Microsoft Adds Support for FileAct and InterAct to BizTalk Accelerator for SWIFT

New BizTalk adapters extend connections to SWIFTNet, helping enable STP and lower operational costs.

SYDNEY, Australia — Oct. 11, 2006 — Microsoft Corp. announced today at Sibos 2006 that it now supports the full complement of SWIFT messaging services, adding adapters for SWIFTNet FileAct and InterAct to Microsoft® BizTalk® Accelerator for SWIFT. In addition, the solution has been granted a SWIFTReady Gold Financial EAI (enterprise application integration) label for the third year running.

Using BizTalk Accelerator for SWIFT’s new support for FileAct and InterAct can help financial firms achieve substantial cost savings when exchanging bulk payment files. The new BizTalk adapters facilitate the real-time exchange of financial information across SWIFTNet and enable externally supplied applications to fully utilize the features of InterAct and FileAct.

“SWIFT’s relationship with Microsoft is an important strategic alliance,” said Johan Kestens, head of marketing at SWIFT. “The solutions Microsoft and its partners are developing for SWIFTNet demonstrate real benefits for our customers as they simplify support for SWIFT messaging services.”

“When using SWIFTNet messaging services such as FileAct and InterAct, customers have indicated a clear need for technology that improves connectivity to SWIFT to help enable substantial cost savings,” said Robert Wahbe, corporate vice president, Connected Systems Division at Microsoft. “Microsoft has extended BizTalk Accelerator for SWIFT with FileAct and InterAct adapters as it provides customers with a platform through which to connect SWIFT and existing line-of-business applications, and achieve these goals.”
“The industry is calling for greater automation, more standardized business process flows in the payments area, and the continuation of the drive toward a single market,” said David Vander, worldwide managing director of Banking at Microsoft. “Microsoft and its partners are working to provide solutions for the industry that are efficient and cost-effective and enable employees to help their companies seize market opportunities, make smart decisions and realize maximum value from technology investments.”

The added Microsoft BizTalk adapters for SWIFTNet InterAct and FileAct provide connectivity between Microsoft BizTalk Server 2006 and the SWIFT Secure IP Network (SIPN) via the SWIFTNet link APIs. SIPN enables SWIFT customers to transfer messages and files using InterAct and FileAct respectively, over a security-enhanced, private network, and facilitates bilateral communication between financial institutions, industry infrastructures and customers.
BizTalk Accelerator for SWIFT enables customers to simplify their infrastructure and connect to SWIFT across one integrated messaging platform, helping deliver rapid return on investment by reducing the complexity of bilateral communications between institutions. It also provides customers with enhanced messaging capabilities, delivers specific formats and provides schemas for financial messaging standards and middleware integration tools.
At Sibos 2006, Microsoft is demonstrating how it enables partners to build sophisticated applications using SWIFTNet services, solutions and standards. The following are among the partners exhibiting with Microsoft at Sibos:
• Avanade, demonstrating SWIFTNet Cash Reporting
• Message Automation Ltd., demonstrating the potential for leveraging Financial products Markup Language (FpML) connectivity over SWIFTNet
• SAGA Services Ltd., demonstrating support for low-value payments
• TEMENOS, demonstrating connectivity of TEMENOS T24, its modular core banking solution to SWIFT
• Unisys, demonstrating support for SWIFTNet Bulk Payments
• WealthCraft Systems Ltd., demonstrating its solution for SWIFTNet Funds


http://www.microsoft.com/presspass/press/2006/oct06/10-10MSSWIFTPR.mspx

TEMENOS T24™ to support SWIFTNet using Microsoft BizTalk Server and BizTalk Accelerator for SWIFT (9 October 2006)

Sydney, Australia:

At Sibos 2006, TEMENOS Group (SWX: TEMN), the provider of integrated core banking systems, today announced that TEMENOS T24, its modular core banking system, will support Microsoft® BizTalk® Server 2006, and Microsoft BizTalk Accelerator for SWIFT, enabling banks to directly access TEMENOS T24’s SWIFT capabilities. By leveraging BizTalk Server and BizTalk Accelerator for SWIFT’s rich support for SWIFTNet messaging services, TEMENOS T24 can provide a common integration platform for SWIFT customers and enable banks to maintain a cost-effective infrastructure through greater integration, reducing the total cost of ownership. This will be available with version R07 of TEMENOS T24 from April 2007.

