swift ( society for worldwide interbank financial telecommunications )
DESCRIPTION
SWIFT ( SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATIONS ). It’s a registered cooperative society in Brussels, Belgium. Owned by about 250 banks in Europe and North America. Spread over 208 countries. 8332 live users , 3.50 billion messages. - PowerPoint PPT PresentationTRANSCRIPT
SWIFTSWIFT ( SOCIETY FOR WORLDWIDE INTERBANK ( SOCIETY FOR WORLDWIDE INTERBANK
FINANCIAL TELECOMMUNICATIONSFINANCIAL TELECOMMUNICATIONS))
It’s a registered cooperative society in Brussels, Belgium.It’s a registered cooperative society in Brussels, Belgium. Owned by about 250 banks in Europe and North America.Owned by about 250 banks in Europe and North America. Spread over 208 countries.Spread over 208 countries. 8332 live users , 3.50 billion messages. 8332 live users , 3.50 billion messages. It’s a communication network for international financial market It’s a communication network for international financial market
transactions linking transactions linking effectively more than 25000 financial institution throughout the world.effectively more than 25000 financial institution throughout the world. Every member has allotted bank identifier codes.Every member has allotted bank identifier codes. Centers located in Brussels, Amsterdam and Culpeper,Verginia.Centers located in Brussels, Amsterdam and Culpeper,Verginia. Swift system enables the member banks to transact among themselves Swift system enables the member banks to transact among themselves
quickly quickly 1) International payments1) International payments 2) statements 2) statements 3) other messages ( within seconds)3) other messages ( within seconds)
CEOCEO
Lázaro CamposLázaro Campos has appointed as Chief Executive Officer in April 2007. SWIFT has appointed as Chief Executive Officer in April 2007. SWIFT reorganizes reorganizes
the company operationally and regionally in order to meet specific customers the company operationally and regionally in order to meet specific customers requirements.requirements.
Leonard H. SchrankLeonard H. Schrank has served as CEO from 1992 until April 2007. has served as CEO from 1992 until April 2007. Career has consisted of managing European and US organizations Career has consisted of managing European and US organizations that provide information services and software solutions to the that provide information services and software solutions to the financial services industry. Upon graduating from MIT, co-founded financial services industry. Upon graduating from MIT, co-founded a software company in Cambridge a software company in Cambridge SWIFT opens four new offices:-SWIFT opens four new offices:-1.1. SWIFT Brazil, SWIFT Brazil, 2.2. SWIFT MumbaiSWIFT Mumbai3.3. SWIFT Dubai and SWIFT Dubai and 4.4. SWIFT Johannesburg.SWIFT Johannesburg.
SWIFT’ Distributed Architecture programme completes Phase One successfully, SWIFT’ Distributed Architecture programme completes Phase One successfully, SWIFT records two peaks in the same week in the message traffic SWIFT records two peaks in the same week in the message traffic 1,63,27,668 1,63,27,668 messagesmessages on Wednesday on Wednesday 23 January23 January and and 1,65,50,075 messages1,65,50,075 messages on Friday on Friday 25 25 JanuaryJanuary: a first in SWIFT history. First live SEPA (Single Euro Payments Area) Credit : a first in SWIFT history. First live SEPA (Single Euro Payments Area) Credit Transfers is sent from major European banks over SWIFT Net on 28 January 2008.Transfers is sent from major European banks over SWIFT Net on 28 January 2008.
SWIFT celebrated its 35th anniversarySWIFT celebrated its 35th anniversary
SWIFTSWIFT ( GROWTH STORY)( GROWTH STORY)
1973 — SWIFT is born: 1973 — SWIFT is born: Forty square meters of office space in the centre of Brussels, Forty square meters of office space in the centre of Brussels, a handful of people and an ambitious idea. Supported by 239 banks in 15 a handful of people and an ambitious idea. Supported by 239 banks in 15 countriescountries
1974 — Partnership principles established
239 members | 15 countries 0 messages
503 customers | 17 countries 0 messages
Financial institutions planning to use SWIFT for messages are heavily involved in the development process, ensuring effectiveness and practicality
1975 — Emphasis on security and reliability515 customers | 17 countries0 messages
1976 — First operating centers open
515 customers | 17 countries0 messages
518 customers | 22 countries3,400,000 messages
1977 — SWIFT goes liveAlbert, Prince of Belgium and now King, sends the first message. The initial group of members has grown to 518 commercial banks in 22 countries
1978 — Our first ten million messages
586 customers | 25 countries 21,600,000 messages
683 customers | 30 countries34,500,000 messages 1980 — First Asian countries connect
1979 — Opening of North American operating centre
1981 — ST100 interface introduced
1982 — Financial stability achieved
1983 — 1,000th member
1984 — Knowledge for the future1984 — Knowledge for the future
1,188 customers | 54 countries 129,900,000 messages
1,046 customers | 52 countries104,100,000 messages
1,017 customers | 44 countries79,900,000 messages
900 customers | 40 countries 62,500,000 messages
768 customers | 36 countries46,900,000 messages
1987 — SWIFT goes into securities 1987 — SWIFT goes into securities
1985 — Satellite communication enhances services
1986 — Launch of value-added services
1988 — Total support environment created
1989 — SWIFT as a forum for the financial community
1990 — Sibos visits Berlin
1991 — Smithsonian recognizes SWIFT
1992 — Exceeding our targets 3,582 customers | 94 countries 405,541,000 messages
3,243 customers | 87 countries 365,159,000 messages
3,049 customers | 83 countries 332,895,000 messages
