Following on from an earlier post, lets take a look at the first full-scale trial of eBAM that has so far been completed, Bank of New York Mellon and a number of corporates agreed to participate with SWIFT and Wall Street Systems to test naming conventions and message handling protocols under an industry-first eBAM implementation.
SWIFT was approached by both banks and corporates to create and take ownership of nascent eBAM standards. It is one of the first non-financial standards that SWIFT has created, but the value to the industry is clear for all to see. SWIFT already has the channels in place for banks and corporates to use and has a proven track record of stewardship of industry standards.
Importantly, SWIFT also has a track record of continued investment in standards, which is vital. Standards need to evolve, in order to remain relevant. Even as it launches, SWIFT’s eBAM standard needs to be ready for changes likely to take place in the next few years, such as the adoption of standards for digital certification and continued changes to Know Your Customer (KYC) due diligence processes.
The corporates became early adopters because the benefits that could be generated were so clear. They wanted to be involved early in the initiative, to be able to leverage the knowledge and expertise gained in future.
The corporate participants gained the opportunity to provide critical corporate input into the direction taken by the bank, SWIFT and Wall Street Systems with the pilot. BNY Mellon took a leadership position in partnership with SWIFT and Wall Street Systems. It shared a desire to drive change, be an innovator and support the use of an industry standard – which benefits all SWIFT members – enabling it to influence the adoption of an open architecture for eBAM at its inception.
The relationship between bank and customer has become more valuable in recent years and the benefits of eBAM should allow BNY Mellon to build closer working relationships with its customers. Its participation means it will be among the first banks to roll out eBAM to other customers.
The long-term benefit of SWIFT’s participation cannot be overstated. As the eBAM standard is more widely adopted, it will become a consideration for mid-sized and smaller corporate customers. They are less likely to use the SWIFT network directly, but the argument for adopting these eBAM message standards is strong: it means they can become more integrated with SWIFT as they grow, and also helps them to remain fluid in their relationships with both banks
and software vendors.
The significance of SWIFT’s involvement is that the industry knows the standards will exist in the
long term.
Picture: Jason Grant
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