WTX for SEPA

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Jul 30, 2012 (5 years and 2 months ago)

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© 2007IBM Corporation

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IBM WebSphere Transformation Extender Pack for SEPA

Version 1.0


Customer Presentation

May 29 2007

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What is the Single Euro Payments Area (SEPA)?


It is a
regulatory requirement

that eliminates the distinction between
cross
-
border and national payments within the European Union


It
requires the removal of technical
, legal and commercial
barriers

to
enable a single “domestic” payments market for the whole European Area
and will significantly improve trade in the Euro zone.



It will be the area where citizens, companies and other economic actors
will be able to make and receive payments in euro, within Europe,
whether between or within national boundaries under the same basic
conditions, rights and obligations, regardless of their location


This project aims to put an end to fragmentation by introducing, as from
2008, European payment instruments which are going to replace national
ones by end
-
2010. The vision is that by end
-
2010 all retail payments in
euro are carried out as easily, efficiently and safely across Europe as
within national borders

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SEPA means new schemes and new processing infrastructures

Different methodologies have been
adopted for :


1.
Credit Transfers and Direct
Debits got new Electronic
Transfer Schemes (ETS)

Key deliverables : SCT and
SDD Rulebooks which detail
core and basic services to
enable a common level of
service to users in a
predictable timeframe



2.
Card payments will get their
schemes adapted

Key deliverable : SCF states
how issuers, acquirers, card
schemes and operators must
adapt their current operations
to comply to SEPA

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SEPA Direct Debit (SDD) Processing


cf : Making SEPA a Reality, EPC066
-
06 version 1.3, page 40


Currently important differences between the
countries related to the mandate processing


The transposition of the Directive into country
law is not completed (impacts cross country
DD)



The main required changes of the bank’s
processes are related to


Mandate handling process to be
reviewed and evt. rebuilt


different schemas might coexist for some
time (country focused and cross country)


Same clearing and settlement actors as
SCT


Same changes related to format and
schema changes as SCT

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SEPA Credit Transfer (SCT) processing


In general no important difference

to current transfer processing



Not all types of existing credit transfers will
be replaced by SCT. The actors need to
ensure coexistence of the new with the
existing schemas



The main required changes of the bank’s
processes are related to


the coexistence of different schemas


the SEPA payments must apply the
SEPA schemas


new / additional Clearing and Settlement
actors are entering the market


The format choice given to the
customers for issuing their payment
orders

cf : Making SEPA a Reality, EPC066
-
06 version 1.3, page 39

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SEPA Cards Framework

cf : Making SEPA a Reality, EPC066
-
06 version 1.3, page 45


The SCF defines a series of high level
principles and rules which need to be applied
in SEPA


Removal of commercial, technical and legal
barriers


Migration to EMV certified terminals with PIN
pads


Transparent pricing


Fraud prevention


….



Because of the technical complexity of the
card systems and of the impact of SEPA has
on this market (e.g.interchange fees) the
definitive solutions to be implemented is still
under investigation


Belgium and Finland decided to replace

national scheme by EAPS (Euro Alliance of
Payment Schemes)


Cards represent : 12 billion payment transactions and 6 billion cash withdrawal
transactions per year done using 350 million cards in the Euro area

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Integration Challenges with SEPA


Transition from legacy systems to SEPA schemes will require
significant investment.


Implementation of SEPA solutions across multiple geographies
and national systems may lead to consolidation of small banks


SEPA’s data set (ISO 20022, a.k.a. UNIFI) is large, complex, and
requires more than basic XML schema handling


SEPA’s rulebooks require not only format level compliance, but
message content validation and implementation rule logic


Anticipated changes and updates to the SEPA Schema and
Implementation Guidelines introduce risk to bespoke solutions


The breadth and overhead of the ISO 20022 schema, and the
need to integrate with existing systems presents processing cost
challenges and infrastructure architecture concerns for banks

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Extensive change across all participants


EPC


Define schemes and charging conventions


Define PEACH framework


Define and implement certification procedures


25 National Banking / Payment
Associations


Decision and timetable / transition on adoption of
SEPA
-
compliant schemes


Decision on clearing infrastructures: fold into
PEACH, merge, wind down


Review legal / contractual frameworks


8,000 Banks


Transition to SEPA schemes: standards, operating
procedures, access network(s)


Account number changes ?


