At FiSer, we always bring topics for discussion, and today we talk about ISO 20022.
The ISO 20022 is a new global payment standard of the future, and it’s about migration from old fashioned MT format to the new MX format.
This standard will bring order to a current disjointed payments landscape and eventually enables interoperability across the global payment industry, including SWIFT and major payment market infrastructures such as T2, EBA, and CHAPS.
High-level ISO 20022 implementation roadmap:
– Migration to new MX format: March 2023 till November 2025
– Coexisting period (MT/MX)both formats will be accepted and supported on the SWIFT network until 2025, when ISO 20022 will become a globally recognized standard.
The first key date is 20 March 2023 (as per revised ECB and SWIFT timelines), and it’s quickly approaching.
So, are you ready to go live?
Yes, and probably not at the same time.
The migration approach is different among banks. Some (very few) banks will migrate immediately, while others will wait. It is not a “one size fits all” situation.
Such change of substantial magnitude is a painful and expensive exercise impacting customers, payment and reporting product offering, IT/non-IT, operations, risk, and compliance.
There are differences in objectives across banks; can you afford bare minimum compliance or use the momentum to unlock new business opportunities?
It is a critical time to shape the future of your payment business and a difficult choice to make.
Here is how FiSer Consulting can help you to drive this regulatory change and make the most out of it:
– Implement by setting up a foundation of your future payment platform: e.g., centralize payment infrastructure and decommission obsolete elements of it
– Maximize value from new MX payment data: generate richer and better-structured data for data consumers
– Ensure operational readiness – staff training, work instructions update, risk assessment, and mitigation
– Accelerate digital – transform your payment platform to make it scalable and cloud-native