The initiative includes providing banks with ready-to-use, white-labelled tracking services that can be activated for customers with ease. According to the official press release, this development is part of Swift's strategy to enable instant and frictionless transactions. By standardising payments end-to-end with ISO 20022, financial institutions can capture detailed data at the source.
Additionally, banks gain the ability to offer their clients comprehensive payment tracking services via API or messaging channels, allowing for full transparency on the status and confirmation of payments. At the time of writing, corporate payments face challenges due to differing standards and proprietary formats, leading to a fragmented landscape for multi-banked corporates.
The plan, created with input from a working group of 25 cash management banks and 20 corporates such as Roche and Saudi Aramco, aims to introduce a universal standard. This standard is expected to enhance the benefits of ISO 20022’s detailed and structured data, support automation and reconciliation, and reduce integration costs significantly.
Standardising payment tracking data will enable banks to offer consistent experiences across their corporate customer base, regardless of geographic reach or local investment. Presently, multi-banked corporates receive tracking information through various channels and formats, complicating the process.
Swift’s initiative also aligns with the G20’s objectives for cross-border payments. The press release further details that 89% of payments on its network reach the beneficiary bank within an hour, surpassing the G20’s target of 75% by 2027. Many members of Swift’s working group are now implementing and testing the new capabilities, with plans to extend these to a broader community later in 2024. This initiative is expected to simplify treasury processes and improve the cross-border payments ecosystem overall.
In April 2024, Veritran announced a partnership with Swift to optimise user experiences and increase the overall transparency in cross-border payments. Following this announcement, Veritran and Swift focused on enabling financial institutions and companies to provide optimised and secure cross-border payments to their customers and collaborators.
In addition, both companies prioritised the process of meeting the needs, preferences, and demands of users and partners in an ever-evolving market, while also focusing on remaining compliant with the regulatory requirements and laws of the industry.
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