Customer education


2 million Corporate customers and
government agencies


Transition to SEPA schemes: standards, operating
procedures


Account number changes ?


Review banking relationships outside home
member state




Service providers, operators, etc


Define role and services within and/or outside
PEACH


Transition to SEPA schemes: standards,
operating procedures, access network(s)


Account number changes ?



Merchants


Changes to terminals




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IBM provides the Industry’s Premiere Solutions for
SEPA Implementation

SEPA Processor & Validation Product Offerings

SEPA Industry Framework Process & Payment Models

Integrating & Service Enabling Legacy Payment Systems

Industry Knowledge, Expertise and Best Practices

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WebSphere Transformation Extender with the Pack for SEPA can
build a foundation for an Enterprise Payments Platform

Payment
Processes

Data Model
Based on
ISO20022

Enterprise Payments Platform

-

Enterprise Service Bus
-

Interfaces for
Common Payment
Functions

Gateway
Services

WebSphere TX

Pre
-
built
Monitoring
Tools

Transform
Services

Application

Services

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WebSphere Transformation Extender Pack for SEPA

For IBM Clients needing to develop their

Single Euro Payments Area solution with

IBM WebSphere Transformation Extender.


SEPA Credit Transfer

SEPA Direct Debit

SEPA UNIFI Message and Content Validation

EPC Implementation Rules Validation

SEPA to SWIFT MT 103

Sample SEPA
-
Domestic converters

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End
-
to
-
end message flow and formats
-

Today

Bank S

(sending)

Customer S

(sending)

(PE)
-
ACH

Bank R

(receiving)

Customer R

(receiving)


Account handling
Customer S



Transfer to Bank R
(via ACH)


Receive from Bank S
(via ACH)



Account handling
Customer R


Clearing


Initiate Credit
Transfer


Account Info
Credit Transfer

Alternatively between large banks:

Bilateral Clearing

D

D

D

F

F

D

D

F

Domestic Format


country specific


only for in
-
country traffic

FIN Format MT103+
-

for EU cross boarder credit transfers

PE
-
ACH : Pan European Automated Clearing House

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Bank S

(sending)

Customer S

(sending)

(PE)
-
ACH

Bank R

(receiving)

Customer R

(receiving)


Account handling
Customer S



Transfer to Bank R
(via ACH)


Receive from Bank S
(via ACH)



Account handling
Customer R


Clearing


Initiate Credit
Transfer


Account Info
Credit Transfer

Alternatively between large banks:

Bilateral Clearing

S

S

S

S

S

SEPA Format

End
-
to
-
end message flow and formats


Final SEPA

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Bank S

(sending)

Customer S

(sending)

(PE)
-
ACH

Bank R

(receiving)

Customer R

(receiving)


Account handling
Customer S



Transfer to Bank R
(via ACH)


Receive from Bank S
(via ACH)



Account handling
Customer R


Clearing


Initiate Credit
Transfer


Account Info
Credit Transfer

Alternatively between large banks:

Bilateral Clearing

D

S

D

S

D

S

F

F

D

S

D

S

F

Domestic Format


country specific


only for in
-
country traffic

SEPA Format

FIN Format MT103+
-

for EU cross boarder credit transfers

End
-
to
-
end message flow and formats


Migration phase

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Bank interfaces and processing formats

-

Today

Bank

Processing in
Domestic Format

(existing)

Processing in FIN
Format and Non
-
EU

(existing)

