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 upcoming migration to ISO 20022 will have far-reaching implications for all banks, corporates and other important financial stakeholders. It is probably the most impactful payments industry undertaking since the introduction of the Single Euro Payments Area (SEPA) more than a decade ago, and will require CEO commitment, allocation of appropriate budgets, resources and project teams given that a multitude of areas will be affected across institutions. This is not simply “another IT project”.
Deutsche Bank’s series of guides on this topic, aim to outline exactly what we can expect between now and 2025, creating awareness of the impact of ISO 20022 implementation and sharing best practices for approaching a project of such magnitude. The first in the series, “Guide to ISO 20022 migration: Part one”, focuses on the implications for banks, with future editions turning to assess how corporates can best plan for the changes.
The news was covered by: CTM file, IBS intelligence, Fintech Insight, FTF news, Finextra, Financial IT