Once implemented, ISO 20022 is going to offer corporates a far better payments experience than previous formats and a wide variety of other benefits. Processing efficiencies will result from increased straight-through processing, fewer rejections, fewer exceptions, better reconciliations and risk management. This should ultimately lead to reduced costs for the companies that adopt it.
ISO 20022 is going to be supported by all banks globally, which will enable things like portability and interoperability of payments across providers.
As the roll-out of the standard progresses and adoption grows, those efficiencies will only increase. It’s also an open standard, so it will progressively evolve to meet users’ needs over time. It should enable fast, simple integrations for corporates whether they’re running legacy or state-of-the-art IT systems, and will therefore require less maintenance and reduced future development costs.
Perhaps most importantly, ISO 20022 enables corporates to enrich how they interact with their data, facilitating better decision-making within the company and possibly even the development of new services for customers as a result. It could help firms understand their businesses better, enabling them to operate on a more real-time basis with customers.