ISO 20022 Adoption Lagging at just 29.1%

Global financial institutions now have less than a year left to transition to ISO 20022, the new international standard for electronic data exchange. Yet, as of today, the adoption rate sits at a shocking 29.1%. Organisations have been mandated to complete the transition by November, however the majority of the industry appears behind schedule.

This is no ordinary compliance mandate—it’s a transformation that will underpin global financial messaging for decades to come, and the risks of rushing this migration are immense. For CIOs, CTOs, Heads of Risk, and other technology leaders in financial services, the stakes could not be higher.

The Clock Is Ticking

The reality of this transition is now hitting home for many organisations, and the complexity of implementing ISO 20022 cannot be overstated. The standard will categorically change how financial data is transmitted, enabling richer, more structured, and more granular information.

ISO 20022 introduces over 750 new business components and more than 1,000 message definitions across various messaging categories such as payments, securities, trade services, and foreign exchange. This represents a steep learning curve for banks accustomed to legacy messaging formats like Swift MT. Adopting the ISO 20022 standard requires significant investments in both technology and training, as banks must understand the new components and ensure they integrate smoothly into their environments.

The standard also introduces fundamental changes to payment processes, IT systems, and compliance protocols. The migration involves coordinating multiple business units, updating legacy systems, extensive testing, and upskilling staff.

This is not a project that can be rushed to completion at the eleventh hour. It is a complex, high-risk undertaking that demands meticulous planning and execution. Rushed implementations risk creating vulnerabilities that can lead to:

Compliance Failures: ISO 20022 demands rigorous testing and validation to ensure compliance. Incorrect message conversions can lead to incomplete payments, compliance issues, increased manual intervention and delays in anti-money laundering (AML) or sanctions screening.

Unexpected Outages: Financial systems not properly adapted to ISO 20022 could experience unexpected outages, disrupting critical operations and eroding customer trust.

Operational Bottlenecks: Non-compliant systems will struggle to process and integrate ISO 20022 messages, leading to delays and inefficiencies. Additionally, more manual work will be required to address unforeseen issues and ensure message integrity during the migration process.

Reputational Damage: Institutions that miss the deadline risk reputational harm as customers may lose trust, stakeholders could question leadership, and competitors might gain an edge by being ready to leverage the benefits of ISO 20022.

Financial Penalties and Lost Revenue: Incorrectly processed transactions or delays due to system failures could result in significant financial penalties and lost revenue.

Act Now 

The transition to ISO 20022 is not optional. By November, financial institutions must ensure compliance or face serious consequences. Yet, too many organisations are underestimating the time and resources required as only 29.1% of messages have migrated to ISO 20022 to date. The organisations that succeed will be those that act now to ensure their systems, processes, and people are ready.

What’s needed is a clear strategy, robust planning, and expert execution. This is not the time for piecemeal efforts or overreliance on internal resources that may already be stretched thin.

Partner with Roq to deliver

At Roq, we specialise in helping financial institutions navigate high stakes, complex transformations like the migration to ISO 20022. Our comprehensive approach ensures that your organisation achieves compliance on time, mitigates risk, and maximises the benefits of this new standard.

Here’s how we deliver:

Expert Consultation: Our experts work closely with your leadership and technical teams to assess your current state, identify gaps, integrate workflows, and create a roadmap tailored to your organisation’s needs.

Rigorous Testing: We conduct extensive testing to validate compliance, system integrity, and performance, ensuring your organisation is ready to operate in the ISO 20022 ecosystem without disruptions. Additionally, we leverage automation and simulation to validate transactions efficiently, detect issues early, and minimise risks.

Risk Mitigation: Our Quality Engineering experts identify potential vulnerabilities early in the migration process to prevent system outages, and protect against operational, reputational, and financial risks.

Training and Support: We provide training for your teams and leave them in a better position than when we started. We equip your organisation to thrive in the post-migration landscape.

Free ISO 20022 Readiness Assessment

ISO 20022 is not optional, and the risks of a poorly executed migration are too great to ignore. With less than a year to go, the time to act is now, and Roq is here to help you, no matter where you are on your ISO 20022 migration journey.

Why not take advantage of our free ISO 20022 Readiness Assessment to gain a clear understanding of your preparedness. The assessment evaluates tools, systems, and processes to identify gaps and risks, reviews testing environments for compliance, and examines Quality Engineering maturity to pinpoint areas for improvement.

Alternatively, you can email us at ask@roq.co.uk to discuss your organisation’s specific needs.

Don’t be part of the 70% of organisations that are unprepared. Contact us today to discuss how we can help you deliver a compliant, timely, and seamless migration to ISO 20022. Together, we can turn this challenge into an opportunity for growth and innovation for financial services.