Microsoft has joined hands with SWIFT for the development of a messaging service using cloud technology. The reports were confirmed by the tech company during the first day of the Sibos event held in Sydney. The companies reportedly said that they have already conducted tests on the cloud concept for SWIFT infrastructure and facilitate the transfer of funds on Azure.
SWIFT known for its financial messaging service has a clientele of 11,000 plus financial institutions across 200 countries. As of now, financial institutions and businesses send payment messages through the SWIFT network by installing the SWIFT technology. The latest deal will allow users to send financial messages via high-speed and securer cloud services.
The internal treasury department of Microsoft is the first user to test and authenticate the new financial messaging service. The company has revealed that it treasury group is managing more than $150 billion in assets as well as supporting more than $400 billion annually in the SWIFT-based payments across more than 190 countries.
The Microsoft Treasury is testing the service by sending a wire transaction through SAP on Microsoft Azure. The transaction is being validated by machine learning algorithms. Upon validation, the wires are transferred to SWIFT by deploying cloud service of Microsoft. The wire transfer is then validated by SWIFT and forwarded to the respective financial institutions. Following the completion of the wire transfer, the bank sends a confirmation note to Microsoft.
Commenting on the new cloud payment messaging service SWIFT head of customer platforms ‘Arnaud Boulnois’ said that the development hints at the potential of cloud services in improving the back-end services. He further said that SWIFT is continuously working on improving the efficiency of its financial institution dedicated services to remove any friction as well as operational inefficiencies.
Financial institutions are increasingly adopting cloud services, added Boulnois. The companies have already completed their first of its kinds Azure payment and are mulling to bring the unique solution to private parties and joint clients in the coming future.
Microsoft is quite positive for its services as the company said that the cloud has the potential to benefit beyond the operational and security areas to advanced analytics and AI.
The collaboration between SWIFT and Microsoft is likely to benefit the entire industry, Ulrich Homann Architect at Microsoft, said. Homann further added saying that the partnership is likely to benefit financial institutions in the years to come. The newly developed cloud payment services will be the next instant payment services much secure and reliable than the traditional instant payment gateways
Azure is the most popular cloud services by Microsoft. It has been deployed by a number of businesses for reliable cloud services. The details of the new cloud payment service release date were not revealed. It is for the first time when the two companies decide to speak about their combined initiative. It is hoped that the cloud payment service will be made available for the customers in near future.