By André Casterman, Chief Marketing Officer at INTIX, the data management fintech.
The INTIX Transaction Tracker will become your best ally to monitor your cross-border payment operations. When combined with SWIFT GPI, the INTIX Transaction Tracker will further extend visibility on actual processing down the chain by correspondent banks.
SWIFT GPI aims at increasing transparency on single payments processed through correspondent banks
SWIFT global payments innovation (gpi) aims at improving the customer experience in cross-border payments by increasing the speed, transparency and tracking of cross-border payments across the correspondent banking chain.
As per SWIFT GPI info, in its first phase, the initiative focuses on business-to-business payments and is designed to help corporates benefit from an enhanced payments service as provided by their banks. Immediate benefits include faster use of funds, increased transparency of fees, end-to-end payment tracking and unaltered remittance information.
Assuming banks collaborate as willingly as they did since 1973 when they established the cooperative, SWIFT GPI future impact on cross-border payments leaves no room for doubt.
Banks challenges in cross-border payments are both internal and external
While banks depend on their correspondent banking partners to serve their clients, their actual operational challenges are actually mostly internal.
Most banks – whether large or smaller – rely on a complex set of internal systems supporting the end-to-end processing of cross-border payments, ranging from e-banking portals and channels, to connectivity software, sanctions filtering systems, messaging middleware solutions, core payment engines, interfaces to clearing systems and correspondent banks, … As a consequence, payments initiated by their clients often go through a dozen of intermediary processing systems and steps before being completed with certainty of credit on the beneficiary’s account.
As illustrated on Figure 1, payments are often going through a series of internal applications and middleware technologies in order to get cleared and confirmed back, each bank having its own set-up and internal workflow.
Figure 1. Typical internal cross-border payment processing workflow at a bank.
Unfortunately, operational system glitches do occur and represent potentially severe consequences on business-to-business payments and supply chain counter parties who depend on those funds for risk mitigation and/of financing reasons. For both banks and their clients, costs of failed payments can be huge as are reputation risks.
This is why banks have come to realise that monitoring payment operations ought to be achieved in a much more thorough way and at a more granular level.
Whilst some would suggest that rationalising the number of internal / legacy systems and technologies would help address such challenges, reality has demonstrated that a “total infrastructure revamp” would be very costly and close to unworkable as business priorities and market innovations (e.g., instant payments) just keep on extending the internal technology mix. On the contrary, one must take advantage of well-functioning legacy systems and build on those using the most appropriate modern technologies. In this way, transaction tracking and efficiency analytics can be easily delivered. Such conservative approach offers a more effective route to deliver short-term value at an acceptable cost. It also contributes to banks’ strategic objectives such as reputation and client satisfaction.
The INTIX Transaction Tracker
Whilst SWIFT GPI provides the ultimate way to enhance transparency on payment processing by correspondent banks, the INTIX Transaction Tracker maximises granular visibility on internal payment processing steps and performance.
The INTIX Transaction Tracker provides transaction bankers with:
- Multi-system transaction tracking across technologies, transaction types, data semantics, messaging formats, communication channels, …
- Enhanced tracking using external feeds such as SWIFT GPI
- Comprehensive tracking dashboards across single, batch, instant payments and other types of transactions (fx, trade finance, securities, …)
- Effectiveness and efficiency metrics and dashboards
- Alerting and decision making based on user-defined rules and cut-off times.
The more interception points a bank integrates into the INTIX Transaction Tracker, the higher the process transparency and the lower the operational risks.
Figure 2 provides an example of such performance dashboard including distribution in terms of processing times across interception points.
Figure 2. Processing time metrics for a single currency (e.g., USD)
The best of both worlds: SWIFT GPI enriches the INTIX Transaction Tracker
Whilst the INTIX Transition Tracker combines the many statuses collected at various interception points within the bank’s own processing infrastructure to track payment transactions, its value will be maximised when external tracking feeds are added. Enriching the INTIX Transaction Tracker with SWIFT GPI notifications as delivered by correspondent banks will maximise value for the debtor’s bank and its clients. This combined use of INTIX and GPI is depicted on Figure 3.
Figure 3. SWIFT GPI enriches internal payment monitoring performed by the INTIX Transaction Tracker.
The combination of both sources of monitoring information will provide payments operations teams with the best of both worlds.
The INTIX Transaction Tracker will become your best ally to handle your daily transactional operations. It will help you get full transparency on your payment operations as well as other types of transactions.
Thanks to advanced data management features and the integration of SWIFT GPI, the INTIX Transaction Tracker will help banks maximise the end-to-end visibility on cross-border payment processing, prevent payment processing issues and avoid impact on their clients.
Visit us at www.intix.eu. Contact us at firstname.lastname@example.org for a demo.
Consult our INTIX Tracker page and video.