Disrupting the Message System: How to Stay Relevant
The message-system processes over five billion transactions a year and seeks to maintain its relevance by integrating disruptive technologies into its business.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has announced a partnership with fintech company Symbiont to provide more accurate data for financial firms through blockchain technology. This partnership will allow SWIFT to leverage Symbiont's blockchain platform to improve the accuracy and timeliness of data shared between financial institutions. The use of blockchain technology will also help to reduce the risk of data tampering or fraud.
It's great to see that so many big financial companies are participating in this new initiative. I hope that this will help to make a real difference in the way that people save and invest for their future.
If successfully implemented, the new pilot project announced by Symbiont could help providers distribute data in near real time to global custody clients. This would be a major improvement over the current system, which can often take days or even weeks to process data transfers. Through Assembly, Symbiont's proprietary technology platform, smart contracts will be used to create a network effect that leverages the 11,000+ institutions connected to SWIFT globally. This would allow for near instant data transfers between custody clients and providers, greatly improving the efficiency of the global financial system.
In 2017, Symbiont partnered with Vanguard to use blockchain technology to improve the distribution of price index data. This data comes from funds that were worth $1.3 trillion at the time. The partnership between Symbiont and Vanguard is helping to make the financial system more efficient and secure.
This is a huge step forward for the financial industry, and will help to ensure that data is accurate and consistent across all participants in a corporate action event. This will help to reduce risk and increase transparency in the financial sector.
The company's efforts to maintain its relevance in the international economic order by launching its global payments innovation, gpi, are commendable. However, it remains to be seen how successful these efforts will be in the face of the rise of Central Bank Digital Currencies (CBDCs). customers can send cross-border payments 24 hours per day.
In five years, the world will be a very different place. The war in Ukraine will be long over, and the Russian banks that were cut off from the SWIFT network will have been reconnected. Mastercard's CEO, Michael Miebach, doesn't expect that to happen, but it's a good bet that the world will be a lot more peaceful in five years than it is today.