BizTalk Accelerator for SWIFT extends BizTalk Server to provide comprehensive, reliable, and secure delivery of financial messaging using SWIFT standards, its secure messaging network. This minimises the need for extensive manual checking of data and allows staff to concentrate on tasks more directly, attributable to revenue growth. BizTalk Accelerator for SWIFT also makes it easier for customers using legacy systems to connect to SWIFTNet, increasing straight-through processing (STP) and enabling message generation, validation, repair and business activity monitoring. TEMENOS T24 supports both inbound and outbound SWIFT messages and can be linked directly with a SWIFT gateway if required or via BizTalk Accelerator for SWIFT using the TEMENOS T24 adapter. For SWIFT implementations using BizTalk Server, routing all messages from and to TEMENOS T24 via BizTalk Accelerator for SWIFT and the TEMENOS T24 adapter creates a common platform for managing all aspects of financial messaging. This enables TEMENOS T24 users to benefit from new SWIFTNet messaging services such as SWIFTNet FileAct and SWIFTNet InterAct, delivering major cost savings, improving business processes and increasing STP and the ability to react to changes in the market.

David Vander, worldwide managing director, banking, Microsoft, says: “This announcement demonstrates how together, TEMENOS and Microsoft are working to help customers get the most out of their core banking systems. It also demonstrates the commitment TEMEMOS has to extending its connection to SWIFT and providing SWIFT customers with a reliable and cost efficient platform on which to do business.”

This is the latest development in the partnership between TEMENOS and Microsoft, which the companies first formally announced in June 2005. In June 2006, TEMENOS announced that TEMENOS T24 would support Microsoft SQL Server™ 2005. Today, the system works with key Microsoft products running from the database back-end through to client front-end, providing customers with a greater choice of technologies for running their core banking systems.

TEMENOS T24 is a functionally rich, thin client, scalable, integrated, modular banking system. It is built on open service oriented architecture, and uses established technology standards such as HTTP, XML and HTML. It offers a single client view across the enterprise and can support large numbers of users with true non-stop resilience. Its fully-integrated architecture enables it to offer a significant cost advantage compared to other competing products. It offers multiple application server support and is the only system available with no end-of-day batch processing and so can genuinely boast of providing real-time 24/7 non-stop banking.

Mark Gunning, group strategy director, TEMENOS, adds: “Effective integration has always been a key feature of TEMENOS T24. With this latest development, clients can take full advantage of BizTalk Server’s capabilities in enterprise application integration, while benefiting from BizTalk Accelerator for SWIFT’s SWIFTReady Gold Financial EAI accreditation. By managing SWIFTNet services, standards and solutions through the same environment, customers can simplify their architecture and reduce total cost of ownership.”

The announcement is made on the first day of the annual SIBOS conference in Sydney which runs until 13 October 2006. The event, organised by SWIFT, brings together over 2,000 delegates, including the world’s top financial institutions, vendors, technology and solutions providers along with SWIFT and its business partners. TEMENOS is exhibiting at Microsoft’s stand L07.

According to the latest International Banking Systems sales league table, published in March 2006, TEMENOS has the largest core banking client base in the world with a stated 600 live sites. The company continues to attract global tier 1 and regional banks as a result of its superior products, TEMENOS T24, TEMENOS™ COREBANKING and TEMENOS T-Risk.

http://www.bobsguide.com/guide/news/2006/Oct/9/TEMENOS_T24%E2%84%A2_to_support_SWIFTNet_using_Microsoft_BizTalk_Server_and_BizTalk_Accelerator_for_SWIFT.html

