1. Exceptions and Investigations Automate your payment enquiries to save cost and improve customer service

2. Agenda Your challenges, our solution SWIFT Exceptions and Investigations Community adoption and Task Force Cost / benefit Practical steps 2Exceptions and Investigations

3. Payment enquiries challenges 3 Save costs Comply with regulation Reduce risk Improve customer service Only 5% automated Labour intensive Growing volumes due to FAFT SR7 Payments under investigation Long turn-around time No transparency on enquiry status Exceptions and Investigations

4. STP SWIFT E&I value proposition 4 TodaySWIFT E&I Cost savings Reduced risk Improved customer service Regulatory compliance High cost Payments pending investigation Customer complaints Mainly unstructured MT Fax, e-mail, letter, … Structured MX Labour intensive Case mgmt appli- cation Exceptions and Investigations

5. E&I brings significant benefits Benefits calculation at banks with enquiry automation of 0 to 15%, 25.000 – 85.000 enquiries/year 5 Staff cost savings thanks to automation Correspondent invoice savings Cost saving: 10 - 17 EUR / enquiry - 4 staff at Asian bank - 8 staff at Austrian bank - 14 staff at Scandinavian bank Avoid higher charges on free format enquiries (up to 50%) Exceptions and Investigations

6. The SWIFT E&I solution 6 Choice of case management application Rulebook Standards Messaging Easy E&I from SWIFT (service + application) SWIFTReady E&I applications from vendors E&I as a service from service bureaux Your own case management application Service and standards usage InterAct 16 XML messages 4 workflows (Claim Non Receipt, Unable To Apply, Modification, Cancellation) Exceptions and Investigations

7. Example E&I workflow: Claim non receipt Bank ABank BBank C MT103 Data is correct. Re - assign to ‘ B ’ Creditor Debtor Claim Non Receipt MT103 Payment? Statement Resolution Claim Non Receipt Notification of case assignment 7 Exceptions and Investigations Claim Non Receipt Data is correct. Re-assign to C Notification Resolution Payment stuck

8. E&I is easy to implement Manual message creation  Alliance Messenger Case management application  Easy E&I from SWIFT  Choice from SWIFTReady vendors Connected via service bureau No own case management application Low enquiry volumes => Choice from service bureaux Service bureau Case Management application Case Management application “Try & buy” version available E&I as a service On-site 8Exceptions and Investigations

9. Easy E&I 9  Subscription to E&I  Case management application  Access to e-training End-to-end solution Case management application  Off-the-shelf version, includes GUI  Extended version, integrates with payment application  SWIFTReady + extra functional qualification  Self installable  Runs in user or automated mode  Handles MT and MX standards  Integrates with Alliance Access and Entry Start now, automate later Powered by Cost effective  EUR 32,000 off-the-shelf version  EUR 76,000 extended version Exceptions and Investigations

10. Presentatio n title – Client or event – dd month yyyy 10 114 E&I adopters

11. Example of customer adoption 11Exceptions and Investigations - Q4 2009

12. E&I industry task force Concept Committed large banks to drive community adoption Chaired by a member Bank Supported by SWIFT Monthly meetings/calls Rationale Strong concentration FIN enquiry traffic: 22 banks do 50% Clear business case for large banks Small & medium banks need their large correspondents Members BNY Mellon, Citi, HSBC, ICBC, Standard Chartered, RZB Goal Align migration timeframes between members Exchange experience to support each others go live Motivate missing counterparties to join Help increase industry awareness On-boarding criteria Open to banks and corporates Committed to be live and operational with E&I within year following on-boarding Find Task Force member ready to exchange inquiry volumes with you and to support your application for discussion/approval by the Task Force Exceptions and Investigations Contact B.Kirkpatrick – BNY Mellon: b.kirkpatrick@bnymellon.com

13. Cost / benefit considerations 13 CostsBenefits Save costs Staff cost savings from automation (# FTE * FTE cost) Avoid correspondent invoicing (# enquiries * current invoice cost * 50%) Communication cost savings from reduction of telephone and fax Comply with regulation and avoid cost by handling increase in volume, due to FATF VII, without need to add more staff Reduce risk by better control on cash positions, less pending payments, less processing mistakes Improve customer service from shorter case resolution time, transparency on case status SWIFT costs Registration fee (EUR 2,000 one-time) Fee per enquiry message sent (InterAct real-time price) Case management application Software ( eg.: 32 KEUR - Easy E&I) Integration with payment application Project cost Project management Training Testing, go live, roll out Exceptions and Investigations

14. Practical steps 14 Explore opportunity to use SWIFT’s solution Time Actively use SWIFT as channel 5 Prepare Operations and Product teams 4 Enable connectivity, applications, on-boarding, legal contracts 3 Define product proposition and obtain approval 2 1 SWIFT to explain impact, framework, market evolution SWIFT to help with business case and ROI calculation SWIFT can do business assessment SWIFT can support with choice case management application Put case management application in place Subscribe to E&I Internal and counterparty testing Prepare correspondent roll-out team Document new processes, train staff SWIFT can help with test, go-live and roll-out Exceptions and Investigations

15. More information? Contact your SWIFT relationship manager Contact us at swiftforbanks@swift.comswiftforbanks@swift.com Check out www.swift.comwww.swift.com 15Exceptions and Investigations