December 06, 2019 | Dr. Ashima Chopra
Category: Banking, Payments
ISO 20022 is a Universal Standard for data exchange between Financial Institutions electronically. ISO 20022, an Open Standard, allows others to contribute to its development. This is done by making universal sense of meaning, standards and formats to communicate across borders, irrespective of where one is located. By doing so, it is possible to simplify global business communication that provides one meaning across all Financial Initiatives.
A dictionary that is global of common financial terminology and language has been created to make global communication clear and consistent in its meaning. This Standard is not closed and can be developed and evolved as people can add words to the dictionary. Common understanding reduces risks and proves a universal language for a host of Financial Services including Payments, Securities, Credit Card Services, Trade Services and Foreign Exchange Trading.
ISO 20022 is essential in that it eliminates confusion, enforces a common interpretation by definition of financial language and being an Open Standard allows the expansion of its scope and reach using the same Universal dictionary. It can be accessed free of charge and is likely help generate more accurate exchange of meaning and even interpretation of words and language used for Financial Transaction Initiatives worldwide. ISO 20022 includes:
Payment systems are changing with the global adoption of the ISO 20022 financial messaging standard, which has become central to this change. Unlike other new standards and regulatory based changes, Banks view the ISO 20022 as a potential route to data-led transformation of their business. Key to this data-led transformation within Banks is their ability to deliver data-led product and service propositions which can now be enabled owing to the improved business information and payment flows the ISO20022 Standard requires.
ISO 20022 delivers enriched data, harmonization, improved resilience and fewer delays (with Straight-through Processing). Integrating ISO 20022 into Banking environments is more than ‘just another IT project’ with critical platform capabilities that need to include:
The Fiorano platform delivers all of the above, thus enabling Banks to create an architectural roadmap that supports ISO 20022 integration and its deployment across the organization supported by a Standards Compliant Format. Fiorano has the capability to deploy ISO20022 for Banks as part of Banking Digital Transformation and/or Regulatory Technological Deployment facilitating:
For further information and case studies, please refer to the links below:
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