Swift Application
What Is SWIFT?
SWIFT- Society for Worldwide Interbank Financial Telecommunication, is a global messaging network used for secure and standardized communication between financial institutions, primarily for the purpose of conducting international financial transactions. SWIFT provides a platform for banks and other financial institutions to exchange information about financial transactions in a secure and standardized manner.
How Does It Work?
SWIFT payment messages operate on a structured framework consisting of various message fields that contain essential transaction details like amount, reference, sender, recipient, and the recipient’s bank. To ensure seamless automated processing, each of these fields must adhere to the formatting standards and validation rules established by SWIFT. If a message doesn’t conform to these standards, it can be rejected by the SWIFT network. In such cases, the network will generate an error code and communicate it back to the sender.
While SWIFT itself is not a payment system in the traditional sense, its messaging infrastructure plays a vital role in facilitating the payments process. Many national payment systems utilize SWIFT as their messaging network, requiring participants to exchange SWIFT messages to execute payments. Similarly, numerous banks employ SWIFT to conduct transactions between themselves and their customers.
How To Join SWIFT?
Joining the SWIFT network is a significant decision that typically involves a broader strategic purpose, such as gaining access to a payment system or establishing connections with payment service providers. Below is a high-level overview of the onboarding process:
1. SWIFT User Account Registration:
Applicants start by creating a SWIFT user account, providing essential contact details for their company.
2. Onboarding Form:
Next, applicants complete an onboarding form, which outlines their company’s particulars and the reasons for seeking SWIFT membership. A SWIFT relationship manager will then engage with the applicant to discuss connectivity options and the types of SWIFT messages required. Following this, a commercial quote is provided.
3. Commercial Quote Acceptance:
Upon acceptance of the commercial quote by the applicant, SWIFT proceeds to validate all company details and confirms the applicant’s eligibility to formally apply for network membership.
4. Documentation Submission:
The applicant is required to furnish various documents, including the certificate of incorporation, articles of association, and financial statements. Additionally, they need to submit an order for the necessary SWIFT products and services.
5. Application Acceptance:
SWIFT reviews the application and, if approved, issues a Bank Identification Code (BIC). This BIC is the unique code that other parties will use to send messages to the applicant.
6. Connectivity Setup:
The applicant must then establish the appropriate connectivity to the SWIFT network. This can be done by the applicant themselves or by requesting SWIFT’s assistance.
7. Network Activation:
The final step involves the applicant going live on the SWIFT network, with activations typically scheduled on a Saturday.
The SWIFT application process can be enhanced by ABM by helping you identify, engage, and build relationships with target institutions.
How can ABM help you?
ABM can be a valuable complement to the SWIFT application process by helping you identify, engage, and build relationships with target financial institutions or organizations. It enables you to tailor your messaging, provide relevant content, and foster connections that can ultimately lead to successful SWIFT network membership.
