BORICA Enhances Bulgaria's Payment Systems with New Module
BORICA Enhances Payment Interoperability in Bulgaria
BORICA, the national payment operator of Bulgaria, has recently achieved a significant milestone by introducing a TIPS connectivity module designed by Montran. This groundbreaking solution allows Bulgarian banks to seamlessly connect to the TARGET Instant Payment Settlement (TIPS) system, which is part of the European Central Bank's initiative to facilitate instant payments.
Integration with Local Payment Systems
The implementation of the TIPS module means that banks in Bulgaria can now integrate their systems with TIPS, enhancing the existing local instant payments service known as Blink. This advancement expands the instant payment capabilities by incorporating the SCT Inst payment scheme in Euro, applicable not only for local transactions but also for payments across the Single European Payments Area (SEPA).
A Future-Ready Payment Solution
BORICA aimed to find a comprehensive solution that would not only connect its member banks to TIPS effectively but also enhance the management of liquidity. Montran took on this challenge and provided a customized upgrade that includes two key prefunding modules. One of these modules focuses on TIPS, facilitating international transactions, while the other, named EURO INST, is dedicated to supporting domestic transfers.
Enhancing Liquidity Management
By implementing these modules, the banks can manage their liquidity positions better across both payment systems through a single, user-friendly interface. This offers the much-needed flexibility to initiate funding or defunding processes, helping to optimize operational workflows.
Advanced Monitoring and Controls
One of the standout features of this new solution is the inclusion of advanced liquidity monitoring and control mechanisms. The interface to TIPS, alongside other systems like T2 and STEP2 via Swift, ensures that banks have real-time insights and can maintain effective control over their liquidity.
Official Statements
Vania Ganeva, the Head of Payment Services at BORICA, expressed enthusiasm about the new module, stating, "With Montran's solution in place, we can equip our member banks with a faster and more efficient method to access TIPS for instant payment services. The improved liquidity management tools enable banks to optimize their operations while complying with European regulatory standards."
Keith Esca, Global Sales Director at Montran, commented on the collaboration with BORICA, saying, "This partnership signifies our dedication to delivering practical solutions that meet market demands. The successful launch of the TIPS connectivity module showcases our strong collaboration in driving innovation, facilitating instant payments, and ensuring SEPA compliance for banks in Bulgaria."
Operational Status Post-Testing
After rigorous testing phases, the TIPS connectivity module is now fully operational. This achievement aligns Bulgaria’s payment infrastructure with advanced European standards for instant payments and settlement processes. This initiative represents a vital advancement in enhancing the efficiency of payment systems and fostering cross-border interoperability within the country.
About Montran
Montran stands out as a leading provider of comprehensive Payment and Capital Market Infrastructure solutions. They cater to prominent financial institutions globally, with critical operations established in over 90 countries. Montran's commitment to excellence ensures their clients receive state-of-the-art technology and unparalleled support.
About BORICA
BORICA AD is a well-established joint stock company, owned by 19 banks operating in Bulgaria. The company has been instrumental in developing and managing the technological infrastructure of the Bulgarian payment sector. For over 30 years, BORICA has maintained its reputation as a reliable partner to government institutions, banks, and payment service providers, dedicated to delivering innovative solutions tailored to the needs of the financial landscape.
Frequently Asked Questions
What is the purpose of the TIPS connectivity module?
The TIPS connectivity module allows Bulgarian banks to access the TIPS system for instant payments, enhancing payment capabilities both locally and in SEPA.
Who developed the TIPS connectivity module?
The module was developed by Montran, a recognized leader in payment and capital market infrastructure solutions.
What benefits does the new system provide banks?
Banks gain advanced liquidity management capabilities, streamlined payment access, and greater operational efficiency through this new connectivity.
How does this impact cross-border payments?
The implementation enhances Bulgaria's payment systems by improving interoperability, making cross-border transactions faster and more efficient.
What is BORICA's role in this development?
BORICA is the national payment operator responsible for ensuring that the technological infrastructure for payments in Bulgaria meets European standards and supports member banks effectively.
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