It seems every organization around the world has a different approach to ISO 20022 implementations. Some financial institutions are attempting to quickly move through the implementation phase, check the compliance box, and move onto other strategic projects. Whereas others are looking to unlock a true competitive advantage with access to the new, rich, data that ISO provides. While both strategies will achieve the short-term goal of a successful implementation, one strategy ensures long term success where the other falls short. Before an ISO 200222 project begins, banks must understand how to utilize ISO as an enabler and overcome the intricacies related to implementations if they want to establish differentiation amongst their competitors.
In a recent webinar, hosted by Finextra, a panel of industry leading speakers provided insight into how banks and their corporate clients can harness the true value of ISO 20022. Throughout the duration of this global webinar, the audience was asked a series of questions pertaining to their overall readiness as it came to ISO 20022 implementations. The vast majority of attendees shared insight as to where they sit with their ISO projects, surprisingly, the data shows that both banks and their corporate clients are at various stages in their ISO 20022 implementations.
While deadlines are frequently changing and fast approaching, the data shows that every organization is on their own timetable. The number of complex challenges related to ISO 20022 implementations have the potential to prolong projects, pushing back target go live dates and increasing costs for internal teams. Navigating strict timelines, ensuring the project is prioritized internally, and navigating legacy infrastructure can create a stressful environment across the entire organization.
At OpenText, we believe one of the largest benefits of ISO 20022 is the utilization of rich data to power new innovations. ISO 20022 enables a number of powerful use cases for banks and their corporate clients. These use cases range anywhere from the automation of payables and receivables processes to improved forecasting, reporting, and sanctions screening.
Effectively using remittance information held in ISO 20022 payment messages allows for institutions to boost automatic payments reconciliation for accounts receivables and improve overall workflow visibility. The benefits of strategic utilization of rich ISO 20022 data also allows for benefits to be passed along to a bank’s corporate clients, as they will have the ability to send one consolidated payment file for all payment types (ACH, wire, digital card, check, etc.) The enrichment of data stemming from ISO 20022 implementations opens doors for improvements in straight through processing and the automation of costly manual tasks, for both the bank and their corporate clients.
Outside of innovation, the global audience shared additional benefits of ISO 20022. Areas ranging from standardization to cost reductions appeared to be top of mind for financial institutions around the world. The benefits of ISO 20022 are vast, however, achieving differentiation through the strategic utilization of each benefit can be difficult.
Identifying value in possible sources of revenue generation while also understanding how to better mitigate risk are no longer unattainable objectives, rather, they are tangible opportunities which can be realized with pragmatic, strategic ISO 20022 execution. ISO 20022 can unlock numerous competitive advantages for financial institutions and their corporate clients, OpenText can ensure your organization exploits each opportunity.
OpenText™ ISO 20022 Data Transformation services enable financial institutions to complete required migration efforts quickly and effectively without disruption to their ongoing business. OpenText™ Business Network™ translates over 2.5M inbound/outbound global transactions a month for over 3,000 clients. With a passion for customer success, we are invested in making the most of your migration efforts by incorporating our immensely productive Integrated Payables solution in a way that optimizes your business processes by ensuring you reap the full benefits of a successful ISO 20022 migration.
To learn more about how to unlock the competitive advantage after ISO 20022 implementations, watch our exclusive webinar on demand here: https://bit.ly/3ia9iYX
