SWIFT gpi: Cross-Border Payment Tracking, Data, and DLT — Enough to Save the Network?
This IDC Perspective looks at SWIFT's global payments innovation (gpi) project that aims to speed up cross-border payments, their traceability and information-carrying properties. It questions if it will be enough to save the network in the coming data-centric era of open application program interfaces (APIs) and rival players using distributed ledger technology (DLT). "Correspondent banking is a burning platform, so new ways to monetize cross-border payment services and retain corporate custom are essential. Traditional fees are decreasing in the face of fintech-enabled start-up challengers, but banks can use SWIFT gpi data to offer value-adding new services. However, the cloud services on offer from the organization itself are unlikely to be granular enough in and of themselves," said Neil Ainger, Research Manager, Corporate Banking, IDC Financial Insights. "Banks can and should do more in this era of open banking and APIs to provide their own useful front-end tools. SWIFT itself should accelerate its stalled third-stage gpi proof-of-concept (PoC) looking at open APIs and DLT for its future platform, if it wants to fight off rivals such as Ripple."