13 September 2017

How SWIFT Will Help You to Manage Multiple Bank Accounts

Managing a large and diverse network of corporate banking relationships in order to meet business needs can be extremely demanding and complex. This can be filled with challenges which include supervising connectivity across multiple banks and bank accounts, payment formats and types, dealing with different communication requirements, and varying security standards. These challenges make it hard for banks and financial institutions to effectively manage their payments, security, and liquidity without compromising on their efficiency and productivity.
This is where SWIFT helps facilitate multi-connectivity by allowing member institutions to streamline their communications and create an effective payment environment across the globe. Before the introduction of SWIFT, multi-banking was filled with inefficiencies resulting from diverse messaging formats. Now member institutions can simply adopt SWIFT to manage multiple banks and accounts.
SWIFT is a single and secure communication channel which is now used by over 11,000 organisations to exchange business information, conduct data transfers and exchange standardized financial messages.
How SWIFT can Help Manage Multiple Bank Accounts--
In today’s global market, financial institutions and companies have to work with the right partners in a multi-connectivity environment. SWIFT provides a solution which allows member institutions to reach each other through a single reliable channel based on global messaging standards, common processes, and formats. This way, banks and companies can reduce the cost and complexity which comes with managing multiple bank accounts due to differentiating security protocols while decreasing operational risks and increasing visibility of cash positions.
Through the SWIFT network, individual or bulk payment files based on uniform formats and pre-set categories can be securely sent. This ensures an error free process as well as timely reconciliation. SWIFT also provides a standardized account reporting feature to members for centralized visibility across multiple bank accounts.
Corporate Multi-Banking Connectivity with SWIFT--
Before 1997, the SWIFT network and its facilities could only be availed by banks as a way to safely communicate with other banks. However, with the introduction of SWIFT for corporate companies can now securely communicate through standardized financial messages. It has been estimated that over 900 companies now use SWIFT to conduct financial transactions such as transferring money to other countries and making SWIFT payments in local currencies.
SWIFT provides a way for companies to achieve multi-banking through relationship with a single bank by offering an option to access multiple accounts in different banks. For example, a company who is a customer of Bank X could instruct them to transfer money from an account with Bank Y which is in a different location or country. With SWIFT, Bank X could simply access the network and instruct Bank Y to make the payment on behalf of the client. In this example, the company does not have to conduct business with multiple banks – it can simply use a single bank as the access point which can work with different banks on its behalf.
From a global viewpoint, SWIFT is one of the leading enablers of multi-connectivity and multi-banking. While the original model of SWIFT was used to facilitate communication between banks, it now supports corporate membership which allows companies to access SWIFT and communicate with their banks in a multi-connectivity and banking environment.
When such companies use SWIFT to connect to their banks, they can fully access their cash positions across multiple bank accounts around the world in a uniform way. This allows them to carry out effective cash management through the SWIFT network. However, it is important to note that SWIFT is only a platform which sends and receives information – hence, companies have to have an interface such as a sophisticated ERP system in place along with SWIFT.
This allows companies to connect to SWIFT through multiple ways. The first way is to connect directly to SWIFT-- however, this is a complex and highly technical exercise. Many companies commonly utilize a SWIFT service bureau such as this company, which means that technical complications are typically resolved by the bureau.
Innovative Processing Solutions for Companies--
When companies use the SWIFT network, they can conduct financial communications with numerous institutions globally. Hence, companies now have the option of cloud-based innovative processing solutions for connecting with multiple banks and bank accounts through a single platform. These SWIFT cloud based connectors allow companies to track and view their real-time, historic, and current cash flows.
In other words, SWIFT cloud connectors enable companies to easily view their multiple bank accounts on a single platform. They can also communicate safely with financial institutions and banks from all around the world through SWIFT messages. Moreover, companies can also set multiple approval protocols, maintain a secure audit trail and access daily statements from multiple bank accounts via daily messages.

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