Cross-Border Payment Issues are Predicted by a New SWIFT Tool

Cross-Border Payment Issues are Predicted by a New SWIFT Tool ...

SWIFT, a financial messaging company, is introducing a new predictive data intelligence capability that allows you to spot potential problems with cross-border payments before payments.

According to a press release sent to List23 on Wednesday (Aug. 31), the new capability is part of SWIFT's effort to reduce friction while advancing real-time international payments.

The new feature provides an overview of SWIFT's payment history that has been successfully credited in the past. This is the most common reason for holdups in cross-border transactions.

According to the release, SWIFT's tool facilitates centralized verification by aggregating and anonymizing data from 9 billion transaction messages between four billion accounts each year. The tool provides real-time assurance that funds will flow smoothly, even if the financial institutions or parties never conversed with one another.

"Think of it as the ultimate payment pre-check," said SWIFT Chief Innovation Officer Thomas Zschach. "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 relay this information directly to the customer so that they may correct any errors or typos before the payment even begins processing."

Read more: SWIFT will evaluate CBDC's ability to facilitate cross-border payments.

SWIFT is also developing its low-value payment capabilities via SWIFT Go, and is collaborating with others in the field to investigate possible uses for central bank digital currencies (CBDCs), tokenization, and artificial intelligence (AI).

"SWIFT's Payment Pre-validation service has enabled us to identify problems with account information before a payment is processed. Building on this service will enable us to better serve our customers, rather than dealing with automation interruptions," said Arturo Rivera Fermoso, the director general adjunto of tecnologa at Banca Mifel.

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