephone
Fax
Letter
Multi Online Systems
Receiver’s Correspondent
Receiving Bank
Beneficiary
Online Statement
Paper Statement

33. Online Banking
Bank 1
Trust Company
Bank 2
Bank 3

34. SIBOS 2008 Vienna SWIFT announced:
Launch of Alliance Lite: Targeted at financial institutions and corporates with low-volume payment requirements
Change of joining criteria to allow smaller regulated institutions to join the SWIFT network

35. SWIFT payment / Customer transfer
Sender’s Correspondent
Trust Company
Paying Bank
Alliance Lite
Receiver’s Correspondent
Beneficiary
Receiving Bank
SWIFTNet caters for third party non repudiation. In case of dispute on content or time SWIFT can arbitrate in quality of third and neutral party.

36. Integrating to SWIFT SWIFTNet
OUT
Payments
FIN IN
Statements
FileAct
SWIFT
Connectivity
Business
Application
Outgoing payments in MT format files to FIN service
Incoming statements in either MT940 format or downloaded from browser in Excel, Word, PDF etc
Bulk messaging using to/from FileAct

37. Summary... from multiple proprietary bank channels…
Corporate
Accounts
payable
receivable
Treasury
Other
Trust Company
Payments
“fax-banking”
PSTN
leased line
e-banking Y
Internet
e-banking Z
host to host X
VPN

38. …to a single channel to multiple banks
Trust Company
Accounts
payable
receivable
Treasury
Other
Corporate
Payments
SWIFTNet
SWIFT Connectivity
One message standard
One security standard
One gateway
One network
Lower costs
Reduced risk
Improved control
Better compliance

39. Benefits for the Client
Single payment interface to all your bankers and therefore...
1 user id, 1 password and 1 security token
1 standard message format for all payment types
Validation at the time of input
Guaranteed delivery – non repudiation
Go Green – electronic statements
Integration with back-office software
Scalability – standard payment infrastructure for all your banks

40. What are the benefits for us?
All payments through a single channel
Standardised message format
No re-keying of data – reduction of time and error
Validation at the time of input – minimise call back to client
STP will allow for higher volumes with no staff increase
Reduction in paper statements
Being “SWIFT ready” makes us competitive in the market

41. What delighted customers say
“Much better than what we have at the moment.”
“This is the first time I can ever hope to become and afford to be a SWIFT member.”
“You are on the verge of creating an essential communication platform.”
“Alliance Lite is light.”
“This makes me think of Intel Inside. You have the backbone of the financial industry which you now seem to have found a way to better exploit for the benefit of more users.”
“It gives me the possibility to be part of the SWIFT network, to have that element of professionalism and security as part of my company image and reputation.”
“SWIFT is a language, and Alliance Lite allows me to speak that language.”

42. More information?
On SWIFT’s website

43. Questions & answers ?

44. Thank you 44

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