Global Banking Symposium 2006

SWIFTNet Initiatives
Edward Wolfe , VP
Senior Product Manager USD Clearing
Date June 5, 2006
 Global Banking Symposium 2006

SWIFTNet Exceptions &

Investigations : E&I
 SWIFTNet E&I
The Business Justification
• Management of exceptions and investigations remain one of the most
resource-intensive activities for a payments institution
• Widespread usage of free-format instructions
• Lack of common industry rules
• E&I Initiative will initially address four inquiry types that drive 76% of
interbank investigations today:
• Bene Claims Non-Receipt • Request for Cancellation
• Unable to Apply • Request for Amendment
• The initiative utilizes new XML standard messaging formats and usage
rules to enable industry business protocols
• Migration from the FIN messages 192, 292, 195, 295, 196, 296, 199, 299 to 16 XML
messages
• Standardized workflows • No bypass rule
• Unique case ID • Re-usability
• Increased number of fully automated enquiries: from 5% to 60%
• Enhanced customer service • Lower costs
• Improved productivity • Increased revenue

© 2005 JPMorgan Chase and Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC. 3
SWIFTNet E&I
Creation of a Business Protocol
Xml
Flows Rules
messages

Debtor First Agent Final Agent Creditor

Corporate Financial Institution Financial Institution Corporate

1. Request To Cancel Payment

2. Request To Cancel Payment

3. Notification Of Assignment 4. Debit Authorisation Request

5. Notification Of Assignment

6. Notification Of Assignment

7. Debit Authorisation Response

8.Resolution Of Investigation
9. Resolution Of Investigation

© 2005 JPMorgan Chase and Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC. 4
SWIFTNet E&I
The Roll-Out
• Pilot Launched March 8th
• JPMorgan Chase
• ANZ
• ABN- AMRO
• CrediAnstaldt Bank Austria
• National Bank of Canada
• First Case resolved between JPMorgan Chase and ANZ
• Exchanging about 180 messages a week
• Ramp up of banks in pilot has been slow
• Software upgrades
• Template readiness (support 16 new XML messages)
• Testing over 20 test case scenarios per workflow
• Coordination of effort across banks is key

© 2005 JPMorgan Chase and Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC. 5
SWIFTNet E&I
The Roll-Out
• Preliminary Findings
• Under-estimated effort required to implement Alliance Access and Messenger
• Coordination of test case management requires significant amounts of resources and
planning
• Standards do require minor changes to improve the quality of results
― Increasing the mandatory field requirements
― Allowing for certain messages to be considered as case resolutions
• Market Adoption
• New early adopters have committed to testing by Q1 2007
― Nine additional FIs and Corps
• What Next?
• Pricing
― Proposal to go before the board
― Intent is to promote usage and adherence to the “rules”
― A dramatic shift from traditional pricing schemas
• New Business Processes
― Securities
― Cheque

© 2005 JPMorgan Chase and Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC. 6