SWIFT has grown from a simple bank to bank closed payments network into a massively influential organisation covering most financial services and many different financial services providers. This has not been a visionary creation but one that has evolved and adapted to new technological innovations and the expansive plans of its major banking users. However, the past success does not necessary mean that it will be matched or exceeded in the future. SWIFT is in a pivotal position within the financial markets to lead its customers and increase its users beyond its existing boundaries. But how can this be achieved?

First SWIFT needs to realise the need to accelerate its change and development process to at least keep pace with the changing demands of the markets. The markets now include the regulatory and political objectives that arguably have only been a side issue for SWIFT to date, as the concentration has been on communication and standards. Quite normal for a network supplier! However, SWIFT needs to look beyond their historical position and question its current market status and how they can increase the benefits to their users and an industry under dramatic change.

It may be sacrilege to present this point of view in a SWIFT forum, that it is time to open up the network to the possibility of interoperability with other commercial networks and those operating their business via the Internet.

It has long since past the ‘store and forward' security benefits of SWIFT which have been superseded by financial services eager to take the rich rewards offered by the Internet. Although security remains top of any banks agenda the greed is there to enter into riskier products and loosen the ropes when taking on new clients. Banking has changed forever and it now embraces risk where once it shied away. We can see the results of the new attitude in banking with the Credit Crunch and operational breakdown like at Soc Gen. The need now is to raise the control bar rather than curtail business because the risks have risen.

It is here that I see SWIFT as becoming a major driver!

With SWIFT acting as a global hub for commercial networks, the measurement, control and management of the financial services markets will become easier for central bankers and their treasury masters. For example complex transactions across multiple networks would all have a SWIFT common denominator. It will be relatively simple to tie the various trade and counterparties together and also the end investors. The benefits to laws such as Money Laundering would be clear with the criminal exposed through the transparency of the trade and the ease to which it could be identified.

SWIFT could become the single repository of financial standards and the operator of the network hub and its relationships with other networks. Commercial networks would concentrate on customer's services and development of new systems as well as their relationship with SWIFT.

SWIFT could also become the central agency working with regulators to monitor and check use and also potential abuse of the system and I am sure there are many other benefits that would accrue if such a structure was implemented.

It appears that SWIFT is embarking on a refreshing new approach of openness and where debate with its users is encouraged. In this new air of challenging conventions I am pleased to suggest an alternative idea of how SWIFT could evolve and develop beyond its past into a new age. The benefits to the global financial industry would by dynamic and push financial services into a period where ultimately the clients would be the greatest beneficiary. Not a bad objective in a service industry!