Banking

SWIFT Announces Pre-Validation Service For SWIFT gpi Payments

SWIFT is gearing up to roll out a pre-validation service that will enable customers to pinpoint and resolve errors that delay payment messages before they are sent.

In a press release, SWIFT said the new service will also enable banks to give customers upfront fee pricing.  According to SWIFT, more than 50 percent of SWIFT gpi payments are credited to the beneficiary in under thirty minutes, with many of the payments coming in a few seconds. But a “significant part” of the remaining messages are delayed because of errors in the payment data including incorrect or missing beneficiary information and insufficient regulatory data, SWIFT said in the press release. The new gpi service, which relies on secure APIs, predictive analysis and artificial intelligence, will pre-validate and flag potential issues — reducing delays, rejections and return of incorrect payment messages — which in turn will give customers more of a hassle-free experience, SWIFT said in the release.

“Within the fast-growing gpi community, there is strong demand for further transparency and the ability to address issues before payments are made so that they are as predictable and as efficient as possible. This exciting new feature will help address those needs and provide our customers with peace of mind when they send their payment messages,” said Gottfried Leibbrandt, SWIFT chief executive, in the press release.

SWIFT noted that it started initial stage talks with several banks to provide the pre-validation services, which also provide upfront pricing based on the exact routing of the payment message. SWIFT said this will give the payment originators and those receiving the money more predictability on costs, routes and when the funds will be delivered. “While currency controls and regulatory approval processes will always cause some delays in the payment process, many payment flows can be sped up by ensuring the correct information is provided upfront — invalid beneficiary information is the first cause of returned or rejected payments. Eliminating these detectable and preventable errors and omissions will make international payments much more efficient,” said Harry Newman, head of banking at SWIFT, in the press release.

 

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