turkey

SWIFT Net: Delivering Value : 

1 SWIFT Net: Delivering Value Hazem Mulhim Group Managing Director Eastern Networks

Leadership in SecureGlobal Financial Communication : 

2 Leadership in SecureGlobal Financial Communication

Eastern Networks Group IT Solution Provider : 

3 Eastern Networks Group IT Solution Provider Has been developing and implementing software solutions to serve Banking, Government and Trade sectors in the Middle East since 1984. More recently: 1998: Microsoft Certified Solution Provider 1999: SWIFT Business Partner in the Middle East 2001: bolero.net agents in the Middle East 2001, March 20th : Launch of e-trade initiative, bolero.net in the Middle East & Gulf area from Dubai UAE 2001: Microsoft Small Business Solution - Partner of the Year 2001 Fusion Award 2202:MOU for a Joint Venture with Probil ,Turkey to provide the Turkish market with SWIFT business partner offering .

Agenda : 

4 Agenda

History : 

5 193 countries 6 million messages per day 1973 1977 1987 2002 History

The Purpose : 

6 To provide technology-based communication services across all financial markets throughour member banks so that they profitably meet their own andtheir end customers’ needs The Purpose

The Mission : 

7 The Mission To provide low-cost, competitive services of the highest quality, integrity and reliability To contribute to the success of our members through greater automation To capitalise on our positionas an international openforum to address industry issues

Linking the Financial Industry : 

8 Banks Payments systems Clearing systems Settlement systems Trustees Depositories Broker-dealers Stock exchanges Investment managers Linking the Financial Industry

The Markets : 

9 Institutional Payments Securities,Trade Services Customer Payments & Correspondent Banking Foreign Exchange, Money Markets & Derivatives Insurance,Government,&Corporates The Markets

The Total Solution : 

10 Secure Global Messaging Standards Support Information Services Interfaces Trusted 3rd Party The Total Solution

Key Attributes : 

11 Secure Reliable Value Payments messages worth USD 5 trillion / day Availability of 99.9x % What’s not measurable, isn’t manageable Key Attributes

Agenda : 

12 Agenda The Challenges SWIFT Value Proposition The Way Forward Value Proposition of SWIFT Net SWIFT Strategy SWIFT Evolution Migration Strategy Conclusion

The Challenges : 

13 Banking Payments Business Added Value Messaging Telecoms Clearing The Challenges

The Challenges : 

14 Major Factors with Impact on SWIFT’s Strategy The Challenges

The Challenges : 

15 The Challenges

Agenda : 

16 Agenda The Challenges SWIFT Value Proposition The Way Forward Value Proposition of SWIFT Net SWIFT Strategy SWIFT Evolution Migration Strategy Conclusion

SWIFT Value Proposition : 

17 The Four Channels for Delivering Measurable Value: Price Reductions Global Message Outsourcing Single Window STP SWIFT Value Proposition

SWIFT Value PropositionReduce Message Cost : 

18 SWIFT Value PropositionReduce Message Cost

Slide 19: 

19 SWIFT Value Proposition Global Message Outsourcing SWIFT Net user SIPN SWIFT Net services 1. Scale 2. One-stop shop 3. Complementary product and services M-VPN High speed internet access Treasury workstation

Slide 20: 

20 Your Institution SWIFT Value Proposition: Your Single Window

SWIFT Value Proposition Straight Through Processing : 

21 SWIFT Value Proposition Straight Through Processing

Agenda : 

22 Agenda The Challenges SWIFT Value Proposition The Way Forward Value Proposition of SWIFT Net SWIFT Strategy SWIFT Evolution Migration Strategy Conclusion

Slide 23: 

23 Single Window Access Expanded Scalability & Availability Business / Technical Interoperability Value Proposition of the SWIFT Net

Single Window to the Financial World : 

24 Messaging Network Applications Enquiry Link RTGSplus GSTPA CLS ARTIS South Africa Euroclear CREST Accord … Other applications FinancialInstitution SIPN Inter Act File Act Browse FIN(*) (*) SWIFTNet FIN will be available as of July 2002. Single Window to the Financial World

Expanded Scalability & Availability : 

25 Infrastructures and service providers Financialinstitutions SWIFT Net and FIN provide the financial services industry with a complete set of managed messaging services SWIFT Net interactive messaging file transfer secure browsing XML service management FIN store-and-forward messaging message processing service management Expanded Scalability & Availability

Business &Technical Interoperability : 

26 Business &Technical Interoperability

Agenda : 

27 Agenda The Challenges SWIFT Value Proposition The Way Forward Value Proposition of SWIFT Net SWIFT Strategy SWIFT Evolution Migration Strategy Conclusion

Strategy : 

