SME sized managers looking to build cross border business in the retail segment could be among those benefitting from commitment to new standards by Swift, the global payments network.
It has announced a coalition of more than 30 early adopter banks from some 17 countries developing new rules for standards affecting consumers and SMEs sending money internationally.
Participating institutions will commit to:
- Upfront transparency on payment and FX fees
- Guaranteed full-value delivery
- End-to-end visibility of transactions
- Commitment to instant settlement where available
Swift says the rules are “designed to give retail customers the confidence and peace of mind they expect when sending money abroad, delivering a best-in-class user experience.”
The network that runs between financial institutions globally can currently ensure that 75% of payments reach destination banks within 10 minutes.
Swift said the new scheme will bring payments improvements to more than 4 billion accounts in over 220 countries and territories. The change is part of its response to the roadmap set by the G20, which targets faster, cheaper and more transparent payment services globally by 2027.
Its response has been to focus on both the cross border leg of payments, and the so called last mile leg, which it says accounts for 80% of the time taken to complete payments, because of local regulations, market infrastructures and practices. The new rules for retail payments will clarify pinch points in domestic markets. Swift added that the new rules will help “unlock new opportunities for global commerce and inclusion”.
Thierry Chilosi, chief business officer, Swift, commented: “Swift has worked with its community over the past few years to significantly raise the bar on the cross-border payments experience. And now, together with the industry, we are bringing those same benefits to retail customers around the world.”
The initial participating banks include:
Absa
ANZ
Axis Bank
Banco Bradesco
Banco Santander
Bank of America
Banorte
BBVA
BNP Paribas
BNY
Citi Commerzbank
Commonwealth Bank of Australia
Crédit Agricole
Deutsche Bank
Ecobank
Emirates NBD
FirstRand Bank
ICICI Bank
Itaú Unibanco
JP Morgan Chase
Lloyds Bank Mizuho
NatWest
OCBC Bank
Royal Bank of Canada (RBC)
Saudi Awwal Bank (SAB)
Societe Generale
TD Bank Group
UOB
Wells Fargo
Westpac
