The challenge

The Payments and Post-trade industries are undergoing unprecedented levels of change. New technologies, digital currencies, disruptors and liquidity requirements are putting financial systems under further pressure and costing the industry hundreds of millions a year.

FMIs (Financial Market Infrastructures) need to understand the impact of these changes before they are made, in order to design, build and maintain optimal settlement systems.

The solution

FNA’s Payment Simulation solution creates a digital twin of any payment or settlement system, enabling FMIs to quickly respond to regulatory requirements, modernisation programmes and new market entrants such as CBDCs.

This enables clients to rapidly test new technology, features or changes to their systems without writing a single line of code, leading to better system design, reduced system development costs, increased speed of deployment and smoother regulatory approval.

FNA’s experience within FMIs is unparalleled, having built simulators and developed systems for over 25 years for clients such as Fnality, Payments Canada and Bank of England.

 

The benefits

  • Quickly replicate and understand the behaviour of any payment system without needing to build it first
  • Safely understand the impact changes will have on members and the broader financial system
  • Provide clarity to project stakeholders that system changes are safe and efficient
  • Reduce risk and project costs by simulating changes in a safe environment first
  • Deliver deep insight into the impact of planned changes such as CBDCs or new system features
  • Simplify regulatory requirements and changes by demonstrating full compliance prior to any changes
  • Start running simulations in days, not weeks or months

Key features

The Payment Simulation solution can be configured using a wide range of features, including:

  • Simulate thousands of business days with the proven FMI Simulator™ and generate the same economic and/or operational output as the real systems
  • Deploy patented liquidity saving mechanisms
  • Visualize and communicate findings with FNA Dashboards™
  • Run simulations using real or synthetic data
  • Model endless combinations of configurations and datasets
  • Select multiple data outputs to analyse and fully understand the impact of the simulated system change
Rhomaios Ram, CEO of Fnality
“Using the FNA Platform, we have been able to simulate the transformational effects which the USC will be bringing to the industry and therefore determine the significant liquidity benefits of the proposed service. This insight has enabled us to prepare, design and communicate exactly how our service will work”

Related research, news & events

Anomaly Detection of Fraudulent Large-Value Payments
This piece was written by Amanah Ramadiah and Riccardo Marcaccioli (Data Scientists at FNA), and Kimmo Soramäki (FNA’s CEO). When Machine Learning Meets Network Science Suppose Alice makes a new payment to Bob. A moment later, Alice makes another new payment to Chuck. Can we know if either of the two transactions are suspicious? The […]
Read more >
The Global Network of Payment Flows
By Samantha Cook & Kimmo Soramäki. The paper, ‘The Global Network of Payment Flows‘, offers a descriptive analysis of Payment Networks created by SWIFT MT 103 messages. SWIFT MT 103 messages are the most commonly sent SWIFT message types and provide a valuable measure of global economic activity. Within the payment network, nodes represent countries. […]
Read more >

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