Payments Innovation - SWIFT GPI - Part 1 - YouTube

Good Morning! Myself Biren Shah

SWIFT Global Payments Innovation (GPI)

1. Current form of Payment & Challenges (PROBLEM STATEMENT)

SWIFT GPI (Global Payments Innovation)

2. Post GPI - Challenges addressed (SOLUTION)

3. Details of each GPI Component

4. Pain points addressed & Benefits

5. Adoption - Impacted areas

6. Roadmap - Phase 2 & Phase 3

7. Summary

1. Current form of Payment - Example

Buyer - Residing in SA Seller - Residing in USA

Buyer will request Goods

Seller responds with Shipment of Goods & Invoice

Buyer receive goods & invoice

Requested goods (PO) = Received goods (Invoice)

Buyer will release payment

Buyer bank (Ordering customer) - Bank A

Seller bank (Beneficiary) - Bank C

Intermediary bank - Bank B

No direct relationship between Bank A & Bank C; hence Intermediary Bank B

Challenges

Buyer initiates payment through Bank A

1st leg of Payment - Bank B

Challenge: No Visibility

Challenge: Difficult to track payment

Challenge: Unpredictable time for Payment

Challenge: Charges deducted

SWIFT GPI

2. Post GPI - Challenges addressed (SOLUTION)

Corporate initiates a payment

Unique transaction reference (UETR) is added in Payment

UETR flows across all Legs/Hops

Helps in Payments tracking

A. Visibility

B. Specified SLA to complete Payment

For Example, Incoming SLA = 4 Hours

Outgoing SLA = 2 Hours

C. Predictable time for Payment

D. Clarity on Charges deducted

Benefits: Visibility, Tracking, Charges, Predictability

3. Details of each GPI Component

Tracker, Observer & Directory

Tracker - Real time tx tracking & Charges info

Observer - BI Dashboard showing SLA

Directory - Helps calculating gpi payment route

Cut off time

Currency

Selection of best Tx route

For example, EOD in USA = BOD in India

Ability to select route, helps in faster payment processing

Same day payment processing

Thank you!