28 Strategy Security-Strengthen our Readiness Renew the Core-Rollout SWIFT NET Broaden and Deepen-Banking and Securities Go Beyond the Interface - STP Go Beyond the Core - ”E” Value-Measure and Deliver

Renew the Core-Rollout SWIFT NET : 

29 Renew the Core-Rollout SWIFT NET Primarily targeting many-to-one messaging SWIFT Net release 3 supporting interactive messaging within a defined institutions community: Interactive messaging and file transfer SWIFT-managed PKI security environment and non-repudiation of message emission Free-format content (e.g., your format, MTs, flat files, SWIFT’s XML standards) Browsing (https) Also supporting any-to-any messaging (e.g., one-to-one) March 01 time

Slide 30: 

30 Broaden and Deepen – Banking and Securities Lower reporting prices ISO 15022 Market Infrastructures GSTPA OMGEO FIX IMI’s- Insurance, government Partnerships IMI’s –Insurance, government

Slide 31: 

31 Participant A Participant B Payment Instruction FIN Information query/response and transaction input FIN Copy Payments infrastructures SWIFT Net Interface to SWIFT Net FIN Interface Central database Central application RTGSplus New CHAPS ARTIS Broaden and Deepen – Banking and Securities

Slide 32: 

32 SWIFTNet Internet SNL = SWIFTNet Link TAL = TrustAct Link Buyer’s Bank Buyer Go Beyond the Core - ”E”

Go Beyond the Core - ”E” : 

33 Go Beyond the Core - ”E” SURF

Agenda : 

34 Agenda The Challenges SWIFT Value Proposition The Way Forward Value Proposition of SWIFT Net SWIFT Strategy SWIFT Evolution Migration Strategy Conclusion

Slide 35: 

35 Maintain FIN functions & benefits Enhance SWIFT Net services Promote single window integration Utilise technical opportunity Reduce operational complexity Achieve synergy between SWIFTNet and FIN Enable long-term evolution The Way Forward Objectives of SWIFTNet FIN

Slide 36: 

36 FINinterface SWIFTNet FIN Interface IP protocol X.25 protocol The Way Forward SWIFTNet FIN

Slide 37: 

37 X.25 FIN customer SWIFT Net FIN customer SWIFTNet IP line POP Modem, CAP FIN interface X.25 line SAP SecureX25 FIN SWIFT OPC Network (STN/SIPN) Dial-up/M-CPE FIN interface SNL The Way Forward X.25 FIN – SWIFTNet FIN

Slide 38: 

38 No change to FIN message layout Headers, text, trailers – unchanged Transparent to back-office operations Transparent to correspondents Operational differences Headers, text, trailers – unchanged IP instead of X.25 connection No separate (X.25) encryption device Operational difference for dial users No dial out by SWIFT; handled by FIN Interface (CBT) - eg regular check for new messages The Way Forward SWIFTNet FIN a Technical Change

Slide 39: 

39 SWIFT Net FIN Interface IP protocol X.25 protocol FINinterface SWIFT Net FIN SNL: SWIFTNet Link PKI: Public Key Infrastructure SLS: Secure Login and Select BKE: Bilateral Key Exchange MAC: Message Authentication Code The Way Forward SWIFTNet FIN Security During Migration

Slide 40: 

40 SWIFTNet envelope X.25 IP SWIFT Net FIN interface FIN interface To/from back-office applications To/from back-office applications FIN message headers, text, trailers remain unchanged SWIFT Net FIN The Way Forward SWIFTNet FIN Overall Message Flow

Slide 41: 

41 SWIFT Net FIN Interface SWIFT Net FIN PKI PKI PKI PKI SNL: SWIFTNet Link PKI: Public Key Infrastructure PKI SWIFT Net FIN Interface The Way Forward SWIFTNet FIN Security The Future

Agenda : 

42 Agenda The Challenges SWIFT Value Proposition The Way Forward Value Proposition of SWIFT Net SWIFT Strategy SWIFT Evolution Migration Strategy Conclusion

Migration to SWIFTNet FIN : 

43 Migration to SWIFTNet FIN Access to both X.25 and SWIFTNet during the migration (support on same interface) Migration mechanism Headers, text, trailers – unchanged Set up a (Test & Training) destination to work over SWIFTNet FIN Login/select over SWIFTNet connection No SWIFT intervention necessary when migrating Migration status Headers, text, trailers – unchanged Monitored by SWIFT Transparent to all other users Easy pre-migration testing Migration Strategy

Starting Situation : SAA 4.1 and X.25 : 

44 Starting Situation : SAA 4.1 and X.25 SWIFTAlliance Access/Entry 4.1 X.25 SWIFTAlliance Access/Entry 4.1 X.25 SWIFTAlliance Access/Entry 4.1 X.25 Disaster Production Back up / Test Migration Strategy

Slide 45: 

