By 2025, 80% of the domestic high value clearing (RTGS) volumes will be ISO 20022 – based with all reserve currencies either live or having declared a live date, as Swift are currently estimating. Furthermore, we are now witnessing the digital transformation of cross border payments through the global migration to the ISO 20022 global messaging standard across the Swift network.
Combine these initiatives and it becomes clear why ISO 20022 XML is becoming the global language of payments. This change will have wide-ranging impacts across messaging standards, operational models, market infrastructure, and payments capabilities. It is critical to addressing the challenges faced by the payments industry in a more demanding, globalised, and heavily regulated world.
At a global industry level, one of CPMI’s (Committee on Payments and Market Infrastructures) primary objectives is to improve cross-border payments globally, with standardisation and data quality being key to enable efficient end-to-end processes. As regulators demand increasing transparency, compliance and security, the need for better quality structured data in payments will deliver significant benefits to all stakeholders in the payments ecosystem. This migration to ISO 20022 is challenging for the industry and will require significant effort from all institutions. However, it should not be viewed as simply a shift from one messaging standard to another.
Learn more about the banking and financial industry’s shift to ISO 20022 messaging and what it means for treasury teams by downloading the full whitepaper below!
