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SWIFT gpiDelivering the future ofcross-border payments,today
SWIFT gpiSWIFT gpi4The Concept8The Tracker10The Observer12The Directory14Market infrastructures16The Roadmap18Enable digital transformation22Explore new technology242SWIFT gpiDeliveringthe future ofcross-borderpayments,todaySWIFT is an innovativetechnology company. As anindustry cooperative, we listenand respond to the evolvingneeds of our Community.Part of our core mission is tobring the financial communitytogether to work collaborativelyto shape market practice,define standards and debateissues of mutual interest.Innovation is an ongoingprocess, and through our R&Dprogrammes and initiativessuch as SWIFTLab, Innotribe,and the SWIFT Institute, SWIFTis ideally placed to offer insightsinto the future of global financialtechnology and work with ourCommunity to make real worldchange really happen.3
SWIFT gpiSWIFT global payments innovation (gpi)dramatically improves the customerexperience in cross-border paymentsby increasing the speed, transparencyand end-to-end tracking of cross-borderpayments.Over 90 leading transaction banks fromEurope, Asia Pacific, Africa and theAmericas are already signed up and moreare expected to join.Thousands of cross-border paymentsare today being sent using this new gpistandard, bringing immediate benefits togpi banks and their corporate customers.SWIFT gpiIn its first phase, SWIFT gpifocuses on business-to-businesspayments. It is designed to helpcorporates grow their internationalbusiness, improve supplierrelationships, and achieve greatertreasury efficiencies. Thanks to SWIFTgpi, corporates can today receive anenhanced payments service from theirbanks, with following key features:Faster, same day use of funds*Transparency of feesEnd-to-end payments trackingRemittance informationtransferred unalteredSWIFT gpi functions on the basisof ‘business rules’ captured inmultilateral service level agreements(SLAs) between participating banks.The innovative new service isdesigned to address end-customerneeds without compromising banks’abilities to meet their complianceobligations and market, credit andliquidity risk requirements. It operateson SWIFT’s secure and resilient globalplatform; and participation is opento any supervised financial institution(SWIFT Group 1 category) that agreesto comply with its business rules.SWIFT gpiAt Citi, we welcome the launch ofSWIFT gpi – we see this as a keyinitiative in evolving how crossborder payments are transacted.The time is right for the industry toembrace this initiative and cometogether to affect meaningfulchange in payments that webelieve will significantly enhancethe experience that we deliver toour clients.Mark McNultyGlobal Head of Financial Institutions Payments andClearing, Citi Treasury and Trade SolutionsAs an early member of SWIFTgpi, Bank of China successfullycompleted the gpi pilot andwas one of the first banks togo live. We genuinely saw theenhanced client experience incross-border payments broughtby SWIFT gpi. Indeed, the rapidityof the first live payment – fromsending the payment instructionto when our client received thecredit confirmation SMS – wasremarkable. We are also pleasedto see that, through collaboration,innovation and continuouslyenhancing and expanding theproject scope, SWIFT gpi isoffering a new universal crossborder payment service, which isin line with the trend in paymentbusiness development and isstrongly supported by the globalcommunity.Shangbin SunDeputy General Manager, Clearing Dept,Bank of China* within the time zone of the receiving gpi member45
