• 8-21-2008
"The 21st century will be the Asian century,” declared SWIFT CEO Lázaro Campos when addressing 250 business leaders in Korea at a meeting on 1 July organised by the Korean International Trade Association, “and as the centre of gravity of the world economy moves from West to East, SWIFT is working to ensure that our customers fully benefit from the shift.”

The CEOs present at the meeting welcomed the news that corporate trade payment is to become easier, faster and more cost-effective as a result of SWIFT’s collaboration with the Korea International Trade Association (KITA). The Korea Exchange Bank (KEB) is piloting projects from this collaboration with major trade banks in China and Japan — the China International Electronic Commerce Center (CIECC) and the Bank of Tokyo-Mitsubishi UFJ.

Trade within Asia is now greater than Asian trade with non-Asian regions and KITA has been an early adopter of electronic trading solutions for corporates. By linking up with stakeholders in other markets this e-trade initiative has become a regional collaborative effort which will benefit Korean, Chinese and Japanese exporters.

As regional trade grows in the manufacturing centre of the world, market integration is becoming more important. Businesses want trade to be as open and efficient as possible and both exporters and importers want to move from Letters of Credit (LC) and require extended e-trade support for open account transactions. SWIFT’s Trade Services Utility is helping KITA to provide a complete suite of solutions for its members — be it for LC based or non-LC based trades.

Efficiencies and cost savings from secure electronic transfers will enhance the attractiveness of Korea as a global trading partner and exporters will benefit from this collaboration as it will help to enhance supply chain financing and deliver more efficient trade processing.

Reflecting on Korea’s dynamism as an exporting nation in the global economy Lázaro Campos drew a parallel for the Korean finance sector by encouraging them to emulate their successful global industries in electronic, automotive and heavy industries. He noted that Korea was well placed to lead the Asian e-trade market, but he added that for Korea to realise its ambition of becoming an Asian financial hub, business needs to fully support the move to more open capital markets and closer integration with global financial markets.

SWIFT’s role is not only about delivering solutions which allow customers to connect and exchange financial information securely and reliably, “we also act as the catalyst that brings the financial community together to work collaboratively to shape market practice, define standards and consider solutions to issues of mutual interest,” noted Lázaro Campos. SWIFT has been working with banks who have a key role to play in financing and offering services to manage the risks inherent to open account transactions. He emphasised that CEOs must be on the lookout for new bank services that help trade and be ready to support and adopt them.

SWIFT’s offering to corporate entities is not limited to trade. Lázaro Campos noted that over 300 global corporations use SWIFT every day to achieve seamless communication and automation in their payment and treasury operations. Samsung Electronics is the first such company in Korea using SWIFT when managing their business globally. SWIFT provides a single gateway to all their banks in the world, resulting in improved management of cash, lower costs and better control.

The SWIFT CEO concluded by noting that the shift in economic power will give rise to shifts to huge opportunities, "that is why we are investing in Asia — within a 12 month period we will have opened three new offices in Mumbai, Shanghai and Seoul. SWIFT is focusing on making the financial industry more efficient and secure and to help companies do business, raise capital and import and export.”

21 August 2008, Geneve, Switzerland


Source: SWIFT


Email to Friend

Fill in the form below to send this news item to a friend:

Email to Friend
* Your Name:
* Your Email:
* Friend's Name:
* Friend's Email:
* Security Image:
Security Image Generate new
Copy the numbers and letters from the security image
* Message: