SWIFT: A Race to New Markets

January 30, 2002

Abstract

Boston, MA, USA January 30, 2002

 

The Society for Worldwide Financial Telecommunication (SWIFT) has been a major force in the global banking industry since the 1970’s. The organization is now leveraging that reputation to expand into other areas of financial services.

In a new report entitled “ ,” Celent Communications looks closely at the development of the SWIFT organization and its future plans. SWIFT was founded in 1973 and, upon its launch in 1977, quickly became a major part of the worldwide banking system. This system connects approximately 7,200 institutions in 192 countries, supporting over 240 message standards for payments, securities, treasury, derivatives and other trade services. It is estimated that the average daily value of payments messages on the SWIFT network exceeds US$5 trillion.

“SWIFTNet holds a great deal of promise, and is the future direction of the SWIFT organization,” according to Fritz McCormick, author of the report. He adds, “Celent believes that SWIFT, leveraging its massive reputation in the industry, is not likely to lose volume while migrating to the new network; its users will continue with SWIFTNet. The real question is how the new service will affect SWIFT’s attempts to pull in additional securities-based volume.”

SWIFT’s work in standards is pressing forward at the same time. The organization’s integration with the FIX Protocol Limited organization will enable it to greatly spread its influence into the securities markets. Work on the ISO 15022 standard will further this influence by creating a strong front-to-back-office messaging link for firms, helping to make STP a reality.

A Table of Contents is available online.

of Celent Communication's Institutional Securities & Investments and Wholesale Banking research services can download the report electronically by clicking on the icon to the left.

        

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA  January 30, 2002

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 5
SWIFT OVERVIEW 6
  Background 6
  Standards 8
SWIFTNET 12
SECURITIES GROWTH 16
FINANCIAL FUSION AGREEMENT 18
CONCLUSIONS 20

 

        

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