SIBOS 2020: SWIFT to expand reach in financial ecosystem

By Sunniva Kolostyak

SWIFT intends to expand its role within financial services and strengthen its approach to risk and control through its new strategy, its chair said at the annual SIBOS conference.

Speaking at the opening keynote of SIBOS, which this year is taking place online instead of in the US and Boston, Yawar Shah, Chair of the Board at SWIFT, noted that the financial messaging network is undergoing a role shift with its recently launched strategy.

Shah highlighted three key changes: “One, the strategy that SWIFT recently announced is even more aligned to the banking community’s evolving needs. Two, as we accelerate execution, SWIFT will further strengthen its approach to risk and control. And three, as always, SWIFT will continue to expand its role in the broader financial ecosystem on your behalf.”

The strategy represents a combination of SWIFT leaning forward with new technology and innovation while getting feedback from the community of global transaction banks, leveraging existing financial market infrastructure.

SWIFT will enable its users to have end-to-end transaction lifecycle for payments, as well as expand for more efficient, transparent and more diverse securities. This strengthens both larger institutions and small players, Shah explained.

“At the same time, we recognise that banks must follow their roadmaps and transform in the way that is right for them. That is why ensuring backward compatibility and interoperability are key attributes of our new platform approach.

“Let me reiterate, though, that the migration to ISO 20022 remains an industry imperative and has to be factored into forward planning. Our platform will make the migration easier and allow banks to realise the benefits of rich data even faster,” he said.

Shah also noted that as SWIFT is accelerating to meet community needs, it will place an even stronger focus on all elements of risk and control. It will further develop capabilities around security, reliability and resiliency, with a focus on maintaining legacy systems during transitions, the uncertainty of the Covid-19 pandemic, and the ongoing volatility of the geopolitical environment.

Moreover, with an increasingly complex regulatory landscape, it is continuing to develop its financial crime compliance offerings and explore ways to support the community in meeting requirements to sustain their businesses.

“We understand the responsibility of being the global financial messaging network that connects the banking industry and the global economy and enables our members to serve the diverse needs of an interconnected by dynamically changing world.

“As we move forward. I fundamentally believe that innovation cannot succeed in isolation. It is a full-contact engagement process of banks, financial market infrastructures, overseers and regulators, FinTechs, and major technology companies, along with other consortiums. Please watch this space with us. We will do more, with all of you, together,” Shah said.