Finteq Clearing House

An Automated Clearing House (ACH) is a facility established within the financial services industry. The main function is to administer and control the exchange of payment transactions between participating financial institutions within a particular geographic location. It also generates the instructions to the Central Bank which enables settlement between the Commercial Banks.


Finteq has developed a clearing house which incorporates the ISO 20022 processing principles at its core. It is our expectation that managing the new requirements flowing from payment modernisation projects should not pose any significant risk to users of the FCH due to the fundamental design principles employed in its design.

In our experience, together with the clearing house, it is possible to derive a suitable implementation plan, which delivers the desired migration path in the most cost-effective and risk-averse manner.

FCH solution is a modular system that provides a comprehensive platform for the interchange and settlement of various payment types between financial institutions participating in a particular clearing and settlement area.

FCH performs the following main functions for transactions received for processing:

  • Receives
  • Verifies
  • Converts
  • Enriches
  • Sorts
  • Directs
  • Dispatches to defined destinations

Flexible, predefined workflows are deployed to determine the processes required to manage each different payment type from input to completion. A major benefit provided by the FCH solution is the ability to enable the rapid creation of a new clearing and settlement system or to allow the participation of new participants in an existing arrangement.

FCH Solution

The FCH solution includes a range of services whose specific purpose is to monitor and control the workflows and activities within the clearing and settlement process. Activities include routine operational processes, exception item handling, system administration, report management and archival/warehousing services. All activities executed by the system are logged and available for functional review and audit purposes. System operations can be managed both locally and remotely to ensure optimal availability and performance.

Functions are then mapped into the different payment types and standards, which provides our customers with a full view of the functionality FCH offers.

Payment Types and Standards are defined as follows:

  • EFT – Electronic payments made either within a financial institution or into an inter-bank
    clearing environment via a manual or automated clearing house.
  • ISO 20022 – ISO standard for electronic data interchange between financial institutions.
    This includes message types in the Payments financial business domain.
  • SWIFT – Electronic transfer of funds for international payments.
  • RTGS – Real-time gross settlement between financial institutions.
  • Cheque – Processing of cheques between customers and banks both domestically and
    internationally, including truncation where applicable.