How much does a SWIFT Financial Messaging Solution Cost?
Payment Components, have been serving financial organizations, banks
and software companies’ SWIFT financial messaging solution requirements
for over eight years and one of the very first questions, we’re often asked
by prospective clients is; How much does a SWIFT financial messaging
And as much as this is an important question, an equally important
question that needs to be asked is with regard to the levels of ongoing
support and maintenance, once the SWIFT library is installed.
Now, the fact is, there is not an exact answer to either of these questions without
a clearer understanding of a client’s specific requirements and
business situation but
I will explain what needs to be considered when
estimating the cost of a SWIFT financial messaging solution.
The first part that must be considered when establishing the cost of a
SWIFT financial messaging solution is to establish which of the libraries you require; SWIFT MT or MX, or perhaps SEPA?
SWIFT MT validator libraries are a java SDK that helps build payments or
trade financing application, or just about any type of SWIFT MT application
that will be compliant with the latest SWIFT standards.
SWIFT MX is the next generation SWIFT standard for international
messaging that utilizes the XML format based on ISO 20022. Payment
Components SWIFT MX libraries include the SWIFT_MXparser and
SEPA validation libraries support all SEPA CT and SEPA DD messages for
“Payments Clearing and Settlement”, “Payments Initiation” and “Cash
Management” defined by the SEPA rulebook.
Once you’ve established which SWIFT (or SEPA) library you require, you
will next need to determine if you require the whole of that library or just
select components, as this will have a bearing on the cost estimation, with
a whole library usually costing up to ten times the cost of a single
Next, you’ll need to determine how many installations of your chosen library
you require, as each installation, will typically incur an additional cost.
Finally, your maintenance and support requirements will need to be
considered, but as a guide, the cost of maintenance and support will
typically represent around twenty five percent of the initial purchase price.
And with regard to maintenance and support, it’s essential to note that not
all maintenance and support plans are equal between
the various SWIFT
financial messaging solution providers so
it’s advisable to establish
exactly what is included within the maintenance and support agreement,
including which team members senior
or junior and inhouse
be responsible for handling any support or maintenance
needs and the agreed response times.
As you can probably see, determining exactly, ‘how much does a SWIFT
financial messaging solution cost?’ without
a thorough understanding a
client’s specific requirements and business situation is
possible, but I hope you now have a clearer understanding of how the cost
of a SWIFT financial messaging solution is determined and that this will
help with your the quotations and costings for your specific project.
And of course, we’d be delighted to provide you with a full and
comprehensive Payment Components quotation for your specific SWIFT
financial messaging solution needs.