Cookies?
Library Header Image
LSE Research Online LSE Library Services

Origins and development of SWIFT, 1973–2009

Scott, Susan V. and Zachariadis, Markos (2012) Origins and development of SWIFT, 1973–2009. Business History, 54 (3). pp. 462-482. ISSN 0007-6791

[img]
Preview
PDF - Accepted Version
Download (711kB) | Preview

Identification Number: 10.1080/00076791.2011.638502

Abstract

Research in this article traces the origins of a not-for-profit financial institution called the Society for Worldwide Interbank Financial Telecommunication (SWIFT). SWIFT is a core part of the financial services infrastructure and is widely regarded as the most secure trusted third party network in the world, serving 200 countries with over 8000 users. The analysis focuses on how the design and current state of SWIFT was influenced by its historical origins. In order to ensure widespread compatibility in a sector experiencing asynchronous technological development, legacy Telex specifications had to be accommodated in SWIFT's design. Over time, what began as a closed ‘society’ founded to reduce errors and increase efficiency in interbank payments grew into an industry cooperative supporting an enthusiastic community of practice and transformed into an unexpected network phenomenon. SWIFT achieved such success that it has been accused of being an installed base stifling innovation. In recent years, SWIFT has had to institute new categories of membership in an effort to counter concerns about its bank-dominated governance and it continues to search for ways to meet the requirements of key constituents in the financial supply chain.

Item Type: Article
Official URL: http://www.tandfonline.com/toc/fbsh20/current
Additional Information: © 2012 Taylor & Francis
Subjects: H Social Sciences > HG Finance
T Technology > T Technology (General)
Sets: Departments > Management
Research centres and groups > Centre for Economic Performance (CEP)
Research centres and groups > Centre for Analysis of Risk and Regulation (CARR)
Research centres and groups > Information Systems and Innovation Group
Date Deposited: 02 Oct 2012 08:28
Last Modified: 26 Nov 2015 17:20
URI: http://eprints.lse.ac.uk/id/eprint/46490

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics