Society for Worldwide Interbank Financial Telecommunication (SWIFT) has recently launched its Global Payment Innovation (GPI) platform. This platform allows (~100 and growing) participating banks to engage in more efficient payments cross boarders.<\/p>\n
SWIFT’s GPI initiative is divided into three phases. The first phase (which is also the process that is being launched) focuses on business-to-business payments. This allows businesses to have transparent and predictability of fees, end-to-end payment tracking, and faster transfer of funds between banks. The second phase focuses on digital features that further transforms the payment experience. This includes the ability to immediately stop a payment, and transfer rich payment data (such as compliance checks and multiple invoices). Finally, the last phase will focus on exploring the potential of new technologies, such as distributed ledger technology or blockchain.<\/p>\n
Even though GPI is not currently \u00a0leveraging blockchain, the launch of this initiative is the first step towards the development of fintech. The growing list of banks who are willing to use GPI means that banks are willing to take on new technologies to improve financial transactions. Furthermore, this system is a necessary first step to implement new technologies such as blockchain. As it currently stands, the development of blockchain in financial institutions is still years away. GPI will allow banks to have a faster global payments while maintaining strict regulatory standards.<\/p>\n
Sources:<\/p>\n
Swift innovates on global payments, without blockchain<\/a><\/p><\/blockquote>\n