Adopting SWIFT is hardly an automatic decision; those thinking of adopting should do so carefully.
As SWIFT continues to make inroads into US multinationals, it’s still a valid question whether a company should go with the growing interbank financial telecom format or an individual bank solution.
The truth is, SWIFT is not for everyone and for companies that are considering adopting it it makes sense to compare SWIFT to a one-to-one bank solution before pulling the trigger. That’s because there is a lot to consider when it comes to maintenance and support, and the gap in average cost per transaction can be significant between the two alternatives. For instance, low-volume users will likely choose the bank’s individual solution vs. SWIFT.
Still, there are some strong arguments for adopting SWIFT by those looking to standardize or who are high-volume users. Currently, that need to standardize as well as a heightened focus on security, are driving SWIFT adoption. Two members of The NeuGroup’s Global Cash and Banking Group (GCBG), which met in March, cited these two attributes as they work toward standardizing global connectivity and strengthening the security channel to and from banks.
IT team. Getting IT involved is critical for proper connectivity, according to several members of the GCBG. Members that have worked on SWIFT projects credit the heavy involvement of their IT team as a key driver in connecting with service bureaus. Having someone from the IT side working closely with treasury can have a significant benefit by removing technical obstacles.
Interestingly, only half of current SWIFT corporate members are active users, according to recent data. Therefore, companies should carefully evaluate their needs and resources before deciding to adopt, and be prepared to work with a chaotic administrative and technical landscape.