SWIFT establishes direct presence in India

First India office for secure financial messaging provider underlines increasing integration with the global financial system; Mumbai as regional financial hub

During the traditional Indian ceremony, Arun Tiwari, SWIFT’s Mumbai office manager, was applied a red “tilak” on his forehead.

Tiwari is lighting a lamp, a gesture which is considered auspicious in Indian tradition when starting any new venture.

SWIFT is strengthening its presence as a direct result of the sustained growth and development of the financial services sector in India, and in particular the proliferation of international relationships between Indian financial institutions and counterparties worldwide.

The Indian subcontinent is already an important region for SWIFT, with 201 user institutions, of which 92 are in India. Growth in SWIFT financial messages from the region was a strong 19 percent in the year to October 2007, and is expected to accelerate in 2008. While payments messages represented 58 percent of total messages in the year to October 2007, securities message traffic grew at the fastest rate, at 37 percent for the region.

“The financial industry in India is changing fast. SWIFT is now here, on the ground in the key city in the region, to help the community respond,” said Ian Johnston, Head of Asia Pacific, SWIFT. “Developing financial markets in emerging markets is a critical element of SWIFT’s 2010 strategy, and our growing investment here reflects that commitment.”

Participants at the India Regional Conference included speakers from Canara Bank, Clearing Corporation of India, ICICI Bank, IDLC Finance, the Securities and Exchange Board of India and the State Bank of India. Strong interest in the Conference followed the attendance of more than 100 Indian senior bankers and financial industry executives at Sibos 2007in Boston .
 
The Conference reflected many of the issues facing the financial community in India today. In the area of securities, sessions addressed the role of automation in enabling the local industry to manage growth, from the points of view of mutual funds, exchanges and depositories, and regulators. Trade finance was also in focus, reflecting 35 percent growth in intra-Asia trade and the need for banks to provide value-adding services to customers trading on open account. The conference also looked at the hot topic of financial reform in India and the subcontinent.

“At the outset of our direct presence, this conference is an excellent opportunity to listen to and deepen our understanding of the needs of the community in India,” said Charles Legrand, Incoming Head of South Asia for SWIFT, “By exploring these needs we can work to make SWIFT not only a network to depend on for security, resilience and reliability, but also a platform for regional competitive advantage for Indian banks and their customers.”

SWIFT works closely with its community worldwide via user groups, working groups, business forums, market practice groups, business partners and the landmark annual Sibos event. The SWIFT India User Group has linked SWIFT with the needs of the financial community in India for more than 15 years.