Welcome » IT Booklets » Wholesale Payment Systems » Intrabank Payment and Messaging Systems » Internally Developed and Off-The-Shelf Funds Transfer Systems
Financial institutions require efficient systems for
transferring funds internally, among themselves, and with their
customers for large-dollar payments relating to financial market
transactions and settling corporate and consumer payments.
Management and the board should:
Financial institutions rely on internal funds transfer systems
and networks to send payment instructions to their correspondents
for the transfer of correspondent balances or to initiate Fedwire
Funds Service or CHIPS payments. Large financial institutions have
either developed their own funds transfer systems or relied on
off-the-shelf funds transfer systems. In either case, the internal
financial institution funds transfer systems interface with Fedwire
Funds Service and CHIPS, supporting the interface and transaction
format specifications for the transmission of payment orders.
Off-the-shelf funds transfer systems typically support a variety of
treasury, cash management, and straight-through-processing (STP)
modules, which automate payment order processing.
The Federal Reserve Banks provide the Computer Interface
Protocol Specifications (CIPS) that funds transfer and book-entry
securities systems need to adopt in order to implement a CI
connection successfully. The Federal Reserve provides a website
with a list of vendors who have completed the Federal Reserve
Banks' protocol certification process.Refer
ProtocolCertVendors.cfm for a list of protocol certified
ven-dors. The Federal Reserve Banks do not endorse any
specific software vendor or product. The Federal Reserve Banks make
no warranties or representations with respect to any of the
products offered by these vendors except that communication-level
software correctly executes systems network architecture (SNA)
commands as specified in the CIPS.