IPLA/SIL have allowed financial institutions to connect their internal systems to the global Swift network for decades. Providing the essential integration layer that handles the messaging, security and routing necessary for cross-border financial communication. Their retirement marks a crucial shift towards modern, agile, cloud-native banking infrastructure.
What is IPLA in Swift?
IPLA (Alliance Access Integration Platform) is the middleware that connects your internal systems to the Swift network, facilitating the secure exchange of financial messages globally. Ensuring your payments, reporting and other critical communications flow smoothly and compliantly through the vast Swift ecosystem.
Its primary function is to act as the glue that connects a bank's internal applications (like core banking systems, treasury platforms, or compliance tools) to the Swift messaging infrastructure.
What does IPLA do?
The core job of IPLA is to simplify complex connectivity:
- Translating: It handles the formatting and translation of data between the bank’s internal systems and the specific Swift standards.
- Routing: It manages the secure delivery and routing of messages from the internal application to the Swift network and vice versa.
- Security: It often incorporates security measures and authentication protocols to ensure data integrity during transmission.
What is Swift SIL?
SIL stands for the Swift Integration Layer. It refers to the middleware component that standardizes, centralizes, and manages the flow of financial messaging data between a bank's internal IT systems and the wider Swift network.
What is Swift Integration Layer SIL used for?
The purpose of a Swift Integration Layer is to create a single point of entry and exit for all Swift traffic, minimizing the complexity and cost of connecting multiple internal systems directly. Historically, IPLA was one of the most prominent implementations of this SIL function.
The difference:
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Component |
Function |
|
IPLA |
Alliance Access Integration Platform for connecting core applications (like financial messaging) to Swift. |
|
SIL |
Swift Integration Layer. A standalone middleware for integrating internal systems with more flexible integration options. |
Why is Swift IPLA/SIL being retired?
Swift is retiring IPLA and SIL (with a final deadline on June 30th, 2026) because these legacy platforms were built for an era of rigid, batch-style processing. They are no longer compatible with the demands of the modern financial ecosystem:
- ISO 20022 Migration: The global shift to the ISO 20022 standard requires much richer data and more flexible message handling, which legacy SIL/IPLA architectures struggle to support efficiently.
- Agility and Cloud: Modern banking demands cloud-native, API-first agility, enabling rapid integration and scalability. IPLA/SIL solutions are typically installed on-premise and lack the necessary flexibility.
- Efficiency: Maintaining and upgrading these older, complex systems is becoming prohibitively expensive. Replacement with modern Swift Integration Layer solutions offers a clear path to reduced Total Cost of Ownership (TCO).
The industry is shifting towards more agile, cloud-native and API-first integration models. Legacy middleware like IPLA, while reliable in its time, simply isn't built to handle the demands of modern real-time payments, the explosion of data or the need for seamless integration with a diverse array of new fintech solutions.
As Robin Farshadfar, General Manager Eastnets Americas, puts it: "This change isn’t just about middleware retiring - it reflects a broader industry shift toward cloud-native, API-first integration models."
Looking to the future
Banks are moving toward modern banking compliance software that uses APIs and microservices to integrate and handle connectivity to Swift, ensuring systems are:
- Cloud-Ready: For scalability and resilience.
- API-First: For rapid integration with internal and external fintech solutions.
- ISO 20022 Native: Ready to handle the richer data and formats of the new messaging standard.
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Case Study: Modernizing beyond the legacy layer Facing the challenge of automating CBPR+ ISO 20022 message translation and mitigating the manual risks typical of older Swift integration layers, Arab Bank Australia Limited (ABAL) partnered with Eastnets. Utilizing PaymentSafe as their intelligent, automated central messaging gateway and ISO 20022 translation engine they achieved:
“Implementing Eastnets PaymentSafe has made a noticeable difference for ABAL. The automated translation of CBPR+ ISO20022 messages and real-time processing have significantly streamlined our cross-border payment processes, allowing us to monitor and address potential risks with greater efficiency. With all functionalities consolidated on a single interface, we now have better control and visibility. This solution has strengthened our ability to meet regulatory requirements while improving efficiency across the board.” - Darren Mills, Executive Manager Operations at ABAL |
FAQs about IPLA/SIL
When ISO 20022 goes fully live, banks that rely on the old messaging format will need a modern integration platform that can handle and translate the new, richer MX message standard. IPLA/SIL solutions were not built for this standard, necessitating a migration to avoid operational failure.
An integration layer is a middleware component in a software architecture designed to act as a translator and mediator between disparate applications. Its purpose is to allow applications to exchange data and services seamlessly, often standardizing the data format and communication protocol as data moves between different parts of a system.
An API (Application Programming Interface) is a set of defined rules that allows one application to communicate with another. An Integration Layer is the software implementation (the actual middleware platform, like IPLA/SIL) that uses APIs and other protocols to handle the flow, transformation, and security of data between multiple systems.
Banks connect to the Swift network using dedicated messaging interfaces and integration layers, historically provided by products like IPLA/SIL. Modern banks use solutions that are often outsourced, cloud-based, or deployed as modern applications (like Eastnets' PaymentSafe) that manage secure connectivity, messaging, and compliance (AML/Sanctions).
How Eastnets can help
While change brings complexity, it forces us to build better, safer and more resilient systems. At Eastnets, we are your trusted guide and strategic partner in this evolution.
Eastnets Swift Hosting offers a secure, cloud-based service that reduces costs, simplifies operations, and ensures compliance, so you can focus on your core business.
PaymentSafe is a centralised financial messaging hub, consolidating all of your payment processing options into one single, easy to use platform. It offers end-to-end processing of transactions across Swift, Ripple, RTGS, ACH and instant payments, eliminating manual intervention and reducing operational complexity.
PaymentSafe is built on cloud-native principles, ensuring:
- Agility and Scalability: Adapts to your evolving needs, handling increased transaction volumes and new messaging standards like ISO 20022.
- Enhanced Compliance: Built-in features to help you meet evolving regulatory demands without constant manual intervention.
- Simplified Integration: Manage all payment types and message formats from a single, unified interface.
- Reduced Risk: Mitigate the risks associated with legacy middleware, with a secure and resilient platform.
Sources and references
- Swift interfaces and integration
- How to install Swift Integration Layer SIL
- How banks are combatting cyber attacks on their Swift payments