Citibank Glossary

GCG Global Consumer Group
GCIB Global Corporate & Investment Bank
JA Jalan Ampang, PG Penang, JB Johor Bahru
AO Account Officer
SM Sales Manager
TSM Team Sales Manager
IC Investment Consultant
IS Insurance Specialist
CIM Customer Interaction Model
CMK Continuous Marketing
MME Micro Marketing Event
PCM Power Club Meeting
NTB New to Bank
NIA New Investment Account
PIW Personal Investment Worksheet
MOB Month-on-Book (calendar mth)
EOP End-of-Period
SOP Standard Operating Performance
SIP Sales Incentive Plan
GPA Guaranteed Performance Allowance
G3 3MM, G2 1MM, G1 300M
CG 100M+100M, GTB 50M+50M, TrueBlue 35M+15M
CASA Current Account & Savings Account
CPC Citibank Premium Checking
TD Time Deposit
PD Premium Deposit
DDA Demand Deposit Account
DCD Dual Currency Deposit
MLD Market-Linked Deposit
MLI Market-Linked Investment
OTC Over-The-Counter
CPO CitiPhone Officer
OIC Officer-In-charge
PIC Person-In-charge
CBM Country Business Manager
CCO Chief Country Officer
SCOO Senior Country Operations Officer
WMP Wealth Management Products
SFIO Share Finance and Investment Operations
GSD General Services Department
DMU Database Management Unit
APU Accounts Payable Unit
BSU Branch Services Unit
AMU Account Management Unit
SRU Service Recovery Unit
CRT Customer Relationship,Telesales
CRU Cards Retention Unit
BOPS Bankard Operations
CSIS Citigroup Security & Investigative Services
WSA Worldwide Sales and Advisory
VOE Voice of the Employee
VOC Voice of the Customer
VOP Voice of Process
TQ Total Quality
CSLM Customer Service & Loyalty Measurement
QAT Quality Action Team
PAR Power of Appreciation & Recognition
PRIDE Personal Responsibility In Delivering Excellence
SPP Stock Purchase Program
MDC Malaysia Diversity Council
NRI Non-resident Indian

MEP/CEP Management Expense Proposal
MYF Mid-Year Forecast
ANR Avg. Net Receivables (loans balances)
NCL Net Credit Losses
PCE Profit Center Earnings
ROTA Return on Total Assets
ABU Above Below Rating
FTE Full Time Equivalent
CNR Customer Net Revenue
NRFF Net Revenue From Funds

C&C Compliance & Control
BRCC Business Risk Compliance & Control
ARR Audit & Risk Review
CCSA Compliance & Control Self-Assessment
RCSA Risk and Control Self-Assessment
GPP Global Privacy Promise
FCPA Foreign Corrupt Practices Act
CDD Customer Due Diligence
AMLCO Anti Money Laundering Compliance Officer
BUCO Business Unit Compliance Officer
BISO Business Information Security Officer
GISO Group Information Security Officer
ISS Information Security Services
LOP Local Operating Procedures
LCP Local Credit Policies
COB Continuity of Business
CBOL Citibank Online (www.citibank.com.my)
CGOL CitiGold Online
CWP CitiGold Wealth Planner
OBP Citibank Online Bill Payment
EDM Electronic Direct Mailers
I-PIN Internet PIN
UWS Universal SABRE (GUI)
GRB Global Relationship Banking
ORBIT (UT system)
IMPACS (CASA system)
UDS Unfixed Deposit System
BAFES ?
ECCMS Enhanced Customer Contact Management System
IPP Insurance Product Processor
IMS Incentive Management System
MEMFIS Fixed Income Securities
RSFS Regional Share Financing System
APPC Asia Pacific Processing Center
ATO Asia Technology Office
IBS International Banking Systems
RBS Regional Banking Services
SMR System Modification Request
BRD Business Requirements Definition (Document)
VT Virtual Tech (IT Helpdesk Tool)
CSI Citigroup Systems Inventory
CITMP Citigroup Information Technology Management Policy
ELC Export Licensing Compliance
CTI Citigroup Tech. Infrastructure
DTI Distributed Tech. Infrastructure
EUA End User Applications
GPMS Global Problem Management System
GPMS Global Performance Management System
GTA Global Time and Attendance
EERS Enhanced Entitlement Reporting System

Investment Industry global trends (2006)

Below is a list of possible trends that may affect the investment industry in the near future.

• Creation of a single set of global accounting standards
• Increased globalization and integration of markets
• Greater emphasis on risk management
• Increased popularity and growth of alternative investments
• Incursion of alternative investments into traditional asset classes
• Development of new, more creative and perhaps more complex financial products
• More focus on the risk/return value package
• More regulation/regulatory reform to protect the consumer and restore investor confidence
• Greater attention to corporate governance, due diligence, and fiduciary responsibility
• Greater attention to, and pressure to reduce, costs
• Greater emphasis on alpha

Bank Negara statement released on August 10, 1999

The following is the full text of the Bank Negara statement released on August 10, 1999

