Swift, the worldwide bank messaging network, said it is giving members rebates on fees for 1993 and will reduce its fees for next year, as the result of cost cutting.
Swift, which stands for the Society for Worldwide Interbank Financial Telecommunication, was able to reduce fees in part because message traffic on the network rose by about 13% to 450 million in 1993, said Leonard Schrank, chief executive of Swift.
In addition, the organization has cut operating expenses by 3% in 1993 through a combination of reorganizing workflows and instituting a hiring freeze, Mr. Schrank said.
"We've been working hard to get costs under control," Mr. Schrank said.
Swift, based in Brussels, is a consortium of 2,200 banks.
A Tarnished Image
Mr. Schrank, who was appointed to head Swift about two years ago, has been working successfully with other Swift officials to turn around the organization's tarnished image. Prior to Mr. Schrank's tenure, Swift was seen by some bankers as neglecting its basic message service while encroaching on banks' turf with competing services.
The price reductions for next year take effect on Jan. 1 and bring the base price for sending a Swift message to about 17 cents, down from about 18 cents.
In addition to the price cut for 1994, Swift is giving its members a 20% rebate for 1993, equal to about $41 million. The money is to be shared among all customers based on their share of transaction volume in 1993.
