- Volante said that it will work alongside Citi’s Treasury and Trade Solutions branch to ensure that the organisation is prepared for the ISO 20022, which will see significant changes to financial messaging networks.
- The new standard, which will bring together processes and methods for financial standards organisations around the world, has been delayed due to the coronavirus pandemic and is now expected to be released around 2023 or 2024.
- A leading figure at Volante pointed out that there could be significant knock-on positive effects for the money transfers processes of financial services businesses, such as the improvement of straight-through processing.
Financial services institution Citi has announced a furthering of its collaboration with the fintech firm Volante.
Volante, which is based in the US state of New Jersey, is a financial technology firm that offers a tool called VolPay.
VolPay is helping Citi’s Treasury and Trade Solutions branch to ensure that it will be able to conform with the upcoming change to the ISO 20022.
The installation of the new standard, which is a proposed international standard for financial messaging, has been delayed.
It is due to kick in around 2023 or 2024.
The delay was caused by the coronavirus pandemic.
The standard will be adopted by SWIFT, which is one of the world’s leading financial communications systems.
It will also be adopted by the Federal Reserve in the US, as well as The Clearing House (TCH).
The change will bring together a range of key processes and procedures for all financial standards organisations.
It will, for example, see organisations such as SWIFT have to use the same methodology as the other institutions in the sector.
New ‘rails’, or payment systems, are now designed around the standard with the eventual implementation of it across the board in mind.
A senior leader at Volante emphasised the ways that the VolPay tool would allow clients and end users to enjoy smoother international money transfers.
Uday Thakur, who serves as chief technology officer at Volante Technologies, argued that there was a big chance that the ISO shift would cause big changes.
“Significant changes are on the horizon for banks and financial institutions, with ISO 20022 migration mandates raising a multitude of operational, infrastructural, and technical challenges,” he said.
“Helping banks rise to the challenge and enabling them to meet critical deadlines without slowing down modernization efforts, will be key to their success.”
He went on to argue that treasury teams at banks would benefit in particular from the product.
“Moreover, by deploying VolPay for ISO 20022 Migration, bank treasury teams will be able to offer rich, value-added data services to their corporate clients, simplifying reconciliation effort, improving straight-through processing, and reducing fraud,” he said.
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