1. The Evolution of the Payment Systems
Romanian Banking Forum 2002
Bucharest, 19 November 2002
The Evolution of the Payment Systems
Gianfranco Guidolin,
International Business Development

2. European Financial Scenario Main Drivers
New forces are driving the evolution of the European Financial Market:
Financial market infrastructure consolidation
Introduction of the Euro
Economic integration
Harmonisation of existing domestic infrastructures

3. European Financial Scenario Economic Integration and Introduction of the Euro
Euro means:
thanks to
price transparency
transaction cost reduction
common rules and legislation
use of standards (IBAN, BIC)
Competition
Integration

4. European Financial Scenario Financial market infrastructure consolidation
Consolidation means:
harmonisation
facilitation of cross border transactions
clearing and settlement cost reduction
trading as a commodity
greater competition
efficiency
less fragmentation
clearing and settlement integration
standards

5. European Financial Scenario SEPA (Single Euro Payment Area)
Domestic
Payment
Systems
Local
Organisational
Solutions
National
Communication
Standards
Need for Payment System Harmonisation
Integration of domestic and cross-border payment infrastructures
Same costs for both domestic and pan-European transactions
Reduction of clearing and settlement cycle time
Fair and open access

6. Security in the Financial World
Security is a common thread
throughout the financial world
Strategic approach to security: integrated global solutions instead of single product/service solutions
Co-ordination between physical and IT security
From IT security to business security
Non repudiation ever increasing importance as market dimensions grow
SECURITY
Financial
Services
Interbanking
Companies
Banks
Users
SECURITY IS A STRATEGIC ISSUE

7. The key framework to support the evolutionary process
FINANCIAL
MARKET
INNOVATION INTEGRATION
Up-to-date, competitive enabling infrastructures: the foundation on which the re-engineering process must be built ensuring efficiency, effectiveness and security

8. Infrastructure Services
SIA: 25 years of expertise
A competitive offering based on innovative, secure and integrated technology
Data Base
Networking
Infrastructure Services
Application
Services
Front End
Security
Since 1977 SIA is the main service provider for Italian financial Institutions, Banks and financial Operators
Value and innovation for the financial market

9. The SIA Network
The central infrastructure for all financial services with the highest levels of security and reliability:
Düsseldorf
New York
London
Frankfurt
Paris
Amsterdam
Madrid
Basel
Tokyo
Lisbon
Athens
RUPA
SIAnet
SIAnet delivers all the financial transactions to national and international members of the financial community
Satellite infrastructure to deliver information to financial markets
Open multi-protocol architecture in optical fibre (wide-band MPLS)
Over 3,600 billion bytes transported with SLA higher than 99,999% in 2001

10. SIA: Security Excellence
First Italian company certified BS7799, Vision 2000
Charter member of the Global Trust Authority
First Certification Authority recognised by AIPA
SIA designs, develops and manages critical services with a help desk for 24x7x365 guaranteeing high service availability levels
Our commitment
SIA Group:
Strategic Partnership:
A complete and competitive offering for all security needs

11. Payment systems Payment Value Chain
SIA manages the Italian payment system services:
Retail Payment Clearing Subsystem
&
Wholesale Payment System Exchange Procedures
Payment Value Chain
Payment
Initiation
Payment Management
Clearing &
Settlement
Pre-settlement
Data
collection
Guarantees
Payment
System
Validation
Tickler
Pre-settlement
Claering &
Settlement
Security

12. A recent international success SEPA - EBA (Euro Banking Association)
EBA STEP2 is a pan-European answer to banks needs for retail payments:
EURO1
TARGET A n B
Settling Direct
Bank
Indirect 2 1
EBA
STEP2
Step2 is aimed at processing high volumes of commercial and retail payments sent to the system through a secure network

13. Markets and Access to Trading
Information and
Access
Markets
Trading On
Line
Order
Collection &
routing
Info collection
& distribution
Market
access
Trading
Mngt
Matching
engine
Data
dissemination
Webtrade
Italian Stock Exchange
Equities, Derivatives, Treasury and Corporate Bonds
MTS, EuroMTS, MTS Japan, MID
TradeImpact - A T S
Global
order routing
SWIFT ETC
Service Provider
Financial
Info
Monitor
Trading
on-line
Trading
technology
SIA is the leading IT provider
for the entire value-chain of the financial markets processes

14. IT outsourcing services An attractive option
SIA’s outsourcing offers a reliable approach to addressing the challenges ahead.
SIA has already created a Win-Win Relationship with:
Monte Titoli
TLX
eMID
Borsa
Italiana
Euroyard
CCG
Banca d’Italia
Banca Profilo
MTS

15. SIA: your reliable partner
SIA provides competitive, innovative and secure IT solutions thanks to the right combination of technical expertise, vertical know-how and cost efficiency
Figures in 2001
Most recent success
Revenues: € 200 million (+10 %)
Net Profit: € 6,4 million (+22 %)
Italian clients: over 1000
International Clients: over 300 (+ 20%)
Infrastructure investments: € 47 million
SIA chosen by the EBA as the technology partner to build and operate the new pan-European Automated Clearing House for mass payments in Euro
ABE
EBA

16. The leading IT provider for
the financial world