Swift published new data which reveals continued progress towards meeting the G20’s goal for the speed of cross-border payments, reporting that 90% of cross-border payments made over the Swift network reach the destination bank within an hour. Swift’s data shows that the speed of processing transactions to all but two of the top 40 countries on its network – by volume of payments received – continues to be above the G20’s target of one-hour end-to-end processing for 75% of international payments by 2027, while international payments to six regions are settling in the customer’s account more quickly than they were a year ago.
But Swift’s latest data reiterates the need for the industry and regulators to address factors that cause delays between the point when funds arrive at the beneficiary bank and when they’re credited to the end customer’s account. Currently there is wide variation between processing speeds at the domestic stage of a transaction among the same 40 countries, with 43% of all cross-border payments over Swift reaching the end customer’s account within an hour.
High-speed processing countries that are already meeting the G20’s targets have developed real-time systems, with these banks operating 24/7 real-time back offices and with no significant currency or capital controls on incoming payments. Countries that are experiencing continued delays face a combination of issues, such as market infrastructure opening hours, regulatory requirements or local market practices, such as the need to check with the customer that a payment is expected, and to confirm the final amount.
The new figures demonstrate Swift’s continued progress in delivering against its strategy for powering end to end instant and frictionless transactions, focused on providing certainty and transparency to its community of over 11,500 financial institutions and an enhanced customer experience. At least three financial institutions in 92% of the world’s countries and territories send payments over the Swift network, demonstrating the cooperative’s commitment to interoperating the global financial system and ensuring access to cross-border payments. What’s more, 86% of all payments on the Swift network are conducted directly between two institutions, or with a single intermediary.
Swift’s data also shows that wholesale cross-border payments made over Swift to six regions are settling in customer accounts more quickly than they were a year ago – with 92% of payments to the Eurozone settling within an hour (+3%), 88% of payments to the Middle East (+1.8%) and 87% of payments to Africa (+1.5%).
Thierry Chilosi, Chief Business Officer at Swift, said: “We’re very encouraged by how the global financial industry has united behind meeting the G20’s targets for enhancing cross-border payments, demonstrating the crucial role international transactions play in facilitating economic growth. Significant improvements have been made in the areas of speed, access, transparency and predictability, through our suite of friction-removing tools and services such as Swift GPI and Payment Pre-validation. We’re committed to continuing to collaborate with our community to create a fast, trusted and secure end to end cross-border payments experience through standardisation efforts, including supporting the industry transition to the ISO 20022 global standard. But to really push on as a community and to achieve the G20’s goals, we all – the industry and global policymakers – need to focus our efforts firmly on the domestic beneficiary leg of transactions so that an enhanced experience can be enjoyed by every customer. Swift is committed to continuing to support these efforts.”
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