ISO 20022 is transforming the global payments landscape by introducing a unified messaging standard that allows richer, structured data to be transmitted per transaction. The shift brings significant benefits: real time payment clearing with detailed remittance information; increased processing efficiency via STP alongside automated exception handling, and stronger regulatory compliance through accurate reporting and fraud detection.
The transition, however, demands substantial investment in reengineering payment systems and integrating with legacy infrastructures. Despite these challenges, the potential benefits are considerable: the shift allows banks to significantly elevate their service offerings, derive better data insights and secure a more robust position in the market, making it a strategic imperative for banks and PSPs alike.
Banks need to start by performing a comprehensive assessment of their current payment infrastructure to identify gaps and areas requiring upgrades for ISO 20022. While short-term tactical steps are possible through SWIFT Translator Libraries, ultimately a phased, strategic approach is critical, focusing on ensuring interoperability with existing systems while planning for scalability. The preparation is vital for maximising the benefits of the standard and delivering a superior customer proposition.
For banks to migrate successfully to ISO 20022 they will need to:
Icon Solutions can help banks adopting the standard by leveraging previous expertise in payments architecture and global implementations. We provide a comprehensive Impact Assessment Report which examines business processes, identifies architectural gaps and outlines a strategic migration plan. The approach focuses on optimising architecture to handle increased data volumes, enhance STP and compliance, while unlocking the value of richer, structured data. With a deep understanding of the challenges and opportunities presented we offer guidance through every phase, from strategy and architecture to implementation, whilst positioning each organisation to fully capitalise on the strategic advantages of the standard.
CASE STUDY
Enabling a seamless migration to ISO 20022 for AML and sanctions screening
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