SWIFT - An Overview contd.

In 1992 after the successful completion of the pilot scheme during the first half of the year, the Interbank File Transfer (IFT) service goes live on 1 July. By year end, 65 banks have signed up for the service to handle a range of bulk data transfers including mass payments, cheque truncation and internal reporting.In 1993 Security and data integrity are strengthened by introducing smart cards for log-in and bilateral key exchange via the network. A new UNIX-based interface is launched. SWIFTAlliance responds to customers’ needs for multinetwork, single platform processing capabilities.

In 1994 AccordWorkstation, SWIFTAsset Reconciliation, SWIFTAlliance, and USE deployment are a few of many new products and services launched. Infrastructure projects become an increasingly important part of SWIFT's work.

In 1995 SWIFT opens its Frankfurt office. The new Asia-Pacific Council, representing the SWIFT needs of the ever expanding Asia-Pacific region, meets for the first time in Beijing.

In 1996 SWIFT steps up its straight-through processing (STP) drive with a dedicated team and solutions that address the root causes of non-STP-compliant messages. They also introduced the new Ecu Banking Netting Service.

In 1997 Swift announced its plans to introduce and develop SWIFTNet - a family of IP-based products and services.

SWIFT increases connectivity, grows FIN traffic, progresses STP and supports market infrastructure initiatives in clearing and settlement and trade.

In 1998 the SWIFT Board transforms the Securities Board Task Force into the Securities Steering Council. Non-banks — investment managers and securities brokers — are invited to join the Council.In 1999 SWIFT starts the year with euro changeover and ends it ready for Y2K. In between it launches Bolero and wins the GSTPA bid.

In 2000 SWIFT announces plans for two services SIPN, SWIFTNet Link and SWIFTNet PKI, SWIFTNet Interact are deployed while new XML standards methodology is being developed. swift.com is rebuilt and work begins for the e-enabling of customer activities such as ordering and billing.

In 2001 SWIFTNet went live - the Single-window access to and for the global financial industry.

SIBOS cancelled for the firsrt time due to September 11 attacks on the World Trade Center.

On 15 August 2002, SWIFTNet Release 4.0 went live and concurrently the first SWIFTNet FIN message was sent. This date was targeted nearly two years ago and marked the beginning of the SWIFTNet migration. SWIFT successfully drives ISO 15022 migration.

In 2003 Austria adopts SWIFTNet for its domestic payments system. SWIFTNet migration starts with first country window migrations. ISO 15022 migration completed. Italian RTGS moves to SWIFTNet services. MT 103 migration completed. SWIFT yearly traffic reaches the two billion FIN message mark, doubling in volume since 1999.

In 2004 SWIFTNet migration is completed. Corporates are high on the agenda at Sibos 2004. SWIFT Honoured with “Dream Team Award” World’s second largest pension fund adopts SWIFTNet FileAct. ISO 20022 is published and deployment gets underway.

In 2005 X.25 network dismantled. SAP joins over 300 solution providers including IBM, Microsoft and Oracle and announces the company will SWIFT-enable its ERP. TARGET 2 chooses SWIFTNet. Swift focuses industry attention on Giovannini Barrier One. Swift further aims to reduce its pricing by 50% by the end of 2006.

In 2006 the first CEO of SWIFT Carl Reuterskiold passed away. SWIFTNet Phase 2 pilot operation was successful, and it was the year of preparation for TARGET2.

To be continued...

Contributed By:
Mr. K.R.S. Mani

SWIFT - An Overview

Swift is a member owned cooperative society for Worldwide Interbank Financial Telecommunication through which the financial world conducts its business operations with speed, certainty and confidence. Presently over 8,300 financial Institutions, securities institutions and corporate customers in 208 countries exchange 16 million messages daily between them through this messaging system.

The Origin

The ambitious idea of setting up the SWIFT system was conceived by a handful people in 1973. Later it got the support of 239 banks in 15 countries. The objective of the project was to create a shared worldwide data processing and communications link and a common language for international financial transactions replacing the Telex & Telegram.

The fundamental principles and rules defining the liability and responsibility for the SWIFT system were drafted in 1975 and SWIFT went live in 1977 with 518 commercial banks in 22 countries when Albert, Prince of Belgium, sent the first message. In the next year the first SIBOS (SWIFT International Banking Operations Seminar) was held in Brussels with 300 participants. With the increase in popularity Hong Kong and Singapore became the first Asian countries to introduce SWIFT in 1980. The system has got so popular that it reached the milestone of 1000 members within just 16 years of introduction when Banque Nationale de Begique becam its member.

As the technology was also moving ahead very fast the SWIFT sytem has also gone through many changes to make it more robust and safer. 1981 saw the introduction of ST100 interface. Provision of interfaces and software is now handled through a wholly owned subsidiary, SWIFT Terminal services. To cater to the increasing traffic load SWIFT installed a high volume satellite link between its Operating Cantres. It has also developed a value added service named ‘Ecu Netting’ for Ecu Banking Association.

1987 was a breakthrough year for SWIFT as the members voted to expand the user base by including brokers, dealers, exchanges, central depositories and clearing institutions which paved the way for a rapid growth of the member base.

In 1991 SWIFT received the Computerworld Smithsonian Information technology Award for its work in the field of Standardised Financial Telecommunication, recognising that without its system, financial institutions would have been reduced to an unwieldy combination of paperwork and incompatible private networks, restricting their ability to service the international financial flows.

Contd...

Contributed By:
Mr. K.R.S. Mani