As part of its global payments initiative (GPI), SWIFT has launched a cross-border payments tracker that enables international payments to be traced in real-time. The GPI is SWIFT's payments innovation project to improve transparency, immediacy and tracking of international cross-border payments.
The tracker tool will address one of corporates' main complaints, which is a lack of visibility of their payments' status. David Bannister, principal analyst at Ovum, said: “With the tracker capability, SWIFT GPI tackles that issue and will be a useful tool to help corporate treasurers to execute their core responsibilities.”
The SWIFT GPI service has been available since January 2017 and it's currently being used or implemented by more than 20 global transaction banks, with another 50 in the implementation pipeline.
SWIFT describes its GPI tracker tool as “highly innovative” and claims that it provides corporate treasurers with the following:
- a real-time, end-to-end view of payments;
- confirmation notice when the money reaches the recipient’s account;
- more accurate reconciliation of payments and invoices;
- improved cash forecasts, which optimise liquidity; and
- same-day processing of funds in the beneficiary’s time zone, which reduces exposure to FX risks.
The tracker is available via an open API, making it compatible with proprietary banking systems worldwide – helping to ensure maximum impact of gpi benefits at a greater adoption speed.
SWIFT's Christian Sarafidis said: “Today’s announcement is a significant step towards a game-changing experience for corporates the world over. By taking advantage of the right technology, at the right time, with the right players behind us, SWIFT has successfully helped correspondent banking reach a significant milestone in its evolution.”
CTMfile take: Against a backdrop of shrinking correspondent banking relationships (25 per cent decline according to one report), SWIFT's tracker tool could reassure corporates by providing much needed transparency into payment status and fees.
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