32 Global Banks Drastically Reduce Overseas Remittance Times...“Responding to FinTech”

According to a report by Nihon Keizai Shimbun (The Nikkei) on the 3rd, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is establishing a new system that will significantly reduce overseas remittance times among 32 banks in 17 countries.
Currently, international bank transfers often take more than a day to complete. In contrast, some Financial Technology (FinTech) companies offer much faster transfers with lower fees. While 75% of overseas remittances made through SWIFT, which is used by more than 11,000 financial institutions worldwide, arrive at the recipient bank within 10 minutes, delays frequently occur during subsequent procedures.
The Nikkei reports that the new overseas remittance system does not require major changes to the existing infrastructure, making near-instant international transfers between banks possible as early as this year. Participating banks include Bank of America, Wells Fargo, France’s BNP Paribas, and Japan’s Mizuho Bank. The number of participating banks may increase in the future.
Each bank is expected to introduce a separate system and increase staff to provide 24-hour support for international transfers. The transfer limit is expected to be $10,000 (approximately 14.46 million KRW).
Banks are also considering a plan to confirm and notify customers of fees before processing overseas remittances. According to The Nikkei, fees are unlikely to change significantly.
The Nikkei added that banks are seeking to attract more users for overseas remittances by addressing payment delays, in response to the growing presence of FinTech companies.

ming@fnnews.com Jeon Min-kyung Reporter