Swift Streamlines Cross-Border Payments for Corporate Clients with ISO 20022

Swift Streamlines Cross-Border Payments for Corporate Clients with ISO 20022

by May 22, 2024

Swift has announced a major upgrade aimed at improving the cross-border payment experience for corporate customers.

The financial messaging network will extend ISO 20022 across the entire payment chain and provide banks with ready-to-use tracking services.

By standardising payments end-to-end with ISO 20022, Swift enables financial institutions to capture detailed data from the outset.

Additionally, banks will be able to offer customers white-labelled payment tracking services via API or messaging channels, ensuring full transparency on payment statuses and confirmations.

Currently, corporate payments are hindered by various standards and formats, creating a fragmented landscape for multi-banked corporations.

Swift’s new plan aims to unify this process, benefiting from ISO 20022’s detailed data to facilitate automation and reduce integration costs.

Developed with input from 25 cash management banks and 20 major corporations, including Roche and Saudi Aramco, the new standard seeks to streamline payment tracking across the board.

Global pharmaceutical company Roche has already implemented Swift’s corporate API channel, gaining direct access to tracking information for their transactions.

Swift’s efforts align with the G20’s objectives for cross-border payments. Currently, 89% of payments on Swift’s network reach the beneficiary bank within an hour, surpassing the G20’s goal of 75% by 2027.

Many members of Swift’s working group are already piloting the new capabilities, with plans to extend them to the broader community later this year.

Members of the Working Group

Thierry Chilosi

Thierry Chilosi

Thierry Chilosi, Chief Strategy Officer at Swift, said,

“Adoption of ISO 20022 provides a unique opportunity to improve cross-border payments. Capturing rich data at source will enhance the entire ecosystem, driving us closer to our goals of instant and frictionless transactions.

 

We’re delighted to be making it easy for our community to extend the benefits to their customers while simplifying and standardising access to services, such as tracking, which are so important to efficient corporate treasury.”