Back in 1973, the idea for a financial network of institutions which could send and receive information about transactions was born. SWIFT (or the Society for Worldwide Interbank Financial Telecommunication) was a revolutionary solution to the immediate problems occurring to banks in the late 1960s: market access; transaction efficiency; risk; transfer robustness; and security.
The use of telecommunications and network innovations in banking can even be traced back to the late 1840s. SWIFT is not a bank or any kind of clearing and settlement institution. The company does not manage accounts for customers or hold funds. As of 2018, the SWIFT network consists of over 11,000 institutions that carry out financial transactions over 200+ countries. Amazing, huh?
Except… The majority of international banking transactions are still sent via SWIFT today. Hang on though; technology has advanced dramatically since then. So, why are we still turning to out-dated telecommunications to send money transfers? Because although SWIFT was a significant innovation of its time, its hold over both network and standards development has built-up barriers against change. 45 years on, with a name as long and tedious as waiting for one of its transfers to arrive, SWIFT is still anything but speedy.
SWIFT transfers can take anything from 1-10 business days. The influencing factors on the time it takes for funds to reach a recipients account include:
- Time zone differences between the sender and recipient country
- Currencies involved/exchanged in the transaction
- Transfer payment method
- Day of the week for the sender and recipient country (National/bank holidays and weekends can impact the transaction duration)
- Identity confirmation processes which differ across borders
All of which can affect the speed of a SWIFT but not exactly swift transfer. Oh, and that’s before we even touch on the cost. Yes, with SWIFT there are multiple fees which add up.
- Outward international transfer fee
- Flat fees from between 0 to 3 intermediary banks in the network
- Currency exchange rate hike
- Inward international transfer fee for the recipient
But, “the majority of international banking transactions are still sent via SWIFT today.” Which means you’re at the mercy of the banks for how you send money, right?
Except… Thankfully, technology has advanced dramatically. There are now other options. DeeMoney in Thailand, for example, supports digital transfers which arrive in the recipient’s bank account immediately. Or the recipient can choose to pick up their funds from a DeeMoney partner outlet if that’s their preference. It’s currently possible to send money to 16 countries worldwide for the super competitive rate of just 150THB. With no hidden recipient or mid-transfer fees hiding out within the transaction.
In addition, DeeMoney is working hard to expand the number of direct global partnerships for both outbound AND inbound transfers with exciting announcements for each in 2019 on the horizon. Register today, then introduce a friend to DeeMoney, and you can both profit from the introduction! As soon as your referee makes a transfer of over 10,000THB, you both receive a 500THB voucher off your next DeeMoney transfer. Refer up to three new DeeMoney members at any of our DeeMoney branches before the end of this year and get up to 1,500 THB!
Avoid the stranglehold of expensive 40-year-old telecommunications transactions and send your money overseas with instant digital transfers instead. Send money + save money = DeeMoney.