What is SCORE or SWIFT for corporates?
In January 2007, SWIFT launched SCORE (Standardised CORporate Environment) to simplify the process by which corporates interface with their banks when processing payments.
Prior to SCORE, corporates had to join a Member Administered Closed User Group (MA-CUG) for each bank with which they required connectivity. The corporate also needed to be sponsored by each bank to join their MA-CUG and would have to belong to several MA-CUGS if they were dealing with multiple banks. This meant that individual contracts had to be created for each MA-CUG, each with a different set of conditions. Similarly, for each bank connection, a different software system, together with its supporting process, was required.
SCORE negates the need for corporates to join several MA-CUGs by promising a single connection to all of their banking services.
Opportunities and benefits that SWIFT connectivity offers to corporates
The ability to consolidate and control multiple domestic and international payments through a single channel creates significant opportunities and benefits. These include:
- Reduced costs – allows you to consolidate multiple banking systems
- Reduced risks - eliminates the complexities created by different standards, requirements and cash management systems
- Simplification of entire payments process – one interface greatly improves the efficiency of multiple domestic and international payments
- Access to Single European Payment Area (SEPA) – represents the most efficient channel to access direct debit and credit transfer services within the SEPA zone.
When will SWIFT for Corporates be available?
Although SCORE was launched by SWIFT in January 2007, its success relies on banks’ abilities to support it and timescales for this will vary between different banks. You will need to speak to your sponsoring banks to assess a realistic timetable.
What should corporates be considering now?
Although many corporates would like to access SWIFT, there is little information currently available and many organisations are unsure as to the most appropriate approach to take. SWIFT connectivity will not be an overnight solution and is something that Corporate Treasurers need to carefully consider before developing a business case.
How can Eiger Systems help?
Eiger Systems is currently adding SWIFT connectivity to its global payments platform EigerPAY Gateway. We are well placed to provide Corporate Treasurers with information and advice on all aspects of improving the efficiency of their payments systems, including SWIFT and SEPA.
For more information, please contact us or call +44 (0) 1788 554810