The SWIFT message: A client oriented service, rather than a technological show-off
I have been in the Fintech industry for about 5 years and I always hear people saying they offer state-of-the-art technology, breakthrough technology, big data, machine learning, algorithmic something, artificial intelligence, Blockchain, distributed ledger, etc. But in the end, what is the point in investing so much in technology other than to bring better value to your clients. In some cases, I have the impression that it is technology for the sake of technology, it is a matter of hype and trendy concepts.
This week in Kantox, we have just released a breakthrough innovative feature, simply because we listened to our clients, an innovation that banks might have offered years ago, while they were more focused on short-term profits rather than providing value to their customers.
Many of our clients come to us, not only for the currency exchange services but also for international payments. In other words, we offer them global payments solutions for transferring funds to foreign suppliers, partners, employees, etc, and we are aware of the problem they face, as they lose traceability of the payment until the moment it is received by the beneficiary.
For example, when a manufacturer pays a supplier in China, the funds might take several days to be credited to the supplier. More often than not, the payment “arrives” to the beneficiary bank and it remains stuck somewhere without being credited to the supplier’s bank account until, the supplier calls his client with the “where is my money?” appeal. Given the complexity of China’s local banking system, the funds are sometimes stranded in one of the regional clearing houses, causing a dramatic delay in the payment process… That is if you are lucky and the funds are not returned to the payer in Europe! In other words: a proper nightmare.
Kantox is a member of SWIFT and we make use of SWIFT messaging to process international payments on behalf of our clients, so when they face a headache like the one mentioned above, they ask us to provide them the SWIFT (MT103) message so they can locate and / or track the payment in a quick way. Furthermore, it serves as a valid proof of payment for their supplier that might speed up the goods delivery process.
The SWIFT message, a great advantage for importers
Ignacio Sanchez Miret, treasurer and risk manager at the HMY Group welcomes the reliability of the SWIFT message: “With the Swift in our hand, we have one more evidence that the payment has been processed, going a step further from the “bank slip” we used previously, which did not guarantee the beneficiary the amount of the payment from our account.”
To make our clients’ experience smoother, we recently decided to “attach” the SWIFT messages to our outgoing payments. In other words, every time we order a payment, the client and the beneficiary (in the case of payment to a 3rd party), immediately receive the SWIFT message so they are able to track the payment and shorten the cycle, they never go blind.
Believe it or not, this is a global breakthrough!
To date, banks are able to provide you with the SWIFT message but they will not do it unless you ask for it, either by phone or by email. It is also a quite long process; 1 or 2 days in some cases, and almost never for free.
At Kantox, we have developed a piece of technology to automate the process, allowing us to provide SWIFT messages for free and in real-time. It is not “rocket-science multi-ledger technology”, it is a simple feature that brings a huge value to corporate clients.
Here you go. The kind of innovation based on listening to your customers.
This article was originally published at Philippe Gelis’ Linkedin pulse