News by sections
ESG

News by region
Issue archives
Archive section
Multimedia
Videos
Search site
Features
Interviews
Country profiles
Generic business image for news article Image: AdobeStock/Denis

31 August 2022
Belgium
Reporter Bob Currie

Share this article





SWIFT applies predictive analytics to reduce processing errors in cross-border transactions

SWIFT has announced a service that applies predictive analytics to cross-border payments data to pre-empt potential errors before a payment is executed.

This solution analyses previous payments transactions conducted over the SWIFT network, on an aggregated and anonymised basis, to identify potential errors in payee details and other trade information that may cause the payment to fail or be processed incorrectly.

It is an extension of SWIFT’s Payment Pre-validation services and is available to banks via application programming interface, or API.

SWIFT indicates that this forms part of a wider programme to drive instant, frictionless and interoperable cross-border payments. This will also include steps to include low-value payments through SWIFT Go and wider partnerships with industry firms to support use of tokenisation, artificial intelligence and central bank digital currencies.

Commenting on the development, SWIFT’s chief innovation officer Thomas Zschach says: “When someone wants to make an international payment, we can instantly predict the likelihood of success based on whether the account has been credited successfully in the past, and then present this information directly to the customer so that they can fix any errors or typos before the payment even starts its processing.

Vijay Luila, director for payments products at HSBC, adds: “HSBC is an early adopter of SWIFT’s Payment Pre-validation service and sees it as an important step in removing friction from cross-border payments by providing the capability to detect and prevent any issues before a transaction is completed.

“This provides our customers with a solution that helps to minimise the risk of payments delays, meaning they can operate more efficiently and at pace.”

Rajesh Vedantham, head of cross-border payments products at Standard Chartered Bank, says: “At Standard Chartered, we aim to eliminate payment friction with upfront account verification, as well as continuously increasing end-to-end efficiencies while minimising fraud risks.

SWIFT’s new service will play a vital role in enhancing transactional data quality across the payments ecosystem, allowing our clients to experience real benefits with a more seamless payment experience overall.”

Advertisement
Get in touch
News
More sections
Black Knight Media