Introduction to Straight Through Processing

Straight Through Processing (STP) is used by companies in the financial world to optimise the speed at which transactions are processed. This is performed by allowing information that has been electronically entered to be transferred from one party to another in the settlement process without manually re-entering the same pieces of information repeatedly over the entire sequence of events.

The generated SWIFT messages are not supported for STP. Processing of SWIFT messages happens faster when BIC codes are used. The SWIFT messages generated mostly uses the name and addresses which need manual intervention to convert to BIC codes. This delays the settlement time and increases the transaction cost for the bank.

STP product (VS) integrates with Integration Framework (IF) for SWIFT messages. They are enhanced by an external STP processing software for better STP compliance. It reduces the time of settlement and transaction costs for the bank.