The National Payments System comprises a Real-Time Gross Settlement (RTGS) system and a Scriptless Securities Settlement (SSS) system, linked by Model One Delivery Versus Payment. The solution removes the need to make large value payments by cheque for clearance by the central bank across current accounts of commercial banks and primary dealers – a process that is inefficient and has inherent credit, liquidity and systemic risks.
The solution offers the ability to reform a country’s entire financial system by introducing system integration, enhanced straight-through processing (STP) capabilities, greater security and risk reduction. The National Payments System introduces new innovative functionality such as a gridlock resolution mechanism working across both the RTGS and SSS systems and a more integrated approach in the way that they function. There is also closer integration with a central bank’s general ledger system to achieve high STP rates over the SWIFT network. Also noteworthy is the system’s ability to implement the most recent recommendations from the Bank for International Settlements.
Highly commended: Microsoft
The judges were pleased to see Microsoft’s move away from a horizontal product to a more vertical focus by addressing a specific industry need. Microsoft BizTalk Accelerator for SWIFT provides secure delivery of financial messaging using the SWIFT message format and network for customers in banking, capital markets, payments, and corporate finance. Microsoft BizTalk Accelerator for SWIFT has enabled member banks of the Euro Banking Association (EBA) to connect easily to an ACH solution built by SIA, an Italian technology provider, following the STEP2 initiative. (STEP2 is a response to the drive for a Single Euro Payments Area and aims to lower the cost of the infrastructure for cross-border transactions).
EBA secretary general Gilbert Lichter says: “It was essential for us to provide an automated system that could be implemented and integrated quickly and easily by our member banks. Microsoft has helped to change the economics of this type of solution by improving cost, flexibility, and speed to market. This enables us to roll the solution out to all our members across Europe.”
