SWIFT Payment: Technology, Platforms, and Business Applications

This report discusses the SWIFT payment system, its importance, and development. It describes the technology used, platforms and software involved, and the types of businesses that use it. It also explores the relationship between digital technologies and management theories. The report is based on Barclays as a case study.

Digital business and
new technologies

Table of Contents
Introduction...........................................................................................................................................3
Main body.............................................................................................................................................3
Importance of SWIFT payment.........................................................................................................3
How SWIFT payment has developed?...............................................................................................3
Description of the technology used in SWIFT payment and what it is used for................................4
Technological platforms and software that are used in SWIFT payment...........................................4
Type of business and organisation which uses the technology..........................................................5
How is SWIFT payment used as a business tool and is this effective?..............................................5
Discuss the nature of relationship between digital technologies and both old and newly emerging
theories on business and management structures and practices?........................................................5
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10

Introduction
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication.
This system is used to send or receive international payments electronically. It is a universal
network which links the banks to communicate message for transferring money safely and
securely by using a code(Mondo,2022). In this report, Barclays has been taken into
consideration which is a universal bank that provide support to the consumers and small
businesses through the retail banking system and the large businesses through the corporate
and investment banking services. The report will cover the importance of the SWIFT
payments and the development of this system. Further, it will provide the description of the
technology that is used in SWIFT payment system and what is used for. In addition to this it
will explain the technological platforms software which are used in this system. It will
discuss the types of business or organisation which uses this technology and how it is
effective. This will also describe the new and Morden methods of the technologies with
emerging theories.
Main body
Importance of SWIFT payment
SWIFT is a messaging system between the banks to send and receive money
conveniently where the amount is transferred from one account to another. In this transaction
the instruction for the payment are transmitted electronically from the payer for this banks
charges fees(Leppard and et. al., 2021). This has become a serious part of global financial
structure which transmit information and instruction through a standardised systems of codes.
In relation to Barclays, there are various benefits of SWIFT payment which are described as
under:
Transparency: With reference to Barclays, it uses this system which provide clear
information about the operation and the amount involved in transaction. The details includes
the route it takes between the banks, the details of all charges and nature of payments. This
enable the parties of the transaction to track, understand the cost and time period.
Traceability: It is a recognised proof of payment because it provide details of the
transaction between the banks by tracking the route and the details of the amount involved in
this.

How SWIFT payment has developed?
SWIFT payment was founded in the Brussels under the guidance of the CEO and
supported by 239 banks in 15 countries. Therefore, it has been developed in 1977 which
replaced the use of telex machines, noisy typewriters with phones which are used to send the
written messages(Liu, Wang and Woo, 2022). The telex was the only means which was
available at that time to confirm message of the international fund transfer. This had a big
disadvantage that it had slow speed, loess security and free message format. It did not have
proper system of the codes like SWIFT to describe the transactions. There are more than
11000 financial institution across more than 200 countries and territories which uses the
SWIFT payment system. This system has been involved because the people want to safely
and securely transfer their money from one bank to another bank internationally. Thus this
system has been brought to send or receive money electronically(Abd El-Latif,2022). This
financial services create a greater connectivity globally which help in speeding up the
international business. The institution has unique code which helps in providing information
to the bank.
Description of the technology used in SWIFT payment and what it is used for.
The SWIFT payments are done through the use of networks where the transaction
take place between the banks each bank is assigned an eight digit or eleven digit code which
usually known as bank identifier(Rehman and et. al., 2022). This code is similar to the IFSC
code that general used for the domestic interbank transfer although this is used for the
international transfer. There is a method which is described to bank to assign the code such as
the first four characters are the institute code. The next two characters are the country code
and the other next two characters are the city and location codes and the last three characters
are optional where the organisation use those characters to assign code to the individual
branches. This help the bank to transfer the money from one location to the location by using
network. Therefore, the money is transferred through the network which assist in securing the
message. This payment allows the business and the financial institution to take electronic and
card payment whether the customers and vendor uses different banks.
Technological platforms and software that are used in SWIFT payment
SWIFT payment is a system which provides the institutions and the businesses a platform for
messaging and communicating by using artificial intelligence technologies to enhance the
quality. The institution uses the artificial intelligence technology to restructure the fata files
that come from the various sources worldwide and improve the local language

