International and High-value

Domestic Payments

On FIS' Open Payment Framework (OPF)

2 INTERNATIONAL AND HIGH-VALUE DOMESTIC PAYMENTS

International Payments — Changing IT to Support Business Needs

Many banks with legacy infrastructures must also
A Time for Change? consider the challenges that come with large potential
increases in processing volumes, as opportunities for
Spotlight on Aging Silos processing third-party bank’s payments multiply. As the
volumes increase, so does the operational expenditure;
The international payments line of business has seen its more manual intervention is needed and hardware and
IT infrastructure gradually mature and age. Often built software maintenance costs rise. Furthermore, with
on architectures and technologies that are now obsolete, market pressure forcing prices down in both the retail/
these legacy systems have become increasingly costly wholesale market as well as the bank-to-bank business
to maintain; a slight transformation of existing business (institutional correspondent banking), many are now
processes highlights a host of issues, not the least struggling to maintain the long-term profitability of this
of which is cost. Moreover, as many banks launch potentially lucrative business line.
enterprisewide IT rationalization and centralization
projects to make use of the latest technological A Solution for the Correspondent
innovations such as Service-Oriented Architecture (SOA), Banking Chain
the longevity of the incumbent international payments
processing systems often becomes the focus of attention. International payments include foreign currency
A recurring conclusion is that a replacement system that payments and domestic, sent to, or received from,
fits into the long-term strategic IT-planning of the bank, outside that currency zone. The International Payments
and easily integrates into the banks global IT architecture platform from FIS covers the entire correspondent
is needed. banking chain.
FIS’ International Payments solution is fully multi-
bank and multicurrency, making it an ideal solution
for deployment within large multi-entity financial
institutions. The multibank capabilities of the system can
also be leveraged to provide white-label services.

Figure 1: xCT – International and Domestic Credit Transfers

Parser/Formatters Code Word Processing Y-Copy

(SWIFT MT, MX)
Exceptions and Investigations Settlement Day Determination
Foreign Exchange
PSSM (ACK/NAK Mngt.) Request for Transfer
Charges
On-US Credit Transfers Manual Repair
Billing
Serial-cover SSI Enrichment
PDE/PDM Duplicate Check
Manual Entry Volume and Value Thresholds
Auto-enrichment
Bank Check Requests Accounting Entries
 INTERNATIONAL AND HIGH-VALUE DOMESTIC PAYMENTS 3

International Payments on Open Payment Framework (OPF) – Key Features

More automation and less intervention means a lower cost per transaction, resulting in higher operational margins
and a more competitive price positioning. FIS’ International Payments solution delivers superior straight-through
processing (STP) due to capabilities like:

●● BIC enrichment based on local bank codes and IBAN

●● BIC enrichment based on name, address and other residence information

●● Local bank code enriched from BIC

●● Standard Settlement Instructions (SSI) enrichment: correspondent chain building from SSI information

●● Enrichment of the direct participant from indirect participant

●● Derive BIC from IBAN

●● Remove duplicate banks

●● Autocorrect message formatting issues (identify account info and national ID in unstructured tag content)

Figure 2: International Payments

FIS Multibank Implementation For:

£ €
Bank Customers/ Bank’s Foreign
Respondents Subsidaries

UK Banks EU Banks SWIFT

FIN FileAct

Bank’s Bank’s
Correspondents Correspondents
SWIFT
FIN FileAct
Retail Customers Retail Customers

Corporate Customers Corporate Customers

Clearing/Settlement Clearing/Settlement
Infrastructure Infrastructure
4 INTERNATIONAL AND HIGH-VALUE DOMESTIC PAYMENTS

Sophisticated Rules-Based Routing Accommodating SWIFT and MX

FIS’ Cost Based Routing service uses highly configurable The Open Payment Framework’s parser/submitter
and fine-grained rules to allow each bank to fine-tune provides support for a wide range of SWIFT messages
the system’s automated routing to match its specific including MT1x, MT2x, MTn9x and MT9x, augmented by
requirements. Payments can be routed "on-us" (within support for SWIFT MX (ISO 20022) payment messages.
the bank or bank-group), routed to Interbank Clearing Online configuration allows you to instantly migrate the
and Settlement Systems or to Correspondents. The participants (i.e., correspondent banks) from SWIFT MT
routing rules criterion can be based on any payment to the new MX standard. Messages are subsequently
characteristic, including payment type, currency, cut-off submitted according to the configured format.
time, correspondent reciprocity agreements, participant
directories and BIC/location of beneficiary bank. Cross-border payment migration to ISO 20022:
SWIFT recently concluded a community consultation
Access to Local Clearing and Settlement to migrate cross-border payments from SWIFT MT to
Infrastructures ISO 20022. The proposed migration period would start
FIS’ International Payments platform offers routing of in 2021and will conclude by 2025. The FIS International
foreign currency payments to foreign correspondents Payments platform offers out-of-the-box support to
and routing to local clearing and settlement systems, make this migration seamless.
for the domestic leg of domestic currency international
payments. The appropriate clearing/settlement system Interbank Charging
is identified by the Cost Based Routing service, and the The International Payments solution offers full support
system formats the output message/file to meet the for OUR, BEN and SHA charging-options, with user-
clearing/settlement system’s requirements. configurable charging rules and amounts. The system
also features automated generation and reconciliation of
Market infrastructures for high-value payments
outbound and inbound advices, respectively.
migration to ISO 20022:
Financial market infrastructures for high-value payments Advanced Currency Conversion
are being reworked around the world. In less than five A full Forex service underpins any currency conversion
years most of the major market infrastructures will have required during payment processing. Features include
been renewed. Market infrastructures in Switzerland, rule-based rate retrieval (from the database, external
Japan, China and India. The U.S., Europe, the U.K., Hong systems or manual entry), support for periodically
Kong and Canada will follow in the coming years. published rates and cross-currency conversions.

