FINACLE PAYMENTS

Financial institutions are constantly

challenged to keep up with the changes

happening in the payments. Changing

customer preferences, regulatory reforms,

alternate payment methods and other

industry initiatives create multiple

challenges for banks and other financial

institutions. To succeed in a fiercely

competitive market, financial institutions

need to streamline payment operations

to serve their target markets in a cost-

effective manner. They have to be agile

to adopt changes rapidly and introduce

innovations faster. Above all, they should

have a customer-centric approach to

enhance the engagement experience

across all touch points.

However, most of the financial institutions

are still saddled with siloed payment

modules leading to sub-optimal processes,

higher costs and extended time to market

issues. Rigid systems designs, ageing

technology, legacy applications and

limited innovations are stifling them in

their quest to deliver quality service. In

today’s business scenario, it’s vital for

financial institutions to adopt centralized

payment platforms that can service

payment requirements globally, across

the enterprise in a cost effective and

flexible manner.

Finacle Payments

Finacle Payments is an advanced

enterprise payments services hub to

modernize your business.

• The solution manages end-to-end

payments lifecycle and processes

payments regardless of payment

instruments, originating

channels, hosting modules and

payment networks

• The SWIFT ready solution is designed

leveraging ISO 20022 standards to

deliver seamless interoperability

across various global and local

payment networks

• The solution’s multi-entity capabilities

empower financial institutions to

centralize payments across local and

international subsidiaries to gain

unrivalled business efficiencies. The

solution also enables them to offer

white labeled payment services to other

financial institutions to increase revenue

and improve profitability.

An advanced enterprise payments services hub to modernize your business

• The componentized and

parameterization driven design helps

to accelerate payment innovations and

manage changes brought about by

regulatory initiatives

• Finacle Payments empower financial

institutions to deliver superior customer

experience by offering value added

services and tailored payment offerings

based on specific requirements

The solution enables financial institutions

to design and manage workflows to

optimize processes to gain higher

operational efficiencies. It offers multi-

currency, multi-product, multi-entity and

multi-time zone capabilities to centralize

payments operations across geographies

and source third party payments business

to achieve a differentiated cost-curve

and revenue model. This centralized

solution provides real-time visibility and

enhanced control to manage risk and

liquidity. Service Oriented Architecture

(SOA), adherence to industry standards

and a robust integration platform ensures

seamless integration with other banking

and customer applications. With Finacle

Payments, financial institutions can

progressively migrate from siloed payment

modules to a centralized payment hub.

Functional architecture

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OriginatingSource

Branch

Internet

Mobile

SWIFT

ATM

CorporateChannels

Others

PaymentSchemes

SWIFT

CrossBorderRTGS

Local RTGS

SEPA

ACH

Others

Applications Treasury CapitalMarket

Trade Finance Securities LoansGeneralLedger

OthersCards

Product Layer

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Master Data Layer

PaymentApplication

Retail

Finacle Integration Platform

Corporate

Finacle Payments

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Infrastructure Layer

Archiving

Payment Core Services

Credit Transfer

Collections

Validations

Collection Request

Enrichments

FX Processing Payment Repair

Transfer Request Returns

Recalls

Compliance Check

Low ValuePayments

SWIFT Exception &Investigation

Domestic &Cross Border

High ValuePayments

Matching & Recon.

Debit Auth.Request

Contests

Intelligent Routing

SuspenseProcessing

Dishonors

AccountingPostings

ChargeApplication

Limit BreachHandling

PaymentScheme

NetworkDirectory

CorrespondentBank

OriginatingSources Directory

Originator Fees andCharges

MessageStaging

IntegrationFramework

PaymentWarehouse Dashboards Audit Ungrouping

Grouping &

Reporting SingleSign - On

FileManagement

TemplateManagement Notifications

ResponseManagement24/7

MandateMaintenance

PaymentProducts

StandingOrders

Non-sufficientFunds Mgmt.

CustomerPayment Profile

File FormatDefinition

Positive PayNon-sufficientFunds Mgmt.

Key functional modules

Domestic payments

• High value payment processing module

offers support for processing high

value domestic payments covering

inward and outward credit transfers and

direct debits. Solution supports SWIFT,

RTGS payment systems such as CHIPS,

FEDWIRE, CHAPS, TARGET2, NG-RTGS

and other local payment schemes

through product configuration.

• Low value payment processing module

provides support for processing

bulk payments covering inward and

outward credit transfers and collections.

Solution supports Automated Clearing

Houses(ACH) systems such as SEPA,

NACHA, BACS, NACH and other local

payment schemes through product

configuration. Likewise, the solution

also supports low value real-time and

near real-time payment systems such as

NEFT, FPS and GIRO.

International payments

This module offers support for

international payments in foreign and

domestic currencies on payment networks

such as SWIFT, NACHA, SEPA and TARGET2.

It offers the infrastructure to maintain

the correspondent banking relationship

in terms of Nostro/Vostro accounts

maintenance, charging agreement setups

and routing agent bank maintenance.

