Introduction
From November 2020, SWIFT will require all banks to notify the Tracker application (this application is used to track customer transactions) operated by SWIFT about the status of the MT103 messages they receive (Universal Confirmations). The purpose of this measure is to ensure transparency and provide more detailed information to the participants of the processing chain between endpoints. According to the regulation financial institutions should send status reports on received client transactions within two business days at the latest.
SWIFT offers the following manual and / or automatic options to carry out this task:
Manual solution
SWIFT provides an online interface for all users: this is the Basic Tracker application. Here you can manually send the status message to the Tracker for each MT103 transaction you receive. This solution is a real option only for financial institutions where the daily number of MT103 messages does not exceed 20 to 25. If you count only 5 minutes to handle a single message, a colleague will take a full day to work on 100 messages.
Automated solutions
MT199
The essence of solution is that the MT103 message processing core system responds to every incoming MT103 message with an MT199 message in the format specified during the Tracker implementation. In addition, the core system should be prepared for handling the so-called Tracker alerts as well as the NAK messages received in response to an MT199.
ISO 20022
The essence of solution is the same as in case of MT199, except that ISO20022 message type should be used, not FIN.
Batch confirmation
The solution is similar to the two cases above, except that the format is neither FIN nor ISO20022, but so-called SWIFT CSV.
API REST/JSON
With this API (to which gpi Connector license is needed) offered by SWIFT for a fee, it is possible for the MT103 processing core system to exchange data directly with the Tracker.
As it can be figured from the above, automated solutions can only be realized by major changes to the core systems that process MT103 messages. This means significant time and cost expenditures for all financial institutions. However, until the start scheduled for 20th November, 2020, only about half a year is available.
Do you already have a solution implemented?
If you are currently looking for a tool to meet the SWIFT conditions, EasyTracker is available:
EasyTracker is an automated solution with no need of changing the core system
Approximately 50% of MT103 transactions are credited within half an hour and the other 50% within 24 hours. Omikron developed the EasyTracker solution, which automatically generates status reports on executed orders without changing the core systems – this is 95-98% of traffic - and only the exceptions need to be handled manually. Moreover, if the core system can provide data on exceptions in any form, EasyTracker will achieve full (100%) automation of the process.
EasyTracker - overview
The EasyTracker application has 2 main components: EasyTracker Base and EasyTracker Interface.
EasyTracker Base
EasyTracker Base is the foundation of the system. It receives incoming MT103 messages, store the most important fields and automate the sending of MT199 messages, as well as handle the so-called NAK messages.
EasyTracker Interface
Data connection with the core system is not a prerequisite for operation, but of course greatly improves the quality of data service towards the Tracker. If the core system can send status information on MT103 then EasyTracker will immediately generate the required MT199 message based on this information. The interfaces are always defined during the introduction project.
Following picture illustrates the operating mechanism of the system.
EasyTracker – main functionalities
- Receiving Transactions
- Setting Transaction statuses
- Sending MT199 messages
- Processing NAK messages and alerts coming from Tracker
- Collaboration between the AML system and EasyTracker
- other features
