SWIFTDuring 2018, SWIFT’s gpi payments service has made good progress. It has continued to transform correspondent banking. With the support of hundreds of financial institutions, including the world’s 60 biggest banks, it is now being used to send hundreds of billions in payments every day – more than half (55%) of SWIFT’s cross-border traffic the organisation said.

Luc Meurant, chief marketing officer, SWIFT, said: “Through gpi, SWIFT and its community have managed to radically innovate the very core of correspondent banking, in what has been the biggest innovation in SWIFT’s 40 year history. The pace of its adoption since its launch in early 2017 is particularly impressive; less than two years’ since its launch, gpi is rapidly becoming the cross-border standard. It was designed, developed and deployed in record time, and the industry has responded to it with huge enthusiasm, enabling us to move towards universal adoption by the end of 2020.”

Already the new standard, SWIFT gpi has dramatically improved the customer experience in cross-border payments by increasing the speed, transparency and traceability of payments. SWIFT gpi payments are typically made within minutes or even seconds. Overall, over 50% of SWIFT gpi payments are credited to end beneficiaries within 30 minutes, and almost 100% of payments within 24 hours. Payments that take longer typically have clear known reasons, such as being subject to payment regulations in the receiving country.

“The increased speed offered by gpi benefits banks as well as their end customers”, added Meurant. “For banks, it helps to reduce the capital requirements needed to support international payments, while for banks’ end customers it frees up cash and enables goods to move faster. The service has enhanced the customer experience by eliminating many of the issues that have previously led to time-consuming and costly enquiries. The transparency it enables not only reduces the total number of enquiries, but also the time needed to handle those that are left.”

Global adoption increased throughout the year, as major banks from across the world joined the service. The rapid take up of the gpi service led to SWIFT’s announcement in June that it would move to universal gpi adoption by the end of 2020. By then, all 10,000 banks on the SWIFT network will be able to offer same day end-to-end delivery with full tracking and transparency throughout the payment chain.

by Bill Boyle
IBS Intelligence Senior Editor
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