Swift shifts from MT to XML format
Swift is shifting away from its MT formats and introducing XML formats in the field of large-value payment transactions as of November this year.
Up to now, SEPA, SWIFT MT as well as other bank-specific message formats are used for electronic payment transactions. With the objective of defining a uniform standard for the formats of, for example, bank statements and payment media, the SWIFT payment transfer is shifting to the ISO 20022 message standard. Prospectively, XML-based message definitions (MX messages) will replace the so far common MT message types.
The migration in payment transactions is being actively promoted, due to the consistent growth of infrastructures in payment transactions and the necessity to extend the processability of payments in different areas.
The internationally used ISO 20022 standard supports formats which are considerably more flexible than existing country- and bank-specific message formats and thus provides significant benefits in the field of process handling, such as the provision of extended bank transaction information and enabled improvements for processing complaints.
Each XML value of the source file is forwarded to the target file. When consistently using XML-based messages, the “XML cycle” remains closed and no information can be lost and/or has to be shortened on the receiver’s side.
The use of an end-to-end payment processing also simplifies the interoperability between cross-border payments and domestic real-time payments. With Valantic’s FinCASE, the impending migration is fully prepared and considerably simplified for the utilising institutions, particularly as long-term sustainability can be secured.
Valantic supports banks and financial institutes by means of standardised or customised solutions in the field of digitalisation, open banking, automation and the simplification of business operations.
