Sibos 2024, hosted by Swift in Beijing for the first time, brought together global financial leaders to explore pressing challenges and opportunities in a rapidly evolving financial landscape. The conference focused on payments innovation, financial inclusion and the transformative potential of technologies such as artificial intelligence (AI), blockchain and ISO 20022 messaging standards. Graeme Munro, chair of the Swift board, opened the event by urging participants to embrace challenges as opportunities: “We see challenges as opportunities to grow and to reach our industry’s full potential.” Samantha Emery, Swift board’s deputy chair, highlighted significant progress in ISO 20022 adoption and cross-border payment reforms, aligning with the G20’s goals for transparency and efficiency. Javier Pérez-Tasso, CEO of Swift, underscored the importance of global cooperation in building a more connected financial ecosystem. He explained how technologies like central bank digital currencies (CBDCs) and blockchain enhance security and transparency in financial transactions. Bill Winters, group CEO of Standard Chartered, addressed the shifting dynamics of global trade. “The trade flows are increasingly shifting... with geopolitical tensions and supply chain reconfiguration being key drivers,” he noted, urging financial institutions to adapt to these changes. Bill Winters, Group CEO, Standard Chartered Bank Javier Perez-Tasso, CEO, Swift China’s modernisation strategy was also a focal point. Yin Yong, mayor of Beijing, framed Beijing as a dynamic financial hub: “Beijing has witnessed steady economic growth, with GDP [gross domestic product] increasing by 5.1% in the first three quarters of this year.” Deputy governor of the People’s Bank of China, Lu Lei, highlighted China’s role in improving cross-border payment systems and strengthening the global position of the renminbi (RMB). Sibos 2024 demonstrated how collaboration, innovation and resilience can navigate the complexities of today’s interconnected financial ecosystem. Global payments innovation and ISO 20022 adoption The adoption of ISO 20022, a global messaging standard for payments, emerged as a central theme at Sibos 2024, with its potential to harmonise payment processes and enrich transaction data. Leaders at the conference explored how the standard is enhancing operational efficiency, compliance and transparency across cross-border transactions. Tsvetanka Nankova, global head of sales for institutional cash and trade finance at Deutsche Bank, highlighted the benefits her organisation is experiencing. “We’ve seen a significant increase in our straight-through processing (STP) ratio, reducing manual work and speeding up payments,” she shared. This enriched messaging format is also aiding compliance efforts, with fewer false positives in sanctions screening, allowing Deutsche Bank to focus on genuine risks. Julie Bolan, head of payments for Asia Pacific (APAC) at Swift, underscored the urgency of adoption. “We are not yet where we need to be,” she said, referencing the mid-20% compliance rate among financial institutions. However, Bolan expressed optimism that the figure could climb to 40% by the end of 2024 as migration efforts intensify. Julie Bolan, Head of Payments Asia Pacific, Swift Vitus Rotzer, Head of Financial Messaging Product Line, Bottomline Collaboration between Swift and Bottomline Technologies has been instrumental in addressing ISO 20022 implementation challenges. Vitus Rotzer, head of financial messaging product line at Bottomline, explained how their shared solutions alleviate the burden on financial institutions. “It’s all about economies of scale and skills,” he remarked, highlighting how hosted services reduce complexities in infrastructure management. Danielle Sharpe, head of financial institution clearing product at Standard Chartered, offered further insights into how the bank is leveraging ISO 20022 to enhance payment transparency and efficiency. “Transparency and efficiency are top priorities for our clients, and blockchain allows us to deliver real-time settlement with greater visibility,” she said. Standard Chartered’s innovations, including its collaboration with distributed ledger technology provider Partior, showcase how blockchain is revolutionising payment processes. The enriched data facilitated by ISO 20022 is not only improving payment processing but also driving innovation in fraud prevention and compliance. Sebastien Avot, Deutsche Bank managing director and APAC head of institutional cash and trade, emphasised the importance of collaboration in building robust risk management systems. “Collaborative data sharing in compliance and fraud prevention is not just about technology; it’s about building partnerships and creating an ecosystem that can detect and block fraudulent transactions more efficiently,” he said. ISO 20022 represents a significant milestone in the evolution of payments. Its integration with technologies such as AI and blockchain is shaping a future where payments are faster, safer and more transparent, as demonstrated by the initiatives discussed. The role of AI and digital currencies in financial transformation AI and digital currencies featured prominently, with leaders highlighting their transformative potential in financial operations and compliance. Discussions revealed how these technologies are driving efficiency, reducing risks and opening new possibilities in cross-border payments. Fabian Khoshbakht, global head of client insight and innovation at BNY, described the evolving role of AI in financial services. “What’s changing now is the advent of generative AI,” he explained. Khoshbakht elaborated on how BNY’s AI platform, Eliza, enhances efficiency by automating tasks like client research, freeing up time for strategic decision-making. AI is also reshaping payment processing and compliance. Deutsche Bank’s Nankova highlighted how AI, combined with ISO 20022’s enriched data, improves risk management. “We’re using AI to analyse payment inquiries and reduce delays, which adds tremendous value both internally and for our customers,” she said. Meanwhile, blockchain and digital currencies are redefining how payments and trade operate. Standard Chartered’s Sharpe discussed blockchain’s role in improving settlement processes: “Transparency and efficiency are top priorities for our clients, and blockchain allows us to deliver real-time settlement with greater