Volante Technologies, the global enabler of Payments as a Service (PaaS), announced the migration of all banking customers to the ISO 20022 messaging format for the Fedwire Funds Service, which includes financial institutions ranging from “a few billion dollars in assets to multiple trillion-dollar systemically important financial institutions (SIFIs).”
According to the Federal Reserve’s historical data, the Fedwire system settles roughly “over $4.7 trillion in wire transfers each day.”
As of the July 14 ISO 20022 migration deadline, Volante customers now process “more than $1.4 trillion daily, approximately 30% of total Fedwire values, through Volante’s ISO-native, mission-critical platform.”
The migration marks a significant “modernization milestone, enabling Fedwire’s seamless integration with SWIFT and other prominent real-time gross settlement systems around the world.”
Along with CHIPS, Fedwire handles nearly “all U.S. high-value payments and now operates under a common, data-rich, and more efficient messaging standard.”
With the instant payment networks FedNow and RTP also ISO-native, the U.S. payments system is now broadly “unified under one messaging standard, from wires to real-time payments.”
Deepak Gupta, EVP, Product, Engineering & Services, Volante Technologies:
“Volante has invested in ISO 20022 modernization for over a decade now, and today our platform isn’t just ISO-compliant – it’s ISO-native. Over the past two years, we’ve helped our customers strengthen the extensibility, scalability, and resiliency of their payments systems.”
Volante helps financial institutions of move “beyond short-term translation-based approaches, enabling them to modernize their infrastructure, often within six to nine months.”
Deepak Gupta, EVP, Product, Engineering & Services, Volante Technologies:
“This approach made the transition seamless, and although many institutions anticipated challenges with the migration, every Volante customer was back to business-as-usual on day one of the go-live. In fact, one global money center bank even shared that they can now focus on long-term strategic goals much sooner than initially forecasted.”
As the migration was mandatory, many financial institutions “opted for a translation-based approach to meet basic Fedwire compliance.”
While this method enabled legacy systems “to achieve basic compatibility, it also created limitations.”
Institutions taking this route are unable to take full advantage of ISO 20022’s extended data benefits, such “as enhanced data quality, improved compliance, better cross-border interoperability, and straight-through processing (STP) rates of up to 99% for both inbound and outbound transactions at global banks.”
Gupta added:
“Volante helps financial institutions of move beyond short-term translation-based approaches, enabling them to fully modernize their infrastructure, often within six to nine months. Banks who take a strategic approach to ISO modernization will be those best positioned to unlock long-term value, future-proof their operations, and differentiate from competitors.”