Exception and investigation management

The module offers out-of-the-box support

for SWIFT exception and investigation

services, based on ISO 20022 XML

messaging standards. Key services include:

• Request for cancellation

• Request for modification

• Unable to apply

• Claims non-receipt

Compliance management

This module provides support for anti-

money laundering (AML), OFAC and

blacklist checks. The response handling is

automated and payment transactions with

compliance failure are marked into unified

suspense processing queue for appropriate

actions by business operations.

Payment products

This module provides the infrastructure to

configure and bundle product offerings

for both corporate as well as retail

customers. Banks can create multiple

payment products and align them to

specific customer accounts or group of

accounts. Parameters like preferred and

allowed networks, subscription to payment

services, daily transaction and exposure

limits, file formats per corporate customer,

etc. can be configured in this module.

Suspense management

The module facilitates suspense processing

for transactions with exceptions, failed

validations and screening requirements.

It offers a single window control to users

to effectively manage such transaction

through multi-level referral and queue

management capabilities.

Mandate management

The module offers extensive capabilities of

mandate management electronically and

manually. This includes mandate creation,

modifications and deletion. It also provides

an add-on facility to setup standing orders

based on customer instructions.

Finacle Payments is an advanced

enterprise payments services hub to

modernize your business.

The SWIFT ready solution is designed

leveraging ISO 20022 standards to deliver

seamless interoperability across various

global and local payment networks.

Key infrastructure modules

Componentized structure: Finacle

Payments is designed in a componentized

manner to deliver future-proof and robust

payment architecture. The fundamental

construct of the solution include:

• Inward manager: Acts as a frontend

gateway to receive message instructions

or payment files. It stores the messages

in the as-is format, de-bulks, parses,

validates and forwards the inward

instructions to the central payment

processing engine.

• Central payment processing engine:

Payments instructions received are first

converted in the ISO 20022 format.

Then, the solution performs the core

business processing that includes

business validations, enrichments,

compliance checks, authorizations,

matching, warehousing, fees and

charges handling, balance check,

accounting and derivation of payment

chain and payment network through

intelligent routing.

• Outward manager: Generates outward

messages by converting the messages

from ISO 20022 format into external

format based on the payment network

identified. It is also responsible for

bulking/grouping and transmission of

instructions over a queue or directory

through Finacle Integration Platform.

Since the messaging component is isolated

from the core business processing, any

change in the messaging standards would

require updates only in the message

structure. This ensures that financial

institutions can adopt to emerging

standards rapidly without altering their

core business processes.

File management

The module provides the facility to

maintain customer specific multiple

file formats for corporate customers. It

automatically identifies the file format and

does the necessary parsing and validations.

It also gives a unified view of all files and

payments and monitors the status of all the

payment files uploaded and the payment

orders created.

Template management

This module offers support to configure

templates for payment messages or files

in any format. It provides the flexibility to

rapidly configure templates to support

new payment schemes and allows quick

message upgrades.

Network directory infrastructure

Finacle Payments provides the infrastructure

to manage the network directories for

different payment schemes. The system

does the online network directory

validations and enrichments to improve

Straight Through Processing (STP). It allows

multiple directories per payment scheme

and supports both incremental and full

upload of the network directory file.

Finacle integration platform

Finacle Payments comes with the

Finacle Integration Platform (FIP) as the

middleware component, which acts as a

gateway for external systems to exchange

data. The external applications can invoke

Finacle business services in FIP through

Websphere JMS, Native MQ Series, TIBCO,

SOAP/HTTP or TCP/IP based end points.

User dashboards

This module acts as an effective tool for

floor management, status monitoring and

real-time inquiries on payment operations

across the enterprise. It enables users

to define their own dashboards with

pre-defined templates. The data can be

represented in a graphical manner to give

an easy-to-understand picture of critical

business operations. Solution

also offers integrated reporting

capabilities to generate predefined and

user defined reports.

Business benefits

Enhanced operational efficiency

Finacle Payments provides an enterprise-

wide payments engine with multi-

entity, multi-currency, multi-country,

multi-host, multi-channel and multi-

time zone capabilities to centralize

the payments operations across the

organization. This brings down the

operational costs and offers reduced

time to compliance, better control,

transparency and visibility. The solution

delivers Straight Through Processing

(STP) to lower manual intervention and

increase operational efficiency. The Service

Oriented Architecture (SOA) enables

users to design and manage workflows to

optimize business processes. Features like

dashboard, widgets and a process driven

screen-flow enhances the user experience

and productivity.

Superior agility

The solution empowers financial

institutions with agility to respond to

rapid changes and accelerate innovation.

Component and parameterization based

solution design helps to accelerate

innovation execution. The glocal platform

offers pre-built best practices and products

to bring global innovations to the

local markets.

Futuristic design

The SOA based solution is designed with

ISO 20022 data standards to adapt to

emerging payment networks. This highly

scalable solution empowers financial

situations to manage growing payment

volumes confidently and even allows

in-sourcing of third party payment

transactions to create an additional

revenue stream.

Differentiated customer service

Finacle Payments empowers financial

institutions to offer tailored payment

services to various customer segments

with relationship-based pricing,

configurable access control and rule-based

process flows. It offers value added services

like remittance advice handling and

reconciliation services. The solution also

offers transparency in payment processing

through effective audit logging, alerts and

notifications.

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