SWIFT ( SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATIONS)

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SWIFT ( SOCIETY FOR WORLDWIDE INTERBANK
FINANCIAL TELECOMMUNICATIONS)

• Its a registered cooperative society in
  Brussels, Belgium.
• Owned by about 250 banks in Europe and North
  America.
• Spread over 208 countries.
• 8332 live users , 3.50 billion messages.
• Its a communication network for international
  financial market transactions linking
• effectively more than 25000 financial
  institution throughout the world.
• Every member has allotted bank identifier codes.
• Centers located in Brussels, Amsterdam and
  Culpeper,Verginia.
• Swift system enables the member banks to transact
  among themselves quickly
• 1) International
  payments
• 2) statements
• 3) other
  messages ( within seconds)

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CEO Lázaro Campos has appointed as Chief
Executive Officer in April 2007. SWIFT
reorganizes the company operationally and
regionally in order to meet specific customers
requirements.

• Leonard H. Schrank has served as CEO from 1992
  until April 2007.
• Career has consisted of managing
  European and US organizations
• that provide information services and
  software solutions to the
• financial services industry. Upon
  graduating from MIT, co-founded
• a software company in Cambridge
• SWIFT opens four new offices-
• SWIFT Brazil,
• SWIFT Mumbai
• SWIFT Dubai and
• SWIFT Johannesburg.
• SWIFT Distributed Architecture programme
  completes Phase One successfully, SWIFT records
  two peaks in the same week in the message traffic
  1,63,27,668 messages on Wednesday 23 January and
  1,65,50,075 messages on Friday 25 January a
  first in SWIFT history. First live SEPA (Single
  Euro Payments Area) Credit Transfers is sent from
  major European banks over SWIFT Net on 28 January
  2008.
• SWIFT celebrated its 35th anniversary

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• SWIFT ( GROWTH STORY)
• 1973 SWIFT is born
• Forty square meters of office space in the
  centre of Brussels,
• a handful of people and an ambitious idea.
  Supported by 239 banks in 15
• countries

239 members 15 countries 0 messages
1974 Partnership principles established
Financial institutions planning to use SWIFT for
messages are heavily involved in the development
process, ensuring effectiveness and practicality
503 customers 17 countries 0 messages
1975 Emphasis on security and reliability
515 customers 17 countries0 messages
1976 First operating centers open
515 customers 17 countries0 messages
1977 SWIFT goes live
Albert, Prince of Belgium and now King, sends the
first message. The initial group of members has
grown to 518 commercial banks in 22 countries
518 customers 22 countries3,400,000 messages
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1984 Knowledge for the future
1978 Our first ten million messages
586 customers 25 countries 21,600,000 messages
1979 Opening of North American operating centre
683 customers 30 countries34,500,000 messages
1980 First Asian countries connect
768 customers 36 countries46,900,000 messages
1981 ST100 interface introduced
900 customers 40 countries 62,500,000 messages
1982 Financial stability achieved
1,017 customers 44 countries79,900,000
messages
1983 1,000th member
1,046 customers 52 countries104,100,000
messages
1,188 customers 54 countries 129,900,000
messages
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1985 Satellite communication enhances services
1,946 customers 58 countries157,220,000
messages
1986 Launch of value-added services

• 1987 SWIFT goes into securities

2,161 customers 61 countries 192,010,000
messages
2,360 customers 64 countries 222,300,000
messages
1988 Total support environment created
2,537 customers 76 countries 255,111,000
messages
1989 SWIFT as a forum for the financial
community
2,814 customers 78 countries 296,070,000
messages
1990 Sibos visits Berlin
3,049 customers 83 countries 332,895,000
messages
1991 Smithsonian recognizes SWIFT
3,243 customers 87 countries 365,159,000
messages
1992 Exceeding our targets
3,582 customers 94 countries 405,541,000
messages
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1993 A new vision a new reality
3,986 live users 106 countries 457,000,000
messages
1994 Adding value for the customer
4,625 live users 126 countries 518,000,000
1995 Entering a new era
5,229 live users 137 countries 603,000,000
messages
1996 Reducing costs, managing risk, improving
automation
1997 Building for tomorrow Announcement
of SWIFT Net
5,632 live users 151 countries688,000,000
messages
6,176 live users 164 countries 812,000,000
messages
1998 Renewing SWIFT for the future
6,557 live users 178 countries 937,000,000
messages
1999 SWIFT leads and delivers
6,797 live users 189 countries 1,059,000,000
messages
2000 Swift's 'e' future takes shape
1,274,000,000 messages
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2001 SWIFT Net goes live
7,457 live users 196 countries 1,534,000,000
messages
2002 First SWIFT Net FIN message sent
7,601 live users 198 countries 1,817,000,000
messages
2003 SWIFT turns 30
2,047,000,000 messages
2004 Community migrates to SWIFT Net IP
platform
7,667 live users 202 countries 2,299,000,000
messages
2005 SWIFT supports industry transformation
7,863 live users 204 countries 2,518,000,000
messages
2006 SWIFT 2010 supports community ambition
8,105 live users 207 countries 2,865,000,000
messages
2007 SWIFT welcomes its new CEO
8,332 live users 208 countries 3,501,000,000
messages
2008 A smarter and simpler SWIFT
8,468 live users 208 countries 1,257,110,454
messages (April YTD)
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Advantages of SWIFT

• Reliable
• Reliability and accuracy
• Immediate response
• Vast access availability
• Efficient standardised service
• Automated working process

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• Organizational structure
• The SWIFT Board of Directors delegates the
  day-to-day management of the Company to the Chief
  Executive Officer (CEO). The CEO and the Heads of
  the three Regions, the Groups and the Corporate
  Functions form the Leadership Council
• The Regions
• The Americas Region
• The Asia Pacific Region
• The EMEA Region

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CHIPS(clearing house interbank payment system)

• CHIPS is the main privately held clearing house
  for large-value transactions in the United
  States, settling well over US1 trillion a day in
  around 2,50,000 interbank payments.
• It is an electronic payment system owned by 12
  private commercial banks constituting the New
  York clearing house Association.
• CHIPS began its operation in 1971 and has grown
  to be the worlds largest payment system.
• Transaction settled through foreign exchange and
  Euro and Doller in CHIPS.
• It provides the mechanism for settlement every
  day of payment and receipts of numerous dollar
  transactions among member bank at New York.
• Only 46 of the largest banks dealing in U.S.
  dollars participate in CHIPS 70 of these are
  non-U.S. banks. Smaller banks have not found it
  cost effective to participate in CHIPS.

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Settlement of transaction through CHIPS
S W I F T
BANK OF INDIA
AMEX BANK
F E D W I R E
C H I P S
AMEX BANK
CANARA BANK
CITI BANK
CITI BANK
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CHAPS(clearing house automated payment system)

• Its head office is in London.
• CHAPS is a British company established in London
  in 1984, which offers same-day sterling and euro
  fund transfers.
• It includes 14 member banks, nearly 450
  participating banks, and is one of the clearing
  companies within the structure of the Association
  for Payment Clearing Service.
• CHAPS is used by 19 settlement banks including
  the Bank of England and over 400 sub member
  financial institutions. In its first year of
  operation, average daily transactions numbered
  7,000 with a value of 5 billion pounds sterling.
• In 2004 twenty years later, average daily
  transactions numbered 130,000 with a value of 300
  billion pounds sterling.
• CHAPS transfers are relatively expensive, with
  banks typically charging as much as 30 for a
  transfer

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Working of CHAPS
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