Following the achievement of its international payments initiative (gpi) for higher-worth, cross-border payments, economic messaging solutions provider SWIFT has decided to extend the very same rewards for low-worth retail payments, says Kiran Shetty, CEO and regional head, SWIFT India and South Asia. In an interview with Mithun Dasgupta, Shetty says for the duration of the merger of Andhra Bank and Corporation Bank into Union Bank of India, the firm worked on minimising the challenges and ensured a smooth transition of cross-border transactions of the 3 banks into the amalgamated entity. Excerpts:
The pace of digital adoption across channels/touch points has accelerated amid disruptions. How is SWIFT India partnering with banks to offer them its options?
Today, implementation of the digital banking ecosystem has been expedited due to remote functioning situations and on the web banking, necessitated by the pandemic. To assistance banks and organizations for the duration of these difficult instances, SWIFT has been delivering new efficiencies and removing friction from paper-heavy trade processes. By reusing current SWIFT rails, a group of banks has trialled an initiative that dematerialises trade documents and simplifies extremely manual and complicated letter of credit method, driving seamless connectivity for cross-border trade and bringing about enhanced buyer practical experience to their consumers.
What are the revolutionary solutions you have in payments options?
Fast, true-time, seamless, and transparent cross-border transactions are the will need of the hour. These needs are regularly driving the market to innovate and evolve its payment options. Recognising the will need of the economic neighborhood for a standardised platform that enables smooth and rapid cross-border transactions, SWIFT launched SWIFT international payments initiative (gpi) in 2017. SWIFT gpi has transformed cross-border transactions in more than 200 nation corridors by considerably enhancing the international payments method, thereby benefitting a lot more than four,000 bank and economic institution members.
Following the achievement of SWIFT gpi for higher-worth cross-border payments, we have decided to extend the very same rewards for low-worth retail payments to the international economic neighborhood. We are piloting a service, ‘gpi for low value payments’ to assist banks increase the practical experience of SMEs and buyers who want to make low-worth cross-border payments. Through SWIFT gpi, just about 92% of cross-border payments are credited to the beneficiary’s account inside 24 hours and 40% inside 30 minutes.
SWIFT India has been assisting Union Bank of India with its digital payment options for Indian as properly as cross-border trade and compliance across branches. During the pandemic, how has the bank been leveraging SWIFT’s options to supply solutions and increase buyer practical experience?
Union Bank of India (UBI) has been a member of SWIFT given that 1991 and our Indian entity has been partnering with the bank for more than 5 years now. UBI has deployed our cross-border payments and compliance options across its network, which spans more than 9,500 branches. During the merger of Andhra Bank and Corporation Bank into UBI, we worked on minimising the challenges and ensured a smooth transition of the cross-border transactions of the 3 banks into the amalgamated entity.
Besides Union Bank of India, which are the banks that have partnered with you and how are you assisting them?
In India, SWIFT India Domestic Services (SWIFT India) is a joint venture made by SWIFT SC (Society for Worldwide Interbank Financial Telecommunication), the international banking cooperative, in partnership with 11 Indian banks. Our member banks are: Axis Bank, Bank of Baroda, Bank of India, Canara Bank, HDFC Bank, ICICI Bank, Punjab National Bank, State Bank of India, Union Bank of India, Citibank and Standard Chartered Bank.
Besides strengthening safety of the economic neighborhood, via our options we hope to assist drive digitisation of trade finance processes.