Search
Close this search box.

We are creating some awesome events for you. Kindly bear with us.

SWIFT welcomes 27 Chinese banks to join its global payments innovation initiative

SWIFT welcomes 27 Chinese banks to join its global payments innovation initiative

Earlier
this month
, the Society for Worldwide Interbank
Financial Telecommunication (SWIFT) announced that 10 Chinese banks that have
gone live on its global
payments innovation initiative (gpi)
 since its launch in 2017, while 17 other Chinese banks are in the process of going live.

“By affirming their commitment to come onboard SWIFT gpi,
the 27 Chinese banks that have signed up so far are sending a strong message to
the rest of the world. The seamless connectivity, optimised financial products
and services, and presence of ongoing community engagement and standards
afforded by SWIFT and its gpi platform, are crucial in facilitating business
between China and the rest of the world, and in doing so, set a new precedent
for cross-border payments globally,” said Alain Raes, Chief Executive of EMEA and APAC, SWIFT.

The 10 Chinese banks which joined the initiative are: Bank of
China, Industrial and Commercial Bank of China, Bank of Communications, China
Minsheng Bank, China Guangfa Bank, China Construction Bank, Bank of Jiangsu,
Shanghai Pudong Development Bank, China Citic Bank, and China Zheshang Bank.

SWIFT is a
global member-owned cooperative, headquartered in Belgium. Its messaging platform,
products and services connect more than 11,000 banking and securities
organisations, market infrastructures and corporate customers in over 200
countries and territories. Its network which enables financial institutions
around the world to securely transmit and receive standardised messages on
financial transactions and hence, make cross-border payments.  

In a recent
feature interview
, OpenGov learned that gpi provides an agreed
common set of service outcomes, in terms of same day payments, end-to-end
tracking, transparency and information. Banks can then layer their own
innovations on top of this underlying service.

17 other Chinese banks have committed to SWIFT gpi in
China and are in the process of going live. Together, these banks represent an
estimated 86% of cross-border payment traffic conducted by Chinese banks in
mainland China. In addition, a number of foreign banks with mainland presence
are already on the SWIFT gpi network.

China’s Belt and Road Initiative (BRI) currently covers over
60 countries and represents a third of the world’s trade. However, the
discrepancy in standards and regulation across the BRI introduces a number of
challenges, such as the absence of a unified communications framework and
compliance issues. Thus, strengthening financial connectivity on the BRI routes
is vital in ensuring its success in driving trade and stimulating economic
growth across Asia.

SWIFT gpi is seen as a key player in China’s Belt and Road
Initiative (BRI) since it is designed to improve the customer experience in
correspondent banking by increasing the speed, transparency and predictability
of cross-border payments.

The service offers Chinese banks faster transactions, and
also improves the overall banking experience by creating predictable settlement
times, transparent bank fees and FX rates, and clear statuses. This is turn leads
to shorter supply cycles and faster shipping of goods on the customer end.

“The financial industry has an important role to play in
realising the full potential of the Belt and Road Initiative, from building and
maintaining effective infrastructures and processes to support capital flows;
to working towards common standards and mitigating risks. At SWIFT, we are
committed to working with Chinese banks to help shape the future of
correspondent banking in China and beyond,” added Mr Raes.

As a next phase, SWIFT has created a work group comprised of
banks from China, Australia, Singapore and Thailand to explore if these
payments can be further sped up. The work group will define a set of business
rules to look into how business process frictions can be overcome to facilitate
faster or close to real-time payments. The working group will also identify
domestic real-time payment systems that will carry the gpi information and
unique end-to-end transaction references (UETRs), to allow the reach of the gpi
service to extend into domestic payment system environments.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.