SWIFT Begins Payment Message Error Detection Service

September 21, 2018
SWIFT Begins Payment Message Error Detection Service

A pre-validation service that will allow customers to detect and resolve errors that delay payment messages before they are dispatched and enable banks to give upfront fee transparency to their end customers has been launched by SWIFT.

A statement issued by the South African firm disclosed that more than 50 percent of SWIFT gpi payments are credited to the beneficiary in less than 30 minutes and many arrive in just a few seconds.

A significant part of the remaining messages are delayed due to errors in the payment data such as incorrect or missing beneficiary information, and insufficient regulatory data.

Using secure APIs, predictive analysis and AI, the new gpi capability will pre-validate messages, identifying and flagging potential issues ahead of time, thereby reducing delays, rejections and the return of incorrect payment messages.

Customers will be given greater assurance and a hassle-free experience from start to finish with the payment originator verifying with the beneficiary bank, ahead of time, that the beneficiary account will be able to receive the funds.

Initial discussions have begun with a range of banks to deliver the pre-validation service which will also provide up front transparency on fees, based on the exact routing of the payment message. This will give payment originators and beneficiaries complete transparency and predictability on costs, routes and expected delivery of their funds.

Announcing the concept, SWIFT CEO, Gottfried Leibbrandt, said: “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.”

Harry Newman, Head of Banking at SWIFT, said: “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.”

Denis Kruger, Head of Sub-Sahara Africa at SWIFT, said: “SWIFT gpi is helping African banks become more competitive by dramatically improving customer experience through speed, transparency and end-to-end tracking of cross-border payments. By eradicating delays due to errors in payment data, SWIFT gpi will enable African corporates to achieve further efficiencies in their supply chains by offering complete transparency when it comes to fees and expected delivery of funds.”

To date, over 220 financial institutions around the world are signed up to SWIFT gpi, with over USD 100 billion in SWIFT gpi payments being sent daily across 600+ international payment corridors – representing over a third of all SWIFT payments.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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