14 Banks Join SWIFT gpi Pre-validation Pilot
SWIFT has announced it will begin piloting an integrated pre-validation gpi payments service with 14 banks from around the world. The initial focus of the pilot is on enabling the fast identification and elimination of errors in payment messages. A real-time API-based mechanism will enable sending banks to send and receive API calls over SWIFT to seamlessly check beneficiary account information with the ultimate receiving banks. This will allow banks to quickly remedy any inaccurate or missing information, reducing delays and costs.
The pilot is the first stage in the rollout of the gpi pre-validation programme, which will also look at using predictive analytics and artificial intelligence to improve the predictability of international payments.
Many payments that are held up are done so due to errors in data like incorrect or missing beneficiary or regulatory information. The gpi pre-validation service is designed to ensure the vast majority of these preventable errors and omissions are corrected before the initial instructions are sent, so that the instruction can be processed straight-through.
Together with the pilot banks, SWIFT will agree the global industry specifications for the gpi pre-validation service by the end of 2018, while the pilot is set to commence in early 2019. Over time, the service will be expanded to provide up front transparency on fees, based on the exact routing of the payment message. This will give payment originators and beneficiaries complete transparency and predictability on costs, routes and expected delivery of their funds.
The 14 banks taking part in the pilot are: Bank of America Merrill Lynch, Bank of China, Barclays, BBVA, BNP Paribas, Citi, Deutsche Bank, E.SUN Commercial Bank, ICBC, J.P. Morgan, National Australia Bank, Piraeus Bank, Societe Generale and Wells Fargo.