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Payment Workflow Automation with the rule based SWIFT Payment Router (SPR)

Payment Workflow Automation with the rule based SWIFT Payment Router (SPR). By:. Topics . Introduction IBIS Management Associates Inc. Experience and Client Projects Straight Through Processing with SPR. Introduction IBIS Management Associates Inc. IBIS Management Associates Inc.

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Payment Workflow Automation with the rule based SWIFT Payment Router (SPR)

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  1. Payment Workflow Automation with the rule based SWIFT Payment Router (SPR) By:

  2. Topics • Introduction IBIS Management Associates Inc. • Experience and Client Projects • Straight Through Processing with SPR

  3. Introduction IBIS Management Associates Inc.

  4. IBIS Management Associates Inc. Who we are and what we do … • IBIS Management Associates Inc. (IBIS) is a Financial Systems Solutions provider and Consulting firm. • We combine our knowledge in core banking systems (business, functional & technical) with the concept of Straight Through Processing. • We are specialists in improving efficiency of payment processing departments (Back-Office) of Banks.

  5. IBIS Management Associates Inc. For those of you who do not know us … • We work with our clients to reduce operational cost by applying end-to-end payment workflow automation. • We use Straight Through Processing as the basis for all systems that we design and implement. • We open-up new revenue opportunities and improve profit associated with automated payment processing (STP). • All IBIS consultants are ex bankers, with significant Banking and payment processing knowledge & experience.

  6. IBIS Management Associates Inc. Our experience and knowledge is the key to success… • Our strong STP focus always results in cost-effective solutions that improve processing efficiency and profit. • Our project approach is to always deliver turnkey end-to-end STP solutions to our clients. • Over the years we have put together a portfolio of solutions that embrace STP and improve efficiency. • Our flagship product is the rule based: SWIFT Payment Router (SPR)

  7. IBIS Management Associates Inc. We have formed strategic partnerships with …. • DATASPHERE, a SWIFT Solution Partner based in Geneva Switzerland. Datasphere provides in SWIFT connectivity middle-ware. • SwallowTech, a UK based company specialized in integrated solutions for automated account reconciliation and item-matching. • S.W.I.F.T., IBIS Management Associates Inc. is a certified SWIFT Solution Partner. • TOP Systems, a provider of high end client profiling systems for AML • IBM, IBIS Management Associates builds STP solutions on the IBM i/series and works closely with IBM to deliver turnkey solutions.

  8. IBIS Management Associates Inc. Our products and services portfolio… IBIS Management Associates offers a wide range of STP solutions & related services : • IBIS Straight Through Processing solutions • SWIFT Payment Router (our Flagship product) • Net_B@nk (AS/400 based Internet Banking) • E-reporter (Daily Statement e-mailer) • SMART Suite (Swallowtech) • DAC/400 & BALI (Datasphere) • TOPAZ TRACE (TOP Systems AML software) • IBIS STP services • STP & Profit Improvement Scanning, SD & PM • SWIFT Training and Helpdesk Support services

  9. Some of our STP experiences • and client references.

  10. IBIS Management Associates Inc. Statement of experience... • Several implementation of our Straight Through Processing solution SPR, for the STP processing of internal, domestic and foreign payments. • Several implementations of STP interface solutions for processing of the incoming and outgoing local clearing transactions ACH, • Development and implementation of STP solutions for processing payments from and Electronic Banking System and Internet Banking Systems directly into the core banking system. • Several debit and credit card settlement interfaces for real-time posting within the clients banking system (CIRRUS, MAESTRO, VISA+, FDMS, CREDOMATIC, etc)

  11. IBIS Management Associates Inc. Statement of experience... • Development and implementation of an AS/400 based Internet Banking system and architecture (NET_B@NK) • Project management and key roles in several banking systems implementations and banking migration projects • Various others projects… • Additional project details on request.

