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How DBS Bank is using ISO 20022 to drive efficiency and innovation

How DBS Bank is using ISO 20022 to drive efficiency and innovation

Standards,
22 January 2025 | 5 min read

Adopting the new global standard for payments is more important than ever. As the financial industry moves closer to ISO 20022’s November 2025 deadline, we spoke to DBS Bank to reflect on the successes of their adoption journey.

About DBS Bank 

DBS is a leading financial services group headquartered in Singapore. With a strong presence across 19 markets in Asia, DBS offers a full range of banking services across consumer, SME, and corporate segments. Beyond traditional banking, DBS is also deeply committed to building social impact, promoting digital innovation, and enhancing its services to meet the ever-evolving needs of its clients.

Rising to meet the challenge 

Being quick out of the gates in the ISO 20022 adoption race came with unique challenges for DBS because of a lack of clarity on an international level. 

“We had to make our own best conclusions on how to use the various fields in the messages, as there were limited specifications and consensus amongst other banks at the time,” explains Tesy Mathew, Managing Director and Group Head of Cash Product Management.  

These days the whole landscape and adoption process is much smoother. However, being an earlier adopter also had its advantages because it gave the bank time to assess the standard’s unique benefits and anticipate potential issues before they arose. 

“We were able to independently analyse how ISO 20022 could improve client journeys and resolve payment discrepancies more rapidly due to the detailed data structure,” Tesy says. 

The detailed data structure of ISO 20022 enabled DBS to rapidly identify errors and keep disruption for their clients to an absolute minimum.

The benefits of ISO 20022 adoption 

One of the biggest benefits of ISO 20022 adoption is the enriched data structure which has enhanced DBS’s ability to automate payment journeys and improve their straight-through processing. 

“Our compliance teams benefit from the clarity and structure of ISO 20022 messages because they make it easier to implement more robust controls in sanctions screening and other critical areas,” Tesy says. 

By ensuring that these changes aligned with client needs, DBS created a foundation that supports efficiency while maintaining the flexibility to address new challenges.

Key outcomes for operations

The transition to ISO 20022 has had a notable positive impact on DBS’s operational efficiency. The structured format of ISO 20022 messages has streamlined the processing of payments, leading to fewer manual interventions.

“Since adopting more structured MX messages, we’ve seen a sustained reduction in requests for information and repairs. We expect to see more automation in our systems as ISO 20022 enables us to align our screening processes better with global regulatory requirements,” Tesy explains.

All of this has not only improved the overall client experience because of fewer errors but also reduced the manual rework associated with failed transactions. This means lower costs and liberated resources – a significant win-win. 

Tesy Matthew
Since adopting more structured MX messages, we’ve seen a sustained reduction in requests for information and repairs. We expect to see more automation in our systems as ISO 20022 enables us to align our screening processes better with global regulatory requirements.
Tesy Mathew Managing Director and Group Head of Cash Product Management, DBS

Looking to the longer-term benefits

For DBS, and the financial community in general, the journey toward global ISO 20022 adoption offers even greater long-term advantages and opportunities. 

“ISO 20022 data supports our ongoing development of innovative payments and operational efficiency solutions. It makes an impact not just on existing technologies but also in transformative areas like AI and blockchain,” Tesy says. 

There are also clear benefits when it comes to enhanced automation and accuracy of sanctions screening and regulatory reporting. This is having a net positive effect by making compliance simpler and more straightforward. 

All of which is invaluable at a time when financial regulations are becoming ever more rigorous and complex. “We’re investigating ways to drive further enhancements in the efficiency and precision of our regulatory compliance processes, which could help us expedite communication with clients and regulators,” Tesy says. 
 
The ability to easily aggregate, analyse, and report financial data is another significant advantage for all financial institutions, ensuring they meet their regulatory obligations with less complexity and lower costs of complying with multiple regulatory requirements. 

Tesy also notes that corporate treasurers are starting to see the real value ISO 20022 can bring to their operations. “A growing number of our corporate clients are requesting .camt message formats.  We’ve seen a more than 60% year-on-year growth in accounts subscribing to .camt messages over the past five years because of the benefits that ISO 20022 adoption brings to their business.”

It’s a trend that reflects the growing importance of the new standard in enabling seamless cross-border transactions and liquidity management for corporates. And something which opens up the scope for further financial innovations in future. 

How to make adoption a success

DBS highlight three groups that banks should focus on to ensure a successful transition to the new standard. 

“Firstly, from operations to technology and compliance, the whole bank should be engaged to ideate on how the enriched data can help develop efficiencies within the organisation,” Tesy advises.    

Secondly, banks must actively engage their clients by helping them understand the long-term benefits of ISO 20022 and guiding them through the transition. 

“If clients understand more about it, they’ll be able to take advantage of benefits like removing the need for manual invoice matching and reconciliation, which helps solve a specific challenge and helps address each client’s personal pain points more effectively,” Tesy says. 

Lastly, banks should also engage with their counterparties to accelerate their transition. 

“We should leverage our expertise to help other banks in our networks, which will benefit the whole industry. Banks still transitioning should look to standardise and find pathways to leverage richer data,” Tesy says. “The focus should be on harnessing ISO 20022's potential for driving growth and innovation through new products, insights and services.”

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