What is the SWIFT Integration Layer (SIL) and why it matters to financial institutions

What exactly is SIL?

The SWIFT Integration Layer (SIL) is middleware developed by SWIFT to simplify how financial institutions connect their internal applications to SWIFTNet, the global financial messaging network. It acts as an abstraction layer between a bank’s core systems and the SWIFT network.

What does SIL do?

At its core, SIL serves as the operational engine that makes seamless connectivity to SWIFTNet possible. It handles the heavy lifting behind the scenes like translating, securing, routing, and monitoring financial messages so that internal banking systems can communicate with SWIFT without needing to understand its intricate protocols. Below are the key functions that enable SIL to deliver this streamlined integration:

• Message Transformation & Routing: Translates internal application data formats into SWIFT-compliant FIN, ISO 20022 (MX), or FileAct messages, and routes them to the right counterparty.

• Protocol Handling: Manages SWIFT-specific communication protocols (InterAct, FileAct, FIN) so applications don’t need to implement them directly.

• Queueing & Orchestration: Buffers, prioritizes, and sequences messages between applications and the network.

• Security & Compliance: Embeds SWIFT security policies, authentication, and non-repudiation. Ensures compliance with SWIFT standards.

• Monitoring & Logging: Provides operational dashboards, message tracking, and error handling.

What are SIL's capabilities?

Essentially, SIL was designed to reduce the complexity of integrating diverse in-house applications to the SWIFT network in a standardized, secure way. Below are some examples: 

• Multi-protocol support (FIN, FileAct, InterAct)

• Built-in translation between legacy formats and ISO 20022

• Connection pooling and load balancing for high throughput

• Integration via APIs, MQ, file drops, or adapters

• Audit and reconciliation tools for regulatory compliance

Beyond SWIFT: How Gresham's Connect Cloud unifies financial data flows

Connect Cloud is our enterprise connectivity and integration solution, used heavily in capital markets, asset management, and banks. The best part? It’s not limited to SWIFT. It's a general-purpose connectivity hub for any external data source or network. Below are six advantages that Connect Cloud provides its customers:

1. Broader integration footprint enables front-to-back automation, not just SWIFT
2. Reduces silos, delivers a single trusted data fabric
3. Operational resilience and business-level controls, not just technical routing
4. Business users (not just IT) gain transparency, faster issue resolution
5. Moves client from point connectivity to platform enablement
6. Future-proofed for digital assets, T+1, real-time markets

Gresham's competitive positioning

Financial institutions require reliable, secure connectivity to SWIFT, but increasingly also need to integrate multiple external networks, custodians, counterparties, and APIs. The choice is between a SWIFT-only middleware vs. a universal integration platform. We've broken down a comparison between both tools:

Ultimately, SIL solves the SWIFT connectivity challenge, but Gresham's Connect Cloud expands the model to unify all data flows across systems, protocols, and counterparties, under one single, governed integration framework.

Summary

• SIL = middleware for SWIFT connectivity, protocol handling, and compliance.

• Connect Cloud = enterprise-wide integration and connectivity hub where SWIFT is just one of many supported channels.

If a firm only needs “how do I plug my apps into SWIFTNet?”, SIL is an adequate solution. If a firm needs “how do I normalize and orchestrate data across SWIFT, custodians, APIs, and multiple asset classes?”, Gresham's Connect Cloud is the stronger, more flexible solution.

Connect with a member of our team today to learn more about how we can adapt our tools to your institution's needs.