SWIFT gpi for corporates launched

Service allows corporates to track all their payments in real time.

By Heather McKenzie

Following a pilot with 22 corporates and banks, Swift gpi for corporates has gone live. Pilot organisations included Airbus, Booking.com, General Electric, Bank of America Merrill Lynch, BNP Paribas, Citi, Deutsche Bank, JP Morgan, Societe Generale and Standard Chartered Bank.

Swift gpi for corporates is designed to offer multi-banked corporates a single centralised and standardised view across all their banking partners. The service allows corporates to track all their payments in real-time. More than 50 large corporates, including LVMH, Microsoft and Petronas have signed up to the service.

The service enables banks to give their corporate clients visibility, transparency and control of their entire payment flows and provides them with full transparency over fees and FX so that they can identify the most efficient ways to send their payments around the world. Corporates no longer have to adapt systems to the proprietary needs of each institution with which they bank.

In developing the service, Swift worked with banks, corporates and treasury software providers including Bellin, FIS, Kyriba and SAP, all of which have integrated SWIFT gpi for corporates into their applications.

Olivier Valanchauskas, head of Airbus treasury platforms, said: “An increasing number of banks are offering gpi tracking through their individual portals which works well for companies that only work with one bank, but not so much for a multinational business dealing with multiple banks. Swift gpi for corporates solves this by creating a centralised view of multi-bank information, enabling us to track our payments all in one place.”

Peter Kim, senior manager, treasury technology at Google, added: “Prior to gpi for corporates, Score members were required to implement gpi directly with each bank, which limited the value of having direct Swift connectivity. With gpi for corporates, we will now be able to directly leverage our Swift infrastructure to receive the full benefits of gpi.”

Speaking to The Club earlier this year, Benoit Desserre, head of global transaction banking at Societe Generale said Swift gpi was fast becoming a ‘must have’ for international banks. “Without Swift gpi, international banks will have difficulties working with large corporates.”

In February 2018, a mix of 22 banks and corporates initiated a pilot to test the Swift gpi for corporates standard. It enables corporates to initiate and track gpi payments to and from multiple banks, directly from their ERP and treasury management systems. The standard delivers a fully integrated, single view on the status of their cross-border payments.

By October 2018, the majority of corporates and banks in the pilot had gone live on the standard, including Airbus, BBVA, Booking.com, Borealis, Citi, Deutsche Bank, General Electric, IATA, JP Morgan, LVMH Moët Hennessy Louis Vuitton, Microsoft, Ping An Group, Roche, Sumitomo Mitsui Banking Corporation, Societe Generale, Standard Chartered Bank and Swift Treasury. 

More than $40 trillion was transferred over Swift’s global payments innovation (gpi) system during 2018, Swift announced earlier this year. The share of cross-border messaging using gpi rose from 15% at the start of 2018 to 56% by the end of the year. More than 3500 banks, accounting for 85% of Swift’s total payments traffic have committed to adopting gpi.

Gpi carries more than $300 billion a day in 148 currencies across more than 1100 country corridors. On average, 40% of Swift gpi payments are credited to end beneficiaries within five minutes. Half are credited within 30 minutes; three quarters within six hours; and almost 100% within 24 hours.

In May, Swift announced that a group of banks will trial gpi cross-border payments in Europe using the Target Instant Payments Settlement (Tips) platform. The European Central Bank (ECB) and Swift launched the initiative to extend the reach of instant cross-border payments deeper into the European market by enabling gpi in the Tips system. Banks will carry the cross-border legs of the payments, which they will then settle through Tips, allowing instant crediting of accounts at ultimate beneficiary banks across Europe. Swift says the ability to process gpi cross-border payments instantly, even when the final legs of the payments have to be cleared on arrival within the destination country, is crucial to ensure ubiquitous availability of real-time cross-border payments 

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