45 Migration Strategy Step 1: Upgrade to 5.0 and stay on X.25 SWIFTAlliance Access/Entry 5.0 X.25 SWIFTAlliance Access/Entry 5.0 X.25 SWIFTAlliance Access/Entry 5.0 X.25 Disaster Production Back up / Test

Slide 46: 

46 SIPN SWIFTAlliance Access/Entry 5.0 X.25 SWIFTAlliance Access/Entry 5.0 X.25 SWIFTAlliance Access/Entry 5.0 X.25 Disaster Production Back up / Test STN SNL Migration Strategy Step 2: Install IP Connectivity and SNL on Your Test Environment

Slide 47: 

47 Step 3: Install and Configure SNL on Production/ Disaster Environment STN SIPN SWIFTAlliance Access/Entry 5.0 X.25 SWIFTAlliance Access/Entry 5.0 SWIFTAlliance Access/Entry 5.0 SNL X.25 X.25 SNL SNL Migration Strategy Disaster Production Back up / Test

Slide 48: 

48 Step 4: Dismantle X.25 Migration Strategy SWIFTAlliance Access/Entry 5.0 SNL SWIFTAlliance Access/Entry 5.0 SNL SWIFTAlliance Access/Entry 5.0 SNL Disaster Production Back up / Test

Slide 49: 

49 Plan the upgrade of the configuration Interface and connectivity requirements Registration and ordering Pre-installation set-up Preparation of the operational environment Migration Strategy Actions

Slide 50: 

50 Installation and configuration: IP connectivity, FIN interface, SWIFTNet Link Testing: Become familiar with SWIFTNet FIN Go live on SWIFTNet FIN Live traffic: business as usual Post-migration: De-commission your obsolete X.25 connections Migration Strategy Actions

Slide 51: 

51 20% - Planning/budgeting (deciding the future configuration) 1% - Registration & ordering 60 % - Installation (SNL, Interface, IP connectivity, Network integration) 5-20% - Testing 1% - Going live on SWIFTNet FIN 1% - De-commissioning X.25 connections Migration Strategy Where Will Your Effort Go?

Slide 52: 

52 SWIFT Alliance upgrade Hardware upgrade? SWIFTNet Link software SWIFT Alliance Gateway? IP connectivity (M-CPE versus Dial-up) Network integration Based on Connectivity Packs Migration Strategy Planning and Budgeting: Things to Consider

Slide 53: 

53 X.25 connectivity CAP Leased Line MDNS/PDN PSTN dial-up via modem IP connectivity M-CPE (managed router) ISDN router (PSTN) PSTN dial-up via modem Migration Strategy Connectivity - Evolution

Slide 54: 

54 X.25 Modem FIN Interface Migration Strategy Network Integration – X.25-FIN

Slide 55: 

55 FIN Interface SNL-C FIN Workstation Workstation Department B Department A Workstation IP Migration Strategy Network Integration – SWIFTNet FIN

Slide 56: 

56 SNL External Connection Migration Strategy Network Integration – IP Addresses

SWIFTNet FIN - overview : 

57 SWIFTNet FIN - overview Changes IP connection, IP addressing Network Address Translation Network integration Changes SWIFTNet addressing, PKI, SNL, Interface No change to FIN addressing (BICs) FIN message types (MTs) No change to business flows (eg payment instructions) No change

Slide 58: 

58 SWIFTNet FIN operational readiness March-July 2002: Internal testing and piloting August 2002: SWIFTNet FIN live 2001 2002 2003 2004 Beyond Migration Strategy SWIFTNet FIN Planning Readiness

Slide 59: 

59 Pre-defined timeframe in which customers become active on SWIFTNet FIN Active = Operationally ready on SWIFTNet FIN, at least in Test & Training Test duration = Individual customer decision Switching to full live operations on SWIFTNet FIN is the customer’s decision and can happen later. Country windows for planning: minimum 1 week for small countries (< 20 users) number of consecutive weeks for larger countries at ratio of 20/week (max.100) multiple windows for top countries (> 100 users) split early vs. late Migration Strategy Country Migration Window - Defnition

Slide 60: 

60 Connect to SWIFTNet FIN within the migration window & Test Migrate all FIN traffic to SWIFTNet FIN mid2003 Decommission all X.25 lines Install software Install hardware/ IP Conn. Ordering & registration Attend Roadshow from SWIFT /Turkey May 2002 Register for Roadshow Budget & Plan Migration Strategy Migration Timeline

Agenda : 

61 Agenda The Challenges SWIFT Value Proposition The Way Forward Value Proposition of SWIFT Net SWIFT Strategy SWIFT Evolution Migration Strategy Conclusion

Conclusion : 

62 SWIFT Net will help you: Focus on your Core Competencies Benefit from immediate Cost Efficiency Speed up your Time to Market Conclusion