Regional representation ofSWIFT gpi member banksSWIFT gpi90 member banks sendingpayments into morethan 224 countries andterritories; representingover 75% of all SWIFTcross-border .35.36.37.38.39.40.41.42.43.44.45.46.ABN AMRO BankABSA BankAlfa-BankAustralia and New Zealand Banking Group*Axis BankBanco Bilbao Vizcaya ArgentariaBangkok BankBank of America Merrill Lynch*Bank of China*Bank of New York Mellon*Bank of Nova ScotiaBank of the Philippine IslandsBank of Tokyo-Mitsubishi UFJ*Banco BradescoBanco SantanderBanco de Crédito del PeruBanco do BrasilBanco Mercantil del NorteBanque Européenne d’InvestissementBarclays*Bidvest BankBNP Paribas*Budapest BankCaixaBankCanadian Imperial Bank of CommerceChina Construction BankChina Merchants BankCitibank*Commonwealth Bank of AustraliaCommerzbankCrédit AgricoleCrédit Mutuel-CIC BanquesCredit SuisseCTBC BankDanske Bank*DBS Bank*Deutsche BankDNB BankEcobankE.Sun Commercial BankErste Group BankFifth Third BankFirstRand BankHandelsbankenHelaba Landesbank Hessen-ThüringenHSBC 20%SWIFT gpiEMEA52%APAC28%ICICI BankIndusInd BankIndustrial and Commercial Bank of China*ING Bank*Intesa Sanpaolo*Intl. FCStoneInvestecItaù UnibancoJPMorgan Chase Bank*KasikornbankKBC BankKEB Hana BankLloyds BankMashreq BankMaybankMizuho Bank*National Australia BankNatixisNedbankNordea Bank*Oversea-Chinese Banking CorporationPKO Bank PolskiPromsvyazbankRabobankRaiffeisen Bank InternationalResona BankRoyal Bank of Canada*Royal Bank of ScotlandSberbankSiam Commercial BankSilicon Valley BankSkandinaviska Enskilda BankenSociété GénéraleSpareBank 1Standard Bank of South AfricaStandard Chartered Bank*Sumitomo Mitsui Banking Corporation*SwedbankTadhamon International Islamic BankTMB BankToronto-Dominion BankUBSU.S. BankUniCredit*United Overseas BankWells Fargo** Banks that participated in the 2016 pilot67
The ConceptSWIFT gpiSWIFT gpiSWIFTgpiThe ConceptThe BenefitsThe Complete PackageGlobal reachProvided by core transactionbanks using an open modelFaster, same day use of funds(within the time zone of thereceiving gpi member)TrackerGet visibility on where a paymentis and confirmation of its credit inreal timeSmart collaborationOptimising business processesand reducing costsAccessibleby any bankMore efficient and more clarityon feesSecure and compliantSLA rulebookWith customer at centre of valuepropositionEnd-to-end payments trackingEmbrace innovationExploring new technologiesUnaltered remittance informationStill reachnon-initiative banksDirectoryA complete listing of all gpimembers and their capabilitiesOpen and inclusive, offeringglobal reachObserverA global view of gpi banks’adherence to the gpi SLAsServicesgpi members can accessa dedicated member-zone,including all technical &commercial documentation, anda SWIFT certification serviceReachingany bankTrackerDirectoryObserverAccessible by anycorporate (via SWIFTor bank channel)89
The TrackerEnd-to-end payments trackingIn today’s world, customers expectgreater transparency. When theysend a payment, they want toknow what is happening with itand when it has been received.Until now, this has not been thecase in cross-border payments aseach bank has only been able toguarantee and share informationon its own leg of the payment.Now SWIFT gpi enables banksto provide end-to-end paymentstracking. SWIFT has developeda Tracker database ‘in the cloud’securely hosted at SWIFT, to giveend-to-end visibility on the statusof a payment transaction fromthe moment it is sent until it isconfirmed.SWIFT gpi banks are able to login to the Tracker to instantly checkthe status of the payments theyhave sent, those in progress andthose that have been received.They can even improve theirliquidity management by havingvisibility on initiated payments thatare already on their way.The Tracker can be updated byFIN message or via API. It canbe accessed via a graphic userinterface (GUI) and also via APIcalls to allow the service to beembedded in other back-officesystems.10SWIFT gpiBenefitsfor banksBenefits forcorporatesReduce operationcosts and time spenton investigationsTrack importantpaymentsReduce front officecosts on customercalls/complaintsRapidly investigateclaims of non-receiptOffer new innovativeservices tocustomersProvide a betterend-to-end serviceto clientsGet confirmationthat the paymentwas credited onthe account of thebeneficiaryEasily reconcilepayments andinvoicesSpeed up supplychain and reducerisk; release goodsas soon as paymentis sentSWIFT gpiBy enabling gpi payments to be tracked using apayment Tracker, we bring in predictability andconfirmation for a cross border payment, which is afantastic initiative as it allows for better managementof commercial payments. Standard Chartered isa leading cross-border payments correspondentbank and we believe this initiative will benefit ourcorrespondent banking clients substantially inefficiently managing their payments and receipts.T S ShankarHead of Payments and Liquidity Products,Correspondent Banking, Standard CharteredThe Tracker3214StatusAmountDurationOriginatorSWIFT Tracking NumberBeneficiary56BANK ASee detailed history1.2.3.4.5.6.7.8.Charges7BANK BBANK CBANK D8One glance’ status overviewTransparency of total fees and timeUnique end-to-end transaction reference (UETR)Bank access via MT 199/GUI/APIIn the cloud – hosted at SWIFTReal time trackingDetails of banks along the pathDetails – references to MTs11
