Real Time Gross Settlement (RTGS) and wire transfer
Payments processing for single, immediate, time-sensitive or high value transactions represents one of the key products that a financial institution offers.
RTGS and wire payments must be processed and settled in real time, with the ability to provide customers with real time information and status updates. ACI provides global payment processing solutions that streamline high value payments processing and provide continuous processing to maximize straight-through processing (STP) rates. The Universal Payments technology enables country-specific clearing connections to be added quickly with low risk to the financial institution.
Money Transfer System offers complete and ongoing regulatory compliance. The solution offers timely delivery of regulatory updates to meet mandated go-lives such as:
- Dodd-Frank payments processing – completed on time and comprehensively, despite tight timelines and subsequent delays
- BAI (X9) format for Fedwire remittance data
- FedWire Payment Notification
- Annual SWIFT Standards for MT and MX.
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Single Euro Payments Area transactions
The European requirements of the Single Euro Payments Area (SEPA) have introduced across the Eurozone new payment instruments - SEPA credit transfers and SEPA direct debits. The focus is now on realizing the full potential of these changes. The formats offer the capability to offer more remittance information and realize improved reporting and reconciliation.
With SEPA credit transfers (SCT) and SEPA direct debits (SDD) already in production, and end dates for the migration from legacy instruments looming, banks are working hard to meet the new regulations and offer value-added services, while minimising the investment required.
Meanwhile the SEPA Cards Framework (SCF) provides high level principles and rules for schemes, banks, and processors to enable European customers to use general purpose cards to make payments and cash withdrawals in Euro throughout the SEPA area with the same ease, convenience and method as domestically. The SCF mandated the use of EMV to cut cross-border card fraud and the rollout is still in process a number of countries.
PSD2 drives more convenience and access to the user. Real-time information and notifications, additional security requirements and overall greater consistency aims to drive ecommerce and promises more transparency around payments services.
Those financial institutions that lead the way in realizing the value to be offered alongside SEPA formats and PSD2 will win the cash management customers and take regulation beyond just basic compliance.
Financial messaging is the cornerstone of financial services. Financial institutions must be able to send and receive multiple messages in many different formats, yet are under ever-increasing pressure to reduce operational and infrastructure costs while improving service levels.
The transition to MX / ISO20022 is a key global event for financial messaging in the evolution to leverage new technologies and increase cost efficiencies. And use of the SWIFT network is increasingly being adopted by the corporate market.
By coupling SWIFTNet with a streamlined internal operation, financial institutions can improve efficiency and focus on new business initiatives to increase revenues.
A financial institution must consider the impact of MX on their entire ecosystem. A foundation that supports the InterAct and FileAct protocols as well as MX solutions sets such as SWIFTNet Funds, Cash Management, etc. is critical to establishing a financial institution for the dynamic changes in the global messaging arena.
Consumers and businesses today expect instantaneous, real-time solutions and information, while regulators continue to demand increased transparency and more sophisticated reporting. The convergence of these market dynamics and the ever-changing requirements of the disruptive payments landscape leads many banks to consider an enterprise payments strategy, or a hub.
This strategy is often approached with one of the following payment hub types:
- Front-office - consolidates the access channels
- Middle-office or orchestration - consolidates customer data
- Back-office - consolidates the back-office operations and/or the settlement gateways
The approach adopted depends on the desired benefits and the current system topology. Most important is to select a solution provider that can partner with you to meet your specific goals.
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ACI Universal Payments for a real-time hub
ACI Universal Payments enables financial institutions to break down all payments silos with a single hub that wholly addresses today’s real-time payments requirements and scales to meet future demand at a pace that aligns with your banks strategic objectives.
A modernized hub built for real-time: ACI’s real-time hub solution drives consistent processes and customer experiences across the organization, regardless of payment, channel or settlement type. Natively built for real-time processing, the solution comprehensively manages the back-office changes necessary to support real-time requirements.
Enables rapid innovation: With configuration and orchestration, the solution accelerates the ability to enhance existing products/services for real-time or create new ones. Whether it be notifications on mobile phones, real-time updates to the ERP systems or balance alerts, the hub facilitates rules-driven processes and real-time information that banks can quickly leverage to meet evolving market needs.
Provides investment control & efficiency: ACI’s real-time payments hub integrates with existing batch-based systems and infrastructure. This means that banks can incrementally progress to a real-time hub at a pace that’s right for their institution while re-using the best of their existing systems.
Low value and bulk payments processing
As low value payment products become more complex, with new demands from regulators and customers alike, it is imperative that financial institutions have processing models that support the new requirements. Whether it be a move to same day ACH, extended remittance information, cross-border or newer formats to be supported, batch processing is becoming more complex globally.
Electronic volumes are growing, based on greater access to funds, and the confidence consumers have in the protection offered for these types of transactions. At the same time, the underlying structures of these transactions are changing. ISO20022 structures are more prevalent and extended remittance information is critical to providing information associated with the transactions. It is critical that a payment engine can support both the growth and evolution to meet these demands.
Customers of financial institutions are increasingly demanding real-time processing that offers improved visibility to real-time liquidity information.
Traditionally, this has been focused on high-value payments, but now the expectation for real-time, immediate payments is moving to lower value transactions. While there is still the need for batch processing such as SEPA, more and more real-time initiatives are underway such as U.K. Faster Payments, Singapore's FAST/G3 and the Australia New Payments Platform to meet the demands of consumers and businesses.
Sophisticated, consistent processing is needed regardless of whether these transactions are processed as domestic ACH, non-urgent cross-border transactions or in real-time according to a specific country scheme.
Electronic volumes are growing, based on greater access to funds, and the confidence consumers have in the protection offered for these types of transactions. At the same time, the underlying structures of these transactions are changing. ISO20022 structures are more prevalent and extended remittance information is critical to providing information associated with the transactions. It is critical that a low-value engine can support both the growth and evolution to meet these demands.
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UP Transaction Banking
UP Transaction Banking is an end-to-end platform offering digital banking for treasury management functions, including supply chain finance as well as international and domestic payments processing and financial messaging.