The financial industry around the world is undergoing the most profound transformation since the launch of the first core systems. The time has come for instant payment platforms, an entirely new market infrastructure, based on the international messaging standard ISO 20022 Financial Services.
Enhanced data, new opportunities for financial institutions
ISO 20022 is an increasingly common global language for financial messaging. This standard, based on the XML structure, allows easy data exchange in a flexible standard. Already used in cross-border payments in over 70 countries, ISO 20022 will become the standard for high-value payment systems in the coming years.
By creating a common language and payment data model, ISO 20022 standard significantly improves data quality across the entire payment ecosystem. Its richer and structured data will open up new user benefits while improving transaction compliance and efficiency, and prevent financial crime around the world.
The adoption of ISO 20022 standard in the major currency reserve payment systems means that the financial community has agreed to unify payments and reporting between financial institutions. However, the new ISO standard requires the adaptation of banking IT infrastructure.
In the next five years, the financial industry will face a huge challenge of adapting internal processes and daily operations to ISO 20022 so that these messaging standard changes are not cumbersome for the customer. And since banking system errors have painful consequences for banks, not only in terms of image but also legal, the bar of reliability of banking IT solutions is extremely high. So how should banks plan ISO 20020 migration tests?
Read the full version of the article on how to properly prepare for ISO 20022 migration.