The ObserverA global view of banks’adherence to the SLAIn order to enhance cross-borderpayments, SWIFT has createda new service level agreement(SLA) rulebook. This provides theopportunity for enhanced businesspractices and smart collaborationbetween participating banks. Tomonitor adherence to this newSLA for all members, SWIFT hascreated a central service called theObserver.All gpi banks will have a globalview of other gpi banks’ adherenceto the gpi SLAs. This will enablegpi banks to quickly pinpointpotential areas for improvementand work collaboratively towards abetter implementation of the SLA.SWIFT gpiBenefitsEnsures quality in thegpi initiativeA central updatedresource for allbanks involved in theinitiativeSWIFT gpiAll gpi member banks are committed to the gpicause. Such commitment being fundamental to itssuccess, we also agreed to have our adherence tothe SLA and business rules monitored through a “gpiObserver”, a clear proof of this commitment.Manu LegeinHead of Business Development Management,Payment Solutions Corporates, KBCIdentification oftargeted areas forimprovementThe ObserverYOURgpi Quality Indexgpi COMMUNITYQuality Indexessame daytransparencyend-to-end trackingremittance info unalteredBank 1Branch 1aBranch 1bBranch 1cBranch 1dBank 2Branch 2aBranch 2bBranch 2cBranch 2dBank 3Branch 3aBranch 3bBranch 3cBranch 3dBank 4Branch 4aBranch 4bBranch 4cBranch 4dcompliantnon-compliant (visible to non-compliant gpi bank only)non-compliant (visible to all gpi banks)1213
The DirectoryA complete list of all gpimembersEvery member bank isautomatically listed in the gpiDirectory. This includes detailssuch as: which banks can sendand receive gpi payments bybusiness identifier code (BIC);in which currencies; reachablethrough which channels; cut-offtimes; and if a bank acts as anintermediary for gpi payments.This Directory benefits allbanks involved by enablingcomprehensive end-to-endpath finding for gpi payments.It is available in a wide varietyof formats and accessible viaautomated delivery channels.SWIFT gpiBenefitsFind out theoperationalcapabilities of gpimembersEasy identificationof all potential gpicounterpartiesLeverages SWIFT’sbest-in-classcapabilities formanaging referencedataSWIFT gpiCorporates have a keen interest in SWIFT gpi asdemonstrated during our yearly client event in Paris:payments tracking was highlighted by treasurerspresent as the most promising cash managementinnovation. In addition, thanks to the SWIFT gpiDirectory, we will also be able to apply best paymentrouting and have our clients benefit as much aspossible from the gpi features. Ultimately, we expectSWIFT gpi to move cross-border payments to a newstandard.Jean-François DenisDeputy Global Head of Cash Management, BNP ParibasThe DirectoryCurrencies supportedSLA id14BIC11 gpi-enabledCut-off timeSupport IntermediaryPath to reach bank15
Market infrastructuresPayments market infrastructuresplay a key role in the journey of across-border payment. As soon asan international payment reachesa domestic or regional market,market infrastructures typicallycome into the picture for localclearing and settlement. SWIFTis therefore actively working withpayments market infrastructuresto ensure compatibility with theSWIFT gpi payment specificationsand to ultimately achieve globalinteroperability between domesticand cross-border paymentsservices.From their side, marketinfrastructures want to becompatible with SWIFT gpi to offertheir member community accessto an enhanced cross-borderexperience, and position theirstrategic initiatives in this particulararea.Market infrastructures that useSWIFT technology (FinCopy)and standards already supportthe SWIFT gpi experience. Forothers, best market practicesto map domestic formats on