The impending migration of crucial clearing systems, national banks, and SWIFT to ISO 20022 seems to be a decisive step towards a true global standard for payment transactions. And it’s only a matter of time before corporate participation will be required.
’Standardisation’ and ’migration’ are terms that have become virtually inseparable from the field of payment transactions. Over the years, payment systems have seen an incredible range of initiatives aimed at establishing uniform standards for payment transactions, at least within sub-areas – some more successful than others. Now, however, the impending migration of crucial clearing systems, national banks, and SWIFT to ISO 20022 seems to be a decisive step towards a true global standard for payment transactions.
At first glance, it may seem as if the effects of the migration are limited mainly to banks and the payment systems themselves. And at least with regard to the basic technical and infrastructural aspects, this is actually the case. However, before long, prompt and comprehensive participation will also become a necessity for corporates.
A long and winding roadmap
The benefits of ISO 20022 migration are obvious: greater transparency, increased reliability, lower costs, and a higher degree of automation for all market participants involved. However, there is still a long and, in some places, rocky, road ahead before all these advantages can be enjoyed.
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