  12. IBIS Management Associates Inc. Our clients are amongst others... Our clients include major Banks: • ABN AMRO Bank (Curacao) • GIRO Bank (Curacao) • Banco di Caribe (Curacao & Aruba) • Royal Bank of Trinidad & Tobago (Curacao, Aruba, Trinidad, Surinam) • Maduro & Curiel’s Bank (Dutch Antilles)

  13. Straight Through Processing The key to STP is to think end-to-end...

  14. Straight Through Processing (STP) • …is a road not a destination…! • Why do Banks follow this road ? : • REDUCE COST and IMPROVE PROFIT ! • ELIMINATE manual RE-entering of payment orders • ELIMINATE errors related to manual payment processing ! • IMPROVE QoS to the client ! • IMPROVE payment processing compliancy ! • Streamline entire payment processing operation ! • And more …

  15. Straight Through Processing (STP) Definition… StraightThrough Processing or STP can be defined as: • A process whereby financial information is captured electronically at the source, and communicated through every stage of the transaction process with minimal or nomanual intervention, allowing it to go ”straight through“ to the end of the processing cycle, being settlement and accounting.

  16. Straight Through Processing (STP) NON-STP processing environment… • Significant manual processing (Item processing) • Elaborate controls • Increased error rate • Unsatisfied clients • High cost per transaction

  17. Straight Through Processing (STP) STP processing environment… Limited manual interventions (exception item processing) Limited errors Improved controls Better service to the client Reduced cost per transaction

  18. Straight Through Processing (STP) The bottom-line … The BOTTOM-LINE is: Straight Through Processingwill increase operational efficiency and lower the cost of processing payments. It will make your Bank more profitable !

  19. Our STP Solution Intelligent rule based Payment Workflow Automation

  20. Our Payment Solution SWIFT Payment Router (SPR)….embracing true STP • SWIFT Payment Router (SPR) • An intelligent, fully integrated payment workflow management system that automates the ENTIRE payment workflow and achieves TRUE - STP. • SPR manages ALL the aspects of Internal, Domestic and Cross-border payment processing.

  21. Our Payment Solution SWIFT Payment Router (SPR)….embracing true STP SPR’ routing engine takes care of all connected financial networks and processes all types of payments, Incoming and Outgoing with the benefits of Straight Trough Processing (STP)

  22. Our Payment Solution SWIFT Payment Router (SPR)….embracing true STP Key benefits of the system are: • Standard real-time interfacing with ICBS and other platforms; • Fully automatic rule driven correspondent bank routing; • Fully automatic rule driven booking entries generation for all payments, GL entries, charges, commissions and taxes; • User friendly one window payment entry for ALL payment types (internal, domestic, cross border); • Real-time exception item handling features;

  23. SWIFT Payment Router (SPR) (cont’d)… Key benefits… • Automatic payment data enrichment and validation • Integrated BIC and National Clearing codes database • Built-in Payment and Bank Routing intelligence • Automatic generation of MT103 and MT202 messages • STP capabilities for incoming and outgoing payments • User segregation through multiple queues for the Entry, Verification and Authorization of payments

  24. FP – ORDER 1 FP – ORDER 1 FP – ORDER 2 FP – ORDER 2 FP – ORDER 3 FP – ORDER 3 SWIFT Payment Router (SPR)SPR Payment Queue Segregation of Functions Queue 1 Queue 2 Queue 3 Queue 4 System process Entry /Validation Authorization Fiat Segregation of user functions Data entry Supervisor Fiat SPR ORDERS Processed Post to Alltel Sent to SWIFT STP FP- ORDER Route FP – ORDER 3 FP-ORDER Paper trail Source doc. Source doc. Source doc.  O.K.  O.K.  O.K.  O.K.  O.K.  O.K.

  25. SWIFT Payment Router (SPR) (cont’d)… Key benefits • Real-time interface with the S.W.I.F.T network • Integrated Standing Order /Recurring payment module • Interface with ACH based domestic clearing networks • Integrated Central Bank Foreign Exchange reporting • Integrated Nostro Position & OCP monitoring module

  26. THE SWIFT PAYMENT ROUTERThe SPR Main Menu…

  27. THE SWIFT PAYMENT ROUTER Create an outgoing customer payment… User friendly ONE WINDOW payment entry for ALL payment types (internal, domestic, cross border);