tocross-border gpi standards canbe defined in collaboration withSWIFT, in particular for marketinfrastructures that are based onor plan to adopt ISO 20022.16SWIFT gpiBenefits for marketinfrastructuresBenefits for gpimembersFacilitate theseamlesstransmission of gpipayments betweenthe cross-border anddomestic marketsEnsures the smoothclearing of gpipayments betweengpi member banksLower the barrier ofentry for membersto access animproved crossborder paymentsexperienceLeverage SWIFT gpiplatform for futureinnovationsAllows for thetracking of a gpipayment up untilthe local beneficiarybankSWIFT gpiSupport from the market infrastructure communityis a key factor for success. Taking a standardisedapproach to identifying gpi transactions in these localclearing systems will reduce fragmentation and costsfor banks. We look forward to working more closelywith market infrastructures as the industry realises itsgoal for faster, more transparent and traceable crossborder payments.Harry NewmanHead of Banking, SWIFTStrengthens thevalue proposition forcustomers as gpipayments can besent through ciaryOrderingcustomerBeneficiary17
SWIFT gpiSWIFT gpiThe first phase of SWIFT gpi is focused on improving the speed,transparency and end-to-end tracking of cross-border paymentsby delivering a solution in the short-term.Meanwhile, in collaboration with banks and corporates around theworld, a strategic yet pragmatic roadmap has been identified, todevelop additional optional payments services to deliver furthervalue in the near future.Roadmapfor the futureThat second phase of SWIFT gpi will enable the digitaltransformation of cross-border payments, by allowing banks to: Immediately stop and recall a payment, no matter where it is inthe correspondent banking chain. Transfer rich payment data along with the payment, with theitem data necessary for payments compliance checks or linedetails; to enhance the reconciliation with invoices. Use an international payment assistant at origination, to furtherincrease the straight-through-processing rate of cross-borderpayments.In parallel, SWIFT gpi is exploring the potential of using newtechnologies such as distributed ledger technology andblockchain, in the cross-border payments process.1819
The RoadmapIn future SWIFT gpi phases,further services will be deployedfor adoption by membersSWIFT gpi2015Dramatically improvecross-border paymentsCustomer Credit TransferSWIFT gpi2016Identify, scopeDesign2017Stop and Recall PaymentIdentify(vision workshops)2019Go liveBuild,testExtension for cover paymentsEnable digital transformation2018DesignBuild, testGo liveDesignBuild, testGo liveScopeRich Payment DataDesignBuild, testGo liveInternational Payment AssistantDesignBuild, testGo liveAdditional Payment ServicesContinuous exploration and co-creation with the financial, corporate and fintech industriesExplore new technologyDLT PoC forreal-time nostroreconciliationScopeDesignBuild, testGo liveThe first phase of SWIFT gpi isfocused on improving the speed,transparency and end-to-end trackingof cross-border payments. There are,however, additional opportunitiesto enhance customer convenienceand cut bank costs that will quicklybe addressed in the next phases ofSWIFT gpi.These services will provide anenhanced experience throughnew shared digital services andtechnologies.2021
Enable digital transformationSWIFT gpiStop and Recall PaymentSometimes a payment needs to bestopped. For example: in case of fraud,or when a duplicate payment has beenerroneously sent. Today, banks senda request for cancellation by followingthe same route of the payment, i.e.from one bank to the next, chasing thepayment already on its way. The abilityto immediately stop a payment, at anypoint in the payment chain, would beof great value. With the SWIFT gpi Stopand Recall Payment service, banks willbe able to stop a payment instantly,regardless of where it is in the paymentchain, thanks to the unique tracking codelinked to any SWIFT gpi transaction.In addition, every bank in the paymentchain would be notified at the sametime. And if the payment was alreadycredited, the instructed bank wouldreceive an immediate recall of fundsinstruction. Besides the value of stoppingan erroneous or fraudulent payment, thisservice