BANK Negara governor Tan Sri Ali Abul Hassan Sulaiman yesterday referred to his earlier statement on the merger programme for domestic banking institutions announced on July 29, 1999 and emphasised that the merger exercise will not, in any way, weaken the financial strength of the merged entities. In fact, the creation of the six domestic financial groups will ensure that the domestic banking institutions will be able to withstand pressures and challenges arising from globalisation and from an increasingly competitive global environment. This move towards consolidation is in line with the Government's policy not to bail out weak companies but to rationalise businesses towards higher productivity. Business consolidation through merger is indeed a common practice globally to achieve economies of scale and higher productivity. In this time and age of globalisation, banks must merge to survive the onslaught of greater competition. The need to merge is even more imperative in the face of increasing pressure under World Trade Organisation (WTO) for countries to open up their financial markets to further entry of foreign banks. All countries are now moving towards consolidating their banking system and Malaysia cannot be the exception. In fact, Malaysia cannot be seen to fall backward in the consolidation of the banking industry. The process of getting the banks to merge in Malaysia started in earnest in mid-1980s as a result of economic recession. The policy, however, has always been to allow market forces to dictate the merger pace. The result has been dismal as shown in the slow reduction in the number of banking institutions in Table 1. In the past, the Government has consistently called on banking institutions to merge. Unfortunately, the call went unheeded as the shareholders of banking institutions were more interested in protecting their interest above that of national consideration. In the mean time, the banking crisis in the mid-1980s propelled a number of weak commercial banks and finance companies into insolvency and financial distress. These institutions were badly hit by the 1985-1986 recession as they were saddled with huge levels of NPLs, the aftermath of over-lending to the property sector and imprudent exposure to share-based lending during the earlier boom years. In addition, the finance company industry, in particular, was highly fragmented, comprising 47 finance companies. Given the severity of the losses and to maintain integrity of public savings and the stability of the financial system, Bank Negara Malaysia had to implement a rescue scheme. The rescue scheme involved Bank Negara Malaysia acquiring shares in some of the ailing commercial banks and the absorption of the assets and liabilities of the insolvent finance companies by stronger finance companies. As a result of the rescue scheme, the number of finance companies was reduced from 47 to 40. The merger of one commercial bank and the consolidation of the finance company industry were thus driven by the rescue scheme in order to restore stability in the banking sector. The design and the implementation of the rescue scheme had been a very costly experience to the nation as a whole. With 71 banking institutions prevailing in the country today, there are 2,712 branches located all over the country. There is clear view that Malaysia is over-banked and some resources are wasted due to duplication of branches in the same locality. While the number of banking institutions in Malaysia remains large, other countries have succeeded in consolidating their domestic banks into a few large and competitive banking groups. For instance, the United Kingdom has four major banking groups, Australia has four major banking groups and Singapore has five. In the case of Singapore, the Government intends to reduce the number to even two. The experience of these countries has proved that consolidation in the financial sector is both viable and desirable. The IMF too has forced countries under their programmes (Indonesia, Thailand and South Korea) to reduce the number of banking institutions by effectively closing them down. Malaysia does not believe that the IMF prescription of closing down the problem banks is the way to go, as the social costs involved in terms of dislocation of resources are high. A more reasonable approach adopted by us is guided merger, with the central bank playing a proactive role in solving the issues involved and the principle of fairness will be strictly applied to all parties in the merger. Without the merger, the small non-bumiputra financial institutions are likely to disappear as a result of globalisation and increased competition. There is actually no more place for family run banks to survive in the long run. It should be emphasised again that no small banking institutions can survive once the financial market is opened up. The is no place for family type of management in a modern economy, especially in financial institutions. The recent article in the Asian Wall Street Journal while appreciating the benefits of the merger in the long run, gave a racial slant to our merger to discredit our efforts as they have always done in the past. Of course, the opposition leaders are quick to jump on the issue. We believe once the dust settles, everybody will see the benefits of the merger for the interest of the country in the long run. It is also ironic that some analysts appear to question the motives of the merger, when they themselves were accusing Malaysia for not moving fast enough on the merger programme before.When good progress in bank restructuring through Danamodal, Danaharta and CDRC was evident early this year, most analysts changed their views of Malaysia for the better. However, the nagging issues raised was the lack of progress on bank merger. Now that Malaysia moves ahead with the merger, a few seem to doubt our intention. In fact, the need for rapid and major merger programme has also been one of the advice given by our professional advisers, including Smith Solomon Barney. It should be noted that despite the progress achieved thus far in bank restructuring, the non-performing loans (NPL) still remain large. For instance, on the gross basis, the NPL of the banking system-amounts