DATA: ISO 20022 Cross-border payments have long been hampered by the friction associated with the use of different, incompatible data messaging formats. This explains why standardised data formats, such as ISO 20022 and, increasingly, APIs, are now recommended as banks seek to streamline, improve and automate their processes. In fact, you can’t really talk about payments modernisation – and the potential of payments data monetisation – without first considering ISO 20022, an emerging global and open standard for payments messaging. ISO 20022 creates a common language and model for payments data across the world’s markets; one that provides higher quality data than other standards, which should translate into higher quality payments for all. Sounds good, doesn’t it? Whilst it’s no longer considered a ‘new’ standard as such, its profile has certainly been heightened by the global push for payments innovation and escalating preparations for SWIFT’s ISO 20022 payment message changeover in November 2022. It’s become very clear that banks are at different levels of readiness, though. Some are fully prepared and have ensured they’ll be compliant in time for the transition. The others should want to catch up – because while migration to ISO 20022 is a significant challenge, with big cost and logistical implications for financial institutions and for corporates that need to upgrade their systems to support it, the standard can also bring in a raft of competitive advantages that outweigh the investment.
Doh... it’s the data, stupid! Celent’s new report on what corporate clients really want from their banking relationship throws a spotlight on an asset that ISO 20022 will make increasingly valuable 36
ThePaytechMagazine | Issue 9
www.fintechf.com