visibility.” BNY is also exploring the potential of tokenisation and CBDCs. Khoshbakht described tokenisation as a game-changer, noting that programmable money could streamline settlement processes. However, he acknowledged the need for interoperability across blockchain platforms to fully realise its potential. On the broader impact of CBDCs, Swift’s Pérez-Tasso emphasised their ability to improve transparency and security in global payments. He remarked on Swift’s efforts to integrate these technologies into its ecosystem, demonstrating how the financial industry is evolving to meet the demands of a digital economy. Despite these advancements, ethical concerns surrounding AI remain a key consideration. Khoshbakht stressed the importance of proportionate regulation and robust frameworks to ensure data is used responsibly. “AI needs to be compliant, with the right risk governance frameworks to ensure that the data is accurate and ethically used,” he noted. AI and digital currencies are clearly shaping the future of finance. By enabling faster, more secure payments and improving operational efficiency, these technologies are revolutionising financial ecosystems worldwide. Collaboration in global trade finance and liquidity solutions Collaboration among global financial institutions is driving significant innovation in trade finance and liquidity solutions, as highlighted at Sibos 2024. Partnerships between banks and fintechs are reshaping how businesses access global markets and manage cash flows efficiently. The collaboration between BNY and Mizuho Bank stood out as a prime example of this trend. Joon Kim, global head of trade finance at BNY, described the partnership as a natural evolution of their mutual strengths. “We are always looking for ways to collaborate from a correspondent banking and trade finance perspective,” Kim said. The partnership leverages BNY’s extensive network and Mizuho’s corporate client base to enhance trade finance services. Ashutosh Kumar, managing director and head of global transaction banking for APAC at Mizuho Bank, elaborated on the operational advantages for their clients. “With BNY’s network, our customers now have seamless access to letters of credit in almost every part of the world,” he noted, emphasising the efficiencies gained through this collaboration. In the realm of liquidity management, Bank of America is leading innovations in real-time payment capabilities. Winnie Chen, head of APAC global payment solutions at the bank, highlighted its focus on enhancing cash flow visibility for corporate treasurers. “We are leveraging real-time payment capabilities to enhance corporate treasurers’ ability to manage cash flow and liquidity,” Chen said. These partnerships and innovations demonstrate the value of collaboration in addressing the complexities of global trade and liquidity. By leveraging each other’s strengths and technological advancements, institutions are creating seamless, efficient solutions for businesses worldwide. China’s unique modernisation and global financial cooperation China’s modernisation efforts and role in global financial cooperation were also significant themes at Sibos 2024. The country’s unique approach to balancing economic growth, sustainability and international partnerships resonated throughout discussions. Beijing mayor Yin Yong, described the city as both a historical and modern financial hub. “Beijing has witnessed steady economic growth, with GDP increasing by 5.1% in the first three quarters of this year,” he said, positioning the capital as a key player in fostering international financial collaboration. Yin highlighted how events like Sibos strengthen global communication among financial institutions and contribute to sustainable development. Yin Yong, Mayor, Beijing Lu Lei, Deputy Governor, People’s Bank of China Deputy governor of the People’s Bank of China, Lu emphasised the country’s commitment to cross-border financial innovation and the global role of the RMB. “We will continue to strengthen local currency cooperation, reduce exchange rate risks, and improve the efficiency of international payments,” he stated, reflecting China’s efforts to align its financial systems with international standards. The leadership fireside chat between Swift’s Pérez-Tasso and Standard Chartered’s Winters explored the implications of China’s modernisation on global trade. Winters noted: “The trade flows are increasingly shifting... with geopolitical tensions and supply chain reconfiguration being key drivers.” Pérez-Tasso elaborated on Swift’s vision for enhancing security and transparency in global financial ecosystems through technologies such as CBDCs and blockchain. These insights showcased China’s dual focus on domestic resilience and international collaboration. By combining technological innovation with sustainability and inclusivity, the country is carving a distinct path in the global financial landscape. Collaboration and innovation as pillars of global finance Sibos 2024 in Beijing highlighted the transformative power of innovation, collaboration and compliance in reshaping global finance. With leaders from financial institutions, regulatory bodies and technology firms converging, the event demonstrated how the industry is navigating challenges while seizing opportunities. Discussions on ISO 20022 underscored its potential to harmonise payment processes and improve transparency. Leaders like Deutsche Bank’s Nankova and Swift’s Bolan shared progress and challenges, showing how enriched data and advanced technologies are accelerating compliance and operational efficiency. Collaboration among institutions, exemplified by partnerships like those between BNY and Mizuho Bank, showcased the value of working together to enhance trade finance and liquidity solutions. AI and digital currencies also took centre stage, with BNY’s Khoshbakht and Swift’s Pérez-Tasso highlighting their potential to revolutionise payment processing, risk management and cross-border trade. Meanwhile, China’s modernisation strategy, as described by Beijing mayor Yin and PBOC deputy governor Lu, illustrated how domestic resilience can complement global cooperation to drive financial inclusion and sustainability. Sibos 2024 proved that through collaboration, technological innovation and a commitment to inclusion, the financial industry is well-positioned to tackle its most pressing challenges and lead in an increasingly interconnected world.
