Swift, a global financial messaging network, is actively collaborating with 25 financial institutions and application providers in a “proof of value” initiative aimed at enhancing front-end interactions. This project focuses on transactions below the $100,000 threshold, collectively worth up to $12 million, and seeks to improve efficiency in lower-end value payments. The initiative highlights the growing need for traditional financial institutions to compete with digital challengers by incorporating advanced Swift services into their platforms.
Andy Elliott from EvonSys and Costa Hagidimitriou of the National Bank of Canada emphasize the competitive landscape of cross-border remittances. Although banks have traditionally held dominance in commercial cross-border payments, they recognize ample room for innovation. Financial technology firms like Wise and Remitly have sought to disrupt the market, yet banks continue to explore ways to modernize retail payments.
How Can Banks Improve Cross-Border Payments?
To address the fragmented state of peer-to-peer payments, EvonSys advocates for collaborative efforts with banks to enhance retail payment services. Elliott points out that current processes for online cross-border payments lack transparency, speed, and simplicity. Swift’s solutions, traditionally used in back-office operations, are now being adapted for front-end applications, improving user experience and efficiency.
Which Features Are Being Integrated?
The National Bank of Canada, collaborating with EvonSys, is undergoing a significant transformation in its digital and payment infrastructure. This partnership leverages key Swift features such as Swift Reference and pre-validation. Integrating five Swift offerings, including the GPI Tracker, Swift Go, and Swift Observer, offers an enriched customer experience across payment platforms.
In the past, Swift has routinely been involved in initiatives to streamline financial transactions across borders. This current project builds on previous efforts but intensifies the focus on front-end user experience, particularly in lower-value transactions. By integrating Swift’s comprehensive suite of solutions, banks aim to reclaim market share from fintech competitors, a goal that aligns with earlier attempts to enhance transaction visibility and user satisfaction.
Hagidimitriou indicates that these integrations provide immediate benefits by simplifying digital payment processes and improving the delivery of payment estimates. Elliott adds that the proof of value initiative confirms the potential for banks to regain market share lost to fintech companies. The Swift Observer feature offers customers precise information on transfer duration and costs.
EvonSys has developed a country-specific package that combines Swift offerings with an end-to-end business process. In heavily regulated regions, this package can request additional information to support cross-border transfers. This approach conserves time and resources for financial institutions by utilizing existing investments to offer fee-free cross-border payments for lower-value transactions.
The ongoing collaboration between Swift, EvonSys, and banks underlines the importance of leveraging existing technology investments to enhance customer experiences. By adopting Swift’s solutions in their front-end platforms, banks can maintain competitiveness against fintech disruptors, offering improved and transparent cross-border payment services to retail banking customers.
