ISO 20022 in Bytes for Payments: Maintaining the Momentum in 2025
- Source: swift.com
Takeaway
The transition to ISO 20022 has been underway for a number of years and is now reaching a critical point.
Treliant helps global banking institutions manage large scale change, with a focus on regulation and data. Our consultants help organizations adopt best practices and leading standards across data management, data migrations, and messaging, providing a robust and sustainable platform that the organization can leverage to drive both efficiencies and improved business insights through enhanced analytics.
Highlights
G20’s Roadmap for Enhancing Cross-border Payments is driving adoption of standards such as ISO 20022, representing a significant leap forward due to it’s the richer, more structured data format, increasing straight-through processing, and providing a foundation for future efficiency and innovation. It also creates opportunities for improved analytics and regulatory compliance, as well as providing a platform that can be leveraged for enhanced end-customer solutions.
In December, SWIFT saw an average of 1.4 million CBPR+ payments exchanged daily, spanning 150 sending and 220 receiving countries—a key indicator in the global adoption of this rising standard. In Q4-2024 alone, adoption rates increased by circa 6% to around 32% of overall traffic.
With the November deadline for cessation of coexistence of the MT and ISO message standards fast approaching, 2025 will be a critical year of change on this journey.
If you do not have a clear plan, now is the time to act!
Key Milestones for 2025:
- March 2025: U.S. Fedwire migrates to ISO20022.
- May 2025: The BoE has indicated that CHAPS will mandate the use of Legal Entity Identifiers (LEI) FI-to-FI transactions and Purpose Codes for property payments.
- Spring 2025: DNS settlement services migrate to ISO 20022 and all RTGS account holders will receive ISO 20022 non-payment messages.
- November 2025: Cessation of coexistence of the MT and ISO message standards.
Additionally, 22 Payment Market Infrastructure (PMI) providers have announced their go-live plans for 2025, so this will be both a challenging time and a time of opportunity for market participants.
However, it is not going to end there. For instance, the European Central Securities Depository Association (ECSDA) has indicated that adoption of ISO 20022 for settlement and reconciliation purposes may take up to 2030 and potentially beyond. There is clearly a lot more for the industry to do.
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