Swift says its cross-border payments already meet G20 target

Aug. 23, 2023

The Swift financial transactions and payments network said 89% of cross-border payments are processed over its network in less than an hour, placing its transaction speed ahead of the G20’s end-to-end target of 75% by 2027.

Background: The G20 has prioritized work to improve cross-border payments in recent years. The Financial Stability Board has managed this work and this year released three major themes that will guide its efforts: payment system interoperability and extension; legal, regulatory, and supervisory frameworks; and cross-border data exchange and message standards.

ISO 20022 Harmonization: The FSB’s focus on cross-border standards led to the Bank for International Settlements’ release of proposed ISO 20022 harmonization requirements. In response, ICBA said ISO 20022 standards for faster payment initiatives promise improved efficiency and transparency but should address the needs of community banks. It encouraged the BIS to issue a second proposed framework to permit community banks more opportunities to assess the benefits and risks of the proposal.

Ongoing Outreach: ICBA’s Bank Operations Committee met with Swift representatives last week to learn more about the organization and discuss hurdles and solutions for community banks