Insuranceciooutlook

SWIFT Unveils Payments Initiative, Progresses Cross Border Payments

By Insurance CIO Outlook | Wednesday, May 11, 2016

FREMONT, CA: B2B payments is not a new concept for enterprises. However, the increased use of banking services for making B2B and cross border payments calls for services that strengthen the bond between banks and corporate customers. To fuel this growth, Society for Worldwide Interbank Financial Telecommunication (SWIFT) has kick started the global payments initiative.

The global payments initiative focuses on increasing the speed, transparency and predictability of cross border payments. In its initial stages it will target business to business payments services and enhance the growth of international business by improving supplier relationships. The initiative will provide enhanced services like same day use of funds, transparency of fees, end to end payments tracking and transfer of rich payment information.
 
Based on SWIFT’s secure and resilient global platform, any supervised member financial institution can participate in this initiative following the business rules that are captured by multilateral service level agreements between participating banks. The initiative will meet banks’ abilities to meet compliance obligations, market, credit, liquidity risk requirements and address customer needs simultaneously.

Along with B2B payments enhancements, SWIFT also incorporates additional innovations and deploys new technologies under the initiative. To further reduce costs from compliance, liquidity concerns associated with cross border payments, SWIFT will work with the industry for the addition of more service level agreements.
 
“Correspondent banking serves the industry with millions of secure cross-border payments day in, day out; with this initiative we are building on those strengths, enabling banks to provide distinctive cross-border payments services and providing real benefits to end customers. This is a critical step in cross-border payments innovation,” says Gottfried Leibbrandt, CEO, SWIFT.

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