How consumers benefit from the SWIFT system?
Financial institutions across the borders were able to offer secure money transfer services from integrating the Society for Worldwide Interbank Financial Telecommunication commonly known as the “SWIFT” messaging system. Consumers, on the other hand, also benefit from the technology offered by SWIFT.
Consumers benefit from SWIFT’s technology
SWIFT continues to innovate their system to stay relevant in the financial industry as some financial institutions have started to adopt the blockchain technology. Although SWIFT is not considering to integrate the blockchain technology anytime soon, they’ve launched the Global Payments Innovation (GPI) in 2017 that promises payment efficiency. Financial institutions that have integrated SWIFT system were able to offer the following benefits to their consumers:
- Lower money transfer rate
- Beneficiaries receive payments in just a few seconds.
- Allow consumers to track the location of their payments in real-time
- Notification that the beneficiary has received the payment
- Sending money is more secure
SWIFT’s GPI is increasingly growing fast and the cooperative expects that 10,000 banks across their network will adopt the technology. GPI Global and Banking Market Head, Wim Raymaekers said that all payments across the SWIFT network are secure whether banking institutions have integrated GPI or not.
Global money transfers in 2017 were expected to increase by 3.3 percent according to an article of the World Bank. In East Asia and the Pacific region alone, money transfers have increased by 2.5 percent or U.S. $129 billion.
Although traditional banking institutions were able to offer secure and efficient money transfer services through SWIFT integration, it’s only available for people who have an account. However, there are versatile e-wallet solutions nowadays that unbanked people can use to transfer funds to any SWIFT-connected bank account in the world.