ISO20022 Migration Case Study – Protecting Legacy Systems
A common requirement we are challenged to solve is when companies are faced with an upcoming regulatory/standards changes (Target 2, Euro 1, P27, CBPR+) and their core systems are not compatible with the new format.
A good example is with the upcoming Swift community migration to ISO 20022 for payments traffic due to begin at the end of 2022. This migration means that any company wishing to send/receive payments via Swift MUST be compliant with the relevant ISO 20022 messages. The migration is due to be complete in 2025 and after this date all parts of the core payments processing (along with other banking systems and departments) must be compliant with this format which is proving to be a challenge/opportunity for companies to review their current infrastructure and analyse the best way to upgrade their current systems.
The biggest challenge to any firm is what the cost will be to implement such a strategy as they highlight which systems require upgrading, issues such as legacy systems not being ISO20022 compliant and therefore requiring coding/system upgrades to ensure that they can begin to send/receive this standard head the costs and make this migration a costly project to achieve, however, what if you could keep your current infrastructure but still be ISO20022 compliant?
To meet this demand we have combined the powerful facilities of our core Transformer product with a comprehensive set of ready-built, easily customised MT-MX Mapping libraries.
The core features and the libraries work together to provide a complete solution. Transformer allows you to be fluent in ISO 20022 (or any message format) whilst protecting your legacy systems.
A strategy for MX payments
At the infrastructure level the settlement of payments is moving towards MX (ISO 20022 XML format) at a growing pace. In Europe, SEPA is already live for cross-border retail payments, and many other infrastructures around the world are planning similar migrations.
Because many participants want to keep using legacy systems and formats, the initial MX roll-outs are mostly adopting a ‘like for like’ approach, where ISO 20022 messages only use fields and capabilities that have equivalents in currently-used messages, primarily SWIFT MT standards. This will enable a period of ‘coexistence’ of both standards. However, in the longer term the extra data available only in MX will be demanded, not least by regulators, and at this point MT-MX conversion solutions will need to be updated, whether by enriching the MX message with data not in the MT message, or building the MX message directly from payment transaction data.
Managing the multi-year transition from SWIFT MT and MX (ISO 20022 XML) formats will be a challenging requirement for many projects. The rules specifying these conversions are very complex, so attempting to create your own MT-MX mappings could be a huge task.
Leap ahead with ready-built MT<>MX mappings
Conversion between SWIFT MT and MX (ISO 20022 XML) formats will be a challenging requirement for many projects. The rules specifying these conversions are very complex, so attempting to create your own MT-MX mappings could be a huge task.
Using Transformer, simply start with the full set of high-quality MT-MX mappings we’ve already built for you. You can quickly and easily customise them to meet specific project needs.
Transformer’s simple API and its range of specialised service builders allow solutions to be deployed rapidly into any integration architecture, including OSGi, development frameworks such as Java or .NET, RESTful service containers and traditional Enterprise Service Bus (ESB)/Enterprise Application Integration (EAI) architectures. Each deployment is independent and thread-safe, allowing for complete scalability within the overall architecture.
Transformer is the strategic answer to ISO 20022
All these resources combine to ensure that Transformer the most powerful way to handle advanced standards such as ISO 20022 and enable projects to build solutions that are delivered fast, to a high quality, and which stay maintainable in the longer term.