DID YOU KNOW?
With the imminent GCR/RV apparently in sight, it cannot be stressed enough the importance of being prepared. The information needed and required to facilitate your exchange must be present at the time of an exchange.
The purpose of these “needed elements” is what we need to understand. How is the required information you provide utilized in banking operations?
In the financial industry, legacy IT systems are a common point of frustration. Legislative and legal implications mean financial institutions must keep data for six years from the closing date of the last financial year before changing to a new system.
While this legislation is designed to offer many forms of protection, it can also keep financial business trapped in an enforced limbo between two or more IT systems, making reporting a nightmare. The overriding principle is that financial institutions and their IT organizations must be prepared for a world where change is constant. It has been difficult for financial businesses to avoid the headache of lengthy and complex reporting.
They must maintain “legacy systems” while also implementing the new Quantum system as well.
The answer lies in overlaying legacy systems with a Quantum intelligence reporting system that can connect, access and present data wherever it’s stored, allowing it to be used in a meaningful way with minimal disruption and cost.
It’s not uncommon for financial institutions, as they grow or restructure, to switch their ERP or GL system. Sometimes it’s because they’ve been acquired by another company and have to transition to the parent company’s system. Or, in the case of larger financial institutions, they look to eliminate multiple systems in favor of a uniform one.
Most commonly, institutions switch systems to drive efficiencies, maintain their competitive edge or to be able to offer better customer service in an ever growing market that gets more crowded every year.
The biggest problems with changing systems stem from financial regulations, such as statutory requirements forcing banks to retain historical data for a defined period to aid reporting and auditing. If that data is stored on an old system, the system has to be retained as well.
This often requires keeping the old system on site, either on a server or an old desktop, so that the historical data can be accessed when needed.
Some issues that occur as a result of this:
1) it’s time-consuming and often difficult to keep an aging server running with dated operating systems and software that keep it useable.
2) There may be a cost involved in paying for licensing or maintenance fees for the legacy system software, which isn’t even actively used anymore.
3) Creating uniform data sets that make sense when combining data from the legacy system and the new system is a challenge.
4) How do you allow auditors ease of access to the necessary data from both the legacy and new system, when they are stored on separate servers and locations accessed via different interfaces?
5) Most new systems are implemented with the summary level financial data. This makes drawing detailed transactional data into the new system a challenge.
A Quantum Financial System allows a reporting solution that can access data across multiple systems and allow it to be used in a meaningful way for reporting. Quantum Systems allow you to collect data from across legacy and current systems, providing formatted, comprehensive and standardized data sets that generate comprehensive reports with minimum effort.
It also offers real-time reporting features so that, not only can you access any data, from anywhere, at any time, but it is kept up-to-date for maximum accuracy.
The initial input of information is paramount in processing your transaction. If fields are left open or are filled out improperly on inception, your transaction may not be realized or read by the established algorithms designed to comply with all laws and regulation, therefore red-flagging your transaction or freezing it for further review.
Amongst other functions, the Quantum AI system will be responsible for all repetitive compliance tasks, freeing up the human staff members to focus on compliance responsibilities requiring reasoning and judgement. The system archives logged files on every activity so those repetitive tasks are well documented for any audits, reducing human input errors while improving compliance and governance.
When you fill out an initial form in a transaction, that transaction is “codified” specific to that transaction. That specific assigned code is relative to all the information supplied in the transaction. That code now becomes part of the Legacy data.
If the information changes in the transaction then a new code is assigned relative to the information provided and a new Legacy data thread is established. As an example: I fill out the form stating my name is John Smith.
It is codified and that code is how information is drawn into and out of the Legacy Data. I fill out a new form and state my name as Johnathan Smith. Then a new code is established and only information relative to that “new name” is drawn in or out of the Legacy data.
When a financial institution attempts to draw on information (a code) or input information (a code) to the Legacy data on John Smith based on information (a code) assigned to Johnathan Smith, the system cannot comply or read the request demand or rather the code cannot be identified as John Smith and therefore the transaction stops or is delayed.
Any discrepancies in the information provided can cause the transaction to be re-coded and your information can be lost in the IT universe. Have you ever stored something in your computer, thinking you stored it to desktop but it got stored under a different tab? You play hell trying to find where you stored it. Just think what happens when you are dealing with a massive system.
The same type of behavior is present in fund transfers. Codes are established on the message type being delivered from a sending bank to a receiving bank. As an example. A sending bank sends out an MT 290 (Advises an account owner of charges, interest, and other adjustments) the receiving banks system is therefore geared to receive information relative to an MT 290.
If the instructions are unclear or if the message was inputted or translated improperly the receiving banks system may read an MT291 (Requests payment of charges, interest, or other expenses.) and the chain of custody of the funds cannot complete, the transaction stops or is delayed.
To put it simply it would be like a mechanic receiving the wrong nut for a bolt, or trying to put a 5 hole rim on a 6 lug wheel drum, It won’t fit.
(Point of fact the C.I.P.S has a MOU with SWIFT to utilize SWIFTs message fields, the MTxxx and the SWIFT codes which are codes assigned to banks and countries)
Blockchain technology operates off a consensus of multiple nodes (computers) in some cases millions of them, meaning they analyze the message being sent and form a consensus that the message being delivered is accurate, agreed upon an acknowledged as fact allowing the message to be delivered.
The Quantum system was needed to functionally draw on these affirmed messages and all other compliance algorithms relative to banking law and criminal activity then, in real time, apply them to transactions. In short a transaction can move at lighting speed, be complaint and adhere to all agency, national and international regulations and requirements.
This may be a convoluted way of getting the point across but hopefully the point is made. It all starts with the consistency and accuracy of the information you provide at the beginning and throughout your transaction’s life. Be prepared. Little errors in an IT system have huge ripple effects.
For the past weeks the narrative has been that the GCR/RV has started and is following a sequence of events. Funds are being positioned in paymaster accounts, certain Prosperity Programs have engaged, 800 #s are coming out soon, and so on.
Every week it seems closer and closer. Momentum is building. The hope is this explanation of how intricate IT works will help you understand how the potential and causes for delays are extensive.
The narrative also mentions the 90,000 indictments and F.I.S.A. (Foreign Intelligence Surveillance Act) warrants. If you want to understand what and how an F.I.S.A. warrant works. Send a request to firstname.lastname@example.org subject line “FISA” DJ