Payment volumes are steadily increasing, with rapid growth set to continue as different industries experience rising levels of activity, buoyed by the arrival of new entrants and the interconnectedness of economies.
At the same time, financial institutions face growing competition in the world of payments. And in this environment, you have to continue to evolve to capture business opportunities to set yourself – and your customers – up for long-term success.
Rise to the challenge
To remain relevant and competitive, it’s essential that financial institutions continue to embrace frictionless payments, evolve their services, and improve the efficiency of their payment processing. In this high-stakes market, financial institutions also need to be cost efficient – but they also need to meet customers’ evolving needs. And this means harnessing the data available with ISO 20022.
Beware of the status quo
Friction in payment processes won’t go away on its own, which is why the industry as a whole is taking action:
- Financial institutions around the world are adopting ISO 20022 across their business applications.
- The way transactions are being represented is changing, with market infrastructures increasingly adopting ISO 20022.
- Corporates are demanding richer, structured data to enhance their payments and reconciliation processes.
- The G20 is promoting the harmonised use of ISO 20022 for enhancing cross-border payments.
And as new payment models – such as Central Bank Digital Currencies (CBDCs) or instant payment systems – gain momentum, adopting ISO 20022 will put you in a position to capture new opportunities when they arrive. That’s because ISO 20022 standards will enable interoperability with any interlinking solution and will allow financial institutions and markets to easily integrate their CBDC or instant payment flows with their cross-border payment systems.
You should adopt ISO 20022 data structures directly in your application infrastructure, minimising the inefficiency and risk of translating data between different formats and standards. And you should do this as soon as possible to be able to adapt to these changes and meet your customer needs.