As banks around the globe grapple with major upheaval in the way they will need to operate, Norwegian software vendor Commercial Banking Applications AS (CBA), today confirmed that it has completed the roll-out of the latest version of its IBAS GBF – Global Banking Factory solution – readying all its customers for full compliance with the new SWIFT ISO 20022 message standards (MX messages).
These are due to come into effect from 21st November this year. IBAS Release 10.27 was made available to IBAS user banks in July, providing ample time for user testing and training in advance of the cutover.
Migration to the ISO 20022 message standard is initially optional but will be mandatory after November 2025. The new standard applies to SWIFT messages concerning domestic, Automated Clearing House (ACH), real-time, high-value and cross-border payments, so it is paramount banks ensure all relevant systems are aligned. CBA has been working closely with user banks to support the development of interfaces to other systems involved in processing or initiating payments and to provide training, helping operations staff prepare for a seamless switchover, whenever the banks choose to do this between November 2022 and November 2025.
“Our close partnership with CBA and the early roll-out of the new IBAS GBF release have been invaluable in helping us prepare for the introduction of the new SWIFT ISO 20022 message standard,” said Anna Hilda Guðbjörnsdóttir, Team Leader Foreign Clearing, Íslandsbanki. “The November switchover represents the biggest change to our payment processing systems in decades. Having the CBA team by our side to support testing and interface development gives us confidence that everything will go smoothly and we look forward to using the new richer data formats, when the time comes, to share new value-added insights with customers.”
As well as enabling the receipt, processing and sending of SWIFT’s new MX message types in full compliance with the ISO 20022 message standard, IBAS GBF will also allow banks to choose if they would like to continue to receive the existing MT102 and MT103 message types from third-party banks that are yet to update their systems. Banks with the ability to map MT103 messages to the new ISO 20022 message types, and that are able to issue new MX message types externally, will be in a strong position.
Rolf Hauge, CEO and founder, CBA, explained: “By preparing early, CBA is giving our user banks a crucial head start in automating all processes, and helping them ensure alignment with the requirements of relevant clearing and settlement systems for processing the new SWIFT message types. CBA has ensured that our user banks are equipped to receive MT as well as MX message types after the initial cutover so that they can continue to process the messages of any banking partners that are not immediately compliant. Our goal has been to ensure that, as much as possible, IBAS GBF users will be able to avoid the manual intervention that may become common at other banks. Many banks that are saddled with legacy systems are struggling to comply or will need to use the SWIFT translation service if they are unable to process the new ISO 20022 messages themselves.
“A modern infrastructure - such as that provided by IBAS GBF - is imperative in enabling banks to store, process and share the additional information provided by the new ISO 20022 messages including invoice details, tax data and supplier information. Modern systems, built on an open architecture, are also crucial in supporting increased automation, for example through the integration of third-party tools for KYC, AML and sanctions checks.”