Implementing ISO 20022 – Your Path to Compliance and Beyond

The global financial landscape is evolving, and one of the most significant changes on the horizon is the mandatory adoption of ISO 20022 by November 2025. However, some organisations are not truly seeing ISO 20022 for what it is, it is not a mere compliance exercise, but more so a strategic opportunity. The modernised messaging standard is set to enhance operational efficiency, improve data quality, and foster greater interoperability across the financial ecosystem.

Current State of Readiness

As we approach the November 2025 deadline, it’s crucial to assess where the industry stands. Chloe Jenkins from PMPG highlighted in a recent webinar that while top banks covering 86% of traffic are on track, a notable 14% of traffic from smaller banks remains uncertain. This discrepancy underscores the importance of industry-wide collaboration and shared learning.

“At Swift, we have contacted the top 175 banks to speak to them about their migration plans, and they’re looking really good. Those banks cover 86% of the traffic, and all of them are projecting to be fully ISO compliant by November 2025,” Chloe explained. However, she also noted the challenge: “That does leave 14% of the traffic that we don’t yet know if they’ll meet the November 2025 date.”

Key Challenges and Lessons Learned

1. Thorough Testing: Justin Brearley-Smith of JPMorgan emphasised that "thorough, robust testing is key to a successful implementation," he said. He also recommended utilising tools like Swift’s readiness portal and buddy banks to ensure comprehensive testing.

2. Early Adoption: Justin also pointed out that adopting sooner enables institutions to stagger their deliveries, reducing the risk of disruption. "Adopt sooner rather than later. Learn sooner. Find out where your issues are, and stagger your deliveries so it’s not one big bang on November 25th."

3. Data Quality: Ensuring high data quality is paramount. Avoiding the use of placeholders like "not provided" and ensuring the use of structured data fields such as BICs can prevent translation issues and improve Straight Through Processing (STP) rates. Justin mentioned, “Data quality is key, and some of those initial teething problems are in relation to data quality. Avoid using the word ‘not provided’ as it doesn’t translate well.”

Strategic Opportunities Beyond Compliance

Russell Saunders, independent director at iFast Bank, noted the benefits of ISO 20022 extend beyond mere compliance. This transition is a chance to enhance payment efficiency, as improved data quality leads to fewer errors, faster processing times, and reduced operational risks. According to Saunders, this initiative is more than a compliance project; it is a global effort to improve the global payments community, increase operational efficiency, and reduce costs associated with errors and fraud.

Additionally, the richer and more detailed transaction data provided by ISO 20022 can significantly enhance the customer experience by improving transparency and building trust. Emma Saxon, Product Owner from Swift, added that to fully benefit from the richer ISO 20022 data, the entire transaction process must be carried through to the end customer. Indeed, the standardised and rich data format of ISO 20022 lays the groundwork for fostering innovation within the financial sector. Emma elaborated on this point, explaining that moving beyond mere compliance to realise these benefits involves capturing and using rich data across all message types, marking the next phase of ISO 20022's implementation.

Preparing for the Future

The ISO 20022 migration is not a one-off project. Emma Saxon from Swift pointed out that future developments include new message types and evolving standards. Staying ahead means continuously adapting and leveraging new capabilities to maintain a competitive edge.

“There are other FIN and MT messages that are in scope of the migration, including reporting and statements, which are still going to need to be migrated. That requirement has not gone away,” Emma explained. She emphasised the importance of preparation and adaptation to future changes, “There will be significant disincentive charges applied from November 2025 to encourage financial institutions to reach that community goal of adopting ISO 20022.”

ISO 20022 Readiness Assessment

Is your organisation struggling with the ISO 20022 transition? Are you unsure of how to navigate the complexities of compliance and leverage the strategic benefits? We’re here to help.

Book a free one-to-one ISO 20022 QE readiness assessment to evaluate your organisation's preparedness to deliver a successful ISO 20022 migration.

Our Quality Engineering experts will review your tools, processes, and testing capabilities, identifying areas for improvement and potential risks. Gain high-level recommendations to guide your next steps. Contact us today via ask@roq.co.uk

Additional Resources

To further aid your transition, here are some key resources and papers recommended by our experts:

• PMPG Papers on Reject and Return: Essential for understanding best practices and avoiding common pitfalls. Access the paper here.

• CBPR Roadmap: Cross-border payments and reporting plus (CBPR+) is a workgroup of payments experts whose mission is to create global ISO 20022 Market Practice and Implementation Guidelines to ensure a common roll-out and implementation of ISO 20022 by banks. Access the resources here.

• Roq’s ISO 20022 service: read more about how we can support your organisation to deliver a successful, compliant ISO 20022 migration.

By leveraging these resources, taking advantage of our FREE ISO 20022 Readiness Assessment and the expert guidance of our Quality Engineers, you can navigate the ISO 20022 transition successfully and and set your organisation up for long-term success.