SEPA Module

Second generation SEPA solution provides an efficient and cost-effective migration strategy.

The Montran SEPA Solution

The ability to produce solutions that are truly global yet fully flexible is what sets Montran apart. That ability can only be claimed by those whose experience in the financial market place matches their experience in system design and implementation.

The greatest challenge in developing Payment Solutions and related components is in producing standard solutions that can be installed universally, but retain the flexibility to adapt to the requirements of specific banks in different regions and in diverse businesses. Contemporary software, primarily Java EE and companion infrastructure models, has facilitated a task that was more challenging under legacy platforms.

Second Generation Payment Solutions

Montran offers Second Generation Payment Solutions for banks wishing to connect to one or many Single Euro Payments Area (SEPA) Clearing and Settlement services, or to communicate with each other and with their clients using SEPA compliant messages.

The Montran SEPA module offers any bank a comfortable adaption to SEPA compliance. It is a component of the Montran Global Payments Solutions (GPS) family of products and can be used either by itself, or with other GPS components to provide a complete solution for payments processing in the bank.

Our SEPA product comprises components for message and file processing, routing, monitoring and control functions, as well as internal and external interfaces.

The SEPA message and file processing component is responsible for validation and format conversion, and mapping between FIN, MX, ISO 20022 pain and pacs, and proprietary formats.

The routing component controls the operational flow of messages and files, and determines destination points. Rules-based payment direction employs SEPA Routing Tables from various CSMs and local data.

Monitoring and control functions provide the SEPA operator and other bank users with both interactive and report-based facilities necessary for achieving complete operational control. The SEPA module maintains a complete audit trail of its processing.

Internal Interfaces

  • Real-time (or batch) interfaces for transmission of messages or files between the SEPA Solution and the Back Office or Cash Management systems in the bank. A number of messaging and file transfer protocols and infrastructure are supported including JMS-based messaging (e.g. IBM WebSphere MQ, Sun Message Queue), file-based, secured FTP, WebServices and others.
  • Interactive Web interface between operator stations at the headquarters of the bank (via the LAN) and its branches (via a WAN) over secure TCP/IP network using HTTPS.


External Interfaces

  • Real-time interfaces for delivering messages and files between the SEPA module and SEPA Clearing and Settlement Mechanisms (CSMs), Correspondent Banks, other banks and clients of the bank.
  • External interfaces can be either via the SWIFT Network using SWIFT FIN and SWIFTNet services such as FileACT, InterACT and Browse; or via a secure private network (VPN) using a number of messaging and file transfer protocols and infrastructures, including JMS-based messaging, file-based, FTP and others.
  • Features
  • Security

Main Features of the Montran SEPA Module

The message and file processing components of the SEPA module have been designed to support both ACH SEPA traffic to any number of SEPA CSMs or Correspondent Banks and, Country specific ACH traffic to national (non-SEPA) ACH. The latter option is designed to assist banks through the SEPA transition period. The payment types that can be routed through include:

  • SCT (SEPA Credit Transfers)
  • SDD (SEPA Direct Debits)
  • Country specific ACH payments (optional)


The SEPA module components and interfaces are configured to the specific needs of the bank. Through its components and interfaces the module performs:
  • Reception of payment instructions
  • SEPA compliance for validation and formatting of messages and files
  • Validation, error detection and error reporting
  • Mapping between standard and proprietary message formats including PAIN, PACS, XML, proprietary and SWIFT formats
  • Validation of Direct Debit Mandates
  • Party and Payment Field Enrichment
  • Beneficiary bank determination based on beneficiary IBAN
  • Processing of payment instructions
  • Managing queues and reception / delivery points
  • Forwarding of payments to the CSMs or banks
  • Positive and negative acknowledgement processing
  • Maintaining a full audit trail

In addition, the SEPA Module performs:
  • Value Date and Cut-off Processing
  • Automates processing of R-messages
  • R-messages timeframe validation as per CSMs rules
  • Payment Warehousing
  • Disaster Recovery and Backup

The interfaces and routing functions of the SEPA module support multiple indirect participants to CSMs.
Operator access to the module is realized through secure access control to menu-driven monitoring and control functions that include:
  • User access and profile management
  • Monitoring of inward and outward payment instructions
  • Monitoring and control of queues
  • Monitoring of system activities
  • Statistics and reporting

The SEPA module supports interactive access from any number of stations in the bank headquarters and branches.

Additional Features of the Montran SEPA Module include:
  • Message origination and repair functions
  • Maintenance of Direct Debit Mandates
  • Enhanced reporting
  • Reconciliation
  • Integration with GPS components for payment processing

The SEPA module optionally supports multiple direct participants to SEPA CSMs. The module may operate in a Multi-bank configuration.

The SEPA Module is an open system solution and can be run on any hardware platform and supporting infrastructure that is Java compatible.

The SEPA Module has been developed using the Montran GPS architecture that is characterized by a high degree of reliability, scalability, and hardware and database independence.

Security

The Montran SEPA module provides the highest level of protection and confidentiality of transaction information in the industry. The security standards are designed to meet or exceed those of the SWIFT network, even when not directly interfacing with SWIFT. Data access security is provided through both digital signature and encryption technology based on Public Key Technology. For any sensitive operation a four or even six‐eye approval policy is applied. Screens are designed to be user friendly and intuitive, with customizable menus by way of user profile functions. The system supports integration with an LDAP server as a Centralized User Repository, Single Sign On and two‐factor authentication.

Architecture
  • Based on open system architecture
  • A standard browser based "thin client" user interface
  • Server application components written in Java and running in an enterprise environment, Java EE 5.0 application server
  • Interoperability through the use of standardized Java API (JDBC, JMS, JTA, JCA), Interface adapters, and SOA integration