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

A-Team Insight Blogs

SWIFT Looks to Fill “Payment Gap” Worth Billions of Euros, Caused by Poor Reference Data

Subscribe to our newsletter

SWIFT, the financial messaging provider for more than 9,700 financial institutions and corporations in 209 countries, today announced the launch of SWIFTRef, a family of products that aims to eliminate costly payment errors arising from bad data, and increase straight-through-processing (STP).

Thirty percent of non-STP payments are caused by bad reference data, and with manual intervention to correct the details of the payment costing between 20 and 40 Euros per incident, this problem amounts to millions of Euros potentially lost each day. The costs to the financial services industry could be worth billions of Euros globally each year, according to many expert estimates.

Currently, customers buy similar products from multiple suppliers because of the gaps in the market and differing levels of quality. SWIFT’s new suite of products will give users a one-stop shop which allows them to identify their payment counterparties with confidence, thanks to modernised directories offering comprehensive and quality data contained in flexible relational databases. This data will be available much faster via the cloud and web services technology. This will save financial institutions and corporations time and money they spend on data sourcing, cleansing and reconciliation.

SWIFTRef will help the cooperative widen its addressable market for reference data. The products are aimed at the 3,500 or so banks which process a significant amount of international payments and the many corporations that also comprise this market. SWIFTRef products will be sold directly by SWIFT’s sales teams and also through partners via the indirect sales channel.

Patrik Neutjens, Head of Reference Data at SWIFT said: “The issue of poor reference data is only getting worse because of the sheer increase in global payments being made. This is why only an industry-driven initiative and contribution can help the financial community. Our research shows that financial institutions are working hard to increase back-office efficiency to reduce costs. This requires tailor-made, integrated data that’s constantly updated. That’s where SWIFT can help.”

SWIFT publishes a number of directories that are valuable for transaction processing and routing which include:

  • National clearing and sort codes
  • SSI
  • SEPA adherence and SEPA routing information, IBAN linkage
  • Cross-referencing with LEI  (when LEI becomes available)
  • Country information (ratings, cut-off times, hierarchies, etc.)
  • Payments systems information
  • Websites, contacts, switchboards
  • Broadcast messages (MT094)

For files and feeds, annual prices start at 4,000 Euros for one product or 22,000 for the comprehensive suite of databases; and rise according to payment traffic within a particular organisation. Annual prices for online use start at 1,000 Euros per user. The products will be available from January 2012.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: FRTB: What still needs to be done before the global deadline of January 2023?

While implementation of Fundamental Review of the Trading Book (FRTB) regulation has been delayed twice for reasons first of complexity and second of the coronavirus pandemic, the final deadline of January 1, 2023 is less than a year away. For banks in scope of the regulation, the time to put necessary risk infrastructure and data...

BLOG

Liontrust Implements Fundipedia Platform to Gain Golden Source Data

Liontrust Asset Management has implemented Fundipedia’s data management platform to provide golden source, validated, and trustworthy data for both the company and its downstream data vendors. The project was delivered by Fundipedia’s implementation team, which onboarded Liontrust’s data in less than 12 weeks. Vinay Abrol, chief financial officer and chief operating officer at Liontrust, says:...

EVENT

TradingTech Summit Virtual (Redirected)

Trading Tech Summit (TTS) Virtual will look at how trading technology operations can capitalise on recent disruption and leverage technology to find efficiencies in the new normal environment. The crisis has highlighted that the future is digital and cloud based, and the ability to innovate faster and at scale has become critical. As we move into recovery and ‘business as usual’, what changes and technology innovations should the industry adopt to simplify operations and to support speed, agility and flexibility in trading operations.

GUIDE

ESG Data Handbook 2022

The ESG landscape is changing faster than anyone could have imagined even five years ago. With tens of trillions of dollars expected to have been committed to sustainable assets by the end of the decade, it’s never been more important for financial institutions of all sizes to stay abreast of changes in the ESG data...