Automated Cover Settlement

Whereas the SWIFT MT standard prevailed The choice between the serial and the cover settlement
earlier, the ISO 20022 standard is now almost method is fully automated. International Payments
exclusively being used to exchange payments. also offers auto-reconciliation upon receipt of payment
messages along with extensive exception handling.
The FIS International Payments platform offers
out-of-the-box support to make this migration SWIFT GPI
seamless.
SWIFT’s global payments innovation (gpi) initiative
delivers enhanced international payments services
to corporates. This comes in response to changing
customer expectations where traditional international
payment mechanisms are perceived as too slow with
unpredictable fees.
 INTERNATIONAL AND HIGH-VALUE DOMESTIC PAYMENTS 5

Gpi offers same-day funds availability with fully Open Payment Framework Support
transparent fees and FX rates. Transactions are tracked
end to end, and remittance information is transferred FIS’ International Payments solution is based on our
unaltered. Moreover, gpi allows stopping and recalling a Open Payment Framework (OPF). The OPF is a library
payment wherever it is in the payment chain. of component building blocks from which payments
solutions can be derived. OPF is built entirely on an SOA
FIS’ xCT product, accredited by SWIFT as SWIFT gpi delivering common, reusable services consisting of a
Ready Payments Application, supports gpi natively comprehensive data model, choreographed payment
and can be used by all banks in the gpi payment chain business processes and configurable services, including
(debtor, creditor or intermediary agent) with full support parsing, validation, cost-based routing, warehousing
for the SWIFT gpi tracker and gpi directory. All SWIFT gpi security, auditing and more. From OPF, FIS has created
modules (gCCT – gpi Customer Credit Transfer, gCOV – predefined solutions around the Bank Payment Hub
gpi Cover and gSRP – gpi Stop and Recall Payment) are to process faster payments (NPP, SCT Inst, UK Faster
supported. Moreover, FIS embraces the SWIFT gpi road Payments, MYRPP, HK Fast, G3, etc.), high-value
map by extending the product as soon as SWIFT releases domestic payments (Fedwire, CHIPS, TARGET2, EBA
new gpi modules or updates existing gpi services. EURO1/STEP1, CHAPS, etc.), international payments and
ACH payments (SEPA, NACHA, EFT, BACS, etc.).
RippleNet
San Francisco-based company Ripple offers RippleNet, Move Towards a Centralized Payment
connecting banks, payment providers and corporates. Infrastructure
RippleNet uses blockchain-based technology to enable
The International Payments solution can be combined
low-cost real-time messaging and settlement of
with other OPF-based solutions to provide a centralized
transactions with upfront transparency of end-to-end
payment processing hub capable of handling a multitude
fees and execution time. RippleNet can be accessed via
of different types of payment (including domestic
the on-premise installed Ripple software, called xCurrent.
retail, high value/high care, SCT, SDD, Remittance).
FIS’ integration with Ripple’s blockchain-based solution The implementation of additional modules can be
is being used at our clients' businesses for making accomplished at any stage, for a phased migration plan.
cross-border remittance payments; the integration
covers transaction creation, ingestion into the network
and upfront, transparent disclosure of fees and forex Learn How You Can Unlock the Potential
rates before the customer confirms the transfer. of ISO 20022
Click here or contact us at getinfo@fisglobal.com.
 About FIS
FIS is a global leader in financial services technology,
with a focus on retail and institutional banking, payments,
asset and wealth management, risk and compliance,
consulting and outsourcing solutions. Through the depth
and breadth of our solutions portfolio, global capabilities
and domain expertise, FIS serves more than 22,000 clients
in over 130 countries. Headquartered in Jacksonville,
Florida, FIS employs more than 53,000 people worldwide
and holds leadership positions in payment processing,
financial software and banking solutions. Providing software,
services and outsourcing of the technology that empowers
the financial world, FIS is a Fortune 500 company and
is a member of Standard & Poor’s 500® Index. For more
information about FIS, visit www.fisglobal.com.

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FIS and the FIS logo are trademarks or registered trademarks of FIS or its subsidiaries in the U.S. and/or other countries.
Other parties’ marks are the property of their respective owners.

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