ION announced that Raiffeisen Bank International (RBI) has implemented its new ISO 20022 solution to help it meet the new TARGET2 and SWIFT CBPR+ ISO 20022 initiatives.
RBI has used ION’s Wallstreet FX (WSS FX) solution since 2003 to manage its FX and Money Market risk, and for front-to-back straight-through processing (STP). Since 2021, ION has also worked closely with RBI on the latter’s ISO 20022 adoption strategy.
Led by a joint central banks and SWIFT effort to standardize financial transactions, ISO 20022 has taken major steps to modernize cross-border payments. Enabling richer and more structured granular data in payment messages, ISO 20022 permits banks to process, screen, and validate more efficiently against sanctions lists to combat fraud effectively. Further operational benefits include improved KYC analytics, less manual intervention, and the reduction of risks and costs.
RBI can now process settlement requests both from ION’s existing WSS FX and other back-office applications across the bank. Supporting the rich and structured data in ISO 20022 messages, the new messaging hub will provide a more efficient end-to-end payments experience for RBI’s clients.
A fundamental advantage of the ION solution is that it natively supports the required ISO 20022 message formats. By providing access to TARGET2 and SWIFT CBPR+ libraries, the solution removes the time-consuming translation process, allowing for the better and faster management of payments end-to-end. So, RBI can quickly ensure its cross-border transactions comply with the new standard, ensuring a smooth transition for both the bank and its clients.
Harald Müller, head of Group Capital Markets at RBI, said in a statement: “As ISO 20022 moves closer to becoming the de facto messaging format for cross-border payments, we recognized the need to prepare for the migration as soon as possible.”
Eugene Markman COO of ION FX, said in a statement: “Through working with RBI on their ISO 20022 strategy for the past two years, we understand the challenges this new messaging format presents. Designed to address these concerns, our ISO 20022 solution will help RBI and other clients meet the new requirements, realize additional settlement opportunities, and pave the way for a more standardized, efficient payments landscape.”