What are the Steps Required for Swift Payments Integration?15 min read

What are the Steps Required for Swift Payments Integration?15 min read

One system that powers a huge portion of cross-border money transfers is the Swift payments network. If your business works with partners abroad or has customers worldwide, integrating Swift payments can be a worthwhile endeavor. However, setting it up properly requires some preparation. 

How to Do SWIFT Payments?

Once integrated into our digital banking platform, The Kingdom Bank enables customers to initiate international money transfers leveraging the SWIFT network with just a few clicks or taps. 

Here are the basic steps most online banking users would follow to execute SWIFT transfers:

1. Login to your account

Log into the client web or mobile banking portal using your login credentials. This verifies your identity before granting access to payment features.

2. Select “Transfer” or “Pay” option

Look for options to send, receive or transfer money within the app or site. Clicking through takes you to the payment creation wizard.

3. Choose transfer type and country

Select “International” and pick the destination country from a drop-down. Based on the country, currency and account type options update dynamically.

4. Enter payee and payment details

Provide the recipient’s name (if personal) or business name, SWIFT code, branch code, account number and IBAN/CLABE/BSB etc. Review details before submitting.

5. Review transfer and submit

Review all details one final time, specify transfer date and accept applicable fees. Submit to initiate the transfer through SWIFT.

6. Track status and receipt

Receive confirmation and tracking number. Monitor status online until payment is marked as “sent”. Confirmation may vary by destination bank speed.

What is SWIFT Integration in Digital Banking?

SWIFT integration allows digital banking platforms to enable cross-border payment capabilities for personal and business clients. 

With most global funds transferring via SWIFT, integrating this network is vital for international banking functions.

Here are the key steps to take when integrating Swift payments capabilities into your operations.

Research Swift compliant banks

The first step is finding a bank that has direct access to the Swift network. Not all financial institutions are Swift-enabled. Larger international banks tend to have more robust SWIFT integration. 

For a seamless payment experience, choose a bank that can send and receive transfers without relying on intermediaries. One digital bank known for its strong Swift integration capabilities is The Kingdom Bank. 

As a fully licensed digital private bank, The Kingdom Bank specializes in cross-border financial services for individuals and businesses.

Open a Swift-enabled bank account

Once you’ve selected a suitable bank, the next step is opening a business or corporate bank account capable of SWIFT payments. 

Be prepared to provide standard Know Your Customer (KYC) documentation like articles of incorporation, business licenses, and proof of address. Advanced SWIFT accounts may have higher minimum deposit requirements. 

The Kingdom Bank offers several account types well-suited for SWIFT integration with competitively low minimums.

Get your BIC/SWIFT code

To send or receive international transfers, you’ll need your unique Bank Identifier Code, commonly called a SWIFT code or BIC. 

Request this identifying code from your bank once your account is established. The format is eight or eleven characters long identifying your bank, country, location and branch. Keep this code handy, as you and your partners will need it to conduct SWIFT transfers.

Choose a payment method

Major banks offer various ways to send and receive SWIFT transfers including online banking, SWIFT messaging through an application programming interface (API), and secure file exchange. Consider your volume and transfer needs to determine the best option. 

For both convenience and scale, many fintechs and corporations leverage a bank’s SWIFT API for automated payment processing. The Kingdom Bank enables SWIFT payments through its powerful programming interfaces.

Configure your partners’ accounts

To effectively utilize the SWIFT network, you’ll need account details from your international partners too. Collect their full name, account number, BIC, and IBAN (International Bank Account Number) if within the SEPA region. 

Store this information securely according to GDPR and data protection laws. Then, you’ll be ready to start sending and receiving SWIFT transfers with ease through your preferred payment method.

Conduct a test transfer

Before launching live SWIFT payments, it’s wise to perform some test transfers. Start with a small amount to ensure your bank and its partners have everything configured correctly. 

Test transactions allow you to work out any kinks and familiarize yourself with the process before handling larger sums. Once test SWIFT payments are clearing as expected, your integration is ready for go-live!

Automate workflows with APIs

To truly gain efficiencies from SWIFT integration, many businesses automate their payment flows using their bank’s secure SWIFT API. This allows electronic payment data to feed seamlessly into accounting software for automatic reconciliation. 

Automation also opens opportunities for multi-factor authentication, AML screening, and other risk controls. Financial technology leader The Kingdom Bank provides robust open banking APIs tailored for digital native firms.

