{"id":16368,"date":"2021-08-23T20:47:27","date_gmt":"2021-08-23T15:17:27","guid":{"rendered":"https:\/\/coforge.site\/cigniti\/blog\/?p=16368"},"modified":"2021-08-23T21:03:36","modified_gmt":"2021-08-23T15:33:36","slug":"elements-iso-20022-migration-assurance-services","status":"publish","type":"post","link":"https:\/\/coforge.site\/cigniti\/blog\/elements-iso-20022-migration-assurance-services\/","title":{"rendered":"Elements of ISO 20022 Migration Assurance Services"},"content":{"rendered":"

ISO 20022 is a new global and open payment messaging standard.\u00a0It\u00a0provides\u00a0a global standard for payment data by establishing a uniform language and paradigm.\u00a0<\/span>\u00a0<\/span><\/p>\n

The ISO 20022\u00a0standard\u00a0generates higher-quality data than other standards, resulting in higher-quality payouts for everyone.\u00a0It is a single standardization approach developed and maintained by ISO\/TC 68.<\/span>\u00a0<\/span><\/p>\n

This standard\u00a0is adaptable to changing demands and techniques\u00a0and\u00a0isn’t dominated by a single interest group. Anyone in the industry can use it, and it can be implemented on any network.<\/span>\u00a0<\/span><\/p>\n

According to\u00a0<\/span>SWIFT<\/span><\/i><\/b>, \u201c<\/span>ISO 20022 is becoming a more generally adopted global payment messaging standard. It is already in use by payment systems in over 70 countries, and in the coming years, it will become the de facto standard for high-value payment systems for all reserve currencies, covering 80% of worldwide volumes and 87 percent of trading volumes.<\/span><\/i><\/b>\u201d<\/span>\u00a0<\/span><\/p>\n

The potential and the need to migrate to ISO 20022\u00a0<\/strong><\/h4>\n

ISO 20022 sees vast potential\u00a0as it is being adopted by market infrastructures in more than 70 countries for payments and securities business.\u00a0In the next 5 years,\u00a0there\u00a0will\u00a0be\u00a079% of the volume and 87% of the value of transactions worldwide,\u00a0with\u00a042.5 million messages per day.<\/span>\u00a0<\/span><\/p>\n

The cost savings per annum from the introduction of ISO 20022 in SEPA transactions\u00a0is estimated to be around\u00a0\u20ac21.9bn.\u00a0Global institutions are upgrading their existing payment systems to natively accept, process and send ISO 20022 format messages.\u00a0The investment funds industry has adopted ISO 20022 for fund distribution and other processes.<\/span>\u00a0<\/span><\/p>\n

All financial institutions processing SWIFT MT Category 1, 2 and 9 series messages\u00a0are\u00a0mandated to fully comply with CBPR+ guidelines by\u00a0the\u00a0end\u00a0of\u00a02025.<\/span>\u00a0<\/span><\/p>\n

The synergies between ISO 20022 XML based format and PSD2\/Open Banking data requirements\u00a0and the need for financial institutions worldwide to improve operational efficiency and reassess existing business models\u00a0open new opportunities.<\/span>\u00a0<\/span><\/p>\n

Given the vast potential the ISO 20022 standard carries, it becomes more ethical to migrate\u00a0and offers a host of benefits.<\/span>\u00a0<\/span><\/p>\n

Benefits of ISO 20022\u00a0<\/strong><\/h4>\n

If you haven’t already done so, now is the time to start migrating to ISO 20022. The tipping point for the standard is soon approaching.<\/span>\u00a0<\/span><\/p>\n

As published on\u00a0<\/span>SWIFT<\/span><\/i><\/b>\u2019s website, \u201c<\/span>ISO 20022 greatly enhances the quality of data throughout the payments ecosystem by establishing a uniform language and model for payments data. New customer experiences will be enabled by richer, structured, and meaningful data, while compliance and efficiency will be improved. ISO 20022 is adaptable enough to suit today’s and tomorrow’s needs<\/span><\/i><\/b>.\u201d<\/span>\u00a0<\/span><\/p>\n

Every organization’s migration strategy will be unique, but the end goal will be the same: to establish a strong case for the new standard’s benefits.<\/span>\u00a0<\/span><\/p>\n

Here are some of the benefits of the ISO 20022 Migration:<\/span>\u00a0<\/span><\/p>\n