The drivers of change in cross-border payments
What are the key issues shaping cross-border payments today and how is the industry responding?
A new article published in The Times ‘Future of Money’ special report, featuring commentary from Harry Newman, Head of Home at SWIFT, sets out how the cross-border payments landscape is rapidly changing.
The article takes a closer look at the trends driving this change – including evolving customer expectations, shifting regulatory frameworks, and opportunities presented by new technologies – and takes stock of how the industry is responding.
Reinventing cross-border payments
SWIFT gpi, which has “revolutionised payment life cycle management,” is recognised as enabling the current transformation that is underway to deliver fast, trackable, and secure cross-border payments.
To date, more than 3,500 financial institutions have committed to adopting gpi, with over $300 billion in value sent via the service on a daily basis. Over 50% of gpi payments are delivered within 30 minutes and 40% are credited within five minutes, many in just seconds. Nearly 100% are credited within 24 hours.
Already today, all cross-border payments made on the SWIFT network can be fully tracked from end to end via gpi. By 2020, all financial institutions will also be able to confirm when a payment is credited to the account of the end beneficiary.
“We have enabled the entire correspondent banking network to track payments across thousands of institutions,” says Newman. “To have real-time information like this across all your flows is very powerful for banks and corporates.”
The article also examines how SWIFT gpi is evolving.
Continuing to bring the seamless and real-time experience of the domestic payments space into cross-border payments will be key, with SWIFT gpi leading the charge by expanding to even more financial institutions, opening up to new ecosystems, and providing new value-added services on top of the gpi rails.
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SWIFT global payments innovation (gpi)
Global banks are working together to make a dramatic change in cross-border payments.