SWIFT- Full Form, Functions, Services and Products
What is the SWIFT Full Form in Banking?
The full form of SWIFT is Society for Worldwide Interbank Financial Telecommunications. It is a global co-operative set up by banks and financial institutions, to set up and manage a secure channel, for exchanging information related to international money transfers between member banks. Every member organisation is assigned a unique ID, which helps identify not just the payee or payer bank, but also the respective bank branches, cities, and countries. SWIFT was set up in 1973 by 239 participating banks and has been offering messaging services since 1977. In November 2022, SWIFT handled 4.48 Crore messages per day on average.
Who Uses SWIFT?
Today, SWIFT provides its services to a wide range of users, such as:
- Banks and financial institutions
- Depositories
- Bourses
- Various asset management companies (AMCs)
- Treasury markets
- Foreign currency exchange service providers
- Clearing houses
- Security brokers
- Businesses and individuals, who want to remit money using international wire transfers
- Trading houses and corporates
Functions of SWIFT
- Offers a secure network for exchange of financial information
- Helps exchange financial information by issuing passcodes and payment orders, which are then used picked up by the participating banks to complete the transactions
- Creates a unified messaging format for secure exchange of information
- Provides a robust, low-cost, and highly efficient RTGS recovery site
- Helps analyse and identify global money transfer compliance loopholes and alerts the participating organisations about possible risks
Also Read
Services Offered by SWIFT
SWIFT delivers a gamut of solutions to better manage financial messaging traffic and to secure the messaging channels. Their most prominent services include:
1. Integration of Various Financial Messaging Platforms and Networks
Helps decode and convert proprietary messages into SWIFT standard codes and vice versa in a simple and efficient manner
2. Financial Crime Detection and Compliance Solutions
Helps prevent fraud and misuse of financial networks and payment gateways
3. Facilitates Clearing and Wire Transfer of Funds
SWIFT enables secure transfer of financial information and funds between institutions
4. Payment Data Quality and Control
Offers a cost-effective way to identify the quality of originator and beneficiary information in a bank’s network
5. Global Electronic Trade Confirmations
Helps automate the confirmation of fixed income and equity trades while ensuring full compliance with international security standards
6. Issues Business Identifier Codes (BICs)
Helps uniquely identify financial institutions to ensure secure transfer of information and funds
SWIFT Products
Along with services, SWIFT also offers a host of hardware, software, and network-related products:
1. SWIFT Cloud and Connectivity Solutions
Ensures secure and seamless transfer of files, financial information, and helps establish a direct connection between multiple players
2. SWIFT gpi
Facilitates real-time tracking of cross-border payments and wire transfers
3. SWIFT Standards MT
A unified code or text standard developed to transfer messages within the SWIFT messaging ecosystem
4. SWIFTNet
A single-window, application-agnostic platform that allows financial institutions to exchange documents and messages with each other
5. SWIFT Analytics
All participating members can rely on these analytics data to scale and optimise their financial solutions and products
6. SWIFT KYC Registry
A global platform for exchanging KYC information between participating organisations in a safe environment
Final Word
SWIFT (full form: Society for Worldwide Interbank Financial Telecommunications) has galvanised the banking and financial industry by making wire transfers faster, more seamless, and secure by creating a standardised app-agnostic network for exchanging financial information.
To know more about interesting financial concepts, refer to our blog. If you need instant cash to meet a financial emergency, apply for a Navi Instant Cash Loan today. Simply download the Navi App, find your eligibility in seconds, and apply within minutes. On approval, the money will be credited directly to your bank account.
