SWIFT Hub Vostro Payment Application
- 1. SWIFT Hub Vostro Payment Application Faster Error Free Processing Prince Johny 1/25/2016 “Non Processing is a risk, while manual processing is greater risk”
- 2. SWIFT Hub Vostro Payment Application Page 2 Being competitive is name of the game in today’s banking industry, managing high volume is always been a threat than a boon for operations departments across banking. While managing risk of erroneous processing due to manual intervention is overwhelming, the risk of crediting a lucrative account has higher impact to P&L and credentials of the operations unit and the bank as a whole. Increasing sanction lists that needs to be checked before crediting an internationally routed transactions has made processing of a transaction longer than before. Thus having a fully functional and automated application for such transaction processing became much important and yesterday’s need than todays SWIFT Hub application was built ground up keeping process point automation and higher volume handling, while operational cost reduction over the life of the application was envisaged. Now Business in much more confident than ever before to get volumes into the bank as SWIFT Hub is capable of processing transactions on a STP mode and seamless error free processing is achieved. SWIFT Hub Vostro Payment Application Faster Error Free Processing SWIFT Hub Vostro payment application:
- 3. Vostro/Loro accounts are local currency accounts managed by a bank, on behalf of another bank outside India. Through which the bank outside India can make payments/ fund transfers as per the requests received from their client groups. Typically such transaction requests are received via SWIFT Network via: MT103, MT101, MT110 and will be as per the agreed standards between the banks. Any single transaction of this nature will include charges to be accounted, sanction list to be checked for the beneficiary, baking hold or status to be checked before processing, fixing the purpose of the transaction etc. each of these sub process had a manual intervention Manual intervention in entering SWIFT payments leads to the risk due to human errors. SWIFT Hub, provides seamless processing, notifications and reporting on SWIFT payments by centralizing all the SWIFT messaging communication for better configurability, monitoring & control on the SWIFT message processing. The above SWIFT Hub will not only allow a centralized path of routing for Inward and outward messages, but it will also remove the dependence of SWIFT message format compliance from various host applications. It will also provide workflows to ensure all critical validations are correctly and consistently executed. It also aims to inbuilt STP process for various workflows. SWIFT Hub has touched all these processes one by one and automated to make it an error free STP processing. There by achieving greater customer satisfaction and better operational efficiency.
- 4. SWIFT Hub Vostro Payment Application Page 4 System is also capable of repairing he Non STP messages by auto generation of Tracers SWIFT Hub application was built on the latest CORDYS platform, for a better UI and flexibility that CORDYS delivers it was perfect for such an application. Messages received trough SWIFT directly put through SWIFT Hub application in an XML format, via the set messaging partner settings in real time manner. System then identifies the messages through the XML tags and adopts a workflow for processing. Multiple masters within SWIFT hub application help set up the application for extremely flexible requirements on charge setting and preferential charge master client to client. The accounting master enables the application to pass accounting thereby enabling STP in processing. SWIFT Hub application is interfaced with the Core accounting application where while auto processing the SWIFT messages system check with the account details and status in core applications and on finding satisfied with the information, system auto passes the accounting entry for both charges and customer accounting, and incase the beneficiary is not within the same bank then initiates an NEFT/ RTGS as may be required, thereby reducing manual intervention for Vostro transaction. Currently with the implementation of SWIFT Hub application, there is no dependency over volume to headcount FTE requirements, SWIFT Hub system is capable of handling large volumes without human intervention, and this automation has enabled higher volume processing with in communicated time lines, value dated processing error free processing is enabled.