Ares International Corp. successfully introduced SwiftNet Funds fund automation system at Land Bank of Taiwan (LBOT), with the official operation starting in October 15.
The third local bank (after Taipei Fubon Bank and Taishin International Bank) to join SWIFTNet Funds, LBOT has announced the use of ISO 20022 XML message format. The move will help the automation of most of the fund investment transaction procedures (including front- and back-end processes such as purchase, conversion and redemption) of LBOT against overseas fund agents. In addition, it will bring strategic advantages while improve sales flexibility and service level.
LBOT has chosen the SWIFTNet Funds since SWIFT, Society for Worldwide Interbank Financial Telecommunication, is a co-operative that offers safe and standard message exchange service and interface software for global financial institutions. Therefore, LBOT can directly connect its back-end exchange interface with international fund companies, thereby significantly improving its service quality and operation efficiency.
According to Frank Lin, president of Ares, the Regional Partner of SWIFT in Taiwan, Ares has promoted with SWIFT for the automation of Taiwan's fund industry for many years and worked closely with fund companies. Due to mutual efforts, fund automation in Taiwan is becoming all the more mature. "With abundant SWIFTNet Funds introduction experiences, we hope to assist financial institutions to enjoy the fund automation benefits," Lin indicated.
Currently, Ares has already helped more than 80% of the Taiwan-based banks to install, maintain and renew SWIFT infrastructure.
Fidelity Funds, the first fund company of LBOT to introduce SWIFTNet Funds, is a pioneer of promoting fund automation in Asia and one of the funding members of AFAC (Asia Fund Automation Consortium). With SWIFTNet Funds, Fidelity Funds is striving to achieve an even higher standard of the industry.
According to Tracy Lin, regional manager, Commercial division, Asia North, SWIFT, the feedbacks from Taiwan-based banks are positive and they are very eager to promote fund automation.
Eric Chua, regional head, Investment Fund Solution, Commercial Division, SWIFT, verified as many as eight banks in Asia Pacific already adopted the SWIFTNet Funds solution while 20 banks are testing the solution now, with 36 banks registered to apply for the service. Without doubt, fund automation has come to see a critical mass in Asia. Five more banks in Taiwan will start using the service this year, Chua said. This proves that Taiwan not only has a leading position in wealth management, but also leads in fund automation, Chua added.