Posts

API Banking with Anthropic's AI Model Context Protocol (MCP): Practical Applications

Image
API Banking continues to advance as financial institutions seek to improve their services through enhanced technological generative AI (GenAI) capabilities. Anthropic's Model Context Protocol (MCP) offers significant opportunities for banks and financial service providers who implement API-first strategies. Lets see a few specific use cases where MCP integration creates tangible benefits within API banking (open finance, or open banking) systems. What is Model Context Protocol? Model Context Protocol enables AI models to maintain and understand extended contexts throughout conversations and processes. Unlike basic AI systems that process queries in isolation, MCP allows AI to reference previous information, creating more coherent and contextually appropriate responses. For API banking, this means the ability to handle complex financial processes with greater accuracy and continuity. Key Use Cases in API Banking Customer Service Enhancement API banking platforms can implement ...
Post a Comment
Read more

How AI Reduces Payment Errors in ISO 20022 Migration for Banks

Image
When we first started working with banks on their ISO 20022 migrations, we noticed something that should have been obvious but wasn't being discussed enough: the transition created a perfect storm for payment errors. Banks were simultaneously trying to maintain their legacy systems while building out new capabilities. Their teams were learning complex new message formats with richer data fields. And they were doing all this while processing millions of transactions daily. No wonder error rates were spiking during migration periods. What's particularly frustrating about payment errors is that they compound quickly. A single misrouted international payment might trigger investigation costs of $25-50, but the real expense comes from the downstream effects: broken supply chains, missed financial obligations, regulatory scrutiny, and damaged trust. The banks that have navigated ISO 20022 migration most successfully didn't just throw more validators and human reviewers at the...
Post a Comment
Read more

How AI Is Cutting Costs and Risks in ISO 20022 Migration for Enterprise Banks

Image
  ISO 20022 migration is a massive headache for enterprise banks. It’s not just a technical upgrade—it’s a fundamental shift in how payments work. Banks are dealing with complex data mapping, regulatory deadlines, and the risk of failed transactions. And the cost? Easily in the millions. But AI is changing the game, making migration cheaper, faster, and far less risky. Why ISO 20022 Migration Is So Expensive Enterprise banks are buried under legacy systems. Many still rely on decades-old infrastructure designed for simpler messaging formats like SWIFT MT. ISO 20022, with its richer data and structured format, demands a level of precision that these systems simply weren’t built for. So banks throw people at the problem—teams of consultants, IT specialists, and compliance officers manually mapping old data structures to new ones. It’s slow, error-prone, and wildly expensive. Every mistake means rework, regulatory scrutiny, or worse, payment failures that could damage trust and cost r...
Post a Comment
Read more

AI and ISO 20022: The Smartest Way for Banks to Migrate

Image
  The banking industry stands at a critical inflection point. The migration to ISO 20022 represents more than a technical upgrade—it fundamentally changes how financial information moves through the global system. This transition is being approached with varying degrees of enthusiasm and trepidation by financial institutions worldwide. Many banks view ISO 20022 migration as a compliance burden—a complex, expensive project with hard deadlines and limited business value. This perspective is understandable but shortsighted. The institutions that are leading in this transition have discovered something important: when artificial intelligence is integrated into the migration process, what appears to be a costly technical project can be transformed into a strategic opportunity. The Migration Challenge: More Than Meets the Eye The shift to ISO 20022 is deceptively complex. On the surface, it involves moving from one message format to another. In reality, it touches nearly every aspect of ...
Post a Comment
Read more

ISO 20022 Transformation: What Banks Need to Know About Moving from MT to MX

Image
  By November 2025, SWIFT will fully transition to ISO 20022 for cross-border payments and reporting. The legacy MT messages will be phased out, and banks that aren’t ready will find themselves dealing with operational bottlenecks, compliance risks, and potential customer dissatisfaction. This isn’t just a technical update—it’s a fundamental shift in how financial messages are structured, processed, and leveraged for business intelligence. Why the Shift from MT to MX? The MT (Message Type) standard has been around for decades, but it’s limited. It’s designed for financial transactions but lacks the flexibility to handle the growing complexity of modern payments. MX messages, based on ISO 20022, solve these issues with richer, structured, and standardized data. Richer Data: MT messages have a rigid 100-character limit per field, often leading to truncated or ambiguous information. MX messages allow for more detailed payment information, improving transparency and compliance. Interop...
Post a Comment
Read more

How CFPB Section 1033 Transforms Open Banking: A Guide for Banks, Fintechs, and Consumers in the US

Image
The finalization of Section 1033 ushers in a new era of open banking in the U.S., giving consumers more control over their financial data and encouraging greater competition in the financial services industry.  While the new rule presents significant challenges for financial institutions, fintech companies, and data aggregators, it also offers immense opportunities for innovation and improved financial health.  By adopting secure, standards-compliant APIs from partners like Bankableapi, financial institutions can not only ensure compliance but also lay the groundwork for a future-proof open finance strategy that drives value for both consumers and businesses alike. What Is the Consumer Financial Protection Bureau (CFPB)? The CFPB is a U.S. government agency created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Its primary mission is to protect consumers from unfair, deceptive, or abusive practices by financial institutions. The CFPB is responsibl...
Post a Comment
Location: 18-20 Ferndale St, Boston, MA 02124, USA
Read more