ISO 20022 migration: the time is now
SWIFT launches a full-scale community consultation that sets out its vision for migration of cross-border services to ISO 20022
Today, SWIFT launches a full-scale community consultation that sets out its vision for migration of cross-border services to ISO 20022 and requests feedback from the industry on how and when migration should proceed.
New market infrastructures, such as instant payment systems, are appearing in every major market, and existing systems, such as high value payments and CSDs, are being upgraded to offer easier access, better services and lower transaction costs. Underpinning almost all these initiatives is a common foundation – ISO 20022 – an open, international standard that defines key business processes and data, and is compatible with both mature and emerging technologies, such as DLT and APIs.
ISO 20022 is a global success. In the next five years, the standard will dominate high-value payments business, supporting 80% of the volume and 89% of the value of transactions worldwide, as forthcoming implementations in the Eurozone, US, UK join already live systems in Switzerland, Japan, China and India.
ISO 20022 is the dominant standard in the instant payments market, including implementations in Australia, US, Canada, Sweden, Denmark and Singapore.
ISO 20022 is also present in the securities industry. The investment funds industry has adopted ISO 20022 and TARGET2-Securities, the Eurosystem’s securities settlement system, processes over one million instructions per day using the standard. Other securities market infrastructures also use the standard, including the DTCC and the Singapore Exchange.
The success of ISO 20022 amongst different market infrastructures has led to increasing community interest in using ISO 20022 in the cross-border messaging space, where SWIFT MT is the current dominant standard. In response, SWIFT has launched a community consultation to determine the timing and practicalities of migration. Please click here to download a copy of the consultation paper. The outcome of this exercise will affect every user on the SWIFT network, so members of the SWIFT community are encouraged to get involved and share their views.
The formal consultation will run until early June, with results analysed over the following months and a final report produced before the end of 2018. The report will draw on the feedback from the consultation to propose a detailed roadmap for migration.
ISO 20022 will deliver increased efficiencies, end-to-end STP, improved regulatory compliance, enhanced party identifications, and will enable new business opportunities in line with the SWIFT gpi roadmap.
Harry Newman, Head of Banking, SWIFT
“The switch to ISO 20022 further complements SWIFT’s global payments innovation (gpi) initiative, which is currently transforming international payments to meet the evolving needs of international trade,” says SWIFT’s Head of Banking, Harry Newman. “ISO 20022 will deliver increased efficiencies, end-to-end STP, improved regulatory compliance, enhanced party identifications, and will enable new business opportunities in line with the gpi roadmap.”