In today’s ever evolving and competitive environment, asset managers are continually seeking new ways to streamline their processes and increase overall productivity. Coinciding with this trend, the area of cash management has grown in importance – most notably as an aid in daily decision-making – leading to the need for managers to align themselves with a systematic cash management system that can help them achieve a number of benefits, such as:
Traditionally comprised of rather standard activities, the risks associated with the cash management process have grown exponentially over the years as firms continue to deal in high value transactions. Without the proper technology in place, many are forced to rely on the accuracy of esoteric manual functions, mainly within the wire approval process where a simple mistake can lead firms down a path of lawsuits and hefty fines.
When SWIFT introduced the Global Payment Innovation (gpi) initiative in 2017, it initially spurred concerns around data privacy and protection, causing a sudden reluctance to use the platform. Now that we are three years out since its inception, SWIFT gpi has seen rapid adoption for cross-border payments with nearly 4,000 financial institutions and 80 market infrastructures currently enabled. In fact, according to SWIFT, gpi payments worth $77 trillion were processed in 2019 alone, representing 65% of all cross-border (MT103) messages sent over SWIFT, with strong activity recently seen across domestic wholesale and retail markets.1