Global financial messaging services provider SWIFT (La Hulpe, Belgium)is reducing the price of messages on its core FIN service by an average of 20 percent. This will represent an estimated saving of EUR 70 million for SWIFT customers in 2011, according to the organization. The new pricing plan takes effect on January 1, 2011.
We have delivered the reduction by focusing on increased efficiencies and rigorous cost controls at SWIFT despite the tough global economic environment and the decreased volume growth said Lzaro Campos, SWIFTs CEO, in a statement. Consistent with our strategy for the next five years SWIFT2015 we are committed to further decreasing the price of our messaging services in the future, while continuing to invest in the security and reliability of our platform.
This is the largest price reduction since 1995 and SWIFT has ensured customers with smaller volumes also benefit, said Yawar Shah, Chairman of the SWIFT Board and Managing Director, Citi, in the press release. In fact, the announced 20 percent reduction is in addition to the achievement, ahead of schedule, of a targeted 50 percent price reduction over five years set in 2006.
The new pricing plan reflects the guiding principles of SWIFTs pricing policy, which aims to encourage traffic growth, increase market share, and respond to market conditions and competitive threats. Additionally, the policy aims to reward both large and small volume users, and offer choice to customers, according to SWIFT. The reduction applies to all types of FIN traffic and SWIFT is also extending its optional Fixed Fee program to a broader group of customers. The Fixed Fee option offers customers opportunities for significant savings as well as cost predictability.
Year-to-date average FIN traffic growth is above seven percent. SWIFT recorded its latest traffic peak on May 11, 2010, when it processed 18.36 million FIN messages.