About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

SWIFT Launches SSI Initiatives to Reduce Settlement Errors and Increase Automation

Subscribe to our newsletter

SWIFT, the financial messaging provider for more than 9,500 financial institutions and corporations in 209 countries, today announced the roll-out of a range of new initiatives designed to reduce costly settlement errors and improve the rates of automation of Standing Settlement Instructions (SSIs).

SWIFT’s initiatives are a response to the industry need for greater efficiency in SSI processing. SSIs are agreements between two financial institutions that fix the receiving agents of each counterparty. They make for speedy payment and settlement, but SSIs are frequently changed, which results in settlement errors and payment rejections. Research jointly conducted by SWIFT and 12 of its customer banks suggests there are currently about 40 million such payment errors every year, costing the financial industry an estimated USD700 million.

SWIFT has therefore launched a global SSI repository, designed to be the most accurate such resource available to the financial industry. The multiple sources and sophisticated selection strategies used will ensure that an institution’s SSIs are complete, accurate and able to be replicated with ease. An SSI directory for retail payments based on the repository will be updated and published on a monthly basis. At a later stage, SWIFT will also launch an SSI directory for treasury in the FX and money markets sectors.

The second initiative is the creation of a standard messaging format for distribution of cash SSI updates, available from November this year. The message format will be structured, validated and authenticated, and allow senders to either specify a list of recipients for the notification, or to inform the broader SWIFT community.

Third, SWIFT now offers a diagnostics service that informs customers when counterparty SSIs held in their payment applications are incorrect and details corrective measures. The service, which was unveiled at Sibos in October 2010, validates a customer’s current list of counterparty SSIs against multiple information sources to provide a reliable picture of their accuracy.

Commenting on the raft of SSI initiatives, Patrik Neutjens, Head of Reference Data at SWIFT, said: “The lack of a single source for SSI information has led to payment failures, costing banks considerable time and money. In the age of automation and real-time reporting, it is crucial that this situation improves.”

“These three initiatives will provide a comprehensive solution to some of the problems with changing SSIs. SWIFT’s efforts will drastically improve the situation, culminating in a standard message format to allow banks and other financial institutions to efficiently update each other on changes to their SSI arrangements. This message format will ensure that only relevant parties are informed of the changes and prevent financial institutions being overwhelmed with irrelevant updates.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practice approaches to integrating legacy data with the cloud

Acceleration of cloud adoption, increasing demand for digital transformation and real-time data management have led financial institutions to rethink their data infrastructure to enable more agile operating models that can respond faster to change and make data a competitive advantage. For many, integrating data from legacy systems and data across the business landscape with a...

BLOG

A-Team Group Data Management Summit London – Don’t Miss It!

With A-Team Group’s Data Management Summit London just two weeks away on 14 March 2024 at Hilton Canary Wharf, here is a taster of some of the keynotes, panels and practitioner journeys that will be presented by leaders and innovators in the data management field. The overall theme of the day is the evolution of...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...