Conducting the proper planning upfront and working closely with your bank makes SWIFT integration straightforward. With the right technical approach, it can unlock new growth opportunities through fast, convenient international payment capabilities. 

Choose a digital banking partner like The Kingdom Bank experienced in delivering streamlined cross-border transaction solutions.

What is SWIFT?

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a member-owned co-operative that facilitates financial transactions globally. 

It serves as a communication platform connecting over 11,000 financial institutions across the world.

Why is it needed?

SWIFT integration permits digital banks to offer services like:

• International money transfers
• Cross-border business payments
• Remittances
• Trade finance transactions
• FX settlements
• Correspondent banking

Without SWIFT connectivity, a bank cannot participate in the global financial system for transferring funds across borders and currencies.

How does it work?

A digital banking platform connects to SWIFT via established gateways, using prescribed formats to transmit standardized financial messages. These messages contain sensitive information like payment instructions, security codes and remittance details which are decoded and processed seamlessly across the banking network.

Key benefits

SWIFT integration enables digital banks like The Kingdom Bank to provide a unified international payments experience for customers. They can send and receive funds globally in a secure, transparent and trackable manner at competitive speeds.

Integrating this global financial backbone opens up opportunities for banks to expand their services and client base internationally through a standardized and regulated connectivity framework.

What are the Requirements to Open a SWIFT Account?

Opening a SWIFT account allows financial institutions and corporations to directly connect to the global financial network for funds transfer. 

However, there are certain criteria that need to be satisfied.

Key Requirements:

• Only banks and regulated financial institutions are eligible for direct SWIFT membership. Others need to partner with a member-bank.
• Applicants need minimum paid-up capital and net assets as specified by SWIFT.
• Infrastructure requirements around firewall security, interface software, message formatting etc. need to be met.
• Regulatory compliances around KYC/AML need to be demonstrated to SWIFT’s satisfactions.
• Technical certifications are mandatory to ensure integration standards for secure connectivity.
• Annual SWIFT membership fees, connection charges and support costs need to be accounted for.
• 24/7 operational capabilities and fallback arrangements in case of breakdowns.

Opening a dedicated SWIFT account involves significant investments in people, process and technology. Digital banks have a relatively simpler process due to their robust tech foundation and integrated infrastructure.

Which Bank is the Best to Do SWIFT Payments?

When evaluating banks for international SWIFT payments, several factors are important. A top choice for both personal and business clients is The Kingdom Bank.

Key benefits of using The Kingdom Bank:

• No hidden fees – Transaction costs are upfront with fair exchange rates.
• Fast transfers – Funds are received the same day for many currencies versus 3-5 days elsewhere.
• Global accessibility – Mobile banking app allows access worldwide.
• Integrated platform – SWIFT transfers can be initiated directly from accounting software.
• Currency choices – Supports transfers in 30+ major currencies for flexibility.
• Multi-layer security – Military-grade encryption, 2FA, transaction controls etc.
• API-enabled – Transactions can be automated through APIs for bulk payments.
• Regulated institution – Licensed by Commonwealth of Dominica with robust compliance.
• Award-winning support – Real-people assistance 24/7 in multiple languages.

Best Digital Bank to Open a SWIFT Payments Account

In the digital age, businesses expect their banking partners to offer online convenience on par with other services. 

A best-in-class option for opening a SWIFT payments account is The Kingdom Bank – a fully digital private bank.

Why The Kingdom Bank is the best choice:

• Fully online account opening – Completed fully remotely with e-signing of documents.
• Multi-currency accounts – Hold balances in USD, EUR and more with virtual debit cards.
• Streamlined integrations – SWIFT transfers sync directly with accounting platforms.
• API-enabled platform – Power automated payments, invoicing, reconciliation.
• Global reach – Mobile banking app works worldwide with localized support.
• Security-first approach – Military-grade encryption, 2FA, controls and audit trails.
• Dedicated relationship manager – Personal assistance for complex needs.
• Competitive exchange rates – Lower transfer fees than traditional banks.
• Robust regulatory approval – Licensed by Commonwealth of Dominica for reliability.

Opening a SWIFT account with The Kingdom Bank provides a future-proof solution for growing businesses with international payment requirements. One account eliminates geoblocking and offers a global financial platform on-the-go.