Finzly Among the First to Receive Fed Certification for Fedwire ISO 20022

Banking
12.04.2024 11:05 am

Finzly, the pioneering provider of modern money movement systems to financial institutions, today announced its achievement as one of the first Third-Party Service Providers (TPSP) to be certified for compliance to ISO 20022 messaging standards for Fedwire. This landmark accreditation positions Finzly at the forefront of innovation, enabling financial institutions to transition to the next generation of payment processing.

The ISO 20022 messaging standard can transform the financial services industry by empowering financial institutions to optimize their payment processes, delivering enhanced automation, improved security, and superior integration with corporate financial systems. Unlike the current legacy Fedwire Application Interface Manual (FAIM) messaging standard, ISO 20022 facilitates the seamless transmission of crucial transaction information alongside payments.

As part of the phased testing and certification process (Depository Institution Testing, or DIT2), Finzly submitted 40 use cases to the Federal Reserve Financial Services, each meeting or exceeding the stringent certification criteria, reaffirming Finzly's commitment to excellence and technological advancement.

In addition to Fedwire, Finzly's ISO 20022 native platform encompasses all other domestic payment rails, including FedNow, RTP, and ACH. International payments through Swift will be aligned with their forthcoming standards. This comprehensive approach underscores Finzly's commitment to empowering financial institutions with a holistic suite of modern payment solutions.

"This achievement underscores Finzly's commitment to industry leadership in terms of speed-to-market of forward-thinking solutions," said Booshan Rengachari, Finzly founder and CEO. "We provide a comprehensive solution that not only ensures compliance with evolving regulatory requirements but also unlocks the full spectrum of benefits associated with the ISO 20022 standard."

Financial institutions must define their modernization strategy as they prepare for the March 2025 deadline for ISO 20022 compliance in Fedwire payments. Those opting for a short-term approach risk being constrained by competitive disadvantage, while forward-thinking banks that fully migrate to ISO 20022 will unlock unparalleled opportunities for innovation and service differentiation.