How High Peak optimizes financial data exchange in core banking software

Ayaan Bhattacharjee

Content Writer

How High Peak optimizes financial data exchange in core banking software

Table of Contents

The complexity of financial data exchange in the core banking system presents a significant challenge in today’s global banking landscape. With the global core banking software market projected to reach USD 47.37 billion by 2030, efficient management and optimization have become crucial. 

High Peak, a top-core banking software company, understands the demand and has emerged as a leader in this field. Let’s find out what innovative strategies our team used to streamline operations and optimize financial data exchange in core banking software.

What are the challenges of financial data exchange in core banking software?

Efficient management and optimization are crucial for core banking software to overcome challenges in financial data exchange. Here are five key areas to address:

Cross-border transaction limits

Banking professionals face hurdles such as cross-border transaction limits, which can complicate the exchange of financial data. High Peak developed customizable solutions to overcome these limits and enable seamless cross-border data exchange.

Real-time data processing

Legacy core banking systems often do not run in real-time, posing constraints on implementing applications and services that meet customers’ demand for real-time data access. We developed systems that offer real-time data processing capabilities. Thus ensuring timely and accurate data exchange for a smooth customer experience.

Compliance regulations

Stringent compliance regulations require banks to allocate a large part of their budget to ensure compliance and keep up with escalating requirements, adding to the complexity of financial data exchange. We provide robust compliance features, streamlining data exchange while ensuring regulatory adherence.

IT infrastructure

The complexity of processing transactions and the need for reliable architecture for complex and heterogeneous banking structures pose challenges in core banking software implementation. Our core banking software company offers scalable and flexible IT infrastructure solutions, enabling smooth integration and data exchange in complex banking environments.

Fraud and security

Managing and minimizing fraud is an intrinsic part of any bank’s operations, and banks face fraud across a wide range of products, which can impact the exchange of financial data. Our team incorporates advanced security measures and fraud detection mechanisms. Hence safeguarding financial data during the exchange.

Streamlining communication barriers in core banking software: How High Peak built communication management system

High Peak developed the integrated communication management system as a crucial component within the broader ecosystem of a core banking payment system. It plays a pivotal role in facilitating seamless communication and optimizing operations and payments. This system primarily serves three main functions:

Receiving and transmitting information: High Peak’s integrated communication management system efficiently receives information from external systems and transmits messages to the payment processing system based on specific requirements. This ensures smooth data exchange between various components of the banking infrastructure.

Configuring and preparing transactions: Our system takes care of all the configuration and prerequisites necessary before sending out payment orders. By doing so, it streamlines the transaction process and ensures that payments are executed accurately and efficiently.

End-to-end tracking and confirmation: High Peak’s integrated communication management system provides end-to-end tracking of banking operations. It facilitates timely confirmations from both debtor and creditor banks, as well as a final acknowledgment signifying transaction completion. These features create a transparent, trustworthy, and efficient payment solution.

Simplify funds transfers and enhance banking services

Our integrated message management system has been developed to simplify payment processes for financial institutions. The system handles various message types in the ISO 20022 format, including the use of the centralized PAIN message.

For example, financial institutions can leverage our system to seamlessly process payment instructions from their customers. Regardless of the recipient’s banking institution, our solution ensures smooth and accurate fund transfers. Thus providing a seamless experience for both the sender and recipient.

Efficiency and transparency: Seamless payment processing

Our solution in the core banking software system enables efficient payment processing by leveraging standardized ISO messages, such as the PAIN message format for payment initiation and the PACS.008 message for transmitting pending transaction information.

For example, when a customer initiates a payment through their bank’s app using our system, the PAIN message is processed, funds are debited from the sender’s account, and funds are credited to the recipient’s account. This ensures proper transactions for both the bank and its customers.

Streamlining workflows with end-to-end message tracking

Our integrated message management system offers end-to-end tracking of banking operations, facilitating seamless intra-bank and interbank transactions.

For example, banks using our system can easily track and monitor payment transactions from initiation to completion, ensuring transparency and efficient handling of funds.

Simplified payment initiation

By utilizing the ISO standard PAIN messages in XML format, our integrated communication management system simplifies payment initiation.

For example, our system enables businesses to initiate bulk salary payments, accurately debiting the required funds from their accounts and promptly transferring them to employees’ accounts. Thus streamlining payroll processes.

Facilitating accurate money movement

Our integrated communication management system ensures accurate money movement by utilizing ISO messages such as the PACS.008 message for transmitting pending transaction information.

For example, banks receive the PACS.008 message through our system, allowing them to verify and process pending transactions efficiently. Thus facilitating smooth and accurate fund transfers.

Benefits of leveraging High Peak’s communication management system for banking transactions in core banking software

Our message management system in the core banking software streamlines payment processes, reduces errors, and enhances efficiency in banking transactions. From automated order creation to real-time notifications, our solution delivers seamless and transparent banking experiences. Let’s see the benefits in detail:

Automated payment order creation and management

Our message management system automates the creation and management of payment orders in core banking software, reducing errors and enhancing efficiency. For example, a bank using our system can effortlessly generate payment orders for salary transfers. Thus minimizing manual entry.

Real-time notification messages

The system triggers real-time notification messages for transaction events within core banking software. Thus ensuring a transparent banking experience. 

For instance, when a customer makes a purchase using their debit card, they receive an immediate confirmation. Similarly, when funds are credited to their account, they receive up-to-date information on their finances.

Error detection and resolution

The message management system continuously monitors payment instructions for validation errors or missing information within core banking software. In case of discrepancies, the system generates error messages, allowing teams to rectify issues promptly. 

For example, if a customer provides an incorrect bank account number for a fund transfer, the system in core banking software immediately detects the error and notifies the bank.

Strategic flexibility in banking transactions

Our system in core banking software offers a user-friendly interface for generating and managing payment cancellations. Users can easily initiate payment reversals in cases of erroneous transactions or customer requests for cancellation. This ensures prompt resolution and minimizes dissatisfaction. 

For instance, if a customer accidentally pays the wrong amount for a utility bill, they can request a payment reversal for a quick refund and correction through the core banking software.

Smooth processing of payments through ‘PACS.008’ messages

After preparing payments, the message management system sends ‘PACS.008’ messages. It follows the ISO format for Payments Clearing and Settlement (PACS) in core banking software. These messages facilitate a smooth transfer of funds to recipient banks. 

For example, when a business owner initiates payroll payments, our system in core banking software ensures secure and timely payment settlement.

Acknowledgment messages for transaction confirmation and transparency

In addition to payment messages, our system in core banking software sends acknowledgment messages like ‘PAIN.002’, confirming receipt of instructions. These messages improve transparency and enable customers to track transaction progress. 

For example, when a customer initiates a large fund transfer to a different bank, they receive an acknowledgment message. It confirms the successful submission of the instruction through core banking software.

Enhanced internal communication and collaboration

Our solution in core banking software includes a built-in feature to dispatch internal notifications, such as MT 900 and MT 910. These notifications inform relevant departments within the financial institution about transaction events, allowing for efficient coordination and collaboration. 

For instance, when a customer makes a significant loan repayment, the system in core banking software automatically sends notifications to the accounts receivable, customer service, and credit departments. Thus ensuring all teams are aware of the transaction and can update their records accordingly.

Optimize financial data exchange in core banking software: Partner with High Peak for seamless operations

Efficient management and optimization are crucial for overcoming the complexities of financial data exchange in core banking software. High Peak has developed many fintech products, understands this demand, and has emerged as a leader in streamlining operations and optimizing data exchange. 

Hence, contact us now to create more microservices for your financial institution.

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