In today's digital age, real-time payments go beyond simple transaction flows—they are driving the evolution of banks into fully digital, real-time entities. To retain corporate customers, banks must enhance their service offerings, yet outdated legacy systems and constrained budgets often impede the realization of true real-time capabilities.
Key Solutions for Real-Time Banking
1. Intelligent Middleware Implementation: Introducing a specialized middleware layer designed for payments and mission-critical systems can streamline the orchestration, translation, and transformation of payment messages (both financial and non-financial). This approach allows banks to onboard data within a message flow without disrupting existing processes.
- Banks must adapt to various message formats, translating them to meet internal requirements while maintaining compatibility with modern global standards when communicating externally.
- A two-sided canonical model enables the seamless conversion of data-rich messages into simpler formats for internal processing and vice versa, ensuring smooth integration with back-end systems that may still operate on older technologies.
Example: Converting ISO 20022 (data-rich) messages to 15022 or 8583 formats, and back to ISO 20022.
2. Reducing Hard Coding for Faster Innovation: By minimizing hard-coded solutions and focusing on endpoint creation toolkits, banks can accelerate their time-to-market and drive innovation. An orchestration layer with isolation capabilities ensures that new developments don't negatively impact core systems.
- This intelligent integration layer unifies disparate systems, evolving into a real-time transaction hub with reusable capabilities, moving banks away from monolithic, single-purpose products.
3. Leveraging Open APIs for an Always-On Ecosystem: Implementing an orchestration layer designed for Open APIs ensures the continuous availability and visibility of payment data, facilitating the shift from batch processing to real-time operations.
- Open APIs allow banks to expose data to customer-facing systems for real-time consumption, enabling tools like online treasury management systems to provide actionable insights.
- Customers gain the ability to monitor payment statuses in real-time and make informed business decisions based on predicted clearing and settlement outcomes.
Optimization for the Future of Banking
To build a truly connected and intelligent banking ecosystem, banks must orchestrate beyond payment flows, creating a comprehensive real-time transaction hub. This hub, powered by Open APIs, integrates all bank-owned systems into an automated intelligence layer that offers client-centric visibility.
- A flexible, always-on real-time bank can continuously adapt its services to meet evolving customer needs. In the corporate sector, real-time payment data can be mapped against advanced Big Data analytics technologies, such as machine learning and AI, to extract valuable insights across disparate systems and transactions.
- Enhanced real-time liquidity insights enable banks to offer customized services, such as micro business loans and bridging loans, providing corporate customers with better control over banking costs and improving overall customer experience.
Nth Exception: Your Partner in ISO 20022 Transition
If your institution is planning to adopt ISO 20022, Nth Exception, a SWIFT partner, is here to assist. As a specialist consultancy and technology firm, we work with financial institutions globally to implement best-in-class payment solutions.
Introducing Nucleus: Revolutionizing ISO 20022 Data Management
Nucleus, an ISO 20022 Data Fabric, is purpose-built to help banks and financial institutions monetize ISO 20022. It leverages rich ISO 20022 messages categorized by domain, scheme, and message version, and federates this rich data to internal systems, enabling large-scale change and disruption. Out of the box, Nucleus enables institutions to comply with CBPR+ and HVPS+ structured data requirements.
Key Features of Nucleus
Internalize the ISO 20022 data language and definitions.
Update systems to receive data as per ISO 20022 definitions.
Capture payments metadata from payment messages.
Extend rich contextual payments data to existing organizational systems that are not ISO 20022 native.
Key Benefits of Nucleus
Bridges the gap between legacy data platforms and ISO 20022.
Designed for financial institutions to accelerate value extraction from ISO 20022.
ISO 20022 native data store for pre- and post-translation messages: 10 years.
Structured address enablement.
LEI validation and creation.
Automated purpose and remittance codes.
Automated, independent truncation management.
Advanced analytics.
API native.
Available on-premise and in the cloud.
With Nucleus, your institution can seamlessly transition to ISO 20022, unlocking new efficiencies and capabilities in cross-border payments.