worldwide(Liu, 2022). It provide facility of cleaning data and enable to find the missing
elements. For building intelligence AI is used to improve the quality, enhance the products,
perform profiling and peer group comparison for difference detection. SWIFT performs
artificial intelligence research on the different financial messaging standard which facilitates
in migration from any financial messaging standard to other financial message standard. It
helps in investigating the logic and pattern among the different standards( Haque and Shetty,
2022). .
Type of business and organisation which uses the technology
There are many type of the business and organisation which uses the SWIFT
technology such as Banks, brokerage institutes and trading houses, securities dealer, asset
management companies, clearing houses, depositories, exchanges, corporate business houses,
treasury market participants and service providers, foreign exchange and money broker.
Therefore, it offers various type services that assist businesses and individuals to complete
the seamless and accurate business transaction(Kuin and Tohuvavohu, 2022). There are
various services which are used by these business that includes the access of application,
compliance of the services related to the financial crime compliance. It helps in messaging
and connectivity with assistance of the network and software. Their objective is to provide
reliable, secure and scalable network to make transaction.
How is SWIFT payment used as a business tool and is this effective?
This provides the way to the banks to make fast communication that is more secure because
the information and the message is kept among the parties of the transaction(Hirata and et.
al., 2022). The banks which are engaged in a SWIFT transfer can move fund easily from one
account to the other account which based on the network of the Nostro and Vostro accounts.
These are the accounts which banks open with each other for the purpose of executing
SWIFT transaction.
This is an effective system because both the banks keep records of the transaction and
the money deposited into the account(Brito and Dias, 2018). Therefore, Nostro and Vostro
are the two set of ledger where Nostro refers to the account that is used by the bank to hold
money and Vostro is used by other bank to open this account to make transaction.
Discuss the nature of relationship between digital technologies and both old and newly
emerging theories on business and management structures and practices?
Digital technologies

The relationship between the digital technologies and the old and new theories of
management are discussed as under:
 Computers: Desktop allow the workers in an organisation to write a letter, analyse
financial information send and receive mails and design sales presentation. Therefore,
it plays a significant role in a business concern because it helps in organising the
information and maintain a database where one can easily get the related
material(Phillip and et. al., 2021). The software are installed in the computer to
perform the specific task in an organisation. The worker operate the computer to
control the automated process of manufacturing. This facilitates the employees of an
organisation to complete their work in a certain time period which can help in
achieving the goals of the business.
 Software: The software is loaded into the computer so that the specific function can
be performed. It ranges from the word processing program which is highly complex
that allow the developer to create the 3D images of a new products. There are many
software application that are available to the business to accomplish the goals of the
organisation. The firms are also using the artificial intelligence or machine learning so
that it can operate the business without any hurdle. All the programs are set to
perform the specific tasks and help the businesses to gain the competitive advantage.
 Networking: It help the organisation to share the documents or information by using
network and also store the important documents. It also allow people to communicate
by using email within office and allow the several computers to share the printer or
storage devices. A network is limited to the computer which is shared within an
office. The network can be provides anywhere to control the operation of the business
and also help in interacting with each other across the world.
 Mobile phones: The technology brings new creation in the form of mobile phones
where people can communicate to each other from anywhere in the world. By the use
of these phones one can easily transfer various information through using the
application that are installed in the mobiles. One can edit images or text anything and
also conversate through video conferencing and so on.
 Social media: This is a platform which are used in common now a days because
every business uses this facility in making promotion of their products to make the
people aware about the new offering of an organisation. The business also consider
the ideas, content and information that are shared by them on social media platform.