to RM72bil on 3-month basis and RM53bil on 6-month basis. The portion for finance companies is RM20bil and RM14bil respectively. Without comprehensive merger, it is possible these NPL could threaten the stability of the banking system in the future, with the smaller financial institutions dragging down the bigger ones. The problems faced by smaller financial institutions have appeared to be relatively predictable. Due to their inefficiency, they tend to offer higher interest rates and compete aggressively for deposits. They tend to price their loans higher to pay for higher deposit rates and get high- risk borrowers because good borrowers go to bigger and stronger institutions with lower lending rates. In the end, whenever economic problems set in, the small institutions get hit first. This was what happened to DTCs and finance companies in the past, and is threatening to bring down smaller banks now. The only viable solution is for a merger which removes smaller financial institutions from the market. In order to minimise the difficulties involved, particularly to those employed in the industry, an attractive separation scheme can be devised where the costs are borne by the merged entities. The Government could assist by giving some tax incentives to smoothen the merger process. One big incentive is to give tax credit for losses incurred by financial institutions involved in the merger. This way, the lead banks could absorb as much as possible the costs associated with the merger exercise, to be compensated with the tax incentive. While the Government is seen to be sacrificing income, if tax incentive is given, the cost of bailing out banking institutions in the future will be even higher without the merger. The recent bank restructuring exercise has cost the Government about RM60bil. In addition, the Government had to spend RM2bil to rescue Deposit Taking Cooperatives (DTCs) in the 1980s. It is difficult to envisage that the Government will continue to be rescuer of banking institutions in the future as the risks are likely to be higher and amount of funds involved, larger. At the same time, the merger allows for smaller financial institutions to participate in a much larger banking group. To the extent all the six banking groups are listed, anybody can buy bank shares from the market. The racial issue should not arise at all. In the previous merger exercises involving Kwong Yik Bank, Sime Bank and even Bumiputra Bank, no issue was raised that it was racial. The same should apply now. What is important is to ensure banking institutions will remain in the hands of Malaysians, now and in the future. Given the sheer size of the merger exercise, there is bound to be operational issues which need to be resolved satisfactorily The most important is the valuation of shares of each financial institution so as to be fair to all shareholders. We believe with the appropriate tax incentive given on losses incurred by the merging institutions, maximum value can be given to shareholders so as to make them happy. The merger is also expected to bring about greater efficiency to banking operations. The same extent of banking services can be provided to the whole country at lower costs due to savings on manpower, information system and reduction in branch network. There has been concerns that the merger programme is politically driven and would dilute the non-bumiputra interest in the banking system. However, this perception is unfounded as the exercise would not substantially affect the existing composition of bumiputra and non-bumiputra interest in the banking system. In addition it must be emphasised that these anchor banks are listed companies whose shares can be purchased by any investors in the open market. In fact, the decision to hasten this merger programme is inevitable given the present increasingly competitive and globalised business environment. There is a pressing need now to push and accelerate the consolidation and merger process to prepare the domestic banking institutions to face the inevitable opening up of the banking sector to foreign participation. However, Bank Negara is discussing with the merging banks to ensure retrenchment, if any, is minimised through redeployment. With the growth expected in the economy the expanded banking services may be able to retain a sizeable portion of the staff after rationalisation together with new job opportunities arising from the development of the domestic bond market. Even in the cases of retrenchment, appropriate compensation will be given to those affected. The Government is committed to ensure that the consolidation programme is implemented within the stipulated timeframe and that the-merger programme would not affect the value of the-merged entity. In this regard, the Government wishes to extend the following tax benefits for the merger programme: (i) Exemption of stamp duty and real property gains tax that was announced in the 1999 Budget will be extended to 30th June 2000; and (ii) Recognition of 50% of the accumulated losses of banking institutions that are to be acquired for the purposes of computing the tax payable by the merged entity through tax credit. The credit must be utilised within two years from the completion of the merger exercise. These tax incentives would result in substantial revenue losses to the Government. However, given the importance of the merger exercise, the Government is willing to forego-such revenue in order to ensure that the cost of the merger can be minimised and the value of the merged entity can be enhanced. Bank Negara will work on the mechanism of the incentives and the details will be announced soon. Finally, the announcement on the merger exercise has always been welcomed in all parts of the world. We believe the initial favourable response to the merger exercise in Malaysia will return when the public is better aware of the benefits of bank merger. Equally important is to handle the operational issues pertaining to the merger in a most satisfactory manner. Bank Negara will undertake to do whatever it can to make this merger exercise a success.
Article extracted from The Star, Malaysia

[source: http://www.mir.com.my/lb/econ_plan/contents/press_release/110899merge.htm]