SWIFT gpi newsflash Exclusively for gpi Application Providers

November edition

SWIFT gpi newsflash
Exclusively for gpi
Application Providers

Services and initiatives dashboard
 Services                                 Status
 Services for financial institutions
 Customer credit transfers                LIVE
 Cover payments                           LIVE
 Instant payments                         LIVE (Use case 1 & 2)
 Financial institutions transfers         LIVE
 SWIFT initiative for low value
                                          PILOT
 payments
 Services for corporates
 Pay and trace                            LIVE
 Inbound tracking                         LIVE
 Corporate-to-bank APIs                   IN DESIGN
 Services to reduce friction
 Case resolution                          LIVE
 Stop and recall                          LIVE
                                          CONTROLLED LIVE (Beneficiary
                                          account verification)
 Pre-validation                           IN DEVELOPMENT (Payment
                                          validation)
                                          IN DESIGN (Fee prediction)
 Universal Confirmations program
 Basic Tracker                            LIVE
 Batch confirmations                      LIVE
 gpi and ISO 20022 program                Advanced Rulebook available

For gpi Application Providers only – Do not distribute without SWIFT prior consent   2

Universal gpi adoption

New joiners

4,170+ financial institutions have now signed up to SWIFT gpi.
New joiners since our last newsflash include African Banking Coorporation
Zimbabwe, Banque Nationale D’Investissement, Cairo Amman Bank, Itau Bank.

To see the full list of gpi members, check out our member section on swift.com/gpi.

Live services - Facts and figures

Nearly 1,200 gpi members are live today with gpi customer credit transfers, covering
150 of the world’s 180 currencies. Every day more than one million cross-border
payments, worth some $300 bn across 2,325 country corridors are sent over gpi.

Since our last Newsletter in October the following gpi members have gone live:
AK Bars Joint-Stock Commercial Bank, Banca Comerciala “Moldindconbank” ,
Banco BIC Portugues, Banco Continental Saeca, Banco Credicoop Cooperativo,
Banco de Chile, Banco de Reservas de la Republica, Banco Macro S.A., Bank Al-
Jazira, Bank für Tirol und Vorarlberg Aktiengesellschaft, Bank of Changsha, Bank of
Taiwan, Bank of Xi’an, Banka Ekonomike, Bankhaus Lampe, Banque Europeenne
D'investissement, Beijing Rural Commercial Bank, Belarusbank, BKS Bank Ag,
Burgan Bank A.S., Crown Agents Bank Limited, Ecobank Togo, First Abu Dhabi
Bank, GCB Bank Limited, Guangxi Beibu Gulf Bank CO., Halyk Savings Bank of
Kazakstan, Helaba Landesbank Hessen-Thüringen, I&M BANK LTD, JSC ‘Bank
Centercredit, Kina Bank Limited, La Poste Tunisienne, Linshang Bank Co. LTD,
Ningbo Commerce Bank, Oberbank, Petrolimex Group Commercial Joint Stock
Bank, Raiffeisen Schweiz Genossenschaft, Republic Bank Limited, SBM Bank
(Mauritius), Sumitomo Mitsui Trust Bank, Taiwan Shin Kong Commercial Bank,
Taiwan Business Bank, The Bank of Kyoto Limited, The Co-Operative Bank of
Kenya LTD, The Gifu Shinkin Bank, The Korea Development Bank, The Norinchukin
Bank, The Senshu Ikeda Bank, The Shizuoka Bank, Tianjin Rural Commercial Bank,
Tinkoff Ban, VP Bank AG, Yantai Bank CO., Yuanta Commercial Bank Co., Zhejiang
Chouzhou Commercial Bank, Zuercher Kantonalbank.

810+ gpi members are now actively using our gpi cover payments service
resulting in 74% of all SWIFT cover payments sent as gpi on a daily basis.
With respect to the gpi stop and recall service, over 200 gpi members are
successfully sending stop and recall requests to the Tracker.

Universal Confirmations is now live

In 2018 we set out on an ambitious journey to unlock the power of end-to-end
payments tracking for our entire community. It started with the introduction of the

For gpi Application Providers only – Do not distribute without SWIFT prior consent   3

unique tracking code (UETR) attached to every key SWIFT payment message and
relayed throughout the transaction (or UETR), which came into effect with the 2018
Standards Release.

The next step on that journey was to guarantee the outcome of every customer
payment sent on SWIFT with confirmation that the funds have been credited to the
end beneficiary, rejected or transferred outside of the SWIFT network.

