CASHING IN
On a functional level , it can adapt more easily than the old messaging standards . ClearBank built a new strategic architecture to support the transition rather than using a translation layer around existing systems , delivering API-based functionality that supports the enhanced data now available in CHAPS messages using the new ISO 20022 format .
The second phase of the RTGS upgrade is to deliver a new core settlement engine which is due to be delivered in Q4 of 2024 . The new core settlement engine will provide immediate benefits including :
• Enhanced resilience and capacity
• Greater analytical capabilities
• The ability to accept CHAPS payments up to 10 days in advance
• Enhanced liquidity-saving mechanisms
• There will be also greater user functionality through a new user interface for RTGS ( BERTI ) and APIs
• Better customer experience
Its modular and flexible design will provide an excellent platform for future innovation .
It also offers benefits to individual firms through richer and higherquality data , aiding straight-through processing and enhanced compliance and fraud detection .
However , the greatest benefits of ISO 20022 can only be realised if industry embraces it and uses the data . To support this , purpose codes and Legal Entity Identifiers ( LEIs ) will be mandated in specific CHAPS payments , and structured addresses and remittance data will also be delivered in future phases .
What are the benefits of connecting to CHAPS via ClearBank ?
CHAPS is based on Real-Time Gross Settlement meaning money moves from one account to another on a near realtime basis , subject to checks and controls imposed by the banks in the payment chain leading to minimal settlement risk .
Financial institutions are increasingly turning to trusted Direct Participants ( DPs ) like ClearBank to connect to UK payment schemes . Rather than building and maintaining individual connections to each scheme , ClearBank takes the pressure off firms by delivering connectivity through a single API that unlocks access to different payment schemes .
With ClearBank , financial institutions can gain direct access to CHAPS , supporting secure , reliable and efficient provision of high value , same day payments , from payment service providers to their customers and there is no minimum or maximum payment limit .
ClearBank ’ s model saves valuable time , money and administrative work for financial institutions , freeing them to focus on developing their core products and services . � www . intelligentfin . tech
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