SWIFTNet™ Frequently Asked Questions

Citi General Positioning

General SWIFTNet & SWIFTNet FIN Information

Closed User Group (CUG) Information

Citi General Positioning

What is the current status of Citi's migration to SWIFTNet FIN and SWIFTNet?
Citi is pleased to announce that we are live on SWIFTNet FIN and are offering each of the new SWIFTNet facilities to our clients: FileAct, InterAct, Browse, and Closed User Groups. With these new tools and facilities Citi will extend and expand its client global connectivity with common platforms.

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Who has been assigned to manage the SWIFTNet project within Citi?
Ms. Anna Hannon is the project manager. Ms. Hannon is a Director and has responsibility for managing the corporation's global relationship with SWIFT. Representatives from SWIFT Management, Product Management, Sales and Account Management, Operations, Technology, Marketing and Training across all Citi SWIFT user products are a part of the Citi SWIFTNet team. Many of these individuals participated in the completion of SWIFT 15022 Project and are thoroughly versed in the many nuances of SWIFT. Depending on the development needs, the management team is flexible to dedicate more resources to ensure the success of this project.

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What new SWIFTNet products and service facilities does Citi plan to adopt?
Citi has adopted and is offering each of SWIFTNet’s new facilities.

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Will the move to SWIFTNet/ change or affect Citi's method of messaging communication?
This major technological change will be transparent at the application processing systems level to those clients who choose not to adopt any of the new SWIFTNet products and services. Client and Citi applications systems do not need to alter the creation of their messages. The SWIFT Interface Devices (SID) between each SWIFT user and SWIFT must be upgraded to the Internet technology that SWIFT will now employ, so in effect, the "packaging" of the transaction at the exit and entry points of each user will change, but not the underlying application processing systems. For those clients who choose to use the new SWIFTNet products and services, there will be additional changes that are dependent on each SWIFT user's internal system architecture. In these situations, the changes will be visible simply because it will have to be bi-laterally planned, tested and implemented.

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General SWIFTNet & SWIFTNet FIN Information

What are the benefits of migrating to SWIFTNet and/or SWIFTNet FIN?
For FIN users, migrating to SWIFTNet FIN will provide a reduction in the cost of transmitting messages. For SWIFTNet users, the benefits are: utilizing the new corresponding NET services such as FileAct, InterAct, Closed User Groups (CUGs), etc. will result in a reduction in the price for the use of file transmissions. Additionally, SWIFTNet offers SWIFT-level security and guaranteed delivery to the SWIFT CUG Networks. This enables those who have not previously qualified for SWIFT participation to gain the security and guaranteed delivery benefits, message formatting and the resulting straight-through-processing.

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How should I (the client) choose the messaging services offered by SWIFTNet?
Choosing the appropriate SWIFTNet messaging services depends upon what the business focus of the client is, what services it performs for its own client base and the volume level of interaction. For example a high volume SWIFT-eligible client might be a good candidate for FileAct, while a Citi Closed User Group might better serve a lower-volume corporate client. Citi is providing extensive training for all its client-facing representatives to enable them to work together with each client and determine which solutions provide the maximum benefit for their circumstance. Citi will be participating in all the new SWIFTNet facilities based on our clients’ requirements.

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Are naming and addressing affected? If so, how?
No and yes. If you migrate only to SWIFTNet FIN, SWIFT's new IP-type addressing will be transparent to you. If you adopt the new SWIFTNet products and services you will have to employ the new IP type addressing as defined by SWIFT. In these new products and services, the BIC codes will remain in the body of a transmission, as a party or role identifier, but the addressing of the message "envelope" will change. SWIFT has published several documents on this change. We will publish our own strategies for adopting the new naming and addressing soon.

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What is RosettaNet?
RosettaNet, founded in 1998, is a group through which supply chain activity standards are being established for the electronic components, information technology and telecommunications industries. There are over 500 member companies with $1-trillion in annual revenues. They are driving supply chain automation within their industries and already have significant traction in the automation of the non-bank portion of the supply chain. The Payment Milestone Program focuses on bringing both STP for reconciliation and payment through the use of SWIFT's new XML formats. Citibank is supporting this program. Citibank has started support of the RosettaNet companies by providing the new SWIFT advice for credits. We will offer the debit version of the advice in early 2004. The introduction of the initiation standards is being planned around client need. Participants in the RosettaNet program use SWIFT formats but do not need to use SWIFTNet.

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In general terms, do you think that a SWIFTNet-based e-banking solution will be more or less expensive, for the client, than your current proprietary offering?
We would expect no significant difference in the pricing for services provided. Clients will, however, have to assess the cost of setting up the infrastructure to communicate with SWIFT and the lead-time necessary to build subject matter expertise, when considering whether to move to this channel.

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Closed User Group (CUG) Information

What is a MA-CUG?
A MA-CUG is a SWIFT Member Administered Closed User Group that the SWIFT member has purchased from SWIFT. It is responsible for the interaction between its members' clients and users and the member.

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What is the difference between a MA-CUG and SWIFTNet?
There are MA-CUGs available on the current FIN network, and there will also be MA-CUGs available on the SWIFTNet network. The difference between the two is that one operates on a physical X.25 network and the other operates on a secure private Internet network.

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Should a client join the MA-CUG, SWIFTNet or both?
Clients should join a SWIFT member's CUG if it provides benefit to them in their particular circumstances. The best way to determine the level of potential benefit is to have detailed discussions with you Citi Account Manager.

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Has Citi purchased a MA-CUG?
Citi has established a SWIFT MA-CUG to enable Citi’s corporate clients to use the SWIFT network for communications with Citi branches. Pilot clients are under implementation.

All Citi business branches are included in our MA-CUG.

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Should I (client) join a Citi CUG?
Corporates can benefit the most from joining a Citi CUG.

For Corporates, CUGs provide opportunities to improve their connectivity and straight through processing (STP) of financial transactions with their banks. Joining a Citi CUG provides corporates with access to a reliable, secure private network and standardized security for all communications with us. You can communicate in standard global delivery platform, with a single connection and security model thereby avoiding the need to maintain multiple proprietary systems. Finally, because Citi’s high volume use of SWIFT entitles us to a premier pricing tier, Citi’s revenue billing CUG provides our corporate clients with the most advantageous message transmission fee schedule.

Companies have testified that the benefits of joining SWIFTNet outweigh the costs. Some have openly a desire to replace their own internal networks with a SWIFT CUG. Corporates need to fully integrate their back office systems with SWIFT to fully benefit. CUGs are especially beneficial to high volume corporates. Contact you relationship manager to hear more about the benefits of joining a Citi CUG.

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What are my options other than joining a CUG?
A CUG will not be the right solution for everyone. It complements our other connectivity delivery options: CitiDirect® for Securities, CitiConnect(SM), Citibank® File Services and Citibank® Treasury Integration Services (CTSI). The right interface solution will depend on the customer’s needs. For more information on which solution is right for you, please contact your account manager.

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