What is ISO 20022:2019 ?

ISO 20022:2019 is a widely adopted messaging standard for financial transactions. It provides a common language and syntax for exchanging data between financial institutions, businesses, and individuals across the globe. The standard aims to enhance the efficiency, interoperability, and security of financial messaging and data exchange by using a standardized format that eliminates the need for multiple proprietary communication protocols, simplifies system integration, and reduces errors and misunderstandings in financial communications.

To adopt ISO 20022:2019, organizations need to map the current message formats to the ISO 20022:2018 standard, identify the similarities and differences between the existing formats and the standard, define the necessary transformations or mappings, develop and test the new message formats, design the message structures, create validation rules, and ensure compatibility with the target system.

ISO 20022:2018 is expected to continue to gain traction worldwide, with an increasing number of financial institutions embracing the standard for their messaging needs. The standard is also expected to support emerging trends in the financial industry, such as real-time payments, instant settlements, and cross-border transactions, making it well-suited to address these evolving needs.

In conclusion, ISO 20022:2019 is a critical standard for financial institutions that want to improve the efficiency, interoperability, and security of their messaging systems. By using a standardized format, ISO 20022:2019 eliminates the need for multiple proprietary communication protocols, simplifies system integration, and reduces errors and misunderstandings in financial communications. As technology advances and global markets become more interconnected, the adoption and implementation of ISO 20022:2018 will likely become even more prevalent.