The go-live date for ISO 20022 is rapidly approaching, meaning many financial firms will soon begin their transition. As an open standard designed to accommodate future innovations across the financial industry and facilitate interoperability, ISO 20022 adoption will be a boon for these firms, providing them with benefits that range from enriched data, compliance, faster straight-through processing and flexibility. However, it is critical that firms have a strategy in place prior to beginning their transition to avoid unnecessary costs and challenges.
From the perspective of hedge funds and other alternative investment companies, one small hiccup in their transition from SWIFT MT to SWIFT MX standards can cause business disruption. To avoid potential pitfalls, these firms can adopt a multi-phase or a single-phase approach to adoption of the ISO 20022 standards, depending on their readiness and requirements.
Additionally, firms can choose between using the SWIFT network for ISO 20022 standards or they can choose host-to-host connection with their banks. This decision is based on multiple factors such as their access to the SWIFT network, volume of trades, number of custodians and type of MX messages. Although there is a level of complexity associated with the implementation of new MX messages, it later translates into a more streamlined business process.
IVP’s Cash Management Solution provides an integrated and flexible solution for ISO 20022 adoption with its adaptive architecture that incorporates the standards through configuration change. All ISO 20022 message types (pain, pacs, etc.) can be easily configured with its built-in rule editor and it can also process all incoming feeds in ISO 20022 format. On top of this, any future change in standards can be handled by the Cash Management Solution through the “Control of Rule” screen.
To help firms plan an efficient and seamless transition, the IVP Cash Management Solution will continue to support SWIFT MT messages on top of its support for a variety of SWIFT MX messages.
Cash Management Solution
A customizable cash management solution for processing payments and monitoring balances via STP. This ISO 20022-compliant solution centralizes balances for unified risk control and regulatory compliance and ensures that counterparty data is validated once and then made instantly available for future automated payments based on configurable rules. A comprehensive and customizable solution for cash settlements, balance monitoring, and straight-through processing (STP). Our cash management solution includes features like SWIFT payment processing and ensures that counterparty data is validated once and then made instantly available for future automated payments based on configurable rules. The solution centralizes all balances, providing unified risk control and regulatory compliance.
Latest blogs delivered right to your inbox
Resources For Growing Your Firm
IVP’s FinanceForward Thinking
Discover the latest trends, find out how your peers are accelerating their digital transformations, get updates on evolving products, and more.