The introduction of ISO 20022, the new payments messaging standard, is set to revolutionise the payments industry. ISO will replace existing SWIFT MT messages and their equivalents, which are unsuitable for supporting evolving transaction needs, as the format for the transfer of cross-border and high-value payment information. Crucially, the new messages will incorporate more structured, robust and comprehensive data, thereby driving enhanced speed and efficiency; reducing false positives, manual intervention and costs; and helping to pave the way to 100% straight-through processing (STP).
As these deadlines draw nearer, considerable efforts and resources from all participants will be necessary to meet the associated challenges. But, by establishing a clear transition roadmap, educating staff and upgrading their systems, banks – and their clients – can unlock the full benefits of ISO 20022.
The article can be read here
During the next five years, ISO 20022 is set to transform the payments industry. The migration will touch the payment lifecycle end-to-end and, as the implementation deadlines draw near, the implications and considerations are set to be far-reaching – requiring significant efforts and resources from banks and their clients.
The upcoming changes should not be underestimated. In the lead-up to and aftermath of the transition, banks will face a myriad of challenges. If they can overcome these hurdles – by establishing a clear, comprehensive strategy, educating and supporting their staff and clients, and preparing their systems – they have an opportunity to deliver a truly improved end-to-end payments experience for clients.
The article, published in Global Banking and Finance Review, can be read here.
The implementation of Europe’s second Payment Services Directive (PSD2) has unlocked a number of new open banking solutions, such as Request to Pay (RtP). This new solution combines SEPA payments (both classic and instant) with PSD2’s provision for licensed third parties to access and service accounts held by other banks to allow payment service providers (PSPs) and merchants to receive payments on behalf of their customers in a lean and efficient manner.
With markets now adjusting to the changes, these solutions are quickly being put into practice. MultiSafepay, an online payments specialist and one of the pioneers of e-commerce in the Netherlands, is one of the first to take the initiative, participating in a pilot scheme for Deutsche Bank’s innovative open-banking RtP solution, which is now being rolled out to a series of merchants in Germany, with plans to enable it across Europe and beyond.
Read the full case study here.
Over the past five years instant payment schemes, otherwise known as real-time or faster payment schemes, have rapidly developed across the world – catching the attention of banks, consumers and companies along the way. This trend is set to continue, says Michael Knetsch, director, business product expert – payments, Deutsche Bank in an article for PaymentEye
These schemes, which facilitate the transfer of money within seconds, can be a transformative proposition for corporates. Sending funds instantly removes cash-flow latency, improves the customer experience, and brings the industry one step closer to achieving a real-time treasury set-up.
But the journey is just beginning. Instant payments are relatively new on the market, with infrastructure and product features still being developed. While corporates have already seen a number of benefits, these are set to expand further as new complementary innovations, such as application programming interfaces (API) and request to pay, become more widespread.
The article can be read on PaymentEye here.
In the wake of the 2008 financial crisis, the desire for real-time cash-balance liquidity reporting began to build. Fast forward, however, and its implementation within the banking industry remains limited. In an article for Global Banking and Finance Review, Deutsche Bank’s Andreas Hauser argues that now is the time to revive this momentum and take action.
For banks seeking to improve their visibility over liquidity flows today, real-time reporting, which can already be carried out to a high standard, is their best strategy. What’s more, when compared to global projects, such as the ISO 20022 migration, the cost of implementation is negligible and can be achieved relatively quickly. Investing early, rather than waiting on new developments or mandates, will prove to be a beneficial move for banks – and one that will be swiftly rewarded.
The article can be read here.
Despite being mooted more than a decade ago, widespread regulation mandating banks to adopt real-time cash-balance liquidity reporting has not materialised. With the exception of a handful of the world’s largest banks, few have taken it upon themselves to adopt these processes. Yet beneath this meagre enthusiasm lies a wealth of evidence that real-time liquidity reporting can offer significant benefits that extend well beyond simply monitoring intraday positions. The cost and effort of adoption, meanwhile, is negligible compared to other ongoing bank projects.
In an article for The International Banker, Deutsche Bank’s Andreas Hauser, Senior Business Product Manager, Real-time Reporting and Innovation Cash Clearing, Cash Management, argues that now is the time to revive this momentum for real-time reporting and take action.
The article can be read here.
Change is afoot across the global payments landscape. Pinging on the radars of market participants for some time, the fast-approaching November 2021 migration of the world’s primary payment market infrastructures (MIs) to the ISO 20022 financial messaging standard is now looming large.
The new standard affects all banks with many-to-many relationships in the correspondent banking space and all users of payments and cash management messages (MT categories 1, 2 and 9). While the project does not extend to corporate-to-bank traffic and is not mandatory for market infrastructures operating a closed user group in FIN (MI-CUG) formats, the implications for corporates will nevertheless be significant.
This is not simply “another IT project” for banks, nor is it “just another bank project” for corporates. In the coming months, all market participants will need to take appropriate steps to assess and prepare for the upcoming transition.
The article can be viewed here.
The switch to ISO 20022 lays the foundation for greater payment processing efficiency and interoperability, improved customer experience, streamlined compliance procedures, and the capability to deliver new services. The scope of this transition is enormous, so it will not happen overnight or be without its challenges.
Fortunately, these challenges are being met head on. Throughout 2019 several steps forward have been made, with the release of numerous usage guidelines as well as the development of new Swift tools to help facilitate the transition.
But with all this change, keeping abreast of the latest developments and understanding the key points for consideration has proved testing even for seasoned professionals. So, how can market participants ensure they are prepared for ISO 20022? Christian Westerhaus, head of cash products, cash management, corporate bank at Deutsche Bank, explores.
The article can be read here.
The value of real-time cash-balance reporting is being overlooked by many banks – perhaps due to its regulatory origins, argues a new white paper from Deutsche Bank. Looking back to 2013, when the concept first gained real momentum through the publication of the Basel Committee on Banking Supervision’s BCBS 248-paper, the report notes that the lack of a common regulatory mandate may have put the brakes on full-scale industry adoption, with only a few banks – typically the very largest – bound by regulation under individual mandates.
Advantages of real-time reporting range from the originally stipulated boost to stability in stress scenarios, a clear view over incoming and outgoing flows, giving complete control over intraday cash positions, and the necessary data to build and test strategies for managing and optimising liquidity at all times throughout the day.
In addition to outlining the current benefits of real-time liquidity reporting, the white paper forecasts that the tech revolution now underway will enhance them further through the transformative power of application programming interfaces (APIs), distributed ledger technology (DLT) and artificial intelligence (AI). But investing right away in real-time reporting capabilities will quickly provide real returns, long before migration to ISO 20022 has been completed.
News of the whitepaper’s launch was covered in the specialist press by: Finextra, Fintech Finance, CTMfile, Global Banking and Finance Review, The Paypers