Payments

IBM and SWIFT Modernization

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Banks around the world deal with many different currencies, transaction types, clearing and settlement mechanisms. Financial transaction processing has involved into complex systems that are often spread across multiple platforms. Originally developed in the 1970s, IBM MERVA for SWIFT message handling continues to be used by many large financial organizations to extend financial message processing. The IBM MERVA processor handles the message formatting, queuing and routing for detailed, expansive financial operations that support mission-critical applications.

The advent of payment services hubs has changed the ways banks are doing business by bringing together formally disparate services and applications. MERVA has reliably provided SWIFT message processing for more than 30 years, but new industry paradigms have introduced new demands and requirements.

A new MERVA migration option from IBM

At the same time the financial landscape is changing rapidly, new regulatory and compliance needs and protocols such as ISO2022 are creating additional challenges. To reduce costs, increase transparency and simplify payments procedures, banks need a single advanced platform to manage all their payment operations.

To address the needs of financial organizations, IBM recently released a new product called IBM Financial Transaction Manager for SWIFT Services, which introduces new features and functions. It provides a simpler, streamlined migration path from MERVA than other available options and avoids the need for banks to financially support two systems during the transition.

Financial Transaction Manager enables banks to converge their SWIFT payment operations onto one payment hub to improve operational efficiency and speed transactions while delivering a seamless banking experience for clients. Financial Transaction Manager provides consolidated access to SWIFTNet services with:

  • A single application that is qualified for all services for SWIFTNet 7
  • Customization, configuration and security configuration features, so it can act as an integration hub for a financial institution’s back-end applications
  • Full multi-tenant support with business data segregation and granular access control
  • Relationship Management Applications for FIN, InterAct and FileAct

Financial Transaction Manager has an open and flexible architecture that takes advantage of IBM Integration Bus (IIB) capabilities and adapters. All external interfaces use persistent IBM WebSphere MQ, and reporting is performed using IBM Cognos.

IBM has invested and will continue to invest in our SWIFT message products. We are committed to supporting our MERVA customers through their migration to Financial Transaction Manager with all our knowledge, experience and expertise. We realize that some banks may no longer have the in-house expertise available to work with the MERVA software, and our IBM consulting group is ready to help ease this transition with product knowledge resources.

For more information on IBM’s SWIFT strategy visit the IBM Financial Transaction Manager website.

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