CGI reduces costs for corporates and banks
Brussels, 16 October 2012 - The Common Global Implementation initiative (CGI) announced today that it has published best practice guidelines for corporate-to-bank communication based on ISO20022 messages. Codifying and promoting the use of common formats in the corporate-to-bank payments space will help reduce costs and simplify implementation processes for corporates that are managing multiple bank relationships.
CGI's aim is for corporates to be able to use the same message structure (for each message type) to interact with all of their transaction banks across the globe for payments initiation, account and status reporting. Around 60 financial institutions, corporates, vendors and market infrastructure providers are now part of the CGI initiative, which provides a forum for the key stakeholders involved in corporate-to-bank communication to meet, discuss and progress the use of harmonised messaging. SWIFT supports the CGI initiative both as contributing member and group facilitator.
Marc Gheyskens, Solution Manager, SWIFT for Corporates, said: "Since the global financial crisis, more and more corporates have begun managing multiple bank relationships. That helps spread risk, but managing multiple relationships can be costly and challenging for both sides. Corporates have to implement different channels, formats and data requirements, while banks have to manage and maintain their proprietary protocols. That's where CGI comes in, providing a place for banks, corporates, vendors and market infrastructure providers to work together to define a harmonised approach on how to implement corporate-to-bank standards
Harri Rantanen, Financial Institution Co-Convener of the CGI Group and Global Manager of Formats & Standards at Skandinaviska Enskilda Banke, said:
"You might think that it'd be challenging to bring the CGI's diverse membership together to collaborate in area that has been traditionally been competitive. But with harmonisation, efficiency and low total cost of ownership key priorities across the industry, it's actually been easy and already very productive, as the publication of these guidelines show. There is and will continue to be pressure to expand the successful CGI collaboration model to other areas of the payments domain."
Susan Colles, Working Group facilitator of CGI and head of Global Standards for Bank of America Merrill Lynch - Global Treasury Products, said:
"Standards collaboration across the industry - corporations, financial institutions, vendors and bank associations -- is the driving force behind CGI. CGI has taken the lead in demonstrating the effectiveness of providing a harmonised global standard that can be used by corporates with their multi-bank relationships and by vendors in their development efforts to support messages that interface with more than just one bank."
The detailed implementation documents on how to use ISO20022 messages in the corporate-to-bank space, all of which are SEPA compliant, are hosted on the CGI Group's new website.
CGI is a voluntary forum that is open (without membership fees) to organisations that have a common interest in collaboration, promotion and adoption of the ISO20022 XML financial message set.
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,000 banking organisations, securities institutions and corporate customers in 212 countries and territories. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.
The Common Global Implementation (CGI) initiative provides a forum for financial institutions (banks and bank associations) and non-financial institutions (corporates, corporate associations, vendors and market infrastructures) to progress various corporate-to-bank implementation topics on the use of ISO 20022 messages and other related activities, in the payments domain. The goal of CGI is to simplify implementation for corporate users and, thereby, to promote wider acceptance of ISO 20022 as the common XML standard used between corporates and banks.
For more information, please refer to the CGI website or contact:
Tel: +32 2 655 3377