The global payments system is undergoing a pivotal change as ISO 20022, the new ISO standard for electronic-data interchange, becomes a reality for financial institutions across the globe. The immediate challenges to carry it out are as great as the ultimate rewards, and some banks are better prepared than others. With deadlines drawing closer, what do financial firms need to consider and have in place in order to be ISO 20022 ready?
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.
ISO 20022, the ISO standard for the interchange of electronic data between financial institutions, has arrived and is shaking up the payment sector worldwide. Migrating to the new system is voluntary, but the advantages of lower cost, greater fraud protection, increased customer satisfaction are quickly winning over banks and businesses alike, making its blanket adoption inevitable. What do bank managers need to do to prepare for this payment-processing overhaul?