The analysis of 1,000 SWIFT payments over six months showed an average processing time of about 17 hours, according to a Statrys report. „Interestingly, intermediary banks don’t significantly impact the transaction speed to the beneficiary’s account”. Also in the Statrys ongoing analysis of SWIFT payment timings, the authors observed „a notable shift in the pattern of transactions”.
Statrys analysis of 1,000 SWIFT payments reveals that the average processing time was 16h 53m 35s. Notably, 63% of these payments, specifically 631 out of 1,000, were processed and received within the same day, highlighting efficiency in many transactions.
Diving deeper into the payment processing durations segmented by currency:
. USD payments showcased a longer average processing time of 18 hours, 14 minutes, and 57 seconds.
. GBP transactions were quicker, averaging 5 hours, 23 minutes, and 42 seconds.
. On the other hand, payments in Euros demonstrated a quicker average duration of 11 hours, 6 minutes, and 36 seconds.
The Statrys second edition of the report reveals a consistent trend regarding the role of intermediary banks in SWIFT payments,
In Statrys latest study, 745 transactions involved at least one intermediary bank. Most of the USD payments, accounting for 403 transactions, necessitated a routing through J.P. Morgan Chase Bank in the US, irrespective of the final destination.
This reiterates the critical role of J.P. Morgan Chase Bank in facilitating USD payments, which is likely due to its market dominance. As a major clearer for these transactions, JP Morgan Chase benefits from size, global reach, expertise, Federal Reserve access, risk capabilities, and strong industry relationships. Their standing as a foremost US bank enables them to facilitate USD transfers worldwide reliably.
Statrys data from both editions indicates that most payments require only one intermediary, with only a small number requiring two or more. On average, SWIFT payment involves 1.12 intermediaries, peaking at 4 for some.
Contrary to what many might expect, the data shows that intermediary banks do not adversely affect transaction speed.
In fact, payments involving intermediaries averaged 15 hours, 4 minutes, and 3 seconds. In stark contrast, transactions bypassing intermediaries took a longer 24 hours, 53 minutes, and 48 seconds.
In the Statrys ongoing analysis of SWIFT payment timings, we’ve observed a notable shift in the pattern of transactions. While the first edition of our study highlighted that SWIFT payments predominantly occurred on Tuesdays and Thursdays, our expanded analysis reveals a new trend.
Currently, most SWIFT payments are made and processed during workdays, particularly peaking on Thursdays and Fridays. This evolution in payment timing underscores the dynamic nature of global financial transactions and the importance of staying informed about these trends for optimal payment planning.
Despite a trend towards weekday transactions, a few transactions occurring over weekends or holidays understandably took longer.
Statrys study identifies variances in payment processing times across countries, echoing findings from our first edition.
For instance, payments to France, Canada, the US, and the UK are consistently processed in less than 10 hours on average, while SWIFT payments to Japan, India, and the UAE are often subject to longer processing times, exceeding 40 hours in many cases.
More details here: How Long Do SWIFT Payments Take? Insights From 1,000 Payments [2nd Edition]
Banking 4.0 – „how was the experience for you”
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