There is some general understanding on the payments and cash management benefits by joining SWIFT. However compared to financial institutions like banks, adoption by corporates has generally been slower than anticipated. SWIFT hopes that by supporting corporates with their shift to e-invoicing, the adoption rates will increase.
Compelling value proposition?
SWIFT says it has a compelling value proposition for corporates to connect to SWIFT’s network. It is going to take on the role of creating secure and reliable interoperability between e-invoicing service providers. E-invoicing today is handled through a large number of unconnected networks spread around the world. SWIFT can extend the reach of service providers, which with only a few exceptions, are generally focused on domestic e-invoicing. Connecting with SWIFT would eliminate the corporates connecting with all these different providers.
Furthermore it wants to deliver common standards. Aha, but a dozen or so other initiatives in this great green and blue world are doing the same. Which will become the most common?
SWIFT: The NEW four corner model for e-invoicing
Oh no! We haven’t even get used to the recently by lobbyists introduced four corner model, and here we have already another model.
However it less disrupting then we thought: SWIFT is just developing a service that makes it easier to connect different e-invoicing networks. This should bring together the best of the Three Corner Model and the Four Corner Model.
Proposes benefits
- a platform that spans the entire order-to-pay cycle offers many benefits in terms of better visibility and control, lower costs, improved working capital and enhanced buyer and supplier relationships.
- a business can exchange e-invoices with customers and suppliers internationally, even though they are not part of the same network.
E-invoicing as a service to customers doing business internationally, banks can regain early visibility and indeed earlier notice of trade transactions. Banks can if they want take a stronger position for provide financing solutions, with an opportunity to mitigate risk. They can, if they want to, but do they want to?
