Why it’s time for a new approach to wire processing
08 April 2020
by Editorial, Volante Technologies
The wire transfer industry is going through a transformation, with volumes having grown by 5.8% over the past year for a total of 167 million transactions completed in 2019. At the same time, transaction values have shrunk by 40% since 2015, and the industry is faced with complex tasks such as moving to round-the-clock settlement hours and upgrades to ISO 20022 enriched messaging format. How can financial institutions ensure they help their wire operations— the lifeblood of their payments business—thrive in the face of today’s challenges?
Volante Technologies has released its latest webinar featuring speakers Marie Garvey (VP Product Management, First American Trust), Vinay Prabhakar (VP Product Marketing, Volante), Tushar Puranik (Managing Director, Deloitte), and moderated by Mike Perkowski (Partner, New Reality Media), with the debate focussing on the issue of “Why it’s time for a new approach to wire processing”.
The seminar covered a variety of topics regarding wire transfers from a financial institution’s perspective and outlined how banks need to pivot their approach to electronic transfers now that wires are becoming a commodity. All panellists considered modernization, system integration and processing efficiency to be vital to the continued health of a bank’s payments business.
Also discussed was how the shifting regulatory landscape has been a motivating factor driving the need for banks to update their wire operations. The emergence of ISO 20022 messaging format, for instance, means that every single link of the payment processing chain needs to be adapted to be able to interpret and process the newly enriched data which poses a challenge to banks’ existing technology.
One of the main takeaways was that shifting customer demands and industry regulations are sure to continue, and legacy systems can’t keep up. All panellists agreed that firms need to move to systems that are resilient, continuously configurable, future-proof and scalable, and that means moving wire processing to the cloud.
Watch the complimentary webinar here to find out more about:
- The latest wire trends
- Challenges with current processing options
- The benefits of Payments-as-a-Service (PaaS) and how ‘active-active-active’ processing in the cloud can deliver outstanding resilience at low cost