International Banking Current Affairs
The SWIFT (Society for World Interbank Financial Telecommunication System) platform has expanded its GPI (Global Payment Innovation) Tracker system to help banks track their global transactions at all times and keep full vigil on payments activity.
From November 2018, GPI Tracker system i.e. unique end-to-end transaction reference will be included in all payment instructions carried between all 11,000 customers on SWIFT at all times, across more than 200 countries and territories. The expansion of GPI Tracker will cover all payment instructions sent across the network and give them full visibility over all their payments activity. It will significantly extend transparency and drive more banks to join service to make GPI the new normal in cross-border payments
SWFIT GPI was launched in May 2017 to help banks to track their global transactions at all times, keeping full vigil on payments activity. It covers all payment instructions sent across network, enabling GPI banks to track all their SWIFT payment instructions at all times, and giving them full visibility over all their payments activity. It accounts for 10% of cross border payment traffic on SWIFT network and has enabled more than hundred billion dollars to be transferred across world rapidly and securely every day.
- It improves customer experience by increasing speed, transparency and automatically provides status updates to all GPI banks involved in any GPI payment chain. It allows banks to confirm when payment has been completed.
- It facilitates more accurate reconciliation of payments and invoices, optimises liquidity with improved cash forecasts and reduces exposure to Foreign exchange risk, with same-day processing of funds in beneficiaries’ time zones.
SWIFT (Society for World Interbank Financial Telecommunication System) platform
SWIFT is global financial messaging service that enables financial institutions worldwide to send and receive information about financial transactions in secure, standardized and reliable environment. It is used to transmit messages relating to cross border financial transactions.
It was founded in 1973 and is headquartered in La Hulpe, Belgium. It is a cooperative society under Belgian law owned by its member financial institutions with offices around the world. Globally over 11,000 financial institutions in more than 200 countries use services of SWIFT.
SWIFT does not facilitate funds transfer, rather, it sends payment orders, that must be settled by correspondent accounts that institutions have with each other. On receiving this message through SWIFT, banks abroad, mostly branches of domestic banks abroad provide funds to the company.