ISO 20022 Standards ~ An Overview
As the industry moves towards a global standard for message-based communication, disruptions in transaction processing seem inevitable. Adapting ISO 20022 standards is more than a data transformation project—it involves handling, safekeeping, and utilization of additional fields for all related services. ECS believes that the adoption of ISO 20022 messages does not have to be disruptive. An enterprise's legacy systems and business processes should not be affected by changes in languages and protocols used to exchange information with customers, service providers, counterparties, and all interested parties. Adapting ISO 20022 can be a major initiative for organizations that utilize traditional data transformation tools. However, for ECS’ customers, it’s simply a preference setting that can be dynamically assigned to every counterparty’s credentials.
Key Features
- How is it possible that ECS can accomplish this goal without interrupting source systems?
- How does ECS enrich missing information and validate outgoing messages?
- How is excess data not required by internal applications preserved?
- How does ECS limit the number of mapping needed and accomplish the goals at a rapid pace?
ISO 20022 ~ ECS History
ECS has been providing ISO 20022 messaging standards since 2015 to tier-1 corporate customers, bringing efficiency to their ERP-to-bank communications. For ECS customers who use the IMS platform, ISO 20022 messaging standards are just another messaging protocol that has not caused any interruptions to their internal applications or data processing environment.
Mapping Consideration
ECS Supports 3 types of data mapping.
Mapping Types
- GUI-based, Drag/Drop using Java
- Standard coding, Java/XML
- Persist/Subscribe Model
ECS also recommends and support the engagement of a Canonical format that can stand between source formats and target formats in certain situations. Such approaches can reduce the number of mappings from “m times n” to “m+n+1”.
For ISO 20022 related mappings are recommended to utilize the Persist/Subscribe Model and the engagement of a canonical format when justified.
The Persist/Subscribe Model
A proprietary method used by ECS that gives a lot of flexibility in adding complex processing rules while converting data between formats. This method also allows users to interface and take decisions as and when needed for handling exceptions or for adding conditional rules.
Formats Supported
Supports a series of standard and proprietary formats. Complete mappings for conversion from/to ISO 20022 MX Standards. Covers CSV, Excel, XML, or standards like ISO 15022, NACHA, BAI, etc.
Complex Mappings
ECS support one-to-one, one-to-many and many-to-many type of message conversion from one or more source systems to one or more target entities. Inter-message processing, batch headers and trailers regrouping multiple batches is also supported.
Addressing Gaps
Gather messages in proprietary formats from all internal applications. Prepare 20022 messages, subject to value added processing, approval cycles and controls, deliver to interested parties in desired protocol and schedule.
Surplus Data
Store incoming messages to relational database tables. Create proprietary messages for delivering to internal applications. Safekeep all surplus data that is available on the ISO 20022 messages for future needs, compliance report, regulatory needs and to assist with investigations.
Certifications
ECS is certified in the following areas that involve the engagement of ISO 20022 Standards.
CBPR+
ECS is certified by Swift for all aspects of ISO 20022 standards for Cross Border Payments and Cash Reporting.
- Compatibility
- CBPR+ Ready
RTP (Various Regions)
ECS’ Enterprise Payment Hub is utilized by many regions for doing real-time payments following the ISO 20022 standards. The central banks of such regions have certified our solutions that include workflow management as well as message-based communication following the MX Messaging standards.
Fedwire & ISO 20022 Standards
ECS is one of the first payments providers in the US to get certified on Fedwire payments processing following the ISO 20022 Standards.
ECS is accepting requests from prospects who would like to follow a risk-free acquisition process for migrating to the Fedwire ISO 20022 version as well as other domestic payment modules.
Miracle Case Study
One of our customers remarked on our overnight accomplishment for them as a “miracle”. An ACH file in NACHA format missed the cutoff time, and with the next few days being public holidays, more than 10,000 highly critical payment instructions were held back. The bank reached out to all vendors engaged with them, and ECS took the call and made an attempt.
The IMS Payment platform has several modules and supporting components that can be put together to make rapid solutions. The NACHA file was broken down, enriched, and reformatted to ISO 20022 format, conforming to Bank Negara (the Central Bank of Malaysia), and the payment instructions were delivered via its Real-Time Payment rail. The job was accomplished before the next business day.
