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Walton, a 25-year veteran in the payments industry, Stratus Computer (S2), it led him to Frankfurt, Germany, where he founded DNAHis first company aims to introduce open system switches and test tools to the payments market in 1996.
After the merger with EPS GmbH In 2001, these products (ASx and ASSET) ACI 2004.
Iliad Solutions was founded in 2004 to improve the way payment systems are tested. Iliad’s first product, t3, was launched in 2007 and is used in 16 countries by card schemes, Tier 1 banks, processors, retailers and software developers.
ISO20022: Why migration is more than compliance
The ever-accelerating digital innovation in the financial industry requires adherence to the latest standards and protocols. There is also one standard that has proven to be particularly infamous when it comes to the ability of IT teams to change blood pressure levels, especially when the relevant skill set is missing. It is ISO20022.
This standard aims to make better use of data and share information among banks, merchants and fintechs, using a core dictionary of business terms used in financial communications and being syntax-independent. Capture financial business areas, business transactions, and linked message flows in a way.
ISO20022 has been implemented in more than 70 countries, but is still being rolled out in some developed countries and has been delayed in some quarters due to pandemics. With so many key components of the global payments infrastructure working on different implementation timescales, it can be difficult to know when an innovator will jump.For example, the UK Faster Payments Service will be adopted in 2023. fastConversion is scheduled for 2024.
Migration drives innovation and ultimately reduces stress
The truth is that there is no deadline for implementation, but financial institutions of all sizes should start preparing for the transition now, if they have not yet made the transition. The risk of not migrating means that the migrating competitors will benefit because the standard improves the end-user experience, increases compliance efficiency, and enables faster and better product iterations.
Financial institutions with well-established or legacy banking platforms are most likely to face the challenge of converting to ISO 20022, which was developed for the cloud-based financial industry. Evaluating platform compatibility across the architecture can seem like a daunting task for IT teams that lack internal capabilities. In such situations, it can feel like yet another costly project that usually suffers from immeasurable delays or can upset the business.
However, there are tools that can help simplify and automate the process, greatly reducing the burden of identifying areas that need to be recoded or upgraded.
You can deploy a modern test engine in the cloud or onsite to automate testing, simulate endpoints, and help prepare for conversion. The good news for financial institutions with large and complex architectures is that ISO20022 can be strategically implemented in different parts of the business rather than all at once. Maintain a reasonably stable stress level between IT teams during the process.
However, this is still urgent and should be considered in the broader context of business model reviews. Financial institutions that have traditionally resisted platforming will eventually be given the opportunity to embrace change through ISO 20022.
Changed: when instead of if
Indeed, changes aren’t really an option, and if you don’t adopt standards sooner or later, along with a cloud-based approach to providing financial services, you’ll lose customers due to customer expectations over time. increase. NetflixThe style seamless digital experience is not met.
Importantly, conversion to ISO 20022 is also not a means to an end. It’s just the beginning. One thing is certain: digital innovation is moving in only one direction, and all future standards are designed to provide landscapes to businesses and consumers.
This is made possible by the transition from the monolithic closed silo operating model to a horizontal layered architecture that includes interdependent modules connected to the spine. The advantage of the horizontal layer approach is that if you need to change one module, you don’t need to mess with the whole organization.
With Iliad Solutions building and launching the latest payment products in support of innovators for 25 years, it’s clear to our team that the pace of change over the last 24 months has been unprecedented. And the impact is being felt with UK regulators. Financial Conduct AuthorityRecently, I noticed that FinTech has begun to eat up the market share of traditional banks.
Innovations that were unimaginable just a few years ago are woven into the mainstream conscience. The widespread use of proposals to link cryptocurrencies and fiat currencies is just one example.
ISO20022 helps accelerate this change.Especially the Faster Payments Service in the UK Clearing house I will participate in the United States.
As Bank of England The standard is stated as follows. Good payment data promises great long-term economic benefits. It also benefits your business and ultimately eliminates the lasting stress points of your IT team.
