SWIFT Announces Major Price Reductions for 2014. Will Bank Clients Benefit?

SWIFT Chairman Yawar Shah has announced major structural price reductions for 2014 to the entire SWIFT community of more than 10,000 international financial institutions worldwide.


The new pricing plan will take effect on 1 January 2014 and is designed to reflect the spirit of the international co-operative and to encourage additional traffic volume growth.


The plan will reduce FIN message prices by 20% and will pass on EUR 52 million in savings to all users. It is part of a bold strategy set out by SWIFT in 2010 to reduce its message prices by half by 2015.


FIN is the major financial message type for SWIFT members worldwide. SWIFT processes more than five billion FIN interbank messages securely and efficiently each year.


"Through a combination of innovative operational efficiencies and healthy volume growth, we are able to pass on savings to members in the form of this substantial structural price reduction," says Gottfried Leibbrandt, CEO SWIFT.


Highlights of the main pricing actions in 2013-2014 include:


  • Average price reduction for FIN messages will be 20%
  • EUR 52 million in savings to customers in 2014
  • Increased discount for high volume bilateral links
  • Fixed fee programme for large users will continue to offer substantial discounts
  • Upgrades and replacement programme for Hardware Security Modules will be provided free of charge or with substantial discounts to all SWIFT members


Francis Vanbever, SWIFT's CFO, says the 2014 price reduction is the second major price decrease in 3 years.Year-to-date average FIN traffic growth is above 10%. SWIFT recorded its latest traffic peak on 28 June 2013, when it processed 22.35 million FIN messages.


For CFOs, the question is: Will their partner banks pass on the SWIFT cuts to them as clients? 


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