credit: Shutterstock
credit: Shutterstock

Cloud payments provider Volante Technologies has launched a new service aimed at simplifying ISO 20022 message compliance.

With the provision of the Volante ISO 20022 Service, the company is looking to provide full regulatory adherence to businesses with a payment messaging offering – from financial institutions to fintechs and payment service providers (PSPs).

Updating to an ISO 20022 standard both for domestic clearing and settlement (TARGET2, CHAPS, Fedwire, etc.), and for cross-border payments (SWIFT CBPR) can prove difficult for financial service providers with operations based on legacy systems – something that can be seen surprisingly often today.

To tackle this, the new product gives financial services developers and architects increased capabilities to incorporate a value-added ISO 2022 modernisation into their applications, utilising microservices-based APIs for initiation, transformation, and translation of ISO 20022 message to and from legacy formats.

Gareth Lodge, Senior Analyst at research firm Celent, said that a total of “87%” of all global high value clearings are expected to be “ISO 20022 by 2025”.

Lodge continued: “This poses acute difficulties for larger financial institutions who operate in multiple countries and regions and must balance a constantly shifting landscape of market infrastructure deadlines with limited IT resources and budgets.

“Even without legacy constraints, de novo banks and PSPs also face challenges, as they must find ways to differentiate from their established competitors by going beyond compliance to deliver value from ISO 20022.”

According to Volante, turning to the Volante ISO 20022 Service will extend the life of legacy systems, in turn removing the need for change in how a business operates. Furthermore, value-added services can also be built based on the standard’s extended data features, eliminating hand-coding and with that – accelerating the time to market for such services.

Volante also pointed to additional benefits such as an improved performance for end-to-end processing, higher straight-through processing, and a 60% reduction in costs when compared to traditional ISO upgrade approaches.

Nihit Ahuja, Global Business Head of Platforms at Volante Technologies, commented: “At Volante, we are proud of our 20+ year history of delivering financial messaging standards-based, low-code services for application developers.

“We also have extensive experience working on ISO 20022 modernization programs with leading financial institutions. We are delighted to be making this expertise available to developers everywhere in the form of easily consumable APIs through our ISO 20022 service, on or off the cloud.

“This is just the beginning,” concluded Ahuja. “We are investing heavily in our roadmap, enhancing our low-code platform to enrich this new service and bring new value-added services to the market.”