How Do You Drive Full Value from SWIFT gpi?
As part of SWIFT and ACI Worldwide’s joint mission to accelerate adoption of SWIFT gpi, ACI’s SWIFT gpi global marketing lead Zhenya Winter spoke with Daniel Lynch, Data Analytics and Payments Innovation Lead at SWIFT, and ACI’s Global Head of Real-Time Payments, Craig Ramsey, about some of the key questions raised by attendees of our second Global Webinar: Drive Full Value from SWIFT gpi. The relevancy of these was reinforced at Sibos 2019, the SWIFT community’s annual conference, which recently took place in London.
Zhenya Winter: By November 2020, when it becomes mandatory to respond to a SWIFT gpi message, what do you think the expected market penetration of gpi will be?
Daniel Lynch: GPI tracking is already universal as of last year. As end beneficiaries’ confirmations are wrapped into SWIFT’s 2020 standards release, we're quite confident that through a combination of banks fully joining gpi, and those that begin providing confirmations as part of the Universal Confirmations standards, we can reach 100 percent of SWIFT's cross-border customer credit transfers. We had a lively debate on the benefits of confirmations at SIBOS last month, where the panel was unanimous that this will improve cross-border transfers significantly, and that true payment confirmations are a necessity as part of a customer-centric payments evolution.
ZW: What are the benefits of the SWIFT gpi API tracker?
DL: In terms of benefits, there are a few levels. The first is that by ensuring all payments receive an update into the tracker, banks will be able to share this data with their customers, providing better confirmation and reconciliation capabilities. This in turn improves the customer experience. It also means that there will be more customer self-service of tracking of payments, and that will reduce the work for the banks’ customer service teams, while also improving the customer experience.
ZW: So, does the bank just need to connect to the data tracker database?
Craig Ramsey: No, because the data that the customer wants is more than just the tracker database. To provide a truly enhanced customer experience, the bank will want to merge the tracking database data with other data held solely in the bank. By augmenting the data from the SWIFT tracker with the bank data, the bank can provide a full end-to-end view of the whole transaction with the bank.
ACI has worked with SWIFT to understand where the data tracker stops, and where ACI can help the banks to bring a holistic view to customers.
Not only does this improve customer experience, but according to SWIFT, it eliminates manual intervention and reduces customer investigations by 50 percent, saving on the cost of resources (“SWIFT Global Payments Innovation,” SWIFT, August 2018).
ZW: How can SWIFT gpi help businesses improve their profits?
DL: With gpi, there is the opportunity to build new services, not just with the data coming out of the tracker, but with what businesses can do with that data once they've combined it with the more granular things they know about their customers: liquidity management, hedging, possibly even supply chain management. In addition to building richer services for wholesale payments, there is also the opportunity to recapture lost retail flows with more immediate and transparent payments.
CR: SWIFT gpi isn't a solution designed primarily to generate new revenue streams; it is about supplying a solution with added transparency that enables banks and financial institutions to retain and onboard new corporates that are looking for a “best-in-class” cross-border solution and optimum customer service. However, this ability to enable customers to self-serve reduces investigations and this is supported by one international bank claiming that they were able to save on the cost of three full-time employees; improved remittance data increased the success of payments completion (to the beneficiary) and removed the burden to re-send payments back to the originator.
To find out more about SWIFT gpi Universal Confirmations, register today to join ACI and SWIFT for our joint webinar: SWIFT gpi - Preparing for 2020 and Beyond, on November 5, 10am ET/ 3pm BT.
Related Blog Posts
Deep Dive: Latin American Fintech Market (Part 2)
To support fintechs’ development and create a more inclusive financial system, governments across the Latin American region should adopt different regulations. Some good practices implemented in other countries, like the U.K. or Singapore, could also be adopted in Latin America, such as temporary exemptions on fintech authorizations on behalf of regulating entities, or the creation of temporary regulation sandboxes in which fintechs can operate, evaluate their business models and offer their innovative products in supervised environments.
Deep Dive: Latin American Fintech Market (Part 1)
There is a gap between what financial institutions currently offer versus what today´s customers want in Latin America, and this is where fintechs are earning a reputation for customer-centricity, personalization, quick response and seamless delivery. The relationship between fintechs and traditional financial institutions in Latin America has evolved from competition to collaboration, with the aim of efficiently working together and effectively scaling innovation, while also driving financial inclusion for the underbanked.
From API to AI to I: Banking Tech Gets Personal
Tired feet. Running out of business cards. Countless LinkedIn connections – sound familiar? This time of the year is conference season; the annual SIBOS (SWIFT) and Money20/20 USA gatherings spanning the autumn give attendees plenty of hot topics and talking points. My American colleagues refer to this season as “the fall.” I trust this to be an observation on leaves and fruit rather than a sequitur on the state of the fintech industry. Either way, it’s a good time to harvest, to take stock and to work out what we should be doing with the apparent abundance of innovative produce.
How to Maximize the Value of Partnerships Between Fintechs and FIs
The LATAM Open Banking & Fintech Partnership, organized by Connect Global Group, was held earlier this year in Mexico City, and ACI participated as one of the forum partners driving discussions on how to maximize value from collaborative partnerships between FIs and Fintechs. We explored the invaluable benefits of open API and strategies to differentiate the offerings of FIs and Fintechs, address consumer demands, and best practices for implementation aligned to regulatory requirements.
A Deep Dive into the Payment Tendencies in the Mexican Market (Part 2)
While the sheer volume and age of potential shoppers makes México an attractive market, there is another component to the viability of eCommerce: México is mobile. A recent study performed by the Asociación de Internet.mx, shows that México is one of 22 countries leading the trend toward mobile commerce, with young adults making 88 percent of smartphone purchases. The country has one of the largest mobile markets in Latin America, with one-third of all residents using smartphones.
A Deep Dive into the Payment Tendencies in the Mexican Market (Part 1)
The population of México is the second largest in Latin America, with 122 million residents, 39 percent of whom are considered middle-class. The population is relatively young, with an average age of just 27, and one-third estimated to be millennials, which is often a factor in driving the popularity of eCommerce. Last year, 56 million people accessed the internet in México, though despite the high number of internet and mobile phone users in the country, nearly two-thirds of the population do not have bank accounts (source: Banco de Mexico).
How to be a Payments Trailblazer – The Seven Habits of Highly Innovative Organizations
The new Culture of Innovation Index from Ovum and ACI identified segments—from banks to intermediaries to merchants to corporates—at the cutting edge (of innovation) across the payments ecosystem. But what is most notable about those segments that have reached ‘trailblazing’ status is the apparent lack of commonality between them. No one segment, nor one region fosters better innovation. In fact, what’s driving these segments/organizations to be best of breed is their own culture of excellence. The only thing they have in common is their attitude.
Customer Innovation: Erste Bank [Q&A]
The global banking sector is becoming both more strategically focused and technologically advanced, responding to rising consumer expectations while trying to defend market share against an increasing array of competitors. A great deal of emphasis is being placed on digitizing core business processes, and reassessing organizational structures and internal talent to be better prepared for the future of banking.
Regulating for Real-Time: The Role of Government in Payments Modernization
Dr. Leo Lipis and Craig Ramsey, Head of Real-Time Payments for ACI Worldwide, continue their discussion on real-time payments and the findings of the new white paper, Get More from Real-Time.
Issuing and Acquiring in a Real-Time and Open Payments Ecosystem – The Global Picture
Dr Leo Lipis and Craig Ramsey, Head of Real-Time Payments for ACI Worldwide, continue their discussion on real-time payments, stemming from the findings of the new white paper, Get More from Real-Time. See part one.