Payment transactions in SWIFT MT format according to the new regulatory requirements for SEPA processes
Frankfurt a.M, 23. July 2019 – In November 2021, the SWIFT migration starts with replacing SWIFT MT formats and introducing XML formats in the field of large-value payment transactions. As of November this year, banks already have to support certain processes for complaints of SEPA payments. valantic’s FinCASE is a proven solution for processing exceptions and investigations and the software already supports ISO 20022-based complaints. Up to now, SEPA, SWIFT MT as well as other bank-specific message formats are used for electronic payment transactions. With the objective of defining a uniform standard for the formats of, for example, bank statements and payment media, the SWIFT payment transfer is shifting to the ISO 20022 message standard. Prospectively, XML-based message definitions (MX messages) will replace the so far common MT message types.
Due to the consistent growth of infrastructures in payment transactions and the necessity to extend the processability of payments in different areas, the migration in payment transactions is being actively promoted. The internationally used ISO 20022 standard supports formats which are considerably more flexible than existing country- and bank-specific message formats and thus provides significant benefits in the field of process handling, such as the provision of extended bank transaction information and enabled improvements for processing complaints.
Basically, each XML value of the source file is forwarded to the target file. When consistently using XML-based messages, the “XML cycle” remains closed and no information can be lost and/or has to be shortened on the receiver’s side. The use of an end-to-end payment processing also simplifies the interoperability between cross-border payments and domestic real-time payments. With FinCASE, the impending migration is fully prepared and considerably simplified for the utilising institutions, particularly as long-term sustainability can be secured.