A Report by CYS Global Remit FinTech Development Team
In this final segment, CYS Global Remit FinTech Team delves into the primary challenges faced by Financial Institutions when executing cross-border business payments.
Surprisingly, the lack of visibility on payment status has seen a 6% increase since 2021. While issues like unknown arrival times and poor data quality for retail payments can be largely addressed by ISO 20022 or are inherent in SWIFT.
Wholesale Payments face a different scenario. Only 60% of these payments reach customer accounts within one hour, hampered by delays at the beneficiary leg due to factors such as regulatory controls, batch processing, and the limited operating hours of market infrastructures.
SWIFT's August 2023 announcement revealed that 89% of transactions processed on their network reach recipient banks within an hour, surpassing the speed targets set by the Financial Stability Board, aiming for one-hour processing in 75% of international payments by 2027.
Notably, 84% of all payments on the Swift network are executed directly or through a single intermediary, debunking the misconception that payments often traverse chains of intermediary banks to reach their financial destination. The crux of the matter lies in the timely adoption of available tools to address these challenges by banks and FIs. CYS Global Remit acknowledges the advantages and significance of “Real-Time” payments, positioning it as a key initiative in our product