ISO20022 Migration Case Study – Protecting Legacy Systems
A common challenge we are asked to solve is when companies are faced with upcoming regulatory/standards changes (Target 2, Euro 1, MEPS+, P27, CBPR+) and their core systems are not compatible with the new formats.
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 the new format. The big hurdle for companies to overcome is how to review their current infrastructure and analyse the best way to upgrade their current systems.
The big question for any organsiation is what the cost will be to implement a migration? The migration review will highlight which systems require upgrading and which legacy systems are not ISO20022 compliant. Once found, those systems will require coding/system upgrades to ensure that they can begin to send/receive the new standard. The cost of this exercise could be considerable, but what if you could keep your current infrastructure and 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.
Understandably many participants want to keep using legacy systems and formats. Therefore, 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.
Leap ahead with ready-built MT<>MX mappings
Conversion between SWIFT MT and MX (ISO 20022 XML) formats will be a risky endeavour 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 you can simply start with the full set of high-quality MT-MX mappings that we’ve already built for you and quickly and easily customise them to meet your 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.