Many readers will already know that SWIFT is sort of the default bank standard for financial messaging in cross-border payments. A few years back, it launched its gpi initiative for improving the speed and transparency of cross-border transactions, with close to half of their network banks having adopted the new messaging rail. In this announcement at the Banking & Finance channel, we see that the Development Bank of Singapore (DBS) and SWIFT are now linking up to offer a new cross-border service using gpi, that allows real-time tracking of inbound payments to DBS business clients.
‘In its official communique, the bank stated that it is the first lender in India and Asia-Pacific to provide this facility to its clients, which is likely to offer benefit to close to 4,000 corporate and small business clients in India, with numbers expected to grow further….It said that the corporates can get the visibility over incoming payments now, helping with working capital management by planning back-to-back payments, thereby improving receivables forecasting and overall cash position. It also says that the facility will help improve the accuracy for intraday credit line needs and provides further benefits in supporting credit control.’
We have been tracking a series of connected things over the past few years, including cross-border, real-time payments and modernization of the cash cycle. This type of service spreads across all three since it is designed to assist in the collections cycle for international payments settlement. DBS is one of the more forward-thinking financial institutions in the Asia Pacific region and so innovative approaches to reducing friction for business clients is a priority.
‘Divyesh Dalal, Head, global transaction services, DBS Bank India, said, its incoming payment tracking capability, supported by SWIFT gpi, offers transparency and visibility to corporate treasuries and SME businesses alike….“It makes FX and working capital management more predictable, thus reducing costs and optimizing cash flow. Coupled with our digital solutions for cross-border payments, regulatory documentation management and FX, we strive to deliver the best platform for cross-border transactions to our customers. These solutions make banking simpler and effortless, giving customers more time to focus on their business,” said Dalal…..Kiran Shetty, head of India and South Asia at SWIFT said, “Driven by SWIFT gpi, the new inbound tracking service by DBS Bank allows corporates to see when a payment is on its way and when it is arriving at the beneficiary, which in turn reduces operational costs and frictions,” said Shetty.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group