2,814 customers | 78 countries 296,070,000 messages
2,537 customers | 76 countries 255,111,000 messages
2,360 customers | 64 countries 222,300,000 messages
2,161 customers | 61 countries 192,010,000 messages
1,946 customers | 58 countries157,220,000 messages
1993 — A new vision — a new reality
1994 — Adding value for the customer
1995 — Entering a new era
1996 — Reducing costs, managing risk, improving automation
1997 — Building for tomorrow — Announcement of SWIFT Net
1998 — Renewing SWIFT for the future
1999 — SWIFT leads and delivers
2000 — Swift's 'e' future takes shape
1,274,000,000 messages
6,797 live users | 189 countries 1,059,000,000 messages
6,557 live users | 178 countries 937,000,000 messages
6,176 live users | 164 countries 812,000,000 messages
5,632 live users | 151 countries688,000,000 messages
5,229 live users | 137 countries 603,000,000 messages
4,625 live users | 126 countries 518,000,000
3,986 live users | 106 countries 457,000,000 messages
2001 — SWIFT Net goes live
2002 — First SWIFT Net FIN message sent
2003 — SWIFT turns 30
2004 — Community migrates to SWIFT Net IP platform
2005 — SWIFT supports industry transformation
2006 — SWIFT 2010 supports community ambition
2007 — SWIFT welcomes its new CEO
2008 — A smarter and simpler SWIFT
8,468 live users | 208 countries | 1,257,110,454 messages (April YTD)
8,332 live users | 208 countries | 3,501,000,000 messages
8,105 live users | 207 countries | 2,865,000,000 messages
7,863 live users | 204 countries 2,518,000,000 messages
7,667 live users | 202 countries 2,299,000,000 messages
2,047,000,000 messages
7,601 live users | 198 countries 1,817,000,000 messages
7,457 live users | 196 countries 1,534,000,000 messages
Advantages of SWIFT:Advantages of SWIFT:
Reliable Reliable Reliability and accuracyReliability and accuracy Immediate responseImmediate response Vast access availabilityVast access availability Efficient standardised serviceEfficient standardised service Automated working processAutomated working process
Organizational structure
The SWIFT Board of Directors delegates the day-to-day management of the Company to the Chief Executive Officer (CEO). The CEO and the Heads of the three Regions, the Groups and the Corporate Functions form the Leadership Council
The Regions:
•The Americas Region •The Asia Pacific Region •The EMEA Region
CHIPSCHIPS((clearing house interbank payment system)clearing house interbank payment system)
CHIPS is the main privately held clearing house for large-value transactions CHIPS is the main privately held clearing house for large-value transactions in the United States, settling well over US$1 trillion a day in around in the United States, settling well over US$1 trillion a day in around 2,50,000 interbank payments. 2,50,000 interbank payments.
It is an electronic payment system owned by 12 private commercial banks It is an electronic payment system owned by 12 private commercial banks constituting the New York clearing house Association.constituting the New York clearing house Association.
CHIPS began its operation in 1971 and has grown to be the world’s largest CHIPS began its operation in 1971 and has grown to be the world’s largest payment system.payment system.
Transaction settled through foreign exchange andTransaction settled through foreign exchange and Euro Euro and and DollerDoller in in CHIPS.CHIPS.
It provides the mechanism for settlement It provides the mechanism for settlement every day ofevery day of payment and payment and receipts of numerous dollar transactions among member bank at New receipts of numerous dollar transactions among member bank at New York. York.
Only 46 of the largest banks dealing in U.S. dollars participate in CHIPS; Only 46 of the largest banks dealing in U.S. dollars participate in CHIPS; 70% of these are non-U.S. banks. Smaller banks have not found it cost 70% of these are non-U.S. banks. Smaller banks have not found it cost effective to participate in CHIPS.[ effective to participate in CHIPS.[
Settlement of transaction through CHIPSSettlement of transaction through CHIPS
BANK OF INDIA
CANARA BANK
SWIFT
AMEX BANK
CITI BANK
FEDWIRE
CHIPS
CITI BANK
AMEX BANK
CHAPSCHAPS(clearing house automated payment system)(clearing house automated payment system)
Its head office is in London.Its head office is in London. CHAPSCHAPS is a British company established in London in 1984, which offers is a British company established in London in 1984, which offers
same-day sterling and euro fund transfers. same-day sterling and euro fund transfers. It includes 14 member banks, nearly 450 participating banks, and is one of the It includes 14 member banks, nearly 450 participating banks, and is one of the
clearing companies within the structure of the Association for Payment Clearing clearing companies within the structure of the Association for Payment Clearing Service.Service.
CHAPS is used by 19 settlement banks including the Bank of England and CHAPS is used by 19 settlement banks including the Bank of England and over 400 sub member financial institutions. In its first year of operation, over 400 sub member financial institutions. In its first year of operation, average daily transactions numbered 7,000 with a value of 5 billion pounds average daily transactions numbered 7,000 with a value of 5 billion pounds sterling.sterling.
In 2004 twenty years later, average daily transactions numbered 130,000 In 2004 twenty years later, average daily transactions numbered 130,000 with a value of 300 billion pounds sterling. with a value of 300 billion pounds sterling.
CHAPS transfers are relatively expensive, with banks typically charging as CHAPS transfers are relatively expensive, with banks typically charging as much as £30 for a transfer much as £30 for a transfer
Working of CHAPSWorking of CHAPS
THANKYOUTHANKYOU