Case Study:
Hong Kong bank transitioned to iASPEC, looking for highly efficient and reliable transaction processing solutions

Background

A prominent Hong Kong-based bank, serving a diverse clientele across retail and corporate segments, faced mounting challenges in its remittance operations. Legacy systems struggled to handle the increasing volume of multi-channel payments, including SWIFT (MT/MX), RTGS, and cross-border FPS, leading to high manual intervention, compliance risks, and scalability limitations. The bank sought a robust, on-premise solution to support ISO 20022 compliance, automate workflows, and integrate seamlessly with core banking systems while maintaining data sovereignty and regulatory adherence (e.g., to HKMA guidelines). iASPEC Technologies Limited, a SWIFT-accredited VAS enabler with over 35 years of FinTech expertise, was selected to deploy its Remittance Management Platform (RMP) to address these needs.

The Challenge

The bank's existing infrastructure relied on outdated MT messaging formats, resulting in inefficient processing and low straight-through processing (STP) rates. Key issues included:

• Multi-Format Complexity: Handling diverse message formats across channels like SWIFT, RTGS, and FPS required extensive manual mapping and conversion, increasing error rates and operational delays.
• Regulatory and Compliance Pressures: The impending SWIFT MT to MX migration (set to conclude by 2025) demanded native MX support without reliance on interim converters, alongside built-in AML screening and sanction checks.
• Scalability and Cost Inefficiencies: Peak transaction volumes strained resources, with high dependency on manual oversight leading to elevated operational costs and slower settlement times.
• Limited Automation: Integration with core banking, treasury, and legacy systems was fragmented, hindering end-to-end visibility and preventing higher STP rates.

These factors impeded the bank's ability to meet customer demands for faster, real-time remittances while complying with evolving standards like CBPR+.

The Solution

iASPEC's RMP, an enterprise-grade application engine verified by SWIFT as CBPR+ ready, was implemented as the core platform for remittance services. Key features aligned with the bank's requirements:

• Native MX Support and Multi-Channel Integration: RMP handles MT and MX formats natively, supporting SWIFT, RTGS, FPS, and cross-border FPS channels. It includes a plug-in architecture for business rules, enabling customizable AML checks, payee name matching, and routing determination.
• High STP Automation: The platform's rule-based engine processes transactions with minimal human intervention, achieving STP through pre-processing, validation, and settlement workflows.
• Seamless System Integration: Using REST APIs, MQ adapters, and a microservices-based design, RMP integrates with the bank's core banking system, AML tools, and online banking interfaces.
• Security and Compliance: Deployed on-premise, it ensures end-to-end encryption, audit trails, and adherence to ISO 20022, with features like duplicate checks and health monitoring.
• Back-Office Tools: An intuitive console provides real-time monitoring, reporting, and exception handling, supporting operational teams in maintaining 24/7 availability.

The solution was tailored to the bank's environment, leveraging iASPEC's experience with similar deployments for over 30 Asia-Pacific institutions, including major Hong Kong banks.

Implementation

The deployment followed a structured, phased approach to minimize disruption:

• Requirement Analysis and Customization: Initial workshops clarified integration points with the bank's core systems and defined plug-in rules for STP optimization.
• Development and Testing: RMP was configured with Spring Boot microservices on the bank's infrastructure (Red Hat Linux, Tomcat, PostgreSQL/MySQL/Oracle). System integration testing covered end-to-end workflows, followed by user acceptance testing.
• Rollout: The platform went live with parallel running of legacy and new systems, including training for operational staff.

The entire implementation was completed in 90 days, facilitated by RMP's modular design and iASPEC's agile methodology, ensuring compatibility with the bank's existing hardware (e.g., Xeon processors, 32GB RAM servers).

Results

Post-implementation, the bank realized measurable improvements:

• 80% STP Rate: Automated processing reduced manual interventions, enabling sub-second handling for standard payments and supporting higher transaction volumes.
• 40% Cost Reduction: By minimizing manual oversight and streamlining workflows, operational expenses decreased, with reallocation of staff to strategic tasks.
• Expanded Services: The platform enabled seamless ISO 20022 migration and cross-channel support, allowing the bank to offer enhanced remittance options like real-time settlements and QR code integrations.
• Enhanced Efficiency and Reliability: Settlement times improved, with built-in monitoring ensuring 99.9% uptime and full compliance traceability.

These outcomes positioned the bank for future growth in a dynamic financial landscape, aligning with regional trends toward faster, more secure payments.

Conclusion

This transition underscores iASPEC's role as a strategic partner for financial institutions navigating digital transformation. By leveraging RMP's advanced capabilities, the Hong Kong bank not only resolved immediate operational challenges but also future-proofed its remittance infrastructure. For similar institutions seeking efficient, compliant transaction processing, iASPEC offers proven solutions backed by decades of innovation.

Contact us at info@iaspec.com to explore how RMP can optimize your operations.