2022: The Year of the ISO 20022 Migration
Major banks around the world are currently preparing for one of the most anticipated migrations in the financial services industry. The ISO 20022 migration is unlike any standard that has come before it. This unique standard has been designed to seamlessly eliminate cross-border barriers and support global business needs by introducing a global standard for exchanging electronic messages between financial institutions. (For those who are new to ISO 20022 or those who are looking for more background information, please reference our introductory ISO blog. ) In November of this year, organizations like SWIFT and the European Central Bank will go live with the ISO 20022 standard. These organizations will join countries like Japan, China, and India who have already adopted and capitalized on the benefits of early adoption.
The go-live dates for these organizations have been much anticipated by industry leaders across the globe since ISO migrations do not take place overnight. For some, the effort to successfully complete an ISO 20022 migration while adhering to an aggressive timeline can spark organizational crisis. Prioritizing ISO migration efforts alongside numerous other projects, working with legacy infrastructure, navigating strict budget allocations, and managing customer expectations can be incredibly difficult even for the most seasoned experts. The list of challenges organizations must overcome for a successful migration can seem overwhelming at times but, amid every crisis, lies a great opportunity.
Understanding the Opportunities Presented by an ISO 20022 Migration
The opportunities presented by a successful ISO migration far outweigh the challenges. However, understanding and exploiting all these opportunities can be daunting. At this point, most organizations understand the importance of ISO 20022 migrations from a regulatory and compliance perspective. However, despite this journey having begun 18 years ago, major global banking organizations are stating that they are concerned that ISO 2022 will merely be a ‘tickbox’ regulatory activity, rather than fully grasping the potential for operational insights, cost savings, and competitive creativity that stem from the migration efforts.
Capitalizing on the benefits of a successful ISO 20022 migration is just as important as the actual migration effort. While most organizations are hyper focused on completing the ISO migration, a successful post migration plan will allow organizations to recognize and leverage the complete suite of benefits associated with the new standard. Outside of regulatory and compliance advantages, ISO migrations introduce numerous value-added benefits. Having a high-level understanding of how to make the most of these benefits will provide the opportunity for organizations to exploit competitive advantages in the future. Some examples of how to make the most of some of the most enticing benefits have been listed below.
- By implementing a standard messaging format, organizations introduce opportunities for internal standardization of day-to-day activities thus, improving efficiencies and lowering costs associated with reconciliations.
- By lifting some of the manual task burden from internal compliance teams, risk management and regulatory teams will have more time to invest in fraud mitigation efforts.
- By streamlining the reconciliation process and enhancing payment visibility, corporate clients will benefit from an improved user experience.
Turning Opportunities into Strengths After the Migration
Once an ISO migration is complete and organizations begin to recognize the numerous opportunities presented with a successful migration, it is imperative to develop a plan to turn these opportunities into strengths. Working with a trusted third party to exploit the rich data contained in ISO messages can open the door for both innovation and advancement.
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.
Looking to speak directly to one of our industry experts? Visit our website to learn more about how we can help you reach your full potential.