The MT/ISO 20022 cross-border co-existence period is coming to an end. We spoke to Diamond Trust Bank to explore how adopting the global ISO 20022 messaging standard can help financial institutions unlock strategic benefits.
About Diamond Trust Bank
Diamond Trust Bank (DTB) is a leading tier-one East African commercial franchise headquartered in Nairobi with operations in Kenya, Tanzania, Uganda and Burundi.
Listed on the Nairobi Securities Exchange, DTB has a rich history spanning over 78 years, and has continuously evolved to meet the dynamic needs of its diverse clientele, offering a wide range of banking and insurance solutions for the retail, SME and corporate banking segments.
At the core DTB's operations is an unwavering commitment to innovation and customer-centricity, complemented by an extensive 155-plus branch network and robust digital platforms seamlessly integrated across the region.
The benefits of getting a jump start on the adoption journey
DTB chose to adopt ISO 20022 early, knowing it would bring benefits. To map and validate MT messages to ISO messages – and vice versa – DTB worked closely with its vendors that were chosen after a competitive bidding process.
“We relied heavily on information obtained from the MySwift platform, which looked at the Usage Guidelines. In addition, we were able to validate our messages on the test portal,” says Albert Abuto from the Centralised Swift Unit at DTB.
Reaping the rewards of a successful go-live
Having already successfully gone live with ISO 20022, Albert outlined how the standard is already transforming their business. Following the migration, DTB can now track payments using the UETR and have access to Swift solutions such as GPI, Swift Go, Pre-Validation, and Case Management thanks to the new subscription model.
“We are looking forward to consuming all of these Swift services, as we believe it will bring value to our organisation and support our customers, particularly with transaction processing,” Albert says. As DTB can now receive and send MX messages, it has also been easier for them to implement HVPS+ ISO 20022 for domestic messages and they’re already reaping the rewards.
When assessing the impact of their adoption Albert highlighted a dramatic reduction in false positives. “Our anti-money laundering and sanctions compliance unit team have experienced a reduction of up to 50% of alerts generated on incoming payments. The reduction on alerts is directly attributed to the richer, more structured data we’re receiving from incoming MX messages.” That is a significant benefit in a short space of time and the downstream effect is smoother operations, lower costs, and a better customer experience overall.
Asked how ISO 20022 will improve the market over the long term, Albert says, “ISO 20022 isn’t just a technical specification. It’s a bridge to operational excellence and compliance. Some of the benefits we’ve seen have included better harmonisation with payment systems, richer debtor and creditor data for compliance purposes, a much-improved customer experience, and increased efficiency.”
ISO 20022 will accelerate harmonisation of payments systems across Africa and beyond
Uganda, Tanzania and Rwanda, are following Kenya’s lead by also adopting ISO 20022. Once complete, banks in these countries will be able to send and receive MX, and also participate in the East African Payment System (EAPS), through their respective central banks.
The new messaging standard also provides for a richer customer experience. “ISO 20022 lets us send rich remittance information end to end, from payment initiation to cross-border customer credit transfers and customer statements,” Albert says.
Better data means that KYC and AML compliance is much easier for DTB as well. Take, for example, the Financial Action Task Force’s (FATF) Recommendation 16 and local regulations which compel institutions to provide information about payment originators and beneficiaries.
“ISO 20022 means rich data sets can be passed on from one financial institution to the next financial institution in the payment chain right through to the ultimate beneficiary bank. This rich data has reduced the number of back-and-forth clarifications in the chain. It also means companies can automate and improve the accuracy of their reporting, making compliance simpler and more straightforward.”
With structured data, screening, reconciliation and payment processing are becoming more efficient. “Since the introduction of ISO 20022, debtors and creditors have been able to make payments with less pain or loss of time in passing credits, which would have normally led to charges, such as demurrage caused by delayed payments,” says Albert.
Advice for institutions just getting started
DTB’s move to ISO 20022 was smooth, but the bank does have some advice for those who are starting their transition.
To ensure operations are resilient, early planning is an absolute must. “During the co-existence period, commercial banks should upgrade their systems so that they not only consume MX messages but can also send and receive ISO Standard messages before the MT messages are decommissioned. Early preparation will ensure a smooth transition and a non-interruption of business,” Albert notes.
Plenty of system testing is important too, if firms are to avoid any delays come November 2025. “We recommend any bank undergoing the transition to ensure their systems can consume and send MX messages early enough to avoid a deadline rush, which could result in people not being able to transact effectively, due to non-compliance. Such an outcome would be bad for business and customers,” says Albert.
Are you ISO 20022 ready?
Make the leap to ISO 20022. Upgrade your infrastructure.
