Discover how you can use ISO 20022 to deliver benefits for your customers, while creating new value propositions and protecting or growing your market share.
The situation today
Financial institutions are looking for ways to protect their existing market share, while creating new value propositions and gaining new customers. But to do this, they need to introduce new products and capabilities, and reimagine the ways in which payment data can be used.
The opportunity with ISO 20022
By taking advantage of ISO 20022 messages – together with high levels of straight-through processing – you have an opportunity to improve the payments customer experience, increase end-to-end efficiency, and reimagine the uses for payments data.
As a result, you may be able to introduce new products and capabilities, not only for your existing client base, but potentially for other industries. The possibilities range from automated reconciliation reporting and end-of-day settlements to real-time cash flow forecasting.
For example, you could use ISO 20022 to:
- Automate reconciliation – Companies with high payment volumes, such as insurance companies, can use the enriched data in ISO 20022 messages to minimise matching errors for returned direct debits, and thereby automate reconciliation. Once structured remittance information is widely supported, payment beneficiaries will be able to reconcile their payment entries more easily.
- Improve straight-through processing – The improved data provided by ISO 20022 gives you data analytics that you can use to help your customers better adhere with standards market practices. For example, you may be able to analyse the error information included in ISO 20022 payment status reports, and use the findings to help your customers correct initiation data and avoid recurring payment rejects.
- Support new payment instruments – The variety of ISO 20022 message types available also provides an opportunity to support new payment instruments – such as Request To Pay, which can be used for cross-border collections.
- Offer broader services – The combination of financial data (e.g. utility bills) and economic data (e.g. energy prices) could lead to a broader product offering.
- Access better data analytics – You can enhance and expand your services with data-driven insights from richer payments and reporting message data.
By tapping into these opportunities, you are better placed to protect your existing business, while gaining access to new customer bases and new revenue streams.