News article

Ares introduces SWIFTNet Funds at Land Bank of Taiwan, enabling lower costs and risks; improving customer service efficiency

Ares International Corp. successfully introduced SWIFTNet Funds fund automation system at Land Bank of Taiwan (LBOT), with the official operation starting in October 15.

The third local bank (after Taipei Fubon Bank and Taishin International Bank) to join SWIFTNet Funds, LBOT has announced the use of ISO 20022 XML message format. The move will help the automation of most of the fund investment transaction procedures (including front- and back-end processes such as purchase, conversion and redemption) of LBOT against overseas fund agents. In addition, it will bring strategic advantages while improve sales flexibility and service level.

LBOT has chosen the SWIFTNet Funds since SWIFT, Society for Worldwide Interbank Financial Telecommunication, is a co-operative that offers safe and standard message exchange service and interface software for global financial institutions. Therefore, LBOT can directly connect its back-end exchange interface with international fund companies, thereby significantly improving its service quality and operation efficiency.

According to Frank Lin, president of Ares, the Regional Partner of SWIFT in Taiwan, Ares has promoted with SWIFT for the automation of Taiwan’s fund industry for many years and worked closely with fund companies. Due to mutual efforts, fund automation in Taiwan is becoming all the more mature. “With abundant SWIFTNet Funds introduction experiences, we hope to assist financial institutions to enjoy the fund automation benefits,” Lin indicated.

Currently, Ares has already helped more than 80% of the Taiwan-based banks to install, maintain and renew SWIFT infrastructure.

Fidelity Funds, the first fund company of LBOT to introduce SWIFTNet Funds, is a pioneer of promoting fund automation in Asia and one of the funding members of AFAC (Asia Fund Automation Consortium). With SWIFTNet Funds, Fidelity Funds is striving to achieve an even higher standard of the industry.

According to Tracy Lin, regional manager, Commercial division, Asia North, SWIFT, the feedbacks from Taiwan-based banks are positive and they are very eager to promote fund automation.

Eric Chua, regional head, Investment Fund Solution, Commercial Division, SWIFT, verified as many as eight banks in Asia Pacific already adopted the SWIFTNet Funds solution while 20 banks are testing the solution now, with 36 banks registered to apply for the service. Without doubt, fund automation has come to see a critical mass in Asia. Five more banks in Taiwan will start using the service this year, Chua said. This proves that Taiwan not only has a leading position in wealth management, but also leads in fund automation, Chua added.

About Land Bank of Taiwan

Established in 1945, Land Bank of Taiwan (LBOT) is the only real estate and agricultural trust professional Taiwan-based bank appointed by the Taiwan government. Apart from realizing the residential, agricultural and land policies of the government, LBOT is also aggressively transforming itself into a multi-functional bank that is marching toward the vision of a well-honored regional bank in Asia Pacific.

About Ares promoting SWIFT

SWIFT, Society for Worldwide Interbank Financial Telecommunication, is a co-operative established by and for the global financial industry in 1973. Since its establishment, SWIFT has been providing worldwide secure and standard financial messaging services and interfaces for 8,141 financial institutions in 207 countries. In order to enable its customers to automate and standardize financial transactions, lower costs, reduce operational risks and eliminate inefficiencies from their business operations, SWIFT is devoted to setting up the industrial standard and providing opportunities for its customers to create new business opportunities and revenue streams.

Ares International Corp. has strived for the SWIFT-related implementations and all the SWIFT standards and cooperated with SWIFT closely. In 2002, Ares became SWIFT Business Partner formally and was certificated as the SWIFT Service Partner in January, 2003. Ares provides Taiwan-based financial institutions with professional consultant services, including the installation of SWIFT Products, the planning and implementation of hobbing for overseas branches, the planning of disaster backup, and so on. Based on abundant SWIFT experiences and professional knowledge, Ares has developed various solutions including SWIFT Messages Integration, Funds Automation solution, Global Cash Reporting solution, and so on. Up to now, Ares has assisted over 80% banks in Taiwan in implementing, maintaining and upgrading SWIFT infrastructure. In 2008, Ares became a SWIFT Regional Partner in Taiwan and its professional service is proven to be SWIFT Ready Service.