SWIFT network is to launch an AI-powered solution to bolster fraud detection in cross-border payments, analyze vast amounts of real-time payment data, and mitigate risks.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) announced on Oct. 16 that it would begin a phased rollout of its new AI-enhanced fraud detection solution for cross-border transactions in January 2025.
By incorporating artificial intelligence (AI) and machine learning (ML) technologies, SWIFT aims to reduce financial crime and enhance trust in the global payments network. The tool is part of the Society’s broader strategy to safeguard transactions and improve overall efficiency and security of international payments with the help of innovative technologies such as AI.
The new solution is a result of cooperation with the world’s major financial institutions. It was successfully beta-tested earlier this year. The AI tool will leverage pseudonymised data from the billions of transactions within the Swift network to identify and flag suspicious financial operations in real time.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global financial network that facilitates secure and standardized financial transactions between banks and financial institutions. It provides messaging services that enable cross-border payments, trade, and securities transactions, ensuring efficient communication between different banking systems.
SWIFT doesn’t move money per se but provides critical infrastructure for financial data exchange. It is widely used for international transfers, ensuring security and reliability in the global banking segment. Namely, SWIFT messaging platform, products and services are used by more than 11,500 banking and securities organisations, market infrastructures and corporate customers in over 200 countries and territories.
Being the backbone of international finance since the 1970s, SWIFT is continuously innovating its ecosystem to handle the growing needs of cross-border payments and trade. Besides artificial intelligence, the network is actively exploring blockchain opportunities.
Thus, this year, SWIFT announced its intentions to create a new platform to connect multiple central bank digital currencies (CBDC) to the existing financial system. It has been examining CBDC interoperability since 2023.
