Electronic data interchange in financial institutions: the diversity of standards

Abstract

The processes of globalization have led to the fact that the environment around us is constantly changing, characterized by an extremely high degree of dynamism, so that every organization that seeks to remain in a competitive struggle must respond to changes in the environment. The emergence of the IT infrastructure has led to the increasing trend of business or public sector entities sending certain data, documents, and information to interested parties through electronic channels – they are choosing an interactive communication solution. Meanwhile, financial industry entities carry out active financial communications on a daily basis, which includes the exchange of financial notifications on certain transactions. The structuring and standardization of financial messages is one of the main solutions to simplify the processes of financial interactions between certain participants. However, it must be emphasized that until now, the financial communication system is characterized by strong heterogeneity: financial services providers apply different standards for the construction of financial messages, so perhaps the monopoly of one standard is the possibility to activate the financial communication system. The purpose of the research is to identify the essential features of electronic data exchange and financial reporting standards. The methodological part of the research provides possible blocks of questions for specialists of the FinTech organizations to identify the peculiarities of EDI and financial messages, and the methods for multi-criteria decision making evaluation are indicated. The results of the research would reveal the environment of financial messaging and would allow identifying process areas to be improved in order to facilitate financial interaction and generate maximum economic benefits.