For an inexplicably long time, the cross-border payments industry was stuck in the dark ages. Banks and other financial institutions had to deal with the outdated models slowing down the international transactions, high transfer and conversion costs, eventually result in unreliable and expensive experiences.  

Today’s cross-border payment customers, be corporate or consumers, desire secure, fast, reliable, frictionless, transparent, and cost-effective payments. This article touches on the role of digital banking in the lucrative world of cross-border payments and how SWIFT gpi facilitates a seamless cross-border payments experience.  

Undoubtedly, cross-border payments have been a hot topic among corporate and financial institutions, such as sending international money had never been easy. There was no transparency of the money movement, its route, and its date of delivery.  

Payments were bogged down in the multiple hoops of the bank’s route before reaching the beneficiary’s bank account, causing accruing fees and delays. What’s more? Financial institutions have had to invest significant efforts and headcount to manage foreign exchange risk (FX), liquidity, and respond to customer inquiries, investigate issues, deliver responses, and track status. 

Infact, earlier there was not all response for experiencing low-value cross-border payments in the world, directly from the payee bank accounts to the beneficiary. Fortunately, with the SWIFT Go, a transformative new service for consumers and SMEs to have the secure, predictable, fast, low-value cross-border payments globally. 

With that taken in account, it has been expected that 25% of all the cross-border payments on SWIFT sent via gpi, representing more than $300 billion in daily value. 

Cross-border payments: a lucrative world for digital banking


Unpredictable path of the Cross Border-Payments Industry 

The market is not a straight road; the payment industry is enormously growing, leading to increased commerce trades. According to McKinsey, international payments revenues are approximately $200 billion globally. Therefore, it won’t be wrong to say that opportunities are quite enticing, paving a wave for the development of the payments community and building additional features on top of the financial network. 

Regional banks might require the capabilities to witness the FX risk assessment. Sometimes, initiating FX transactions online and customized customer self-service options of the banks are not up-to-the-mark to experience seamless cross-border transactions. Other challenges include complications in accessing real-time rates and limited multi-currency exchange capabilities because of the legacy payment systems.  

In addition, cross-border payments of regional banks are highly dependent on large banks. However, modern technology continues to work at surprising speeds, the recent years have produced remarkable progress in the fintech sector. A modern yet intuitive solution that offers transparency of conversion fees and allows customers and member banks to see the real-time process is most needed! 

IMS SWIFT gpi, banks can benefit by connecting all the parties in the payment value chain end-to-end and delivering value to their customers with same-day availability of funds. Customers have access to unaltered remittance information, can track their payments at every stage and have complete transparency on fees.   


Cross-Border Payments ensure full transparency and access to data

Many banks admitted that they hadn’t received any RFP (Request for Proposal) from corporates or even customers without mentioning the transparency for the cross-border payments. That’s where IMS SWIFT gpi provides banks with a quick and cost-effective platform to adapt to the new norm of SWIFT gpi for real-time cross-border payments. Banks can now address all activities for sending international payments from instruction to final settlement to the beneficiary. 

As a matter of fact, if banks and other financial institutions don’t offer the services corporates and consumers demand and expect, they are far behind in today’s aggressive payment ecosystem. Another important fact where IMS SWIFT gpi can help you is to enhance the data transparency to let consumers see the movement in real-time, reducing the number of customer support calls by approximately 40%. 

Allowing customers greater control and access to their data gives birth to the spirit of the transparent payment ecosystem with full visibility and control over their payment accounts. We cordially welcome this shift towards customer-centric transparency of payments information. 

IMS solution offers the facilities to make your process more efficient, all because of existence of streamlined facilities of: validation, enrichment, duplicate control, and compliance modules, and 100% STP. 


Transaction Management and Smart Routing/ Manage SWIFT GPI without disrupting the existing system 

In this fast-moving world, everyone expects transactions to happen in minimal period of time. Eventually, the need for experiencing improved transparency for the payment status is increasing.  

Driven by the customer’s expectations transparency, certainty, speed, and tracking, banks are working on providing real-time payments in various countries, be that Europe, Australia, Singapore, and United States. These countries are setting up instant payment clearing systems available 24×7, and offering fast turn-around SLA with real-time confirmations. 

That’s where IMS platform jumps into the picture to cure customer’s issues of dealing with cross-border payments. With IMS SWIFT gpi, banks can utilize SWIFT SSI, GPI directories. IMS routing algorithms can identify the receiver’s correspondent banks to qualify the sender’s correspondent bank and prioritize them based on ETA and fees.  

Our solution hosts decision trees and algorithms that automatically engage in bank routing decisions concerning each payment instruction. Furthermore, this platform is not only helping banks to generate and send the cross-border payments to beneficiary, but it also aims to receive and improve the transparency and security of the payments.  


All in all, a multi-dimensional problem demands a multi-faceted solution that offers a simplified and sophisticated FX risk management, transparency. Also, it provides access to regional banks to explore the lucrative cross-border ecosystem.