Therefore, they are able to provide the products according to the desire of the
consumers which help them in satisfying their wants. The businesses also provide the
opportunities to the people to share their feedback related to the products so that they
can improve the quality and any other shortcomings.
Therefore, technology helps the organisation in securing sensitive information of the
customers and the employees as well. The technology also provides assistance in improving
communication via websites, email apps and so on. The co0mpany use the technology to
receive the feedback of the customers for their products so that the can increase the
experience of the customers. This enables a business concern to broad the buyer’s bases by
providing their products or services to the different location of the countries. The technology
allow the companies to outsource their businesses functions to the other nations.
The theories of business management are described as under:
New management theories Old management theories
The Morden management theory coordinate
the traditional and human management
theory so that they can make the worker
more productive by providing them good
technologies which enhance their skills and
knowledge(Kantabutra and Ketprapakorn,
2020). The theories are depicted as under:
Quantitative theory: This is a theory which
uses the various models statistic and
technologies in decision making process. It
includes the three branches which are as
under:
 Management science that refers to
the mathematical approaches of the
decision-making in an organisation.
 Operational management approaches
is used by a business concern so that
the can deliver its products and
services in time.
The theories of management are significant
for the organisation because it helps in
growing the business. The old management
theories are described as under:
Classical management theories
This the oldest management theory which
prescribes standard to increase the
production output. In this theory, the
employees are rewarded for their best
performances by a leader. This helps in
increasing the confidence level that makes
them more productive.
 Administrative management
theory: This theory uses the top
down management approach. It
explains that a leader have to fulfil
their responsibilities and duties. This
includes the organisation of the
operations by defining goals,

 Management information system
which help the organisation in
making coordination, control,
analysis and visualisation of the
information.
System theory: This theory suggest that the
business functions should be operated by n
considering the element s that can affect the
environment. This theory includes the
components which are described as under:
 Entropy: The Company should not
use the out-dated system because it
will not provide better or desirable
output to the company.
 Synergy: The employees of the
organisation should be divided in a
team so that they can work together
in order to gain the valuable output
and provide them opportunity to
learn various skills and knowledge.
 Subsystem: The business should be
built on the subsystem base so that
the can get done the operation in an
effective manner.
Contingency theory: This theory believes
that the effectiveness of a leader is depend
on the skills that are required according to
the different situations. They consider the
size of the organisation, employed
technology and leadership styles in order to
get appro0priste result.
commanding to work appropriately,
controlling to get the better result,
coordinating for improving the
performance, planning and
forecasting.
 Bureaucracy theory: This theory
emphasize on the structure of the
business that is made in hierarchy
form so that the roles and
responsibilities are clearly defined
(Kingstone, Chew-Graham and
Bartlam, 2020). The theory
implements the aspects of the
hierarchical chain of command in an
organisation.
Behavioural management theory
This theory focuses on the behaviour of the
people which encourage the employees by
providing the reward in form of bonus and
so on.
 Human relation theory: This
theory was developed by the Elton
Mayo to improve the productivity of
the employees by providing them job
satisfaction through good lighting,
temperature and break time. It states
that people responds to the social
factors when they are given personal
attention this help the business in
retaining the employees.
 Theory X and Y: This is different
style of management where theory X
leader are the authoritarian leader
which shows lack of trust in their

teams. Whereas, theory Y leaders
provide opportunity to the follower
to contribute in decision-making
process to bring new creativity.
Conclusion
From the above discussion, it has been concluded that technology plays an important
role in an organisation in order to make the employees more productive and effective
working of operations. The technologies are used by every organisation in order to make their
work easy or get it done in time or in an effective manner. It helps the firm to improve the
productivity of the employees so that the can be valuable or operative. This also provide
better communication service in an organisation and also cheap manufacturing of the
products. This the report has explained about the technology of SWIFT system and it
importance to a business concern. Further, it discussed the description of the technology that
are used in the payment system of this software. It stated the organisation which uses this
technology. In addition to this it has stated the theories of management in relation to the
technologies.

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