Frank Vandamme

1
UNIFI (ISO 20022)creating interoperability for
the financial industry
OASIS Symposium, San Francisco, 9 May 2006

• Frank Vandamme
• Senior Manager, Standards
• SWIFT

2
SWIFT

• Society for Worldwide Interbank Financial
  Telecommunication
• Community financial institutions active in
  payments, securities, treasury and trade services
  
• Network secure and reliable network application
• Standards standardized information flows
  (messages)
• Some figures
• Established in 1973
• 7,850 users in 204 countries
• More than 11 million messages per day
• Yearly growth more than 10

3
A typical business transaction
Business transaction all communication to
fulfil request from originator to beneficiary
Please pay CORP2 100.000 USD (net) by 31 Aug
2005, for invoice corp2_143. Indicate a
difference of 25.000 USD with the requested
amount due to non-delivery of one article
?
4
A typical business transaction
Please pay CORP2 100.000 USD (net) by 31 Aug
2005, for invoice corp2_143. Indicate a
difference of 25.000 USD with the requested
amount due to non-delivery of one article
?

• What is required to make this business
  transaction work?
• All necessary communications are foreseen
• All required information can be obtained and/or
  forwarded where and when necessary

5
Standards landscape in the financial industry
TC68/SC67 CEFACT/ TBG5
TC68/SC47
TC68/SC4 WG8 WG11
CEFACT/ TBG15
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A typical business transaction impacted by the
standards landscape
?
EPC
?
X12
?
?
?
?
?
ISTH
?
IFX
Edifact
?
Swift
OAGi
FedWire
?
?
7
UNIFI (ISO 20022) Building towards a common
approach
UNIFI ISO20022
TC68/SC67 CEFACT/ TBG5
TC68/SC47
TC68/SC4 WG8 WG11
CEFACT/ TBG15
8
UNIFI (ISO 20022)Main drivers

• Improve quality
• Ensure end-to-end interoperability
• Support diversity (market practices)
• Improve STP (Straight Through Processing)
• Reduce ambiguity
• Increase business focus
• Reduce implementation costs ( TCO)
• Reduce impact of proprietary technology
• Increase automation capabilities
• Reduce impact of maintenance
• Improve time-to-market

9
UNIFI (ISO 20022)Major components

• UNIFI objective develop standardised
  information flows
• Modelling-based standards development (UML)
• Repository (data dictionary business process
  catalogue)
• Syntax-specific design rules (XML)
• Registration process
• Reverse engineering approach

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UNIFI (ISO 20022)Standards development
methodology

• Three layered approach
• Business-oriented
• Communication needs
• End-to-end view
• Formal notation (UML)
• Representation-neutral
• Implementation-neutral
• Foster reuse (dictionary)
• Involve industry experts

11
UNIFI (ISO 20022)Standards repository
ISO 20022 Standards Repository
DATA DICTIONARY
BUSINESS PROCESS CATALOGUE
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UNIFI (ISO 20022)UML-to-XML conversion
UML (class diagram)
XML (schema)
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UNIFI (ISO 20022)Registration bodies
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UNIFI (ISO 20022)Long term convergence goal
UNIFI Registration Management Group
UNIFI Users
UNIFI Standards Evaluation Groups
ISTH
UNIFI Registration Authority
UN / CEFACT (All Industries)
MDDL
ebXML Registry/ Repository
UNIFI Financial Repository
FpML
Business Requests
Securities
under investigation
SWIFT
Core Components
Data Dictionary
TBG17 Harmo- nisation
FIX
Message Models
Payments
under investigation
Common Business Processes
Business Process Catalogue
ISO WGs
TBG5
www.iso20022.org
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UNIFI (ISO 20022)Interoperability based on
modelling
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UNIFI (ISO 20022) and reverse engineering
FIX, FpML, SWIFT,
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UNIFI (ISO 20022)Conclusion

• Improving interoperability today
• Registration bodies are up and running
• More than twenty countries and organisations
• Building for the future through ISO TC68 / WG4
• Identifying further alignment and enhancements
• Active participation of organisations like OMG,
  UN/CEFACT, FpML, SWIFT, TWIST, MDDL,

Financial industry is achieving interoperability
through UNIFI