Payments and Financial Messaging
Secure, timely, reliable, low-cost payment processing and settlement no longer provides a differentiating advantage for financial institutions. It is a baseline expectation and is the commodity element of transaction processing. However, innovative payments channel development and high quality customer care offer financial institutions the ability to differentiate their services in this highly competitive market.
The pressures of competition for market share and customer retention are magnified by aging technology, the need to adopt new channels, risk management, and new XML-based clearing infrastructures. Meeting these challenges requires a strategic response based on channel and product strategy, operational organization, and supporting technology infrastructure. From the mission-critical server platform to user-friendly consumer experiences, Microsoft and our technology partners provide payments and messaging solutions in the following areas:
Payment Channels and Mobile Payments:
Payment channels are increasingly valuable as a means of differentiating the banking experience, but also contribute to client retention and growth of new accounts. Whether for retail or wholesale banking, Microsoft and its partners’ solutions are designed to deliver a more innovative payments experience that strengthens the customer relationship.
Payment infrastructures underpin the very business of banking. As we move from batch to real time, the requirement for real-time analytics and business intelligence becomes more acute. Operations managers need to know about the state of payment operations regardless of client, payment type, delivery channel or settlement method. Furthermore, on the investment banking side, lack of clearing efficiency and quality have a direct financial impact. Microsoft and its partners’ solutions are providing the necessary reliability and flexibility so that costs are reduced. Many banks are implementing modern payment hubs to centralize processing, whereas others are modernizing legacy applications bit by bit. Whether a bank implements a hub or streamlines existing operations, a cohesive integration solution is essential. Microsoft partners provide solutions for payment hub operations and the necessary application to application integration frameworks.
Financial messaging for payments and cash reporting has changed significantly in recent years. Standards organizations are now increasing collaboration and interoperability in data flows and message structures, often around XML ISO20022. As message dictionaries become richer and more reusable, financial institutions have an opportunity to consolidate the management of their messaging infrastructure using tools that meet strict industry standards, yet give flexibility in defining workflows and straight through processing (STP) rules. Financial messaging solutions from Microsoft and our partners address the automation and reconciliation of financial transactions, enabling end-to-end straight-through processing of payments between banks and with their corporate customers.
Microsoft and SWIFT
Microsoft’s strategic partnership with SWIFT enables financial service providers and mid-size to large corporations using Microsoft technology to quickly and easily connect to SWIFT. Microsoft works closely with SWIFT to deliver deep industry value and simplify SWIFTNet implementation for customers worldwide.