Friday, June 22, 2007

SWIFTNet Adapter

I started looking into SWIFT as an apparent area of push by Microsoft into financial sector. For people who have not worked in Financial services sector. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication”. SWIFT is both a standard body and a secure network like VAN. It also provides software solutions. This secure network connects various banks and corporations. Helping them to settle payments resulting from various buy and sells trades. It is also known as SWIFTNet.

Microsoft introduced first SWIFT accelerator with Biztalk 2004. Biztalk 2006 contains updated version of SWIFT accelerator (version 2.3). Partnership with SWIFT to develop SWIFT accelerator and out of box Rules via Rules Engine is an important strategic move from MSFT to capture Financial Services Market. It is aimed at targeting Back Office where all the trade settlements take place. Java technologies reign supreme in the front end of the trading spectrum using FIX protocol. MSFT aims to capture the back office market that is relatively less volume per day. Here, more emphasis is paid on Security and Reliability and less on speed.

Microsoft is leveraging its influence on Global Banking Industry to push SWIFT standards and SWIFT-BizTalk combination. Internally, MSFT is in process of implementing this solution for its Treasury/Accounting department. It is using in-house implementation as a case study for various corporations and banks to implement Biztalk-SWIFT combination.

Technically, it is a great solution. Users can use Infopath templates to change the Messages. Then use Biztalk as single point of contact to connect with SWIFT network. All the Relational validations in incoming/outgoing message are created using BRE and hence are easy to change by non-technical users. This provides greater degree of flexibility and control in the ever changing world of Banking/Financial Regulations.

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