DBS Bank's business clients in Singapore and Hong Kong can now track their cross-border payments in real time, so they can manage their cash better.
In the past, companies have struggled to track cross-border payments as these transactions are routed through multiple banks, each with different processing times.
But now companies can find out, for example, whether funds have been received by the beneficiary or whether they are still being processed.
They will be able to know the amount being credited into the beneficiary's account, the foreign exchange rate applied and the time taken for funds to be credited.
The new service is made possible by a technology called Swift global payments innovation (gpi), provided by Swift, the global provider of secure financial messaging services.
Customers can also expect a faster turnaround time for their cross-border payments as banks using Swift gpi are required to process transactions within four hours.
DBS' head of cash product management, Mr Navinder Duggal, said the banking industry has achieved a major milestone with Swift gpi going live. "DBS, being an early adopter of Swift gpi in Asia, sees gpi as an important step towards improving the customer experience for cross-border payments. We are pleased to make banking more expedient for our corporate, and small and medium-sized enterprises customers," he said.
MORE BANKS, THE BETTER
This provides transparency and visibility to our cross-border payments. We are looking forward to more banks quickly joining Swift gpi, so that we can then track all our telegraphic transfer payments.
MS SERENE WONG, treasury manager of HTL International, a manufacturer of leather sofas and leather upholstery hides that has a presence in over 52 countries, which makes cross-border payments every day. Global payments innovation (gpi) is provided by Swift, the global provider of secure financial messaging services.
Reaction from corporates has been positive, DBS said.
One client is HTL International, a manufacturer of leather sofas and leather upholstery hides with a presence in over 52 countries, which makes cross-border payments every day.
Treasury manager Serene Wong said the new service helps her track the company's remittances across different banks around the globe.
"This provides transparency and visibility to our cross-border payments. We are looking forward to more banks quickly joining Swift gpi so that we can then track all our telegraphic transfer payments."
Mr Eddie Haddad, the managing director of Swift Asia Pacific, added that Swift gpi is "the biggest thing to happen to correspondent banking in 30 years".
"In collaboration with DBS and other members of our community, Swift gpi solves the inherent process challenges in cross-border payments today and this will prove to be a new world for corporates," he noted.
Over 110 banks from Europe, the Asia-Pacific, Africa and the Americas have signed up for Swift gpi, with more expected to join.
In the first phase, Swift gpi is focusing on making business-to-business payments more transparent and faster.
Swift gpi will then allow banks to offer even more services to their clients. For example, they will be able to immediately stop a payment, no matter where it is in the correspondent banking chain.