business intelligence - david van der smissen
TRANSCRIPT
Business Intelligence The competitive advantage of transforming data
into actionable business insights
Trends in correspondent banking
David Van der Smissen Marianna Janssen
Business Intelligence EMEA Business Intelligence EMEA
Changes happening in correspondent banking More risk averse banking
2
The number of net new RMA relationships is going down worldwide – banks are closing down
relationships in order to drive risks down and comply with regulatory requirements
London Business Forum 23rd of April 2015
Currency usage for cross-border payment from UK Overall growth in UK traffic and more usage of USD as a currency
3
44.3% 39.7%
23.6% 25.2%
8.9% 9.9%
4.0% 4.0% 0.2% 0.2%
19% 21% Other
CNY
CHF
GBP
USD
EUR
2013Q1 2014Q4
+8%
Curr
ency s
plit
G
row
th
No increase
in CNY
USD usage
increasing
London Business Forum 23rd of April 2015
Declining trust between Eurozone & PIIGS countries? Average value of an export trade finance transaction is going down
4
European banks seem to take less risk over the past year in financing export to the ‘more
risky’ EU countries
40000
50000
60000
70000
80000
90000
100000
110000
120000
130000
Average value MT400 & MT700
Growth 2015Q1 vs 2014Q1: -29%
London Business Forum 23rd of April 2015
Payments streams out of Africa to the world Is Africa the promised land for future payment volumes growth?
5
Less MT103 traffic is routed to the US
out of Africa => less usage of USD in
African payments?
Q1 2013 to Q1 2014 total
volume growth: 6,31%
Q1 2014 to Q1 2015 total
volume growth: -0,68%
Total volumes for traffic sent out
of Africa is not growing
significantly, even declining?
North America
Europe – Euro Zone
London Business Forum 23rd of April 2015
Currencies used for payments sent out of Africa Is compliance a hurdle for African business development?
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Drop in USD traffic is not offset by a
obvious growth of other currencies
Are the compliance happenings
and trends blocking African
business development?
USD growth:
Q1 2013 – Q1 2014: +7,50%
Q1 2014 – Q1 2015: -3,42%
EUR growth:
Q1 2013 – Q1 2014: +6,99%
Q1 2014 – Q1 2015: +3,65%
Others growth:
Q1 2013 – Q1 2014: -0,11%
Q1 2014 – Q1 2015: +0,87%
USD
EUR
Others
London Business Forum 23rd of April 2015
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Coverage of MT 900
54% in Q1 2013
64% in Q1 2015
Coverage of MT 910
49% in Q1 2013
61% in Q1 2015
Traffic evolution UK market – user side
London Business Forum 23rd of April 2015
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Coverage of MT 900
21% in Q1 2013
27% in Q1 2015
Coverage of MT 910
18% in Q1 2013
21% in Q1 2015
Traffic evolution UK market – provider side
London Business Forum 23rd of April 2015
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You
Correspondent
Counterparty
End of day
balance (MT950)
Sourcing the right data from the Swift network
London Business Forum 23rd of April 2015
10 10
• To collect transactional data across currencies, accounts, and legal entities in real time?
• To ensure consistency and accuracy of the data collected to provide reliable reporting to the regulator?
• To generate the right level of aggregation and granularity for different entities in different legislations?
• To prepare for a more consistent reporting to your customers and anticipate potential new opportunities?
ARE YOU
READY?
New Intraday Liquidity Management rules, new
challenges
London Business Forum 23rd of April 2015
London Business Forum 23rd of April 2015
Lack
timed
data
No centralised
data
Legal entity
61% for Nostro Accounts
23% for HVPS
71% for internal reporting
42% don’t have a
global view of their
intra-day positions
51% manage locally or
don’t manage credit lines
extended to customers
Time zones Currency …
Collaboration
Individual
solution
Collaboration Data
aggregation &
interpretation
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Swift Intraday Liquidity Reporting survey 2014 Banks share the same data management challenges
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Data visualisation and reporting
Data
transformation &
normalisation
Data gathering
& consolidation
Swift Scope Intraday Reporting
London Business Forum 23rd of April 2015
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Thank you
Marianna Janssen
SWIFT | Commercial Manager Intraday
Liquidity EMEA
Tel: +32/2/655 43 69
Mob: +32/471/70 27 50
David Van der Smissen
SWIFT | Commercial Manager Business
Intelligence EMEA
Tel: +32/2/655 44 25
Mob: +32/473/29 46 63
London Business Forum 23rd of April 2015