How Does SWIFT gpi Tracker System Help Banks?

How Does SWIFT gpi Tracker System Help Banks?

SWIFT’s initiative SWIFT gpi (Global Payments Innovation) aims to improve cross-border transaction experience by offering faster, more transparent and easily traceable process with more reasonable costs for the banks, corporates and market infrastructures (MIs). The main benefits of SWIFT gpi for the banks are higher customer satisfaction with better cross-border payment experience, reduced costs related to payment inquiries and overall effectiveness with better management and optimization possibilities.

SWIFT gpi products: Tracker, Directory and Observer

SWIFT gpi has 3 specific products to ensure the system works smoothly and the gpi members can take advantage of operational efficiency to the maximum: Tracker, Directory and Observer.

Tracker enables SWIFT gpi members to track the payment status in real time via an end-to-end tracking database that is incorporated by SWIFT.

Directory provides information to SWIFT gpi members about the gpi passages so that they can make estimations about an end-to-end route of a gpi payment. This information generally includes currencies and cut-off time and in cases of necessity, the Tracker can also access this information for the automation of specific activities.

Observer works as a compliance checker. It ensures that the business is compliant with the SLAs (Service Level Agreements) and the business rules that are detected by SWIFT gpi rulebooks and data analysis.

Real benefits of SWIFT gpi

Reduction of cost: faster, more transparent and efficient payment processing

SWIFT gpi reduces the costs related to payment enquiries up to 50% as it offers full transparency and speed in the international payments processes. The transparency of the processing or exchange rate costs as well as the faster payments tremendously improved bank-customer relationships both in terms of decision making and financial management.

Almost all the SWIFT gpi payments are completed within 24 hours, so it offers same day international payments. This ultimate speed feature of SWIFT gpi provides solutions to banks to improve their service quality and achieve higher standards.

Enhanced customer experience

With visibility and transparency increased in the end-to-end payment processes powered by SWIFT gpi, banks can enhance their customer satisfaction levels considerably because customers can now have access to tracking information about their payments from the start to the end with higher transparency of the fees and unchanged remittance information. SWIFT gpi also offers secure payments system against the digital financial threats. What SWIFT gpi brings in into the cross-border payments environment is transforming the whole experience of the customers as they expect more certainty, velocity and transparency in the financial services they get in the digital era.

Business growth opportunities

  • Cost-effectiveness and operational efficiency: As banks improve their customer experience by delivering immediacy and transparency in cross-border payments data, they can also enhance their overall efficiency with SWIFT gpi. It is possible to reduce the payment enquiry costs by up to 50% and at the same time to enable bank staff to save time for other operational priorities.
  • Better liquidity management: The fast and transparent payments data that are made available with SWIFT gpi helps banks in managing their liquidity flows daily. Real-time monitoring and reconciliation of the cross-border payments give a great opportunity to the banks to optimize their usage of liquidity and minimize the risks.

Customized gpi services to increase operations and processes of cross-border transactions: Banks can develop their own customized services on top of SWIFT gpi to enrich the services they offer in international payments transactions.

What makes SWIFT gpi unique?

In order to track all SWIFT users, SWIFT required the UETR (Unique End-to-end Transaction Reference) in 2018, as a component of MT Standards Release. The UETR is a chain of 36 unique characters utilized in each payment instruction message conducted by SWIFT.  As the aspiration of the SWIFT gpi is to become the new norm of the cross-border payments, the adoption of UETR was the first step. The UETR ensures the traceability of SWIFT gpi payments. A unique reference is associated with each payment process so that the customers can check the location of the funds in real-time and this information is shared with all the banks that are involved in the transaction. As a result of this full visibility of the end-to-end payments in real-time, banks are equipped with the feasibility to detect, understand and solve the problems quickly and effectively.

How Fineksus provides GPI service with PayGate™ Maestro:

PayGate™ Maestro is a financial messaging hub that works as software for integrating financial transactions among different systems with a flexible business rule engine to support higher STP rates. With the new SWIFT compliant GPI module of PayGate™ Maestro, all GPI message flow can be managed and processed on PayGate™ Maestro.

Maestro also provides GPI enabled message tracking via its embedded GPI Tracker popup screen in the application.

Gökçe Gence, Head of Solution & Project