Could instant global money transfers be just around the corner?

If you regularly transfer money overseas, whether it’s to a loved one back home or for business purposes, you may be frustrated with the amount of time it currently takes to hit the recipient’s bank account.

Well the good news is these lengthy transfer times, which can range anywhere from 2-5 business days, may soon become a thing of the past as a number of global banks are working together to streamline international money transfers.

Working with SWIFT - a global financial messaging organisation - the banks involved in the new initiative that kicked off in January 2017 include ANZ, BNP Paribas, BNY Mellon, DBS Bank, RBC Royal Bank and Wells Fargo (plus 20 more banks that are set to join at a later stage).

The first step for the collaboration has been the development of a “Proof of Concept (PoC)”, which according to the SWIFT website was launched “to determine if distributed ledger technology could help banks reconcile their nostro databases in real time.” The results of this concept will be presented at Sibos in Toronto in October 2017.

"ANZ is delighted to be participating in this multilateral PoC with Swift, having already completed a bilateral proof in Q3, 2016,” said Nigel Dobson, ANZ Global Manager Transformation Projects.

“We see this as the next logical step to scaling a DLT solution for Nostro Reconciliation, which in turn will bring significant fulfilment benefits to our customers at the same time as simplifying our operational processes.”

Competitor big bank NAB is also looking into instant international payments with the introduction of the New Payments Platform, which it plans to roll out later in the year. According to a NAB whitepaper, for customers transferring funds internationally the NPP “has the potential to connect these networks and enable real time settlement of international payments.”

While making overseas transfers instantly may not be available to Aussies right now, there are a range of foreign exchange specialists like TorFx, CurrencyFair, Instarem offering transfers in just 1-2 business days. Visit Mozo’s international money transfer hub, to compare deals today!