Server to Server

Server to Server Transfers (S2S)

refer to the process of moving funds, from their respective Nostro-Accounts, or data between different banks or financial institutions through their respective servers. These transfers are facilitated by secure, encrypted connections and rely on well-established protocols and standards to ensure the safe and efficient transmission of information. There are several components to server-to-server transfers in banking:

  1. Interbank networks: Financial institutions are connected to each other through interbank networks, such as the Society for Worldwide Interbank Financial Telecommunication (SWIFT) or the Automated Clearing House (ACH) network. These networks enable banks to communicate with one another and process transactions like fund transfers and payments.
  2. Protocols and standards: Server-to-server transfers rely on established protocols and standards to facilitate communication and transaction processing. Examples include the ISO 20022 standard for electronic data interchange and the SWIFT messaging system, which uses a specific format for exchanging financial messages between banks.
  3. Secure connections: Banks use secure, encrypted connections to protect the confidentiality and integrity of sensitive information transmitted during server-to-server transfers. This includes using technologies like Secure Socket Layer (SSL) or Transport Layer Security (TLS) to establish secure communication channels.
  4. Authentication and authorization: Banks employ robust authentication and authorization procedures to verify the identity of the parties involved in a server-to-server transfer. This may involve the use of digital certificates, cryptographic keys, or multi-factor authentication methods to ensure that only authorized individuals or systems can initiate or approve transactions.
  5. Transaction processing: Once the necessary security measures are in place, transactions can be processed between banks. This typically involves the sending bank initiating the transfer request, the receiving bank verifying and accepting the request, and then both banks updating their respective records to reflect the completed transfer.
  6. Reconciliation and settlement: Following the completion of a server-to-server transfer, banks will reconcile their records and settle any outstanding balances. This may involve updating ledgers, reconciling transaction data, and settling any outstanding fees or charges associated with the transfer.

What can be transferred from Bank to Bank?

Bank Assets:

  1. Cash & Cash Equivalents: These are funds that can be accessed immediately or almost immediately. They include physical cash, deposits with other banks, and highly liquid securities like Treasury bills.
  2. Investments/Securities: These are financial instruments that the bank invests in to earn a return, such as government and corporate bonds, stocks, and other securities.
  3. Loans and Advances: These are the funds that a bank lends to its customers, and they generate interest income. They can include personal loans, mortgages, commercial loans, credit card balances, and overdrafts.
  4. Fixed Assets: These are physical properties owned by the bank, such as buildings, land, equipment, and furniture.
  5. Intangible Assets: These include non-physical assets like software, patents, trademarks, and goodwill.
  6. Other Assets: These can include accrued interest receivable, deferred tax assets, and derivative financial instruments among others.

Bank Liabilities:

  1. Deposits: These are funds that individuals and businesses keep in the bank. They include checking accounts, savings accounts, and time deposits. They are liabilities because the bank has an obligation to return these funds to the depositors on demand or at a specific maturity date.
  2. Borrowed Funds: These are funds that the bank borrows from other financial institutions, the central bank, or through issuing debt securities.
  3. Debt Securities: These are bonds or other forms of debt issued by the bank to raise funds. The bank is obligated to pay back the principal and interest to the bondholders.
  4. Other Liabilities: These include items like accrued expenses, accounts payable, deferred tax liabilities, provisions for loan losses, and derivative financial instruments.
  5. Subordinated Liabilities: These are debts that will only be paid after all other debts if the bank goes bankrupt.

Bank Equity:

  1. Common Stock: This is the equity that owners of the bank hold. They have voting rights and may receive dividends.
  2. Preferred Stock: This type of equity has a higher claim on earnings and assets than common stock but usually doesn't come with voting rights.
  3. Retained Earnings: These are the net earnings a bank has accumulated over the years and chosen to reinvest in the business rather than distribute as dividends.
  4. Treasury Stock: These are the bank's own shares that it has repurchased from the market.
  5. Other Comprehensive Income: These are gains and losses from various investments and derivatives that haven't been realized yet.
  6. Minority Interest: This is the part of the net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent.


We use various protocols for communication, including EBICS, ZENGIN, AS2, FTP, OFTP, HTTP, and TCP/IP. The EBICS protocol is based on an IP network and allows standard HTTP with TLS encryption (HTTPS) to transport data elements. The routing data elements are encoded in XML and optionally signed and encrypted with X.509 PKI certificates.

TCP/IP is the internet protocol suite commonly paired with TCP to form TCP/IP.

 In addition to using specific protocols, banks secure their data through various measures, such as blocking access to social websites, personal emails, and USB ports for bank employees, establishing secure processes, and communicating regularly with customers on system upgrades and new authentication procedures.

If you want to know more about how to transfer funds to your accounts with us, please get in contact with Marie Mayer.