Payments & Cash Management Messages move to XML standards
To allow financial institutions sufficient time to manage the transition, both SWIFT and EPC are planning a co-existence phase. During this phase, which in both cases extends until November 2025, the legacy format/version and the new XML version will be supported in parallel. Nevertheless, all participating banks will be expected to accept and process the new versions messages from the outset.
The move to XML in general and the ISO 2019 version in particular is more than a technical migration. It requires significant operational and infrastructure adaptations by all parties involved within the payments business. Banks will need to take a close look at the entire workflow for payment transactions and cash management.
Colin Smith | Key Account Manager | Omikron Systemhaus
This is more than a technical migration. The move to the ISO XML in general and the ISO 2019 version in particular requires significant operational and infrastructure adaptations by all parties involved within the payments business. For banks, the change in the payments landscape could be a complex and costly process. On the other hand, the advantages of the new formats in terms of automation and richer information can lead to better reconciliation and throughput rates and improvements in the quality of essential services such as archiving and anti-money laundering. These factors will in turn reduce costs and increase efficiency in the mid-term.
Because the focus of the change is the Bank-Bank message exchange, there is no immediate pressure to make changes to client channels. However, there are two important considerations: firstly, there is already a clear demand for the new formats from corporate clients, who appreciate the benefits of the new formats in terms of automation and richer information; and secondly, where E-Banking standards are regulated (in Europe via the EPC and in Germany via the DK), it can be expected that the new formats will officially replace the previous standards, in a similar timeframe to the EPC/SWIFT migration.
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At the same time, the incoming and outgoing formats can be fully validated by the intelligent modular format subsystems. The sophisticated workflow management allows the configuration of detailed processing procedures according to the Business Process Model and Notation (BPMN) concept. Our specific conversion tool UBIQCash enables you to set up flexible format conversion for both incoming and outgoing formats in both directions