Oracle says it is to accept the SwiftNet messaging format, with the aim of improving connectivity between banks and their industrial and commercial companies. The so-called Oracle E-Business Suite and Oracle Application Server will now be compatible with SWIFT, the Brussels-based financial messaging network.
Oracle says that, historically, banks have delivered information to their corporate customers’ “front doors” but did not take steps to ensure that the information could be integrated with customer back-office business information systems – obliging companies to develop expensive, customized integration options or work with third parties.
Oracle adds that numerous business, regulatory and national security requirements – including corporate governance and compliance directives, and the need to monitor capital adequacy and operational risk to achieve accounting transparency – are increasing the need for an end-to-end solution that bridges the information gap between banks and their corporate customers.
“By integrating Oracle E-Business Suite applications with SWIFTNet, we can provide tangible benefits to financial services organizations and their business customers,” says Steven Miranda, vice president of Financials applications development at Oracle Corporation. “Financial services providers, looking for innovative ways to maintain a competitive edge in a market characterized by declining transaction volumes, will have the tools required to expand their role as valued information providers. Business organizations, in turn, will have a fast path to high-quality enterprise intelligence that provides a foundation for informed decision making and profitable growth in a competitive market.”
Adding SWIFTNet message format capability to Oracle applications for procurement, payables, receivables, payments and expenses should enable banks and their corporate clients that use Oracle to create a single, integrated processing environment. Corporate treasurers, in turn, will have the ability to integrate back-office information with their bank-supplied cash management services to improve funds allocation throughout the day.
The Oracle solution, based on Oracle Application Server, is expected to provide SWIFTNet interoperability for both users of Oracle applications as well as other ERP systems. Oracle Application Server can enable facilities to receive, translate, transform and help ensure delivery of SWIFT messages; to audit and track them; and to integrate them with corporate information systems, enterprise data hubs and Corporate Business Processes. Companies can also use standard Trading Partner Management facilities to create, monitor and manage agreements with SWIFT business partners.
“SWIFT is pleased to work with Oracle on this important integration initiative that, ultimately, stands to benefit the global SWIFT community,” says Joel Ludvigsen, Director Partner Solutions, SWIFT. “By integrating Oracle E-Business Suite and SWIFTNet, we extend our mutual commitment to helping our customers carry out their business – efficiently, seamlessly and securely.”
Oracle plans to complete the first phase of the integration initiative in the first half of 2005.