Swift Launched A New Investigation Tool To Track Delayed International Payments
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Swift just launched a new case management service intended to be used for investigating payment defaults. According to its explanation, the tool could be used to save banks millions of dollars in operational costs and reduce the time needed to identify and resolve issues that might otherwise cause delays for international payments.
The member-owned co-operative stated that financial institutions spend massive amounts of money on labor-intensive processes to investigate payments that get held up. The amount can even exceed $1.6 billion per year, and instances when the payments are held up are relatively common.
It can happen regardless of the technology or network that is being used. Some of the largest global banks sometimes have to spend over $20 million per year in penalties and fees alone.
So, Swift’s Case Management solution emerged to standardize the investigation process. It uses ISO 20022 data and a unique end-to-end transaction reference standard that allows it to offer transparency and interoperability across different networks. Furthermore, it captures information centrally, meaning that it can eliminate the high number of manual touchpoints that are usually involved in investigations between the sender and receiver.
Swift’s Solution Will Save Massive Amounts of Time and Money
Commenting on the service’s potential, Swift said that it could cut the operational and liquidity costs across the industry, and reduce time to resolve cases by 80%. As for the costs, they could be cut by over $600 million a year.
Its global head of transaction management, Shirish Wadivkar, stated that inefficient investigation processes are the reason why the industry is so greatly impacted in terms of time and cost. Plus, it drastically affects the customer experience. However, Swift’s solution addresses the problem’s main pain point, which will help the community make gains in efficiency, time, and costs, providing an advanced experience that users expect.
PagoNxt Payments Hub’s CEO, Juan Olaizola, also commented, saying: “With faster resolution times and greater transparency into the status of investigations, we can significantly enhance our customers’ experience. In turn, a better and more efficient management of payment incidents will help reduce both our liquidity and operational costs. It’s a virtuous circle where everyone stands to benefit.”
