Established in 2001 as one of the first Swift Service Bureaus in North America servicing both Bank and Corporates, Axletree has a rich history of providing enterprise connectivity and integration services to some of the largest companies in the world. However, as the landscape of financial services has evolved, we too have needed to evolve to cater to the growing demand and expectations of modern Swift Service Bureaus (SSBs). The expectation of the modern SSB in 2024 is considerably different than that of 20+ years ago when we started our journey.
New Expectations of SSBs for 2024 and Beyond
Cybersecurity
Let’s start with one of the most prevalent concerns in recent times – cybersecurity. The cyber terrorist has continued to adopt more sophisticated methods with their cyber-attacks. A modern Swift Service Bureau is expected to maintain the most robust security measures to protect against such attacks; this includes advanced encryption protocols, multi-factor authentication, and continuous monitoring to guard against potential security breaches. Due to the highly sensitive nature of a financial transaction, a Swift Service Bureau should adopt the necessary security measures so that the integrity and confidentially of the financial transactions remains intact.
Instant Payments
As the demand for real-time payment processing continues to escalate, SSBs must also adapt to this reality. The goal is to reduce settlement times for domestic and international payments. This provides an opportunity to adopt leading-edge technologies such as distributed ledger technology (DLT) and blockchain to streamline the end-to-end processing lifecycle of financial transactions.
Interoperability
Interoperability is another industry-wide challenge that is being met head-on by the modern Service Bureau. The evolution of global messaging standards has presented challenges to organizations whose back-office systems are unable to keep pace with these changing standards. Swift Service Bureaus are expected to enable the frictionless processing of financial transactions irrespective of the system sending or receiving the transactions. Enabling standardization and compatibility are key considerations in meeting the interoperability expectations of clients and counterparties.
Data Analytics
Data analytics allow clients to make more informed decisions about their financial transactions. Modern Service Bureaus should leverage advanced analytics tools to provide data driven insights to optimize operations, mitigate risks, and identify potential opportunities. With the volume of data flowing through a Swift Service Bureau, it presents a unique opportunity to provide Descriptive, Diagnostic, Predictive and Prescriptive data analytics.
AI
The emergence of artificial intelligence (AI) and machine learning (ML) have been a game changer in relation to client demand and expectations. The need for enhanced fraud detection, advanced analytics and the automation of manual tasks has seen AI and ML algorithms being infused into the day-to-day operations of the modern Swift Service Bureau as well.
Compliance
Swift Service Bureaus are expected to maintain a solid grasp of global compliance and regulatory standards. To ensure each financial transaction is in compliance, it is important that SSBs have a comprehensive understanding of global financial regulations and regularly assess their infrastructure to ensure the high security standards for their clients’ financial messaging.
Client Experience
One of the most fundamental aspects to all these important components of a modern SSB is the client experience. Swift Service Bureaus must focus on the end-user experience by providing user friendly interfaces, intuitive dashboards, and real time tracking capabilities. Clients expect full transparency and visibility into the entire lifecycle of their financial transactions, complete with access to interactive dashboards and reporting.
In Sum
In conclusion, to continue to play a pivotal role within the financial transaction ecosystem, the modern Swift Service Bureau must continue to evolve. They must adopt and adapt the technologies and services that enhance cyber security, implement real-time processing, drive interoperability, leverage data analytics, maintain resiliency and embrace AI and ML with a focus on improving the overall client experience. Meeting these expectations is essential for Swift Service Bureaus to thrive in the evolving financial ecosystem.
March 6, 2024
