SWIFTNet

Introduction to SWIFTNet

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global cooperative network of banks and financial institutions founded in Belgium in 1973. SWIFT provides a messaging system to standardize financial messages between its members – known as SWIFTNet – which companies can connect to as a gateway to over 11,000 financial institutions in more than 200 countries.

For a more detailed comparison of SWIFT and other connectivity methods, see our full guide to bank connectivity.

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How SWIFTNet works

SWIFTNet offers a core messaging service (FIN) which standardizes message types between the members of its network. Companies can use this messaging service to transmit data back and forth with their banks. 

Common message types include MT103 (credit transfer), MT940 (account statement), and MX pain.001 (payment initiation). Transactions are authenticated using BICs (Bank Identifier Codes) and digital signatures to verify the sending and receiving parties.

The services provided by SWIFTNet include:

• FIN: SWIFT’s core messaging service, used for exchanging standardized financial messages.
• InterAct: A real-time, interactive messaging service that supports XML-based and ISO 20022 messages.
• FileAct: Designed for batch processing, FileAct enables large files to be transferred securely in bulk.
• Browse: A web-based interface that lets users access SWIFTNet services online and retrieve reference data. 

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Pros and cons of SWIFTNet

By acting as a single gateway to over 11,000 banks, SWIFTNet helps to simplify bank connectivity for companies that are willing and able to build a direct connection and pay the necessary fees. It supports a wide range of financial messages, similar to host-to-host and EBICS connections, and is highly secure and reliable.

SWIFT may be particularly useful for companies looking to connect to a large number of banks that see relatively low transaction volume. The volume aspect is key because SWIFT charges a per-message fee, potentially leading to high costs with more usage. It can be expensive to maintain a direct SWIFT connection, considering that there are also ongoing membership fees and infrastructure costs.

The process of building a direct connection to SWIFT can also be costly and time-consuming since it requires considerable technical expertise. Most companies that use SWIFT therefore connect via a third-party provider, such as their bank or a service bureau, to whom they effectively outsource their bank connectivity.

• Pros: A single connectivity gateway to thousands of banks, with robust security and high reliability, that may prove useful in connecting to a large number of lower-tier banks.
• Cons: A direct integration can be costly to implement and maintain, plus there are fees associated with using the network.

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How Atlar can help with SWIFTNet

Atlar offers full support for SWIFTNet alongside several other connectivity methods. And unlike other treasury software providers, Atlar manages the entire implementation end-to-end, with no work needed from our customers. This helps Atlar customers get up and running with all their banks connected in 2-3 months on average, compared to up to 18 months for a Treasury Management System (TMS). To learn more about how we tackle connectivity, get in touch with our team.