An article by
Table of content
Changing payment formats – ISO 20022 conversion
When migrating from ISO 15022 to ISO 20022, many companies and banks have to make great efforts to adapt their IT systems. In doing so, compromises are often made that lead to manual activities. These kind of problems can be solves with ISO 20022 converter programs.
ISO 20022 converter: “Narrow solutions” deliver fast ROI
Many tasks in payment transactions, such as the conversion or sorting of transactions are “actually” very simple, but sometimes cannot be automated in the existing systems. Such conversions can be done using so-called converter tools. A converter tool is a small program that is executed on the operating system level (command line). This eliminates the need to install or set up a database. Such programs can also be easily executed on a local PC workstation. This clearly delimits the operational environment. There is no risk to IT security.
Flexibility and efficiency
The ISO 20022 converters from CPG Finance Systems GmbH are based on the CPG.classic payment system. The program parts required for the respective converter are compiled and coordinated for the respective task. Typical fields of application are:
- Conversions of old and new ZV formats (e.g. MT to MX)
- Error checking (scheme conformity, due date, etc.)
- Sorting (according to BIC, IBAN, currency, GVC, etc.)
Of course, complex sequences or combinations are also possible. The totals are also corrected for the processing of collector files.
ISO 20022 converter: areas of application
The ISO 20022 converters from CPG are usually available within a few days and can support IT systems temporarily or permanently. The program call can be controlled manually or integrated into automatic processes. All regular tasks involved in transforming ZV files offer potential for optimization:
- Automatic conversion saves time
- Avoidance of errors through manual entries
- Error detection before downstream processing
The CPG converter “MT2camt” extracts transactions from an MT940 according to a specified business transaction code (GVC; in the picture example “164” for instant payments; several GVCs are also possible). The corresponding transactions are made available in a separate camt.054 collector file. At the same time, a new MT940 file is created that contains these transactions as a total posting.
Any other criteria (BIC, IBAN, intended use, etc.) can also be used for extraction, whereby in addition to MT formats, MX formats (camt) can also serve as the source or target format.
The CPG converter “currency” analyzes files for foreign payment transactions. Transactions in euros with a recipient account in a foreign currency are converted into euros equivalent payments (entry field T19, value “91”). Of course, the conversion only takes place with the appropriate combination of account currency and country code.
The use of CPG.classic is advisable in dynamic environments with complex tasks. Whenever the requirements change, a simple adjustment is made in the configuration.