SWIFT expects to deliver a 57 percent price reduction on its messaging services by the end of 2015.
The reduction beats projections set out in 2010, when SWIFT said it wanted to achieve a 50 percent cut by this year.
In 2010, SWIFT's strategy called for a 30 to 50 percent price reduction between 2010 and 2015, a goal it achieved in 2014.
By the end of 2015, the total price reduction over the five-year period is expected to reach 57 percent.
“This is a reflection of SWIFT's commitment to the banking community,” said SWIFT chairman Yawar Shah. “The cooperative reached its price reduction commitment at the end of 2014, one year ahead of schedule, but maintained the programme, yielding a much higher reduction rate than expected. I congratulate SWIFT for this effort and look forward to the additional price cuts the community will reap over the next five years.”
The new strategic five year plan, SWIFT2020, challenges SWIFT to continue investing in the security, reliability and growth of its core messaging platform, while making additional investments in existing services and delivering new and innovative solutions.
An additional part of this plan is the new long-term, structural price reduction programme that will be put in place in January 2016. This is the fourth strategic pricing plan SWIFT has introduced to the community in the last 15 years.
The new plan calls for a 30 to 45 percent price reduction by the end of December 2020, taking into account the necessary investments to grow the business.
Francis Vanbever, CFO at SWIFT, added: “Strong traffic growth, rigorous cost controls and innovative pricing schemes have allowed us to overachieve on the pricing pledge we set back in 2010, enabling us to pass on significant savings to our customers.”
“Depending on market conditions, we are committed to a new price challenge of lowering prices between 30 percent and 45 percent by 2020, whilst also addressing our non-messaging services and products with innovative and targeted price actions. We are confident that these price reduction targets can be met without compromising the aggressive investment plan outlined in our 2020 strategy.”
