Network Messaging Gateway for ISO 8583 to ISO 20022 Translation
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Solution Overview
Problem
Financial institutions face significant challenges and resource burdens when integrating with different network messaging standards, such as transitioning from ISO 8583 to ISO 20022, which hinders the adoption of real-time transaction processing due to the need for substantial reconfiguration and additional resource allocation.
Innovation Solution
The system allows institutions to coordinate fund transfers across multiple message standards without requiring the implementation of additional standards, leveraging existing infrastructure to extend functionality across various standards, enabling communication between institutions using different standards like ISO 8583 and ISO 20022 through a network messaging system that translates messages between these standards.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If financial institutions implement additional message standards to support real-time transaction processing, then transaction processing capability is improved, but device complexity and resource allocation requirements increase
Solution Approach 1:
The patent introduces a gateway as an intermediary component that translates messages between ISO 8583 and ISO 20022 standards. This gateway acts as a mediator between legacy systems and real-time payment networks, allowing institutions to support real-time transactions without requiring all systems to be upgraded to new standards simultaneously.
Solution Approach 2:
The gateway is designed with multi-functionality to handle multiple message standards (ISO 8583 and ISO 20022) through a single infrastructure component. This universal approach allows the same system to support both traditional and real-time transaction processing, reducing the need for separate specialized systems.
2Adaptability or versatility
If financial institutions transition to new message standards like ISO 20022, then real-time transaction support is improved, but implementation costs and resource allocation increase
Solution Approach 1:
The gateway is configured in advance with translation capabilities for both ISO 8583 and ISO 20022 standards. This preliminary setup allows the system to immediately handle real-time transactions when needed, without requiring last-minute reconfiguration or additional resource allocation during critical transitions.
Solution Approach 2:
The gateway creates translated copies of messages between different standards rather than requiring complete system replacement. This copying approach allows legacy systems to continue operating while real-time capabilities are added through message translation, significantly reducing implementation costs.
3Adaptability or versatility
If financial institutions reconfigure existing infrastructure to support multiple standards, then adaptability is improved, but system stability and operational reliability may be compromised
Solution Approach 1:
The system is segmented into distinct components: legacy systems, gateway, and real-time payment networks. This segmentation isolates the adaptability requirements to the gateway component, allowing multi-standard support without compromising the stability of core legacy systems. Each segment maintains its own operational integrity.
Solution Approach 2:
The gateway serves as a stable intermediary that handles all standard conversions. By centralizing translation functions in this mediator, the system maintains reliability because the gateway is designed specifically for this purpose, while legacy systems and real-time networks can operate independently with their native standards.
Data Source
AI summary
Systems and methods are provided for use in facilitating network messages. An exemplary method includes receiving, at a network, an instruction associated with a first user and specific to a first user account, where the instruction is directed to a second user account associated with a second user. The method also includes compiling a pre-authorization message indicative of the instruction, consistent with a first message standard and including an identifier of the first user account, and transmitting the pre-authorization message to a first institution associated with the first user account. The method then includes translating the pre-authorization message and/or the instruction into a transfer instruction consistent with a second message standard different than the first message standard, and transmitting the transfer instruction to a different network thereby permitting the delivery of the transfer instruction consistent with the second standard to a second institution associated with the second user account.