Swift will give banks ready-to-use, white-labelled tracking services that can be activated for customers at the click of a button. According to Swift, the initiative marks a significant milestone in delivering its strategy for instant and frictionless transactions. Specifically, it 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. It will give 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. Meantime, multi-banked corporates face a fragmented landscape interacting with a multitude of banking providers with varying features and services.
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Facilitating automation, reconciliation, reducing integration costs
Swift’s plan was developed with a working group of 25 leading cash management banks and 20 sector-leading corporates. The goal is to introduce a universal standard that can maximise the benefit of ISO 20022’s richer, more structured data. It will facilitate automation and reconciliation and drastically reduce integration costs.
Standardisation of payment tracking data will enable financial institutions to easily offer the same experience across their corporate customer base. This is 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.
Swift exceeds G20 cross-border payments goals
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. This is 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. It drives 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.”
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By GlobalDataMany members of Swift’s working group are implementing and piloting the new capabilities. Swift intends to extend them to its wider community later this year.
Damien Godderis, Head of Payments Industry Engagement at BNP Paribas, added: “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.”
