ISO 20022 Standard: Understanding the Impact on Payments
Rejigging payment infrastructures to prepare for ISO 20022 migration
With rapid adoption of the ISO 20022 messaging standard, a major share of global payment systems will move to the ISO 20022 standard by 2023. The switch will affect global payment infrastructures and financial institutions will need to assess the impact and take steps to ensure seamless ISO 20022 migration. Since ISO 20022 adoption will mandate changes to systems and processes, proactive preparation is critical. Adopting a structured agile approach will enable incremental delivery of change to comply with the regulation as well as the ability to adapt to evolving regulations and new products. Making changes to the message gateway to achieve compliance will result in banks failing to reap the complete benefits of the move to the ISO 20022 standard.
Seamless ISO 20022 migration will require banks to
- Identify impacted channels, touchpoints, systems and processes
- Determine readiness of touchpoints in the payment value chain
- Draw up a roadmap to implement incremental change
- Focus on decoupling systems into standard integrations and minimising customer impact