Article 12/12/23

Case Study: ISO 20022 Migration in 10 days

Introduction

ISO 20022 migration and SWIFT MT and ISO 20022 coexistence are high on the agenda for all financial institutions. During the coexistence period, all financial institutions connecting to SWIFT must be able to receive both SWIFT MT and ISO 20022 messages which is proving to be a challenging requirement and, for many financial institutions, an opportunity to review their current infrastructure and analyse the best ways to upgrade and future-proof their systems.

One such institution, a UK International Wholesale Bank (from here on referred to as the client) engaged Trace Financial to help solve their ISO 20022 migration requirements.

Requirements

The client connects to SWIFT as a correspondent bank and already uses a market-leading payments system. However, this current payment system is not ISO 20022 compliant and upgrading this system is both costly and time-consuming.

To successfully navigate the coexistence period, they identified the following requirements:

  • To receive both SWIFT MT and ISO 20022 messages.
  • Convert ISO 20022 messages to SWIFT MT messages.
  • Handle and report any data truncation that may arise from the different field lengths in ISO 20022 and SWIFT MT.

The solution must be timely, cost-effective and protect their investment in their legacy system. This will allow them to upgrade their current systems at their leisure.

Using Transformer, they were able to implement a complete solution within 10 business days.

Transformer as the solution

Leap ahead with ready-built libraries

Using Transformer’s ready-built SWIFT MT <> ISO 20022 mapping library reduces the risk, time and cost of an in-house implementation. This library is created and maintained by Trace Financial and captures the intricacies of SWIFT’s specification for CBPR+, Target2, MEPS+, CHAPS, CHATS and other global initiatives.

Transformer’s ready-built libraries allowed the client to start with a full set of high-quality SWIFT MT <> ISO 20022 mappings that are easily customisable.

Handle data truncation

Transformer’s ready-built mapping library easily identifies which ISO 20022 fields have been truncated in the conversion to SWIFT MT. This ability comes out of the box with any of Trace Financial’s ISO 20022 ready-built mapping libraries.

The Transformer Designer provides the ability to populate a bespoke truncation report without any coding knowledge. The format and layout of a truncation report can take many different forms, such as:

  • Report: This can either use industry-standard message types to document the fields that have been truncated or bespoke formats designed by the customer.
  • Database: Using JDBC, Transformer can connect to a database to enrich the tables of the truncated data or to populate tables detailing the missing data from the SWIFT MT output.
  • API: Transformer can call the API (either hosted locally or outside a client’s environment) to list the data that has been truncated.

The client used the Transformer Designer to produce a bespoke XML file with details of the truncation that occurred.

Deploy anywhere

Transformer deploys as a simple, lightweight, embeddable pure Java component API. The low-code API is agnostic to the runtime environment which means it can be deployed on-premises, to the cloud or in a containerised environment. This allows a quick and easy deployment into any integration architecture or development framework such as Java, .NET, RESTful or Apache Camel. Transformer can also deploy into traditional Enterprise Service Bus (ESB) or Enterprise Application Integration (EAI) architecture. Each deployment is independent and thread-safe, allowing for complete scalability within the overall architecture.

Transformer allows the client to be ISO 200022 compliant and protects their investment in their legacy system. They can plug Transformer into their existing architecture without affecting any other core banking processes while planning for future upgrades.

Conclusion

Using Transformer enabled the client to meet their requirements on time and under budget. The client is self-sufficient, and the solution is easily maintainable and future-proof.

Trace Financial provide updates to the ready-built message and mapping libraries as the SWIFT requirements evolve. This removes the burden of keeping pace with rapidly evolving standards from the client’s business analysts, developers, testers, and implementors.

Transformer is the most effective way to achieve ISO 20022 compliance with solutions that are delivered fast, to a high quality, and are easy to maintain in the future.