SWIFT issues second Open Banking API

SWIFT has published a new open API interface standard that allows a payer’s financial institution to allocate advance funds.

SWIFT has released its Pay Later API standard in January 2019 to push its effort to expand its global API library in partnership with financial institutions, merchants and fintechs. SWIFT representatives have stated that the company is uniquely positioned to tackle the problem of fragmentation in standards globally and that today, payment-based messages still account for nearly 50% of its traffic, while 43% now concerns security transactions. The remaining traffic flows to treasury transactions. Linking more than 11,000 global financial institutions in more than 200 countries and territories, over 15 million financial messages per day (five billion messages a year) are exchanged on SWIFTNet.

SWIFT’s message format allows for scalability, so it has progressively expanded to deliver services to a variety of organisations, including financial institutions, brokerage institutions, corporate business houses, securities dealers, clearinghouses, foreign exchange and money brokers, and treasury market participants.

With user and entity behavior analytics to detect abnormal and anomalous activities, financial institutions can analyze SWIFT logs along with the rest of infrastructure logs. This provides complete visibility in addition to rapid detection and correlation of SWIFT events alongside other infrastructure-related incidents.

Source: www.thepaypers.com