- Richer Data: Leveraging additional information in ISO 20022 messages, banks can:
- provide related remittance information (a long-standing demand of customers)
- perform financial crime prevention more effectively
- innovate in customer servicing functions and product portfolios.
- Improved Regulatory Compliance
- Increased Straight-through processing
- Simpler cross-border payments
- Improved efficiency
- Lower Costs
The de facto standard for high-value payment systems
The Need for Migration
ISO 20022 may not yet be mandatory from a regulatory perspective, but financial institutions need to act now to participate in international payment systems in the future. SWIFT will enable ISO 20022 messages for cross-border payments from November 2022, Euro1 has shifted its ISO 20022 migration deadline to November 2022 and FedWire to November 2023. Early adopters will need to upgrade their messaging interfaces and complete their testing to meet these deadlines.
ISO 20022 is already used by payment systems in over 70 countries and will soon be the de facto standard for high-value payment systems.