Tool will Address Massive Changes in Global Messaging Standards Complicating Real Time Payments Landscape
WILMINGTON, Del., June 9, 2022 /PRNewswire-PRWeb/ -- Go-Live Faster recently unveiled its innovative Real Time Payments Implementation Accelerator called RTP-GO, which assesses and reconciles gaps between banks' legacy payment systems and emerging domestic and international messaging standards. Clients of banks have made it clear that real-time payments capabilities is one of the most important factors when choosing a bank.
"Go-Live Faster is leading the way to real time payment enablement as banks scramble to manage their way through a myriad of changing global messaging standards that obsolete most legacy payment systems," said Hari Raghunathan, Executive Vice President, Go-Live Faster.
MT, the global standard messaging platform to process and track payments, will be decommissioned in November 2025 and in its place, financial institutions and regulators will be adopting the ISO 20022 messaging standard, which is not compatible with legacy payment systems. In addition, a number of domestic and international changes to the global real time payment ecosystem has added complexity to the already complicated process of enabling payments in real time.
Banks still processing payments on legacy systems experience limitations, since most are still dependent upon processing payments in batches through established systems. RTP-GO, a breakthrough messaging migration validation service, will help identify such limitations and bottlenecks upfront while designing the payments strategy. RTP- GO, now in pilot, encompasses a six-step process to identify functional differences between current payment systems and ISO 20022 messaging standards, precisely map those variances to pinpoint ISO 20022 standards' impact on downstream and upstream applications, validate the migrated system end-to-end to spot defects and manage the defect resolution process.
Consider the technical implications associated with real time payments as ISO 2022 messaging becomes a global standard:
- The Society for Worldwide Interbank Financial Telecommunication (SWIFT), which allows banks to relay information about financial transactions to one another, will enable ISO 20022-based cross-border payments and cash reporting in November 2022.
- The Federal Reserve Banks are now piloting a new real time payment system called FedNow Service, which is modeled on the ISO 20022 messaging standard is scheduled to launch in 2023.
- The Clearing House Interbank Payments System (CHIPS), which nets debits and credits across transactions, and provides clearing and settlement services to its customer banks, is adopting the ISO 20022 messaging standard as well.
- ABA is encouraging The Federal Reserve Banks and The Clearing House to migrate their respective systems to ISO 20022-compatible messaging on the same day in November 2023.
"To understand how wide-reaching the ISO 20022 migration will be, consider the fact that real time payments affect account-to-account banking, the gig economy, loan funding, business-to-business payments, payroll, merchant funding, title companies, consumer wallets, insurance payouts and cash concentration," added Raghunathan. "ISO 20022 will help improve system effectiveness, reduce costs and generate alternate revenue streams for real-time payments. The potential lost opportunity costs of not adopting the new standards are too great for banks and credit unions to ignore."
About Go-Live Faster
Go-Live Faster works with banks and credit unions to select and deploy complex commercial banking technology solutions on time and on budget. Go-Live Faster is a Domain-focused and Innovation-driven firm that helps enterprises get to market faster and safer with their desired customer experience.
Go-Live Faster's solutions span across Banking Technology Selection to Implementation including Business Analysis, Quality Assurance Testing, Data Migration Validation, Automation, Training, Branded User Guides, Documentation and Videos. As a result, banks and credit unions can digitally transform their operations with confidence – adding new technologies and systems that meet requirements, work well with existing technical infrastructures, and are adopted by users.
Media Contact
Malinda Lackey, Michael Mackenzie Communications, 404.445.1842, [email protected]
SOURCE Michael Mackenzie Communications
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