  28. Beneficiary BIC Code Look-up • Integrated BIC and National Clearing codes database

  29. SWIFT Payment Router (SPR) Intelligent payment routing and even more… Integrated Routing Rules database • Bank Identification Codes (BIC) table (automatic import feature) • Bank Identification Numbers (ABA/Fedwire) table • BIC / Currency correspondent table • BIC / Bank routing instructions table (BKE definitions) • BIC / Nostro account table • BIC / Currency cut-off time table Intelligent rules based payment workflow automation • Based on beneficiary bank (BIC) • Based on senders and receiver currency correspondents • Based on SWIFT BKE relation (automatic MT202 generation) • Based on output type (SWIFT, Local Clearing, Internal Transfers, other external Networks) • Based on other user-definable payment routing rules

  30. SWIFT Payment Router (SPR) Flexible definition of your fees and taxes… Automated customers fees and taxes • Default fees can be defined on several levels: • Payment Type (Swift, Clearing, Internal, Check payment) • Input Type (Manual, Internet banking, Standing Order, etc) • Account Product Type (Consumer, Corporate, Employees) • Specific Customer / Account number • Transfer amount range • Fees can be defined in any currency • Calculation based on flat fee amount and percentage with minimum and maximum amount • Fees can be defined per fee type (Swift, handling, etc) • Automatic calculation of taxes

  31. SWIFT Payment Router (SPR)Integrated Recurring Payment module… • Full feature recurring payment module for managing of internal (book-to-book), domestic clearing and international SWIFT standing orders; • Fully benefits from the SPR payment workflow architecture, Clearing, SWIFT and STP functionalities; • Built in automated fiat (avail. Balance) features with forced settlement, manual fiat overrule and fiat retry functionality; • Includes user-friendly inquiry function and variety of standing order settlement and exception reports;

  32. SWIFT Payment Router (SPR)It’s secure ! Dual control audit principles… • Enforces segregation of duties due to separate Entry, Authorization and Fiat payment processing queues; • Restricts end-users to access un-authorized menu’s and functions due to authority security shielding; • Integrated payment & user audit-trails (online look-up and reports). • Includes two-step dual control E/A approach, audit-trails and logging for all static data maintenance;

  33. SPR Version 1.5 The SPR system continues to evolve...

  34. Real-time Compliancy checking moduleThe payment processing industry is dynamic… • Now more than ever, global payment processing is required to adhere to new global compliancy standards… • Financial institutions are required to monitor, screen, report and intercept suspect payment orders… • Not doing so may result in: • Sanction based penalties and even loss of funds … • Unquantifiable reputational damage to the Bank… • SPR payment processing platform continues to evolve and expand in functionalities to cater to these emerging compliancy requirements.

  35. Real-time Compliancy checking moduleOn-line compliancy OFAC checking with e-mail alerts… Real-time rule based compliancy screening of incoming & outgoing payments. (based on automatically updated 3rd party i.e. OFAC or own internal black listing). Real-time compliancy screening marked country listing based on BIC codes. Immediate e-mail alerts generation to Compliancy Officer at detection of non-compliant payment order. Special Compliancy payment queue for further action taking.

  36. Real-time Compliancy checking moduleReal-time compliancy screening in- & outgoing payments…

  37. Real-time Compliancy checking moduleSeparate Non-Compliancy Queue for further action taking…

  38. Flexible management reporting modulePowerful Management & Decision Support reporting… • The centralized SQL based Data Warehouse offers a powerful business intelligence platform for flexible Management and Decision Support reporting. • Analytical and statistical management reporting can easily be done through standard OLAP analysis and standard reporting tools, like Crystal Analysis and Crystal Reports . • Efficient Fraud Management & AML screening through easy integration with 3rd party AML profiling systems.

  39. Flexible management reporting moduleStatistical information with a “push of a button”…

  40. And much more STP & SWIFT featuresSWIFT MT110 Cheque Advice screen…

  41. And much more STP & SWIFT featuresPayment Entry IBAN validation message…

  42. A typical SPR implementationRapid deployment strategy… • Implementation model & project approach is based on he rapid deployment strategy. • Controlled in 3 project phases Phase 3 Implementation Phase 1 Customization Phase 2 Testing

  43. Please contact us ! IBIS Management Associates Inc. Straight Through Processing solutions Pos Cabai Office Park unit 2 T : 5999 – 7372065 F : 5999 – 7372048 E : michel.bon@ibis-management.com clark.russel@ibis-management.com

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