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SWIFT 2018 Summary

Core Content

SWIFT is a global member-owned cooperative that provides secure financial messaging services to over 11,000 institutions across more than 200 countries and territories. It acts as a neutral platform for messaging and standards, enabling secure and reliable communication in the financial sector.

Key Highlights

• Traffic Growth:

  • Total FIN messages: 7.8+ billion
  • Average daily FIN messages: 31.3+ million
  • FIN messaging peak day: 35.2+ million
  • FIN growth: +11.3%
  • FileAct traffic (Kchar): 5.4+ billion
  • FileAct growth: +7.6%
  • InterAct traffic: 2.4+ billion
  • InterAct traffic increase: +12.1%
  • Services exceeded availability targets: 92%
  • FIN availability: 99.998%
  • SWIFTNet availability: 99.999%

• Global Reach:

  • 11,000+ institutions connected
  • 200+ countries and territories covered

Chairman's Letter

Yawar Shah, Chairman of the Board, highlighted the following key achievements in 2018:

• SWIFT gpi Acceleration:

  • gpi is transforming cross-border payments, with over 40 trillion sent in 2018.
  • The share of cross-border messages using gpi increased from 15% to 56% (270% increase).
  • gpi is now the cross-border standard, with a goal of universal adoption by the end of 2020.

• Customer Security Programme (CSP):

  • 94% of customers, representing 99% of FIN payments traffic, attested compliance with mandatory security controls.
  • The CSP includes tools like the Customer Security Controls Framework (CSCF), Payment Controls service, and enhanced threat intelligence sharing.

• Financial Crime Compliance:

  • SWIFT's Financial Crime Compliance portfolio expanded, including the launch of the Payment Controls service.
  • The KYC Registry now has over 5,100 banks, representing 80% of SWIFT traffic.
  • Sanctions Screening service has over 700 users.

• Strategic Focus:

  • Innovation, security, reliability, and neutrality remain key priorities.
  • The new CEO, Javier Pérez-Tasso, was appointed in April 2019 following Gottfried Leibbrandt's seven-year tenure.

CEO's Letter

Gottfried Leibbrandt, CEO, reflected on SWIFT's progress and future:

• Operational Excellence:

  • SWIFT achieved near-perfect availability for core services, with 99.998% for FIN and 99.999% for SWIFTNet.
  • The company recorded a new peak day in May 2018 with over 35 million messages sent.

• Innovation and Transformation:

  • SWIFT gpi continued to revolutionize cross-border payments, with strong growth and adoption.
  • SWIFT expanded its API initiatives, launched a new API gateway, and supported industry-wide API standards.

• Instant Payments:

  • SWIFT made significant progress in instant payment systems, including the launch of the New Payments Platform (NPP) in Australia, cross-border trials in Asia-Pacific, and the introduction of instant payment solutions in Europe (RT1 and TIPS).

• Cyber Security:

  • SWIFT continued to enhance its cyber security measures, including the launch of the Payment Controls service and the development of a Cyber Business Continuity Plan (BCP) testing framework.

• Industry Recognition:

  • SWIFT received multiple awards in 2018, including Best Bank Connectivity and Best Product Innovation.

Regional Traffic Flows

• Americas:

  • Sent: 3,261 Kmsgs (+10.8%)
  • Received: 3,027 Kmsgs (+11.3%)
  • Intra-Americas: 1,461 Kmsgs (+14.4%)

• EMEA:

  • Sent: 7,275 Kmsgs (+10.0%)
  • Received: 7,387 Kmsgs (+10.2%)
  • Intra-EMEA: 5,842 Kmsgs (+10.4%)

• Asia-Pacific:

  • Sent: 1,647 Kmsgs (+7.2%)
  • Received: 1,769 Kmsgs (+5.7%)
  • Intra-APAC: 782 Kmsgs (+6.1%)

Innovation and Technology

• Open Innovation:

  • SWIFT collaborates with customers, start-ups, universities, and technologists to drive innovation.
  • Initiatives include hackathons, IT Tech Days, and red team exercises.

• Technology Initiatives:

  • Renewal of Public Key Infrastructure
  • Server platform migration
  • Back-office operations and tools renewal
  • Use of containerisation, virtualisation, and APIs

• Proof of Concepts (PoCs):

  • Conducted extensive blockchain PoCs, including Nostro reconciliation.
  • Signed an MOU with seven central securities depositories (CSDs) to explore DLT in post-trade scenarios.

Cyber Security

• Cyber Resilience:

  • Completed an assessment of cyber resilience capabilities against extreme scenarios.
  • Launched additional investments and implemented new cryptographic standards.

• Payment Controls Service:

  • A real-time in-flight monitoring and blocking tool to mitigate fraud risk.
  • Developed in collaboration with 14 banks and launched in record time.

• CSP Quality Assurance:

  • Introduced an Independent Assessment Framework to validate customer self-attestations.

Agile Transformation

• SWIFT initiated an Agile transformation in 2018, focusing on customer value and iterative development.
• Piloted the first 'tribe' in Financial Crime Compliance in July 2018.
• Launched a second pilot for APIs, identity, and connectivity in January 2019.

SWIFT gpi Enhancements

• Unique End-to-End Tracking Reference (UETR):

  • Standard for all payment messages to ensure transparency and traceability.

• Basic Tracker:

  • Available by end of 2019, offering end-to-end tracking for all SWIFT customers.

• Instant Cross-Border Payments:

  • Trial in Asia-Pacific using NPP, with the fastest payment reaching in 18 seconds.

• Pre-Validation Pilot:

  • Enabled real-time API-based checks for beneficiary account information.

• gpi for Corporates:

  • A new solution allowing corporates to track payments across multiple banks via ERP and treasury systems.

• Observer Analytics:

  • A new tool providing market insights and competitive analysis for gpi users.

Financial Crime Compliance

• Payment Controls Service:

  • A real-time monitoring and blocking solution to prevent fraud.
  • Launched in 2018 and integrated into the CSP.

• KYC Registry:

  • Over 5,100 banks are using it, representing 80% of SWIFT traffic.

• Sanctions Screening Service:

  • Over 700 users, helping banks comply with sanctions regulations.

SWIFT Governance and Operations

• Global Governance:

  • SWIFT is governed by a multinational board, ensuring neutrality and global relevance.
  • Offices in all major financial centers support its global presence.

• Security and Reliability:

  • SWIFT continues to prioritize security and reliability, with a strong focus on operational excellence.
  • Conducted over 500 business continuity exercises in 2018.

• Community Engagement:

  • SWIFT's success is driven by collaboration with its global community of users.
  • Banks large and small work together to define and implement new standards and solutions.