What You Need to Know to Prepare for SWIFT GPI’s Universal Confirmations

One of the most complicated facets of banking is cross-border payment. Most of the early solutions lacked two crucial things: transparency and speed.

Thankfully, technology has led to the rapid evolution of payment systems. Financial institutions can now provide accurate information almost instantly and comply with increasingly high customer expectations.

Many elements of commerce depend on banks being able to provide real-time payment confirmation. Universal Confirmation simply aims to ensure that funds have been credited to the beneficiary account. 

What Is Universal Confirmation, and Why Do We Need It?

What Is a Payment Confirmation?

Payment confirmation is a kind of message or alert that lets all the parties involved in a transaction know that a payment has successfully pushed through. These parties involve the following: – the originating bank – the receiving account – the owner of the account from the originating bank

Why Did SWIFT Make Payment Confirmations Mandatory?

Banks are major facilitators of the exchange of money, which is one of the driving forces of modern trade. Payment confirmations are all but necessary to ensure that the money has been properly debited from and credited to the correct accounts.

What Do Existing GPI Members Need to Do?

All customer payments (MT 103 on FIN) will require a payment confirmation by the end of 2020. This means that members whose branches—including all country corridors—aren’t all signed up to SWIFT GPI yet still need to provide confirmations.

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