Brussels/Mumbai,20
June2019
SWIFT has today releaseda landmark paper, “Payments: looking to the
future”, in which the global co-operative articulates the future of cross-border
payments. Withthe increase in cross-border flows, new technology enabling
dramatic improvementsand end-customers demanding a better customer experience,
SWIFT is setting out its views on the future of cross-border payments in order
to support the community.
SWIFT’s view of the future is deceptively simple:
to make cross-border payments real-time, 24/7 and as seamless, convenient,
cost-efficient and accessible as domestic payments.
The paper lays out the elements and dynamics supporting
the revolution in international payments, including:
·
A core
infrastructure, that responds
to the challenge of bridging the ‘closed loops’ of individual payments systems
and securely unlocks value across borders, supporting trade and economic growth
·
The widespread
adoption of SWIFT gpi, which will be
the universal standard by 2020, making every cross-border payment fast,transparent, traceable and truly global– unlocking
value from every account, to every account
·
A hyper-connected
future, in which gpi-enabled banks are the bridges
between real-time domestic payments infrastructures, enabling instant cross
border payments to move seamlessly and safely across borders via SWIFT
·
Smarter payments which utilise superior data and the power of AI and machine learning for
effective and efficient financial crime compliance and to eliminate the hold-ups
and bottlenecks caused by missing or incorrect information
·
Modern, open,
globally adopted standards, which
allow smaller markets to internationalise faster andlarger markets to fluidly
transfer value through the entire payments chain
·
Further embracing
new technologies that serve a
real purpose to resolve industry problems through the deployment of cutting
edge technology
·
A vibrant and
innovative ecosystem, with API
technologies supporting open, agilearchitectures that allow fintechs to offer
value-add services and banks to differentiate themselves by layering services
and products
At SWIFT, our vision is to make cross-border payments as seamless and
convenient as domestic ones. This vision is shared by Indian banks that are
embracing gpi as the new norm of cross-border payments. Twelve banks have
already signed up for gpi in India with more to come. The hyper-connected
future of tomorrow could see us enabling seamless cross-border payment
experience via domestic real-time systems without the need for beneficiary bank
account information, for example. Open banking, which will play a big role in
this experience, is something that SWIFT is building capabilities around. We
are extending services using APIs and more crucially enabling harmonisation of
the API standards by leveraging ISO 20022 to ensure that our payment processing
is frictionless and secure. Innovation is and will continue to play a huge part
in what we do,” said Kiran Shetty, CEO and Regional Head, India and South Asia,
SWIFT
Payments are not an end in themselves – they exist to enable investment,
trade and commerce. By laying out this industry roadmap, SWIFT aims to
galvanise the global payments community – market infrastructures, banks and
fintechs – to collaborate and help drive progress, ensuring cross-border
payments better serve market needs.
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
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