The Company’s Product Advisory Committee Played a Significant Role in Planning and Designing the New FedISO Capability
Dragonfly Financial Technologies Corp., a digital banking and treasury management FinTech, announced it is working with its Product Advisory Committee (PAC) to ensure readiness to comply with the new federal mandate, ISO 20022. ISO 20022 is a global standard for electronic data interchange between financial institutions, providing a unified platform for messaging in payments, securities, trade services, and cards.
Over 1.4 million businesses and their banks, including four of the top 10 banks, use Universal Online Banker for a variety of digital business banking needs, including sending and receiving Fedwire payments every day. Dragonfly’s solutions enable customers to initiate wire transfers through real-time integration with eight different back-office wire processing platforms, including ACI’s MTS/RTPS, Fiserv’s WireXchange, Finastra’s Global PayPlus, PayPlus and GFX, Jack Henry Wires, CSI Wire Transfer, as well as two additional proprietary bank systems.
“We are working with our customer base to ensure our composable digital business banking platform is compatible with the mandate in the new ISO 20022 formats required by the Federal Reserve,” said Jim Gillespie, chief product officer at Dragonfly Financial Technologies. “Our Dragonfly Product Advisory Committee is comprised of product and operations leaders at our customer’s banks, so they are at the forefront of this initiative and understand how banks need to uphold the new ISO 20022 standard. Our customers have worked with us to maximize our efficiency while limiting disruption to their digital business banking services.”
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Through close collaboration with its customers, Dragonfly understands that actual adoption of the new ISO structured fields by the banks’ corporate customers will happen gradually over time. Dragonfly designed a solution that would allow companies to continue to operate seamlessly while incorporating it into its Universal Online Banking solution. Dragonfly’s UX Design team developed a unique approach that supports old and new formats on a payment-by-payment basis. This enables the banks’ customers to take advantage of the new features on their schedule.
“It’s critical for banks and their customers to comply to the new ISO 20022 mandate and without disrupting their digital business banking services. Organizations like Dragonfly are embedding these capabilities into their platforms to make it easier for banks to integrate this new service in their digital banking platforms,” said Robin LoGiudice, Strategic Advisor, Commercial Banking and Payments at Datos Insights.
Maintained by the ISO Technical Committee TC 68 Financial Services, ISO 20022 is being adopted worldwide, with major initiatives like SEPA and SWIFT’s migration to this standard driving global interoperability and regulatory compliance. According to Datos Insights, over 4,700 Fedwire participants will sunset the proprietary Fedwire Application Interface Manual (FAIM) format and implement ISO 20022 message formats on the same day. The Federal Reserve expects every participant’s wire ecosystem to be ready to support the ISO 20022 message formats by March 10, 2025.
“Businesses want better products and services for wires and cross-border payments, which ISO 20022 adoption enables,” said Robin LoGiudice at Datos Insights. “Our data revealed that over 90% of businesses have adopted ISO 20022 formats, plan to use them in the future, or want to learn more about them, so vendors that are delivering support for ISO 20022 will have an advantage over other digital business banking platforms.”
Since its launch in September 2022, Dragonfly continues to focus on deploying scalable composable digital business banking solutions that banks need to compete with FinTechs. By deploying Dragonfly’s composable banking solution, banks have a platform for future expansion, including microservices APIs and embedded banking. Banks that have migrated to Dragonfly’s multi-tenant managed service can take advantage of Dragonfly’s release of managed services to deploy every release for them and ensure they are always on the most current version of UOB. Dragonfly also recently added Dragonfly FedNow Payments as a standalone product and a module. Because the Dragonfly platform is designed for ultimate flexibility, agility, and ease of use, customers can choose the implementation option best suited for the needs and size of the bank and their corporate clients. FedNow Payments is a payments option available in each composable banking deployment: Dragonfly Digital, Dragonfly as a Service, and Dragonfly Embedded Banking.
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