Brussels,2May 2019
SWIFTannounces the launch of an ‘in-flight’payment
investigation and resolutionservice, available in the cloud,in a significant expansion of
its network-wide payments validation toolkit. The new capability allows for dynamic query handling between banks on
the SWIFT network, enablingthem to quickly resolve instances in which required operational,
regulatory or compliance information is incorrect or missing from payment instructions.
This latest development complements SWIFT’s integrated gpi
pre-validation service, which is aimed at identifying and eliminating errors
and omissions in payment messages, prior to payment initiation. Integrated
directly into SWIFT gpi, the serviceswill ultimately be made available to all
10,000 banks across the SWIFT network.
Harry
Newman, Head of Banking at SWIFT, said:“In our drive towards
frictionless payments, we are working together with banks and software
providers to bring in a fully integrated, network-wide service to ensure a
smooth payments process. It has been a consistent bug-bear of many banks that,
whilst only a minority of payments are held up by errors and missing information,
they are frustrating, time-consuming and costly. Ultimately all 10,000banks on
the network will be able to use these tools seamlessly to resolve them.”
The newservicewill
speed up the resolution of operational, compliance andregulatory-relatedissues
that can arise along the payments chain.While relatively infrequent, these
issues can currently take a long time to resolve. Such issues can arise from missing
or incorrect information – such as the reason for payment or settlement date, or
differences in regulatory controls and requirements across jurisdictions –all
of whichrequire additional information and validation.
Interbank efforts to
resolve these blockages often involve multiple requests and responses across
chains of banks. The use of unstructured, unstandardised messagesprevents automated
processing, resulting in time-consuming and costly processes.
Available in the cloud,
and through
a combination of the gpi tracking function and standardised industry protocols, the service
will improve transparency, shorten resolution time and reduce the need for
manual interventions. Users will be able to locate any hold-ups via the gpi
tracker, as well as identify the beneficiary or intermediary banks that may be
causing them. Using API calls, and the gpi tracker, they will then be able to
automatically exchange the required information directly with the relevant
banks. For smaller users, a GUI will be provided to handle the case requests
and responses.
Using a standardised ISO 20022 format,the banks will be able to exchange requests
and responses in a structuredmanner –thereby ensuring more efficient case resolution.Facilitating
14 enquiry types and covering three payment types (customer credit transfers,
financial institution transfers, cover payments) the architecture is designed
to make the service future-proof and extendable to cover any field of any
payments message.
Mark McNulty, Global Head Clearing & FI Payments
at Citi, said:“In addition to our goal of
providing real-time ubiquitous cross-border payments, our ambition is to ensure
that any associated customer enquiries are transacted real-time. gpicase
resolution is a very important step forward as it provides the platform for
banks, across the payment chain, to interact in a far more dynamic, efficient
and transparent manner than today and thus ultimately better serve our clients.
Case resolution is well placed to build on the scale and reach of gpi to
transform how enquiries associated with cross-border payments are resolved.”
Peng
Hua, Deputy General Manager, Operation Management Department at Industrial and
Commercial Bank of China, said: “ICBC
is extremely willing to participate in the application and promotion of the
SWIFT gpi case resolution service as a market forerunner. It can be predicted
that through the implementation of SWIFT gpi case resolution service, banks can
achieve rapid exchange of standardised investigation information, improve the
efficiency of requests and responses and provide customers with premium
cross-border clearing service and outstanding structured resolution.”
Jean-François Mazure, Head of cash clearing services
atSocieteGenerale, said: “SocieteGenerale is
enthusiastic to be taking part in another SWIFT gpi initiative. This new
service streamlines the investigation process and definitively accelerates the
resolution of cases. This fits in perfectly with the banking industry’s innovation
dynamic that constantly strives to improve service quality as well as optimise
operational costs.”
In the first stage of
its launch, the service will be piloted by 12 major banks and three case
management software providers. The 12 banks taking part in the pilot are Bank
of China, BNP Paribas, BNY Mellon, Citi, Deutsche Bank, Emirates NBD,
Gazprombank, HSBC, ICBC, SMBC (Sumitomo Mitsui Banking Corporation),
SocieteGenerale andStandard Chartered. The three case management software
providers taking part are Appian, Pega and Syracom. The serviceis scheduledto
go live inNovember 2019.
SWIFT gpi
The SWIFT global payments innovation (SWIFT gpi) is the largest change in
cross-border payments over the last 30 years and is the new standard. SWIFT gpi
dramatically improves the customer experience in cross-border payments by
increasing their speed, transparency and end-to-end tracking. Hundreds of
thousands of cross-border payments, totalling over $300bn, are sent every day
using the new gpi standard. Payments are made quickly, typically within
minutes, even seconds.
SWIFT gpi allows corporates to receive an enhanced payments service, with
the following key features:
• Faster, same day use of funds within the time zone of the receiving gpi
member
• Transparency of fees
• End-to-end payments tracking
• Remittance information transferred unaltered
With SWIFT gpi, the correspondent banking community, together with
fintechs, corporates, and others, is collectively removing frictions and
reducing the costs associated with cross-border payments. Since its launch in
January 2017, gpi has dramatically improved the cross-border payments
experience for corporates in over 1,100 country corridors. Key features of
SWIFT gpi include enhanced business rules and a secure tracking database in the
cloud accessible via APIs. New gpi services are routinely developed with the
gpi member community and rolled out to the growing network of banks.
Thanks to SWIFT gpi, corporates can grow their international business,
improve supplier relationships, and achieve greater treasury efficiencies.On
average, 40% of SWIFT gpi payments are credited to end beneficiaries within 5
minutes. 50% are credited within 30 minutes; 75% within 6 hours; and almost
100% within 24 hours.
Already, 3,500 banks accounting for 85% of SWIFT’s total payments traffic
have committed to adopting gpi and more than 55 payment market infrastructures
are already exchanging gpi payments, enabling domestic exchange and tracking.
Payment market infrastructures have a critical role to play in facilitating the
end-to-end tracking of cross-border payments because as soon as international
payments hit the destination country, they are typically cleared through local
payment infrastructures.
About SWIFT
SWIFT is a global member owned cooperative and the
world’s leading provider of secure financial messaging services. We provide our
community with a platform for messaging and standards for communicating, and we
offer products and services to facilitate access and integration,
identification, analysis and regulatory compliance.
Our messaging platform, products and services
connect more than 11,000 banking and securities organisations, market
infrastructures and corporate customers in more than 200 countries and
territories. While SWIFT does not hold funds or manage accounts on behalf of
customers, we enable our global community of users to communicate securely,
exchanging standardised financial messages in a reliable way, thereby
supporting global and local financial flows, as well as trade and commerce all
around the world.
As their trusted provider, we relentlessly pursue
operational excellence; we support our community in addressing cyber threats;
and we continually seek ways to lower costs, reduce risks and eliminate
operational inefficiencies. Our products and services support our community’s
access and integration, business intelligence, reference data and financial
crime compliance needs. SWIFT also brings the financial community together – at
global, regional and local levels – to shape market practice, define standards
and debate issues of mutual interest or concern. SWIFT’s strategic
five year plan, SWIFT2020, challenges SWIFT to continue investing in the
security, reliability and growth of its core messaging platform, while making
additional investments in existing services and delivering new and innovative
solutions.
Headquartered in Belgium, SWIFT’s international
governance and oversight reinforces the neutral, global character of its
cooperative structure. SWIFT’s global office network ensures an active presence
in all the major financial centres.
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