Sibos 2018 Sydney

Open Theatre 2
Wednesday, 24 th October, 5:00pm～5:30pm

Today’s Speakers

Yukihiko Tanaka
Global Transaction Banking Department
Sumitomo Mitsui Banking Corporation

Xi ChenAccount Specialist
Financial System Sector
NTT DATA Getronics Corporation

Segregation of Bank Settlement from Group Cash & FX

Yukihiko Tanaka
Global Transaction Banking Department-Tokyo
Sumitomo Mitsui Banking Corporation

About Sumitomo Mitsui Banking Corporation(As of March 31, 2018)

Company Name

Sumitomo Mitsui Banking Corporation

Head Office

Tokyo, Japan

Established

1876

Employees

29,192

Network

Domestic Branches :441
Overseas Branches :18(*excluding affiliates, sub-branches, agencies)

Copyright © 2018 Sumitomo Mitsui Banking Corporation. All Rights Reserved.

4

SMBC’s practice in Global Pooling

Basel III and the impact on banks andclients
GBR

USA

CHN

TWN

*EURegional
HKG

JPN

MYS
THA

SGP
IDN

SMBC provides pooling
services to various
customers especially in
APAC region.

AUS

Copyright © 2018 Sumitomo Mitsui Banking Corporation. All Rights Reserved.

Normal operation for funds transfer

Corporate HQ in JPN

Swift.net

Corporate Sub in AUS

Account held in SMBC
USDDr.

Account held in SMBC

MT103

MT103

USDCr.

MT202Cov

USD

Intra-branch settlement

USD clearing accountfor JPN

USD

USD clearing accountfor AUS
Copyright © 2018 Sumitomo Mitsui Banking Corporation. All Rights Reserved.

Segregation of Inter-bank Settlement from Inter-customer transfer

Corporate HQ in JPN
Account held in SMBCInter-customertransfer

USD
Dr.

Corporate Sub in AUS
Account held in SMBC
USD
Cr.

Pooling
System

MT103

MT103

USD

USD

USD clearing accountfor JPN

USD clearing accountfor AUSInter-bank settlement

Copyright © 2018 Sumitomo Mitsui Banking Corporation. All Rights Reserved.

Normal operation for FX settlement

Corporate HQ or Treasury Center Need to deposit necessary funds to EACH bank’s account.
 Necessary amount is equivalent to GROSS settlement amount.
Bank A account
USD

JPY

EUR

Bank B account
USD

FX Settlement
FX Contract

Bank AJPYBank C account

AUDCADEUR

FX Settlement
FX Contract

Bank BGBP

FX Settlement
FX Contract

Bank C
Copyright © 2018 Sumitomo Mitsui Banking Corporation. All Rights Reserved.

8Segregation of Bank Settlement from FX contract

Corporate HQ or Treasury Center
Bank A accountBank B accountBank C accountFX Contract

FX Contract

FX Contract

Bank ABank B

Bank C

Concentrate
Cash

FX Settlement

USD

JPY

EUR

AUD

CAD

GBP

Copyright © 2018 Sumitomo Mitsui Banking Corporation. All Rights Reserved.

9

“Integrated Settlement Platform”
Other Bank A

Other Bank B

Other Bank C

FX Contract
Aggregate
FX settlement& outside payment

Japan Head Quarter
JPY

EUR

USD

AUD

GBP

NZD

Cash Pooling
Domestic Gr.
Companies

US RHQJPY

JPN

Cash Pooling

USA

CLS

UK RHQ
EUR

USD

Dividend/Term Loan

GBP

SNG/HKG Subs.
SGD

AUD

HKD
NZD

Other regulatory countries
IDR

THB

VND

MYR

UK

APAC/Oceania

Payment to/Receipt from outside

Notional Pooling

PHP

Individual Settlement

Copyright © 2018 Sumitomo Mitsui Banking Corporation. All Rights Reserved.

10

SMBC and NTT DATA Getronics

Copyright © 2018 Sumitomo Mitsui Banking Corporation. All Rights Reserved.

11

Technical Capabilities
Xi ChenAccount Specialist
Financial System Division 1, Financial System Sector
NTT DATA Getronics Corporation© NTT DATA Getronics Corporation

The landscape intransaction banking business is evolving･･･© NTT DATA Getronics Corporation

13

System Requirements to GTMP
Global Pooling Engine
Treasury
SystemCore Banking
SystemGTMP
Global Transaction

Messaging Platform

SWIFT© NTT DATA Getronics Corporation

14

TradeSystemCMSSystem

System Requirements to GTMPCostTime

Automation

Efficiency© NTT DATA Getronics Corporation

15

InteroperabilityStandards

Flexibility

A coherent andstandardized approachto reduce development
periodHybrid communications
between ISO20022,
SWIFT and any otherfinancial message formats

Resilience

Scalability

Error tolerance design
Automatic detection forirregular message© NTT DATA Getronics Corporation

Architecture to easily
scale-up or scale-out

16Preparing for the Future
OpenAPI

Standardization

Digitalization Transaction ISO20022 XMLAIBig
Data

BankingInnovation

Next Generationof GTMP

Visualization© NTT DATA Getronics Corporation17MultiChannel

Fin-tech

Blockchain

Preparing for the Future
Optimize treasury
strategies by analytics
of Big Data

TreasurySystemCore Banking
System
Accelerate Open Banking
initiatives by integratingwith APIs
© NTT DATA Getronics Corporation

Adopt advanced rule-based
AML techniques todigital trade documents

Global Pooling EngineBig
Data

Open
APIDigitalization

Transaction
BankingInnovation

Trade
SystemNext Generationof GTMP Standardization
AISWIFT
18CMS
SystemOffer a more accurate analysis ofISO20022 messages,
by using NLP(Natural Language Progressing)Company Profile
Corporate Name
Head Office
Established
CapitalShareholders
Employees
Business Area

NTT DATA Getronics CorporationTokyo, Japan1961
490 million yen
NTT DATA Corporation (70%) – Japan
Getronics Finance Holdings B.V. (30%) – Netherlands
586 (as of April 1, 2018)
SWIFT Net Solutions
BOJ-NET Connectivity Solutions
Global Transaction Banking Solutions
CLS Solutions
Anti-Money Laundering Solutions© NTT DATA Getronics Corporation

19

Thank You!
© NTT DATA Getronics Corporation

ANY QUESTIONS ?

© NTT DATA Getronics Corporation

212