SWIFT gpi - the road to transparency

57328 - October 2017 © SWIFT 2017 Implementing SWIFT gpi When adopting SWIFT gpi, banks can decide between accessing the payments Tracker via MT 199 messages or via APIs. For Citi, the API model has proved to be the best fit. “This aligns with our overarching strategy of making communication between our systems and our clients as efficient and future-proof as possible,” says Saad Ur Rahman, Payments Product Manager, Citi. The implementation itself progressed quickly and smoothly. “The collaboration with the SWIFT team worked very well and we didn’t face any major issues” comments Rahman. Citi is working to incorporate gpi information into its existing client facing infrastructure and portals. They have integrated and launched gpi data into their Payment Flow Manager (PFM) tool, Citi’s online payment portal designed specifically for FI clients, and are actively working to expand access of this information to pilot corporate clients followed by a broader corporate client commercialization through CitiDirect BE®. This integration is being facilitated by Citi’s connection to the SWIFT gpi cloud via the API model which provides centralized, standardized and real time payment information to the connecting gpi banks. Chaturvedi says many clients are aware of SWIFT gpi and are enthusiastic about the visibility that it provides. “We have sophisticated clients who are driving standardisation in corporate cash management. These clients understand the transformative power of gpi” she says. “We also get requests from clients who want to improve their awareness of gpi and understand how this will benefit their corporate cash management.” Looking forward Citi is currently working on adopting Phase 2 of SWIFT gpi, which will introduce additional functionality such as the instant Stop and Recall of a payment. “We are excited about the prospect of standardisation of information and processes when transactions are returned,” says Chaturvedi. “I think this is going to offer significant operational efficiency for the bank as well as for our clients.” Rahman also sees significant value to the ‘Stop and Recall’ functionality. “The risk of fraudulent payments is only increasing given what we have seen in cyber attacks across the world. In certain circumstances the Stop and Recall functionality will improve the chances of stopping and recovering fraudulent payments before extraction from the system”. Lessons for other banks The more widely gpi is adopted, the greater its value to the industry as a whole. For other banks considering adopting SWIFT gpi, Rahman has some advice to offer. “If you are very clear on what your strategy is and where you want to go, you will find it easier to make decisions,” he says. “Having senior buy-in is also very important – enabling a branch on gpi requires investment dollars, so senior support is needed in order to progress the initiative.” With gpi included in SWIFT’s 2017 and 2018 Standards Releases, Rahman says this is giving new impetus to banks. “Now is the time to act,” Rahman concludes. “We believe that this is the right thing to do for the industry. It has been a great experience working with the SWIFT team, and any bank which is looking to join gpi should be comfortable that they are in good hands.” Mark McNulty, Global Head of Clearing& FI Payments at Citi believes that progress on gpi through 2017 has been very strong but there is much more to do. “It has been very pleasing to see the number of banks signing up through 2017 but we now need to move into a new phase whereby gpi becomes the standard in transacting payments across the SWIFT network. Only then will the true potential of gpi be unlocked. Citi is fully committed to gpi which is clearly illustrated by our early launch and integration into our FI client portal, Payment Flow Manager. We will continue to roll this out across our network in 2018 with integration into our client channels. Watch this space! ”. “The risk of fraudulent payments is only increasing given what we have seen in cyber attacks across the world. In certain circumstances the Stop and Recall functionality in Phase 2 of gpi will improve the chances of stopping and recovering fraudulent payments before extraction from the system”. Saad Ur Rahman Payments Product Manager, Citi “It has been very pleasing to see the number of banks signing up through 2017 but we now need to move into a new phase whereby gpi becomes the new standard in transacting payments across the SWIFT network. Only then will the true potential of gpi be unlocked. Citi is fully committed to gpi which is clearly illustrated by our early launch and integration into our FI client portal, Payment Flow Manager.” Mark McNulty Global Head of Clearing & FI Payments, Citi