Finastra has announced that its Fusion Trade Innovation application has been confirmed as the first to be designated 2021 SWIFT compatible for trade finance.

The London-based fintech says its solution is ready to support customers ahead of SWIFT SR2021 going live in November this year, which impacts on guarantees and standby letter of credit (L/C) messages.

Challenging times

Finastra says banks around the world are facing many challenges due to the coronavirus pandemic, and this leads to greater intensity when navigating the changes needed to ensure compliance with the SWIFT SR2021 for category 7 guarantees and standby L/C messages.

The new fields and message types, introduced as part of the upcoming changes, require banks and financial institutions to review existing business and operational processes for multiple domestic and cross-border trade finance products.

Interoperable applications

SWIFT compatible application designations are normally granted for a period of one year, typically from mid-year to mid-year.

The SWIFT compatible application criteria focus exclusively on interoperability with relevant SWIFT services and products. They do not address, certify, warrant or guarantee the product's resilience, performance, overall quality, usability, scalability, supportability or other features.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.