SWIFT Seeks AFP Member Input on Trade and Supply Chain Finance Initiatives

As most of you know, SWIFT provides financial messaging services to banks and corporations. SWIFT recently started a review of Trade and Supply Chain Finance market practices, and has solicited the participation and feedback of AFP corporate practitioner members.

The aim for SWIFT is to continue to develop structured messages that reflect the needs of today and tomorrow’s Trade and Supply Chain Finance business. SWIFT is working to model the business flows to identify gaps in its offering and assess the need for new and enhanced messaging standards.

During the next month, AFP corporate practitioner members have the opportunity to provide SWIFT with thoughts on the changing demands of the world of trade. Some of the key issues SWIFT will be analyzing are:

• What do you see are the main trends in trade and supply chain finance going forward – in the short term, in the medium term?
• What trade and supply chain finance instruments do you use – open account payments, documentary credits, collections, guarantees, supplier finance programs, export credit agencies, etc., and in what percentages?
• Who are the different entities you deal with in an average transaction (e.g. freight forwarders, customs, chambers of commerce, etc.)? What difficulties or inefficiencies do you experience with these entities as they relate to finance, accounting, audit, etc.?
• What new trade data should be exchanged over SWIFT to make your trade and supply chain finance transactions more efficient?

If your organization would like to participate in this dialogue with SWIFT, please send contact information for the appropriate representative to Jeff Glenzer, CTP, AFP Managing Director, at jglenzer@afponline.org

About SWIFT:
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.