- Extension of ISO 20022 across payment chain will capture
rich data at source, enhancing speed and transparency and marking
significant point on journey to instant and frictionless
transactions
- Banks given ready-to-go, white-labelled tracking services to
enhance corporates’ treasury management
- Plan developed in collaboration with leading cash management
banks and twenty sector-leading corporates, including Roche and
Saudi Aramco
Swift has today set out plans to help financial institutions
streamline the cross-border payments experience for their corporate
customers, by extending ISO 20022 across the entire payment chain
and giving banks ready-to-use, white-labelled tracking services
that can be activated for customers at the click of a button.
In what marks a significant milestone in delivering its strategy
for instant and frictionless transactions, Swift will enable
financial institutions to capture rich data at source, by
standardising the payment end-to-end with ISO 20022. Swift will
also help banks offer their customers ready-made and white-labelled
payment tracking services by API or messaging channel, giving
complete transparency on a payment’s status as well as confirmation
of its receipt. Currently, corporate payments are complicated by
competing standards and proprietary formats, while multi-banked
corporates face a fragmented landscape as they interact with a
multitude of banking providers with varying features and
services.
Swift’s plan was developed with a working group of 25 leading
cash management banks and 20 sector-leading corporates, including
Roche and Saudi Aramco. The goal is to introduce a universal
standard that can maximise the benefit of ISO 20022’s richer, more
structured data, facilitating automation and reconciliation and
drastically reducing integration costs.
The standardisation of payment tracking data will enable
financial institutions to easily offer the same experience across
their corporate customer base, regardless of their own geographical
reach or local investment. Currently, where multi-banked corporates
receive tracking information, it comes through different channels
and in different formats.
Roche, the global pharmaceutical company, has successfully
implemented Swift’s new corporate API channel, with a key banking
partner enabling their direct access to tracking information for
payments they send and receive.
Stefan Windisch, Global Head, InHouse Bank at Roche,
said: “Swift’s new approach undoubtedly offers significant
benefits from a corporate client perspective. It enables us to
enhance and accelerate our payments analysis, giving us a
comprehensive overview at pace. Having direct API access to Swift's
payment tracking system will provide us with more transparency and
strengthen our ability to analyse overall payment performance. It
will allow us to refine our instructions, better identify
inefficiencies, and minimise erosion of value in cross-border
payments.”
Swift has been driving the industry towards meeting the G20’s
goals for cross-border payments. - 89% of payments on its network
now reach the beneficiary bank within an hour, ahead of the G20’s
target of 75% settling in the end account within an hour by
2027.
Thierry Chilosi, Chief Strategy Officer at Swift, said:
“Adoption of ISO 20022 provides a unique opportunity to improve
cross-border payments. Capturing rich data at source will enhance
the entire ecosystem, driving us closer to our goals of instant and
frictionless transactions. We’re delighted to be making it easy for
our community to extend the benefits to their customers while
simplifying and standardising access to services, such as tracking,
which are so important to efficient corporate treasury.”
Many members of Swift’s working group are implementing and
piloting the new capabilities, and Swift intends to extend them to
its wider community later this year.
Damien Godderis, Head of Payments Industry Engagement at BNP
Paribas, said: “BNP Paribas are delighted to be working with
Swift to offer a bank agnostic solution for payment initiation to
maximise the benefits of ISO 20022, and to offer self-service
payment tracking. We’re excited to start testing along with our
corporate clients.”
Noritoshi Murakami, MD, Head of Transaction Banking Division
(Products) at MUFG, said: "We are delighted to have been able
to collaborate with Swift and our peers from across the industry,
as well as a large number of businesses, to enhance the customer
experience for our multinational corporate clients. This will help
simplify their treasury processes and improve the cross-border
payments ecosystem overall."
Boris Lipiainen, Chief Product & Technology Officer at
Kyriba, said: "We are pleased to be working alongside Swift and
many others for this pilot programme. By utilising a single
standard for payment initiation in ISO 20022 and enabling direct
corporate access to tracker data, we are able to integrate
additional services that improve the payment experience for
multibank clients across the payment lifecycle. Together with
Swift, we are able to reduce friction, streamline operations, and
increase value for our customers."
Members of the Working Group include:
Corporates
Financial Institutions
ABB Capital AG
Bank of America
Airbus
Barclays
Alibaba
BBVA
ArcelorMittal Treasury
BNP Paribas
Bayer
Citi
Booking.com
CTBC
Dassault Systemes
DBS
DFS
Deutsche Bank
Eskom
HSBC
Johnson Controls
MUFG
Merck
Santander
Midea Group
Société Générale
Roche
Standard Chartered
Saudi Aramco
UniCredit
Ingka (Ikea)
Kyriba
FIS
EFIS
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
11,500 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.
Headquartered in Belgium, Swift’s international governance and
oversight reinforces the globally inclusive character of its
cooperative structure. Swift’s global office network ensures an
active presence in all the major financial centres.
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Press: FGS Global +32 (0)2655 3377 Swift@fgsglobal.com