provides increased operationalefficiency and avoids a lot of administrativehassle for all parties involved.OrderingcustomerSWIFT gpiInternational payment assistantChallenged by a multitude of differentlocal payment practices, regulatoryrequirements and account numberspecifics, corporates lose a lot of timeand money today when generatingcross-border payments or in the delaysincurred when a transaction is returneddue to missing or wrong payment data.The SWIFT gpi International PaymentAssistant, available through SWIFT’ssecure information layer in the cloud,would enable corporates to receive valueadded payment-related information relatedto all banks and market infrastructuresinvolved in the transaction chain beforeactually sending the cross-borderpayment, hence improving operationalefficiency, speed and customersatisfaction.Today, corporates are requested, atmultiple times and by several banks inthe correspondent banking chain, toprovide additional payments informationfor compliance checks. In addition,buyers need to convey rich paymentdetails in order for the seller to reconcileone payment with multiple invoices.This process currently requires manualintervention and numerous e-mailexchanges between the corporate clientsand their banks. The ability to use theSWIFT gpi Rich Payment Data service, asecure information layer in the cloud, totransfer rich payment data along with apayment would save costs and precioustime for both corporate clients and theirbanks. Using SWIFT gpi’s unique trackingcode, the information associated to thepayment is conveyed via the cloud. Withthis service, banks would be able toprovide corporates with the capability toreconcile invoices and payments in anautomated way and keep track of them atthe touch of a button.Security is at the heart of SWIFT’sproducts and services. Within the SWIFTgpi platform, specific features have beendesigned to help provide an increasedsecurity layer to the platform – allowingboth banks and corporates to performcross-border payments in a secure andresilient way:The TrackerIn case of a (suspected) fraud case, bankscan easily track the route a paymentfollowed, using the gpi tracker.Rich Payment DataCorporates and banks can share extendedcompliance information and documentsneeded to accompany the payments, withspecific access controls.Stop and Recall PaymentIn the case of a (suspected) fraud,corporates can ask their banks to stop apayment immediately, at any point in thepayment toppedBuyer22Security at the heart of theSWIFT gpi platformTransfer of rich payment dataPaymentSeller23
Explore new technologySWIFT gpiCollaborative innovationExploring blockchainSWIFT gpi will open access to thirdparty banks, payments service ande-commerce platform providers,who use common APIs to integratepayments services in their specificcustomer experience thus enablingcollaborative innovation.Under the current correspondentbanking model, banks need tomonitor the funds in their overseasaccounts via debit and credit updatesand end-of-day statements. Themaintenance and operational workinvolved represents a significantportion of the cost of making crossborder payments.As part of the technology evaluationin the SWIFT gpi roadmap, SWIFTlaunched a Proof of Concept (PoC)in 2017, to test distributed ledgertechnology (DLT) and determine ifthis new technology can be appliedto reconcile banks’ nostro accountsmore efficiently and in real time,lowering costs and operational risk.Whilst DLTs are currently not matureenough for broad use on crossborder payments, this technology mayprovide solutions for the associatedaccount reconciliation. SWIFT willleverage its key assets to bring thetechnology in line with the financialindustry’s requirements, includingstrong governance, PKI securityscheme, BIC identify framework andliquidity standards expertise, withthe goal to deliver a distinctive DLTPoC platform for the benefit of itscommunity.24SWIFT gpiWhilst existing DLTs are not currently mature enoughfor cross-border payments, this technology, bolsteredby some additional features from SWIFT, may beinteresting for the associated account reconciliation.This PoC gives us the opportunity to test DLT anddetermine if it can be applied to this particular usecase.Wim RaymaekersHead of Banking Market and SWIFT gpi, SWIFT25
