ISO 20022 Migration - Need, Preparation & Implementation

Category: Business

There was a need to develop a framework for standard messages across various domains such as retail payments, trade, securities, foreign exchange (FX), etc. This led to the emergence of ISO 20022 in 2004, a global standard for electronic exchange between financial institutes.   ISO 20022 creates a common language and model for exchange across the globe. Banks worldwide are preparing themselves to transition from SWIFT international messaging to a new, highly structured, and information-rich standard ISO 20022. ISO 20022 is an open, international standard introduced to develop financial message standards for today’s real-time payments world. It ushers in a global, common language of financial communications.    Importantly, everybody in the industry can participate and implement the standard since it’s not being controlled by any individual organization. The International Organization for Standardization (ISO) first introduced it to give the financial industry a platform for developing messages in extensible markup language (XML).   ISO 20022 improves communication, makes sense of different meanings, and gets everyone on the same page. These goals are accomplished by a syntax-independent approach (simplified structure and form of a message) and semantics (the meaning of these messages).