New norm in cross-border payments drives trade in Taiwan and the region
SWIFT has announced the signings of First Bank, Cathay United Bank, Bank Sinopac, Chang Hwa Commercial Bank, and Hua Nan Bank to its global payment innovation (gpi) payment service. They join the ranks of CTBC Bank, E.SUN Commercial Bank and other foreign banks in Taiwan to offer an advanced standard in global payments that supports fully-trackable and same-day fund transfers.
Over the past few decades, cross-border trade has played a central role in enabling Taiwan’s rapid growth. In 2017 alone, three-quarters of Taiwan’s exports by value were delivered to fellow Asian markets, including Taiwan’s top trade partners - mainland China, Hong Kong, Japan, Singapore and South Korea. Over 90% of cross-border payments by SWIFT in these markets are made through gpi member banks, highlighting the importance of expanded SWIFT gpi access in Taiwan.
The increased global preference for SWIFT gpi from bank customers is a trend which our member banks in Taiwan are now capitalising on. The expanded gpi offering in Taiwan will spur its economy and drive international trade and investment in the region, in time making the service the new normal in the payments industry.
Since its inception in 2017, SWIFT gpi has seen rapid adoption across Asia Pacific, which now accounts for almost half of the gpi banks worldwide. Every day, over USD300 billion in SWIFT gpi messages transactions are made. By 2020, SWIFT would have extended the benefits of its gpi service to all 10,000 financial institutions on its global network.
Mr. Jerry Shaw, Executive Vice President and Global Commercial Product Division Head, CTBC Bank:
“CTBC Bank is honoured to be part of the SWIFT gpi initiative, which has opened up a new horizon in the field of cross-border payments. This helps the banking industry deliver payment services in a more efficient, informative and transparent manner. In a digital-driven business environment where efficiency and convenience come first, CTBC Bank has been dedicated to providing its clients with global payment solutions that emphasise security, quality and efficiency. Capitalising on the gpi network, we expect our bank to be well positioned to offer better cross-border payment services in a way that would enrich our customer experience.”
Ms. Maggy Chou, Executive Vice President, E. SUN Commercial Bank:
“The banking industry has been striving to provide quality services and experience to its clients with a commitment to security and efficiency. However, it is not uncommon for customers to receive inaccurate reports of the time taken for fund transfers, and face a fee structure with little transparency. SWIFT gpi resolves these problems by enhancing the bank’s ability to track the status of money transfers from start to end, which would lower the costs incurred from processing customer enquiries and help create a better customer experience. We are looking forward to more SWIFT gpi services in the future, such as fund transfer confirmation and refund of remittance, which could help market players clear up concerns unanswered in the past. As more banks are expected to join the SWIFT gpi initiative, the exchange of information on the gpi network within the industry will be more established, opening the door to banking services with improved precision, which in turn could prove beneficial to the broader cross-border payment market as a whole.”
Mr. Horng-Yao Tu, Executive Vice President, Chang Hwa Commercial Bank:
“We endeavour to provide our customers with more convenient and efficient services. The gpi partnership established with SWIFT, coupled with its highly-efficient remittance process, fully-traceable and transparent delivery flow, further strengthens our cross-border payment services capabilities.”