IMS ISO 20022 Translator: A path to Swift and RENTAS Network

As the financial industry is moving towards the ISO 20022 messaging standards, Malaysia Building Society Berhad also known as MBSB Bank, a prominent financial institution in Malaysia known for its comprehensive range of banking and financial services, has engaged ECS Fin’s IMS ISO 20022 Translator.

MBSB now complies with Swift and BNM (Bank Negara Malaysia) requirements on exchanging messages in ISO 20022 standards covering cross-border and domestic payments. Be it that migrating to ISO 20022 standards is an ordeal for financial institutions, ECS Fin’s approach to transaction processing makes it possible with minimal effort. With the IMS ISO 20022 Transformation Tool, the bank has been ISO 20022 compliant since May 2023; thereby maximising new value-added opportunities, and complying with regulatory mandates, all with minimal disruptions to their current business practices and infrastructure.

MBSB bank was looking to address format translation in the following manner:

Convert proprietary and MT format messages from source systems to MX format for Swift and RENTAS.

Convert ISO 20022 messages received from Swift or RENTAS networks to MT format.

Align with the RENTAS MX specifications mandated by Bank Negara Malaysia (BNM).

Align with the Swift MX specifications as per the CBPR+ Usage guidelines.

Adopting IMS ISO 20022 Translator for Swift and RENTAS

MBSB Bank’s operated various departments viz. Payment, Treasury and Trade Processing each responsible for managing distinct message types. The bank had a specific need to employ the IMS Translator to migrate the payment messages to ISO20022 while ensuring business continuity in processing of messages related to Trade and Treasury Operations.

ECS Fin's IMS Translator seamlessly integrates with all of the bank's source systems, accommodating messages in either proprietary or MT formats.
The IMS ISO20022 Translator, leveraging predefined libraries, empowers the bank to transmit messages in MX format to SWIFT or RENTAS.
Additionally, the bank can continue to facilitate intermediaries who have not yet migrated to ISO20022 by forwarding messages in MT format itself.
IMS also adeptly manages messages originating from the Trade and Treasury departments, by transmitting them in the MT format and ensuring business continuity.

IMS Translator in action

Operational users within the bank benefit from the informative dashboards extended through IMS, which allow for meaningful data segregation based on message type, source system origin, and payment networks. These dedicated dashboards grant users access to data relevant to their specific roles. By utilizing the IMS Translator, MBSB Bank not only meets regulatory requirements but also acquaints operational users with the MX format. Users have access to both the MT and translated MX messages, facilitating their understanding of the similarities and aiding in their familiarity with the MX message. The rich data received in the MX format is preserved for the reference of operational uses.

Testimonial

"MBSB Bank Kuala Lumpur, completed the ISO 20022 implementation with ECS Fin Payment Platform and complied with Swift and BNM requirements for Cross Border and Domestics RTGS payments: good job, ECS Fin Inc. Jacob Aruldhas, Rajesh Krishna Rao, and Gigy Mathews."

Mohd Nazri Mohamed Tahir

Head of Payments

Reaping Benefits of IMS ISO 20022 Translator

Mohd Nazri Mohamed Tahir highlighted a couple of features of IMS translator that are proving valuable for MBSB bank.

Validation and Exception Handling:

IMS incorporates validation, exception handling, and rule-setting capabilities, which are absent in the bank's legacy applications.

Adherence to constant regulatory changes:

The bank uses the platform to manage multiple input formats and create desired output formats for the Swift and RENTAS network per regulatory changes.

Predefined translation library:

The bank could utilize predefined translation libraries that convert messages to and from ISO 20022, making the entire implementation possible with minimal effort.

Reduce costs and time involved:

IMS Translator helped reduce costs and time needed for testing, thereby assisting the experts to concentrate on other tasks instead of developing translation rules from scratch.

Competitive Advantage:

MBSB now serves as an intermediary that ensures the protection of transaction data integrity while facilitating communication between users operating on various protocols and formats.

Compliance with HVPS+ and CBPR+ guidelines:

The Bank has harmonized the messaging standards across High-Value Payment Systems Plus (HVPS+) as well as Cross-Border Payments and Reporting Plus (CBPR+), thus complying with Swift and BNM standards.

In migrating to ISO 20022 messages, the collaborative efforts between MBSB and ECS Fin successfully implemented the IMS ISO 20022 Translator that meets customer expectations and remains competitive in a dynamic financial services landscape.

In addition to this project, the bank has engaged ECS for the implementation of several other projects, including various modules of the Real-Time E-Payments Platform in Malaysia. Presently, the DuitNow QR and DuitNow Online Banking Services are live for MBSB Bank in collaboration with ECS Fin and DuitNow Request services will be rolled out shortly.

Mapping a path to ISO 20022 with IMS Swift CBPR+ Translator

ISO 20022 in-flow translation: A new language for payments

ECS Fin is an engineering enterprise that specializes in process optimization. We design software solutions with a systems approach to transaction processing.

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