Nasty gremlins are slowing down the switch to SWIFT II from the hugely successful SWIFT 1. By Tony Shale
The tardiness of SWIFT is upsetting its banker members, giving malicious delight to its competitors and increasing the misgivings of those who have been wondering whether to join.
Before members of SWIFT (the Society for Worldwide Interbank Financial Telecommunication) met in Nice for this year's conference, the chairman, Robert Moore, announced yet another postponement for the long-awaited new system, SWIFT 11.
Originally told to expect SWIFT 11 in December 1985, the bankers learned at last year's annual conference that it should be working in the second half of 1986. Then the date was postponed again, but made so specific that the bankers thought it must be right - March 16 1987. Then Moore's announcement in September made everything vague once more. The earliest possible time for SWIFT II was autumn 1987.
What is wrong with the existing system, SWIFT I? First, its own success.
SWIFT was set up in 1973 to rationalise the transmission of bank messages. Each bank had its own method and format, which made interbank communication cumbersome. The 239 banks which were the founder members were hoping to provide a standard computerised message more economical than the telex.