Uptake and customer experiences
As mentioned above, Commerzbank was an early adopter of AMH. The bank took the system to process all of its FileAct and InterAct traffic. In 2009, the bank migrated all related flows from Mint to AMH, including all EBA Step2 traffic. However, this bank has subsequently headed to Intercope’s BOX for Swift. Pictet & Cie in Switzerland decided on a similar route, having been a long-standing Mint customer. AMH was taken to integrate with the private bank’s core banking system, and provide connectivity to banks and other financial institutions for its payments and securities transactions. The messaging hub would also facilitate connectivity to financial networks such as Swift, SIC and euroSIC as well as the bank’s Sungard-derived private network, AmbitNet, which facilitates intrabank Swift messaging between branches. In 2011, four financial institutions in Israel – Bank of Israel
(the central bank), Tel Aviv Stock Exchange, Mizrahi Tefahot Bank and an unnamed client – signed for AMH. All were long-standing Mint users; Bank of Israel had been running it since 2004. Each user came to a decision to move to AMH individually. The first go-live took place before the end of 2011, the other three followed in Q1 2012. There is also KBC, a Belgium-based banking group, which used to run Mint before moving to Swift Alliance. The initial idea at KBC was to build a messaging hub internally, according to Valerie Morel, ex-head of sales and marketing at Arkelis, so Alliance was installed as a Swift interface. Swift was originally in discussions with KBC about how it could assist with the build route and use the components of AMH rather than deploying the complete hub. However, implementing AMH in full, rather than incorporating some of its components into KBC’s in- house development, offered faster time-to-market while still being within the budget, she claimed. Go-live was expected in early 2013. However, not all Mint users have opted for the AMH route.
In May 2011, Sterci claimed that more than ten Mint users had moved to its Stelink solution, including Toronto Dominion Bank. Others have opted for its Swift service bureau solution, including Banque Cantonale de Fribourg and Banque Cantonale de Geneve. Of non-Mint users, there is Bank of America Merrill Lynch, which took AMH for FileAct messaging, as its existing solution could not support SwiftNet 7.0. This was a new-name win for Swift.
The central bank of Bangladesh, Bangladesh Bank, had gone live with its new real-time gross settlement (RTGS) service, supported by Swift in early 2016. During the first phase of operations, Bangladesh Bank selected Swift as an alternative channel to VPN connectivity, allowing domestic transfers through both means equally. Intesa Sanpaolo signed up for Swift’s 3SKey service to
provide a single token for its corporate clients to communicate with the bank across all channels. Intesa Sanpaolo already uses Swift-Net connectivity for corporates and has worked
with a variety of corporate treasuries and payment factories to exchange financial information through Swift. Meanwhile, Deutsche Bank’s global transaction banking division also extended its use of Swift’s 3SKey service to provide a single token for customer authentication on its electronic service Autobahn App Market. The Payments Market Practice Group (PMPG) endorsed the use of SWIFT messages for compliance with new intraday liquidity reporting requirements. SWIFT’s messages underpin a rulebook created by the Liquidity Implementation Task Force (LITF) to support compliance with the Basel Committee on Banking Supervision (BCBS). Following community-wide consultation, the PMPG has made the decision to endorse the LITF guidelines, helping to ensure broad industry adoption. Swift gave the go-ahead for Iranian banks to reconnect to its network. This followed the European Union (EU) announcing that the ‘Implementing Legislation’ had taken effect – which means an end to sanctions imposed on Iranian banks under EU Regulation in March 2012. Several Iranian private banks including Dey, Saman, Pasargad, and Parsian in addition to two state-run banks – Maskan and Keshavarzi – are currently connected to the Swift network.
In 2016, HSBC became the first customer of SWIFT’s new FX Business Insights information service. The solution currently has more than 8,300 users. In another first, Nordea Bank became the first subscriber to SWIFT’s new Payments Data Quality service. The new service of SWIFT helps financial institutions comply with new requirements stemming from the Financial Action Task Force’s (FATF) Recommendation 16.
SWIFT also bagged its first Indian clients as ICICI bank and
AXIS bank opted for its global payments innovation initiative. The first phase will focus on business-to-business payments, leveraging SWIFT’s messaging platform. Other successes during the year included five central securities depositories (CSDs) – Euroclear Belgium, Euroclear France and Euroclear Nederland, VP Securities (Denmark) and VP LUX (Luxembourg) selecting the SWIFT VAN solution to connect to the new pan- European securities settlement platform. Swift’s initiative to improve the cross-border payments experience continued to advance rapidly in 2016 with a number of banks joining in the initiative. As of July 2016, 73 banks had joined this initiative. Recent sign ups included Alfa- Bank, Axis Bank, Banco de Crédito del Peru, Banco do Brasil, Bangkok Bank, Bank of Nova Scotia, Banque Européenne d’investissement, CaixaBank, Canadian Imperial Bank of Commerce, Credit Agricole, CTBC Bank,
E.Sun Commercial Bank, Fifth Third Bank, ICICI Bank, Itaù Unibanco, Mashreq Bank, Promsvyazbank, Rabobank, Svenska Handelsbanken, Swedbank, TMB Bank and U.S. Bank. In August 2016, Brazil based Banco Original adopted
Swift’s The Know Your Customer (KYC) Registry – a centralised repository which maintains a standardized set of information about financial institutions required for KYC compliance. Since December 2014, The KYC Registry has been adopted by
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