SWIFT have launched an automated reference data delivery channel called SWIFTRef APIs. The new channel enables corporates to look up and validate payments reference data in real-time against the most up-to-date information available in the SWIFTRef utility. The APIs can be embedded into applications so that the payment reference data can be checked, e.g. in the TMS or ERP, as corporate treasury department prepares a payment instruction. 

Currently the SWIFTRefs APIs include:

• Check validity of a BIC
• Get details of a BIC
• How to reach a BIC in SEPA
• Check validity of an IBAN
• Get details of an IBAN
• Get the BIC for an IBAN
• Get the LEI for a BIC
• Get the BIC for an LEI
• Check the validity of a national ID
• Get BICs for a national ID
• Get national IDs for a BIC
• Get SSIs for a BIC.

SWIFTRef APIs Impact

No longer will corporates have to download and store weekly or daily files to keep up-to-date with the latest SWIFTRef data. By using these APIs, corporates can automate their payments process using data stored centrally, eliminating the need for downloading and managing the reference data internally.

"SWIFTRef APIs are paving the way towards flawless payments processing" says Herve Valentin, Head of Reference Data, SWIFT. "SWIFTRef APIs offer financial institutions and corporates a ready-to-go solution that validates or identifies data when needed, against the most accurate SWIFTRef data available at any given time. Through this approach, banks and corporates can increase operational efficiency, reduce cost, and risk, dramatically reducing time spent on errors resulting from manual repairs and investigations."

Implementation and Charges

The latest APIs are much easier to implement say SWIFT, see SWIFTRef web-site for full technical details. Corporates’ TMS and other service suppliers will have to incorporate the API into their systems, then the corporate treasury department can access the SWIFTRef in real-time via the cloud.

SWIFT charge the corporate directly for the number of calls/year made from all the APIs to SWIFTRef. Call packages start at a low number of $k/year. 

Future Development

Payments data was the starting point for the SWIFTRef, the development today is being pulled towards the identity and data on correspondent banking institutions. SWIFT are focusing on where they can add value to correspondent banking and relationships, e.g. on request they expect to be asked to expand the data on LEIs and IBANs.

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CTMfile take: This is an important example of the future of systems in the corporate treasury department: systems will automatically download in real-time the particular data they need to be sure that each payment or transaction is valid, the level of risk is understood, etc. The days of holding all the data locally are numbered. However, managing and optimising the costs of all the reference data services needed will become a key skill.