In 2010, ECS Fin partnered with SWIFT to become a SWIFT services bureau and in the same year, IMS Applications are Gold Certified by SWIFT. ECS Fin provides Industry needs which keeps changing from time to time. The changes to the industry might be due to technological advancements, standardizing formats, regulatory changes, innovation, launching of new channels etc.,
Real Time/ Instant Payments
The real time payments are the future of payments industry and it has been implemented successfully across various countries worldwide. Countries like India has been successful with IMPS (Immediate Payment Service) from 2010 and launch of UPI has accelerated the usage of Instant payments.
In the Middle East, the instant payments are being explored by the UAE (NPSS- Instant Payments/ Instant Payments Platform), Kingdom of Saudi Arabia (Saudi Payments under SAMA), Bahrain and other GCC countries.
Real Time payments are set to innovate Peer to Peer Payments/ credit transfers, Bill payments, Direct Debit, e-Direct Debit, e-Cheques etc., Also, the international remittances & Bulk Payments processing with Instant payment acknowledgment will innovate the payments industry over the next few years.
ISO 20022 Migration
Payments connect the world together – consumers, businesses and governments, anyone who “trades” deals with payments. The primary payment market infrastructures (PMIs) in the world are undergoing a transformation-The Eurozone’s High-Value Payments System will migrate to the ISO 20022 standard by November 2021, and the United States’ Fedwire Funds Service will migrate by the end of 2023. This is in response to the need for increased automation for delivering cost-effective financial products and the customer’s demand for real-time services.
ECS Fin provides a messaging service with IMS for the adoption of ISO 20022 message standard. Three types of data mapping i.e., message transformation is available to suit the unique requirements of banks and institutions – traditional mapping (completely web-enabled and recommended for when market practices change), XML/Java Native Code mapping (recommended for when high throughput or stress is expected) and Persist/Subscribe mapping (recommended when multiple events are involved). With IMS and the adoption of ISO 20022 standard, banks and corporates can ensure the creation of well structured financial messages that carry extensive remittance data.
Centralized Payments Processing
The unprecedented business scenarios today, has forced the Banks and Financial Institutions to rethink the way it has been operating for decades. In this new era of Digital Banking, the way payments are handled has drastically changed and now banks are considering to reengineer their Payment Platform & Operations. In the present scenario banks are finding it inherently challenging to operate smoothly with limited time, branches, resources thereby affecting the continuity of business functions without impacting the customer’s requests. The need of the hour for the financial services industry is to centralize their payment platforms to gain complete control and operational efficiency with limited number of resources.
Financial Services Regulation
We economic experts are predicting that there will be a global meltdown of the global economy, with significant downside risks. Regulators’ and supervisors’ work programmes are likely to be heavily influenced by their assessment of the economic conditions under which firms will be operating.
The major factors of the changes in regulation shall be as follows:
In the advent of a global pandemic, the nature of businesses are changing to adapt to the new normal. There is significant social impact in the way of Laws, regulations, constraints and individals behavioural aspects.
The role of Central Banks:
The central banks are vigilant to the economic conditions and they are responsible for inducing stimulus packages to sustain the economy. The central banks in the Middle East region are trying to enhance the payment systems and launching new payment channels to help Peer to Peer (P2P) payments, Settlements happens with in fraction of seconds.
Technological Changes :
The current market scenario has created the need for digital banking using various FINTECH. Similar to domestic payments, the cross boarder payments are also changing with the lauch of SWIFT GPI, Distributed Ledger Technology, ISO 20022 standards, APIs are helping the banks to settle the payments in real-time or near realtime.