D

F

D

F

From PE
-
ACH


Non
-
EU

To PE
-
ACH


Non
-
EU

From Customer


ACH


other bank

To Customer


ACH


other bank

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Bank interfaces and processing formats


Final SEPA

Bank

Processing in
SEPA Format

(new)

S

S

From Customer


ACH


PE
-
ACH


other Bank

To Customer


ACH


PE
-
ACH


other Bank


Non
-
EU Processing

F

F

From Non
-
EU

To Non
-
EU

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Bank interfaces and processing formats
-

Migration

Bank

SEPA Format
-
> Domestic Format (country specific)

Processing in
Domestic Format

(existing)

Processing in
SEPA Format

(new)

Processing in FIN
Format and Non
-
EU

(existing)

D

S

F

D

S

F

SD

SD

DS

DS

FS

SF

FS

DS

FS

SF

Domestic Format (country specific)
-
> SEPA Format

FIN MT103+ Format
-
> SEPA Format

SEPA Format
-
> FIN MT103+ Format



S
-
>D and S
-
>F outbound not usefull


as all banks must be able to receive SEPA.




Inbound and outbound conversions probably


differ as different enrichment data available.

From PE
-
ACH


Non
-
EU

To PE
-
ACH


Non
-
EU

From Customer


ACH

From Customer


ACH


PE
-
ACH

To Customer


ACH

To Customer


ACH


PE
-
ACH

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Transform, validate, and enrich any document, message or complex data



Deliver trustworthy information for critical business initiatives



Meet regulatory compliance requirements



Codeless development; universal reuse and deployment


WebSphere TX: Universal Transformation & Reuse


“Make Advanced ESB
More Advanced”


Embedded


Standalone


Event driven

MAP
TRANSFORM

Advanced ESB

ESB



J2EE



App. Server

Process Server

Standalone

System z (native)


Windows, UNIX, Linux

Multi
-
In

Multi
-
Out

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Design Studio
-

Map Designer


Drag and Drop Mapping


No code to write


Easily represent complex


transformation rules

Local & Remote Debugging

Runs on Windows

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WTX Design Studio


Type Designer

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Why is WebSphere Transformation Extender

the right solution for a SEPA Converter?

Natively runs in CICS, IMS and MVS on System Z, & distributed platforms

Provides Product
-
based maintenance updates to the SEPA formats and rules

Has massive scalability & throughput, with efficient processing of data

Recognized world
-
leader in financial services transformation

Reduce cost, time, and
RISK

to implement and maintain
SEPA compliance into your existing operational
infrastructure, now, and in the future.

Can be leveraged by Process Server & Message broker implementations

Codeless design & customization mean easy linkages with existing systems

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SEPA Validation, Rules Compliance and Processing

through WebSphere Transformation Extender


IBM’s Universal Transformation Engine


Thousands of Millions of Transactions and Trillions of Euros
are processed by WTX across a variety of industry formats
and custom data sets EVERY DAY


Provides SWIFT 15022 and 20022 (Funds) Processing for over
40% of all SWIFT messages worldwide


Can interact natively with Legacy and Service Oriented
Systems


Extremely efficient processing lowers infrastructure costs and
provides high throughput and scalability


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How to Get Started


IBM QuickStart for WebSphere Transformation
Extender



Transforming your payment processing to meet Single Euro Payment
Area (SEPA) standards




Our experts help you quickly define your transformation
requirements and help you begin to develop your mapping
specifications.


We lead an architectural assessment of your middleware to
evaluate the requirements across your system topology.





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Further information


WebSphere Transformation Extender

Visit
www.ibm.com/software/integration/wtx



WebSphere Process Server

Visit
www.ibm.com/software/integration/wps



WBI for Financial Networks


http://www.ibm.com/software/integration/wbifn/



IBM Financial Services Solutions


http://www.ibm.com/industries/financialservices/index.jsp



Single Euro Payments Area (SEPA)

visit
http://www.europeanpaymentscouncil.eu