Swift woos users with price cuts

Swift woos users with price cuts

Financial messaging network Swift has announced a series of sweeping price incentives designed to bolster growth and encourage more traffic over the bank-backed network.

The programme includes an eight per cent reduction in charges for intrabank FIN traffic, a one-time waiver of licence fees for SwiftAlliance Starter Set interface subscribers, and two separate incentive programmes for members who migrate proprietary traffic to SwiftNet and encourage new user sign-ups.

Swift says the four new pricing initiatives will help the co-operative meet its objective of reducing message prices by 50% over 2002-2006.

The reduction in SwiftNet FIN prices alone will save the user community approximately EUR 14.3 million in 2005 and EUR31.5 million in 2006.

Swift is also introducing 'strategic commitment discounts' as an incentive for large users to move proprietary systems to SwiftNet. Users committing to spend 20% more money on their network-based invoices for the next two years can spend up to 40% more, without paying more than the committed amount.

Member participants who bring five or more new users onto the network are additionally being offered the opportunity to act as service bureaux by proxy - setting up as 'concentrators' and handling Swift-related business for their clients at discounted prices.

In another effort to encouage more new users to the join the network, the Society is additionally waiving the $4750 licence fee of its SwiftAlliance Starter Set interface software for entry-level users. The offer, which is valid until 30 November 2005, is expected to save the user community approximately EUR10 million over 2005-2008.

"This initiative is intended to lower the total cost of ownership especially for smaller users," says Johan Kestens, head of marketing, Swift. "Large users will benefit indirectly, since more counterparties will be enabled to receive traffic."

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