What is ISO20022, and why should I be interested?

ISO20022 is the new global standard for financial messaging, which in turn has become an international standard prepared by the technical committee of ISOTC68 Financial Services. This standard assumes a standardization approach where a single platform is made available for the development of messages throughout the payment cycle: from customer to bank (payments), from banks to others, to facilitate reconciliation and settlement processes; and internal procedures such as cash management.

Benefits and advantages of the new standard

ISO20022 has increasingly been adopted across the world. Compared to the well-known ISO8583 standard, this improved version of messaging not only supports more detail in the information, but also features a much clearer, easy-to-read visualization of messages. In addition, the flexibility it provides and the standardized base of common commercial concepts for all financial communications allows to optimize processes and associated costs, while providing a high level of business validation and reducing the risk of sending/receiving incorrect data.

 

The best example of the adoption of this payment standard is the European Union. The EU made it mandatory for all financial institutions to implement this standard under the guidelines of the European payment integration commission – SEPA, the adoption of foreign exchange infrastructure and the cross-border payments and bank reporting program.

 

Incorporating this standard will streamline management of your commercial relationships by eliminating dependencies on suppliers for the development and maintenance of the standard. In turn, this will affect the concentration of processes with higher priority, such as: the generation of competitive costs and the continuous improvement in the quality of service.

 

How can I quickly migrate to this new standard?

It is important to have a platform that has the native integration capabilities of this standard. For the new version of its transactional switch and AZ7® payment hub, CLAI PAYMENTS® has announced the native incorporation of modules and APIs that will allow rapid migration to ISO20022.

 

“Our experts in messaging schemes and the standard advise and guide financial companies and large businesses in every step of the process, not only in the migration of messaging, but with important contributions regarding security and good practices recommended in the financial industry to guarantee optimal results in implementation.” Fernando Carmona, CEO CLAI PAYMENTS® Corporation.