Banks Can Use SwiftNet For Value-Added Services

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Wednesday July 14, 07:41

Banks Can Use SwiftNet For Value-Added Services

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Once banking entities and their customers are connected via SwiftNet, the exchange of banking data in real-time means a bank’s clients will be able to make more informed decisions about managing their cash. Large banks linking to SwiftNet are in line to reduce costs, given the sharp drop in per-transaction pricing, but smaller (tier-two) banks which lack the volume of tier-one banks will not achieve such a rapid return on investment in SwiftNet. Tier-two banks can however offer cash reporting, bulk payments and other value-added services over SwiftNet as a way of encouraging their clients to interface to SwiftNet.

In other words, using SwiftNet as a core technology allows banks to sell value-added services to their customers while achieving differentiation. One option for a bank is to offer clients a ‘sweeping service’ to monitor their cash position across multiple accounts at separate banks, with surplus funds focused where necessary. With bulk payments, similarly, a bank can enable its clients to send batch files with MT101 messages before using predefined rules to find the most cost-effective means of making the payment in a synergistic approach that enables banks to leverage SwiftNet without cannibalizing their own services.

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