SWIFT gpiWith Asia’s trade growthexpected to surpass the globalaverage, this faster and securecross-border payments servicewill definitely be a boon to ourcorporate customers. It will notonly better facilitate their cashmanagement needs, but alsosupport their overseas businessoperations and ventures, withinand beyond Asia.Mr Gregory TrotterHead of Cash Management, GlobalTransaction Banking, OCBC BankSWIFT gpi supports our goalof providing our clients withearlier access to funds, greatertransparency & predictability, andthe delivery of unaltered remittancedata that will enable better decisionmaking for all parties involved inthe bank chain. Essentially SWIFTgpi is helping the industry aligncross-border payments withthe requirements of our clients.Delivering these services in thecloud will allow the constructionof entirely new services which willchange the way banks conductinternational business on behalf oftheir clients.Tom HalpinGlobal Head of Payments Product Management,HSBC Global Liquidity and Cash ManagementSWIFT gpiWe are looking forward to theenhancements that this initiativewill bring to cross-borderpayments. The efficienciesrecognized from SWIFT gpi willprovide better transparency andan enhanced user experiencefor our clients.Emma LoftusHead of Global Payments and FX, J.P. MorganThis is a very significant bankwide initiative in the crossborder payments’ space. Itis not simply an exercise of‘moving with the times’, butrather pragmatic proof thatwe remain at the forefront ofpayments innovation to addressthe precise needs of our clients.Christian WesterhausHead of Product Management, InstitutionalCash, Deutsche BankJoin the world’s leading transaction banksMore banks are joiningSWIFT gpi every day.When are you joining?Sign up today via swiftforbanks@swift.comor check our www.swift.com/gpi for more information.2627
SWIFTgpiAbout SWIFTSWIFT is a global member-ownedcooperative and the world’s leadingprovider of secure financial messagingservices. As a global member-ownedcooperative and the world’s leadingprovider of secure financial messagingservices, SWIFT enables morethan 11,000 banking and securitiesorganisations, market infrastructuresand corporate customers in morethan 200 countries and territories tocommunicate securely and exchangestandardised financial messages in areliable way. As their trusted provider,we facilitate global and local financialflows, relentlessly pursue operationalexcellence, and continually seekways to lower costs, reduce risks andeliminate operational inefficiencies.We also bring the financial communitytogether to work collaborativelyto shape market practice, definestandards and debate issues of mutualinterest.For more information,visit www.swift.com or follow uson Twitter: @swiftcommunityand LinkedIn: SWIFTAbout SWIFT global paymentinnovation (gpi)SWIFT global payments innovation (gpi)aims to dramatically improve customerexperience in cross-border payments.SWIFT gpi services will operate on thebasis of ‘business rules’ captured inmultilateral service level agreements(SLAs) between participating banks.In its first phase, launched in February2017, SWIFT gpi delivers a newstandard in cross-border paymentsby increasing their speed, providingtransparency over fees and enablingend-to-end tracking. The second phasewill see the digital transformation ofcross-border payments with additionalservices such as a rich payment datatransfer, an instant stop and recallpayment service and an internationalpayment assistant. For its third phaseSWIFT gpi is already exploring thepotential use of new technologies, suchas distributed ledger technology, in thecross-border payments process.For more information about the initiative,please visit www.swift.com/gpi ordownload the SWIFT gpi iPad app.Copyright SWIFT 201757252 - January 2017Copyright SWIFT SCRL, 2017 —all rights reserved.
39. Ecobank 40. E.Sun Commercial Bank 41. Erste Group Bank 42. Fifth Third Bank 43. FirstRand Bank 44. Handelsbanken 45. Helaba Landesbank Hessen-Thüringen 46. HSBC Bank 47. ICICI Bank 48. IndusInd Bank 49. Industrial and Commercial Bank of China* 50. ING Bank* 51. Intesa Sanpaolo* 52. Intl. FCStone 53. Investec 54. Itaù Unibanco 55. JPMorgan .