On 22 November, Universal Confirmations officially went live across the SWIFT
network, and we’re delighted to report that thousands of financial institutions are
confirming their incoming MT 103 payments. Many non-gpi banks also started to
leverage the benefits of the Basic Tracker to manually confirm payment status and
make use of the simple search and tracking features offer by this tool. This delivers
significant operational benefits for all SWIFT customers, but crucially also lays the
foundations for our ambitious plans for a bold new future for payments on SWIFT.

Thanks to the SWIFT gpi community for their support in making this initiative a
success.

Portfolio evolution

Financial institution transfers is live

Together with the participation of 16 early adopters (Alfa Bank, Barclays
Brown Brothers Harriman, Citco, Citi, CLS, CME Group, Deutsche Bank
Gazprombank, HSBC, Intesa Sanpaolo, J.P. Morgan, LCH) we’ve successfully gone
live with the gpi financial institution transfer service. Financial institutions are now
able to track and trace both incoming and outgoing financial institution transfers sent
over SWIFT and key non-SWIFT clearing and settlement channels. Institutions also
receive confirmation when the payment reaches the beneficiary’s account servicing
institution and when it is credited on beneficiary’s account.

For more information, please contact SWIFTFORPROVIDERS@swift.com.

SWIFT’s initiative for low value payments
As communicated in September and at Sibos, we are moving full steam ahead with
the new initiative for low value payments.

Already several pilot banks have successfully exchanged their first payments in test
and training. To date we have 23 financial institutions who have joined the initiative
and are working towards a controlled go live by mid 2021.

As a reminder, if you missed our session at Sibos you can still replay it to hear the
view on the value of SLVP for the community.

For gpi Application Providers only – Do not distribute without SWIFT prior consent   4

gpi for Corporates keeps evolving
This month, we’ve successfully gone live with Notification Management, a set of
optional capabilities allowing gpi for corporates banks to configure the processing of
pay and trace and inbound tracking notifications. Banks can set up the criteria to only
enable the reception of g4C notifications for a list of predefined customers and/or
transactions. This adds to the value of inbound tracking, launched early October,
providing g4C banks’ customers with visibility and insights on their incoming
payments.

In 2021, we will look into adding pre-validation services to the portfolio and explore
how gpi banks can offer g4C capabilities to their customers with minimal IT
developments, by delegating to SWIFT the formats (like APIs or ISO) that are not
supported by the bank.

Key Operational News

Improving Tracker confirmations
As you’re aware, to date the Tracker accepts confirmations from the second to last
bank in the transaction chain. However, as of December 5th, the Tracker will no
longer invalidate the ACCC status message sent by the second to last bank when an
MT 103 with the same UETR is forwarded to the beneficiary bank.

Although this will not impact gpi members directly, it’s important to note that if your
clients- as an account servicer- are forwarding an MT 103 as credit advice to their
customers after crediting the funds, they must confirm the credit to the Tracker.

For more information, don’t hesitate to take a look at the Universal Confirmations for
MT 103 Frequently Asked Questions (page 13).

Universal Confirmations score measurement
On Monday December 21st, (three weeks after the SR 2020 go live date of
November 22nd) the Basic Tracker and gpi Observer will display the Universal
Confirmations score of every MT 103 received from non-gpi BIC received during the
week of November 23rd and ending on November 29th .

Banks who have not reached the 80% confirmations threshold that week, will be
marked orange and those who have not confirmed above 80% their inbound
payments since the past twelve weeks will be marked red. To get their score back
up, your clients should immediately start confirming their inbound payments using
one of the existing channels: Basic Tracker GUI, MT 199, API or CSV batch.

For more information, don’t hesitate to take a look at the Universal Confirmations for
MT 103 Frequently Asked Questions (page 20) or contact
SWIFTFORPROVIDERS@swift.com .

For gpi Application Providers only – Do not distribute without SWIFT prior consent   5

Application provider engagement and
communications
With the Universal Confirmation self-attestation program, SWIFT is making public on
swift.com the payment application providers who are committed to making the
Universal Confirmations community mandate in 2020 a success.

So far, 22 applications have shared their commitment, and information can be
accessed here.

Further details can also be found along with the self-attestation template here.

If you have committed to support universal payment confirmations as per the
requirements, feel free to send an email to swiftforproviders@swift.com.

For gpi Application Providers only – Do not distribute without SWIFT prior consent   6