09 October 2023

FSB assesses progress toward achieving G20 cross-border payments targets

While there has been good progress, further action is required to achieve the targets and realise the broad benefits that will come from enhanced cross-border payments. This will require collaboration and engagement between and beyond the G20, involving both the public and private sectors.

• • The FSB reports today on progress made on priority actions to meet the G20 cross-border payments Roadmap targets.

  • We are also publishing today an initial dataset of Key Performance Indicators (KPIs), which are designed to track over time the extent to which the targets are being met, where progress is being made and where challenges remain.

The Financial Stability Board (FSB) today published its inaugural annual report on KPIs for meeting the targets for cross-border payments and a consolidated report on progress under the Roadmap. These reports are complementary and together provide a quantitative and qualitative overview about the challenges facing cross-border payments, the progress being made on the G20’s priority actions, and public and private sector projects underway globally to enhance cross-border payments

The two reports have been delivered to the G20 Finance Ministers and Central Bank Governors for their meeting in Marrakech, Morocco, on 11-12 October.

In the KPI report, the FSB has identified data sources to calculate a set of representative KPIs as of end-March 2023. Over time, annual updates of the KPIs will provide estimates of progress toward meeting the cross-border payments targets across three market segments: wholesale, retail and remittances. Overall, at the global level, the KPIs indicate that progress will be needed to meet the targets across all three market segments. The data confirms that user experiences – including costs and speed of payments – differ substantially across regions. For example, payments involving some, typically lower income, regions tend to be among the furthest from the cost and speed targets across market segments. Furthermore, whereas in the retail segment, foreign exchange (FX) costs seem to be the largest component of total costs, the degree to which this is true differs across regions and use-cases; by contrast, in the remittances segment, other fees tend to be larger than FX costs. However, data gaps remain and the FSB will continue to work to enhance the data available, and where possible, fill the gaps.

The consolidated progress report brings together in one place the wide-ranging, interconnected work being taken forward by the FSB, the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and partner bodies on the priority actions under the Roadmap endorsed by the G20 in February this year. Examples include: developing the capabilities of central payment and settlement infrastructures, supporting the move to common data standards for payments messages, delivering the tools needed for harmonised application programming interfaces (APIs) in the payments industry, and providing a vehicle for the investigation of the legal, regulatory and supervisory frameworks that govern cross-border payments....

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