BRUSSELS, 9 January 2012 – In a new white paper, SWIFT unveils its vision for a customer-centric, ‘experience banking’ model where customers are the trigger for banking services, and where banks link together the best components to create a consistent and seamless customer experience. Welcome to Correspondent Banking 3.0.
Correspondent banking 1.0 in the mid-1970s was about automating the telex via connections between a large network of banks. A more efficient 2.0 emerged in the late 1990s, based on centralised global transaction processing, using fewer but deeper relationships and tighter performance management.
In its correspondent banking 3.0 white paper, SWIFT asserts that pushing for further efficiency on the current model, while necessary, is not enough. The model is still too bank product centric, based on inherently inefficient multiple agreements.
Profits are under pressure as banks need to comply with more regulation and deal with increased competition. Meanwhile, we are bracing ourselves for another global financial crisis and economic slowdown. Combine this with the emergence of mobile payments and the cry from Corporates for more integrated solutions, and the need for significant innovation becomes clear.
To move towards this new model, four collaborative projects have been identified following 35 in-depth interviews held with banks by SWIFT during 2010-2011. Each of these projects was shortlisted based on the criteria that they are collaborative, new, achievable and significant for the industry. The four projects are:
“The purpose of this white paper is to start a dialogue in the banking industry on this new model and projects proposed, and we may identify other projects. Our objective is in the end to gain consensus and focus on implementing one or two concrete new collaborative services that can bring significant benefit to the industry”, states Luc Meurant, head of banking, supply chain and corporate markets, SWIFT. “The world is changing rapidly. To keep their payments franchise, banks must take charge of their destiny and lead the way.”
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,000 banking organisations, securities institutions and corporate customers in more than 200 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.
For more information, please refer to our website www.swift.com or contact:
Tel: +32 2 655 3377