BAKU, Azerbaijan, June 9. A new economic model that would reduce interbank payment costs is being evaluated, Head of SWIFT for Türkiye, Caucasus and Central Asia, Hikmet Can Yılmazsoy, said at the 10th International Finance and Banking Summit taking place in Baku, Trend reports.
According to him, SWIFT, the international interbank payment system, is upgrading its infrastructure in line with the digital transformation in global financial markets.
Yılmazsoy noted that one of the main goals of the modern financial system is to ensure a secure, 24/7 flow of digital assets between different countries, different systems, and different regulatory rules.
"The new structure will create conditions for settlements between different institutions, different currencies, and different asset types, as well as effective liquidity management," he explained.
Building the future on existing infrastructure
According to the SWIFT official, it is necessary to take into account the requirements of the future when developing today's payment flows and infrastructure.
"We are building the payment flows of the future in a way that they can work together with the existing structure. Currently, this system is used by more than 11,500 institutions around the world. We are trying to build new mechanisms precisely on this huge infrastructure, global standards, and years of experience (expertise)," he pointed out.
G20 goals and accelerating international payments
In his speech, he emphasized the importance of international payments being executed instantly, seamlessly, and quickly, just like domestic payments.
"The goals set for the financial services sector at the 2020 G20 summit are the main roadmap. These goals are based on four fundamental principles: speed, transparency, accessibility, and reducing financial costs," the SWIFT representative clarified.
New economic model in SWIFT's pricing policy
Yılmazsoy pointed out that SWIFT has been implementing new approaches to reducing interbank payment costs. He noted that until now, the organization preferred to stay away from this process, viewing price regulation issues as a purely internal matter for banks.
"However, within the framework of the new strategy, new economic models aimed at reducing interbank payment costs without exceeding existing limits are being evaluated. Work on these new payment schemes, which aren't mandatory for partner banks and are recommendations and guidelines, is currently ongoing," he concluded.
