swift ( society for worldwide interbank financial telecommunications) it’s a registered...

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 reliability

515 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


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


900 customers | 40 countries 62,500,000 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








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


5,632 live users | 151 countries688,000,000 messages


4,625 live users | 126 countries 518,000,000


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



2,047,000,000 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

swift ( society for worldwide interbank financial telecommunications) it’s a registered...

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