GEFEG –Why A Tool Is Not For Fools...iso20022.ch 05. March 2015 Page 2© Fides Treasury Services...

iso20022.ch 05. March 2015 © Fides Treasury Services AG

GEFEG – Why A Tool Is Not For Fools A not always serious presentation about a serious topic

Martin WalderFides Treasury Services AGWerdgut, Zürich, Switzerland


GEFEG – Why A Tool Is Not For Fools

ISO 20022 * A Worldwide Standard

The Reality Check

Why People Get Lost

Get A Plan (e.g. GEFEG)


ISO 200022: A Worldwide Standard Who What

ISO/TC 68 This is a technical committee formed within the International Organization for Standardization (ISO), of Geneva, Switzerland, tasked with developing and maintaining international standards covering the areas of banking, securities, and other financial services1.

SEPA

Project resulting in regulation

ISO 20022 as technical implementation

EPC rule book

XML

Extensible Markup Language

emphasize simplicity, generality, and usability

by the W3CSWIFT • Acts as ISO 20022 * Registration Authority

• Ensures the compliance of developed repository items with the approved technical specifications

• Publishes the financial repository on www.iso20022.org

� market practices (e.g. EPC), common implementations (CGI)

1 http://en.wikipedia.org/w/index.php?title=ISO/TC_68&oldid=5354754412 Public Domain3 By Zach Vega (Own work) [CC*BY*SA*3.0]

2

3


ISO 200022: A Benefit for AllParty Benefits

All • Open repository and structured elements

• Supports various character sets

• Higher STP rate, not only within banks, but also within a company (e.g. reconciliation)

• Supports the crosslink between different business domains

• Includes regulatory and tax reporting

漢字漢字漢字漢字

supports UTF*8,

various level of restrictions

«Latin Character Set»für d’Schwiiz

Coverage

~ 43 Business areas(e.g. pain, camt)

strong penetration in payment, funds

most of the software vendors are engaged

Banks • Very open standards with room for market practices and additional optional services (AOS)

• Consistency between client side and market side (e.g. payment initiation and payment clearing and settlement)

• Open for future use cases and interactions with stakeholders

Clients • Increasing penetration in all kind of business software (ERP)

• Facilitates the re*use of data (e.g. address of creditors out of a CRM, supports various reporting obligations)

The Common Global Implementation * Market Practice initiative provides a forum for banks / bank associations and corporates, corporate associations, vendors and market infrastructures




The Reality Check

Why People Get Lost



ISO 200022: The Reality Check (1/2)Topic Example

IBAN {1:F01____CH___XXX1059635248}{2:I940CRESCHZFAARSN}{3:{108:0427031059635248}}{4::20:20150302:25:IBAN CH93 0076 2011 6238 5295 7:28C:00441/001:60F:C150227EUR0,…

</Cdtr>

<CdtrAcct>

<Id>

<IBAN>CH93 0076 2011 6238 5295 7</IBAN>

</Id>

</CdtrAcct>

Current

errors do not vanish

XML even supports laziness

Validation

is for cowards

to many different .xsd

«The client should call the bank not

our hotline.»

Quelle Fides


ISO 200022: The Reality Check (2/2)Topic Example

Character Sets

<?xml version="1.0" encoding="iso�8859�1"?><Documentxmlns="urn:iso:std:iso:20022:tech:xsd:pain.001.001.03" xmlns:xsi="http://www.w3.org/2001/XMLSchema*instance">

<CstmrCdtTrfInitn><GrpHdr><MsgId>1004185322</MsgId>…

<?xml version="1.0"?><Document xmlns:xsi="http://www.w3.org/2001/XMLSchema*instance" xmlns="urn:iso:std:iso:20022:tech:xsd:pain.001.001.02">

<pain.001.001.02><GrpHdr><MsgId>1007727125</MsgId><CreDtTm>2014*12*30T14:52:21</CreDtTm><NbOfTxs>426</NbOfTxs>

…<Ustrd>/INV/ MÜLLER</Ustrd>

Encoding

«ISO 20022 has decided to restrictto only UTF*8 based»

Often seen

iso*8859*1

no entry � assumed UTF *8

iso�8859�1

Quelle Fides




The Reality Check

Why People Get Lost



ISO 200022: Why People Get Lost (1/2)pain.001 (painful) implementation

A multitude of additional information and options

The full pain“~628”

• Name and name prefix (DOCT, MIST, MISS, MADAM)

• Ultimate creditor and/or debtor

• Intermediary and forwarding Agent(s)

• Charge bearer , account, account agent

• Cheque type, number, delivery method, maturity date

• Pooling adjustment date

• Instructed or equivalent amount

• Active or historic currency

• Tax identification, tax type, total tax amount, total taxable base amount, …

� market practices (e.g. EPC), common implementations (CGI)


ISO 200022: Why People Get Lost (2/2)Topic Issues

Guidelines & Documents

• The repositories are mostly cumbersome to use and confusing.

• There are hundreds of pages to read (vs DTA: ~63 pages)

• There are no real end*to*end guidelines, best practices or even expertise available.

• People focus of what the know best• Topics: e.g. only business rules• Tools: Excel, because it is a list

Documentation

Everybody needs them

Only very few reads them

Nobody wants to maintain them

Quelle: Chinese Industrial Bank




The Reality Check

Why People Get Lost



A Tool Or Get FoolUse Approach

Design

�

Manage complexity

Always up to date

Enforces structure

Not only ISO 20022

!

Toolset for experts

Requires discipline

Not a mapping tool

Testing

• Organize all formats, elements and information

• Design cross conversion

• Produce up to date documentation

• Decoupling of data model and software

• Immediate testing posible

• Testing with real client or internal data

• Testing by business, front, support, …

And even more …

• Follow the ISO 20022 idea for the whole data model

GEFEG –Why A Tool Is Not For Fools...iso20022.ch 05. March 2015 Page 2© Fides Treasury Services...

Documents

Transcript of GEFEG –Why A Tool Is Not For Fools...iso20022.ch 05. March 2015 Page 2© Fides Treasury Services...