Identitii Limited (Identitii, Company) (ASX: ID8), an Australian FinTech enabling the secure overlay of transaction level detail on top of financial messages using a private blockchain, has partnered with leading message transformation software provider Trace Financial Limited (Trace Financial).
The partnership will provide banks with an easier, more secure and cost-effective way to migrate to ISO 20022 financial message standards. The combined solution will enable the translation of SWIFT MT messages to ISO 20022 (MX) messages without the risk of truncation or loss of data providing a secure, trusted and auditable way for banks to collect, index and retrieve data from the original payment message.
With a joint focus on sales and marketing, the partnership will target SWIFT member banks, numbering more than 11,000 in over 200 countries, undertaking the complex migration to ISO 20022 and who are looking to reduce the significant cost of converting their existing payments technology systems.
“Migrating from the current message formats to the new ISO 20022 standard presents a number of challenges for banks,” said Nick Armstrong, Identitii CEO.
“Information dropping out of the payment message, and the significant cost and amount of time this is expected to take banks, is a major roadblock. Our partnership with Trace Financial provides banks with a faster, economical solution to migration, with the added benefit of a secure, unalterable and auditable record of information using Identitii’s Overlay+ platform.
“It is the combination of Trace Financial’s best-of-breed translation service and the additional data integrity delivered by Overlay+, that enables banks to make the move to ISO with more confidence,” Mr Armstrong said.
“The adoption of ISO 20022 is an important step in reducing the number of formats currently being used by financial institutions globally,” said Keith Donovan, Trace Financial Managing Director.
“Migration isn’t a choice for SWIFT members as SWIFT announced it will turn off the old message formats in 2026. But banks do have a choice between a lengthy and high cost rebuild of existing systems or adopting an approach that enables them to quickly translate any message format into ISO 20022.
“Overlay+ and Transformer are the perfect partners for banks looking to make the move to ISO today. It’s a win, win for banks,” Dr Donovan said.
Under the agreement, Identitii will integrate Trace Financials’ Transformer into its Overlay+ platform. The combined solution will enable the translation of payment messages from the existing MT format to ISO 20022, and will provide enhanced data security and integrity, ensuring no information is lost in the process due to the Overlay+ information exchange layer.
The integration will enable Overlay+ to enhance the SWIFT payment rails with data and documents related to the purpose, origin and beneficiary of a payment at the time a payment is made.
Work will commence on the product integration immediately.