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
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
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