SWIFT for Corporates: A Recipe for Success
The following article will review the key ingredients that
comprise the SWIFT for Corporates portfolio and value proposition. The portfolio
has grown based on market changes and industry demand for increased automation
to mitigate risk and provide efficiencies across domestic and global treasury
The SWIFT for Corporates recipe includes four key
ingredients: secure financial connectivity, trouble-free payments and single
euro payments area (SEPA compliance), identity and mandate management and
certainty and efficiency in supply chain management.
The introduction of Alliance Lite2 for cloud-based
connectivity has made it much easier for corporates to securely connect to
SWIFT. With this service, SWIFT configures, manages and supports the
connectivity. It offers corporates the opportunity to get everything they need
in one package including training, implementation and the initial bank
on-boarding. With SWIFT’s introduction of Alliance Lite2, cloud-based
connectivity has become the preferred option for corporates. The cloud based
option rounds out the portfolio of connectivity, which now has installed and
cloud-based choices for corporates to work with directly with SWIFT.
Trouble-free payments and SEPA compliance:
Efficiency and accuracy are
key for companies with high volumes of commercial and treasury payments. If
client/supplier account details and payments messages contain inaccurate
information, this disrupts straight-through processing (STP), resulting in
delays and investigations. The introduction of new payment types, such as SEPA
payments, adds to the complexity for corporations and underlines the need for
accurate, comprehensive and easily sourced payments reference data.
those needing to comply with SEPA, the February 1, 2014 migration deadline is
quickly approaching. One of the challenges on the migration path to SEPA lies in
obtaining and managing compliant master data records across the 27 SEPA
countries. Mass migration of banking coordinates from legacy/domestic formats
towards ISO international bank account numbers (IBANs) and bank identifier codes
(BIC) requires ISO expertise. SWIFT offers the basic ingredients for your
payment reference data requirements and SEPA compliance.
ingredient when implementing SWIFT standards is standards creation and
maintenance. SWIFT’s MyStandards collaborative web-based tool facilitates
onboarding and implementation by offering one single portal for bank
specifications. The platform simplifies the creation, maintenance and
communication of standards-related information from banks to their corporate
Identity and mandate management:
Today’s market landscape,
requires corporates to have the security in place that identifies a company and
also who is instructing, reviewing and approving transactions within the company
and then communicating with banking partners. It is important to have high
quality ingredients and right mix for security at the company and individual
With 3Skey, SWIFT’s multi-bank personal digital identity solution,
corporates can use one security token that can be used across all channels
rather than having to maintain separate processes and tokens for each bank. The
tokens can be assigned to a user for authentication logging into an application
and for mandate management for example to instruct transactions as well as
Certainty and efficiency in the supply chain:
market evolution also highlights the need to look beyond the trade finance
inefficiencies and to develop solutions that encompass the entire financial
supply chain. By adopting a collaborative approach similar to the optimisation
of the physical supply chain, corporates are implementing end-to-end financial
supply chain (FSC) strategies through win-win business models that address the
needs of all the players, from upstream suppliers to downstream customers.
The Bank Payment Obligation (BPO) offers an alternative instrument in support
of trade settlement using ISO 20022 data structures and automated matching.
SWIFT’s trade and supply chain portfolio offers corporates following multi-bank
standards as well as messaging and matching solutions.
Large or small,
global or domestic, SWIFT offers a variety of solutions for the changing
requirements of today’s growing corporate. When planning a project, corporate
treasurers and their colleagues should remember to consider all the necessary
ingredients to ensure they get what they have set out to accomplish.
as in cooking, you need to know what you want to make to select the right recipe
and ingredients. Speak to corporates that have implemented SWIFT, consult your
banks, technology firms and contact SWIFT to ensure you have considered the
perfect ingredients for success in your SWIFT for Corporates.