Global Payments Iso Agreement

In collaboration with a top-5 bank, which recently participated in the development of its ISO 20022 transformation plan, KPMG experts in the United States, in collaboration with the Bank`s key players, assessed the impact of ISO 20022 on their business. We then developed a multigenerational roadmap and plan to position it to achieve respect for the industry`s mandate and strategically transform its organization. For decades, formats that support high value and cross-border payments have broken down. First published in 2004, ISO 20022, Financial Services – The Universal Financial Industry Message Scheme is widely recognized as the standard of the future. It represents an international consensus on how financial messages are structured and is a key instrument in the transformation of the global financial system that strengthens technologies such as instant payment platforms. It contains eight parts covering aspects such as creating XML diagrams, message transport properties and recording. The lack of interoperability due to the diversity of standards and formats has led to significant delays and inefficiencies in payment processing. Now the world is moving towards a common global standard for financial news, ISO 20022. Global adoption of this standard is accelerating as a number of high-quality payment infrastructures are already online and more are planned by 2023. According to the latest McKinsey on Payments report (McKinsey-Company, 2020), global financial services market disruptions amount to $1 trillion.

The demand for better products and services and the increasing digitization are putting banks under pressure. Here are five high-level standards that support the global financial system and support the transformation of the industry. Our vision of the competitive market suggests that all banks should take advantage of the changeover to ISO 20022 to rethink how payments are integrated into the broader business, infrastructure and growth strategy. However, not all banks and financial institutions are the same, as different organizations need different approaches because of their internal framework and strategic priorities. The lack of common business terminology has been a major challenge for all payment methods that ISO 20022 solves with a globally accepted standard. It brings significant improvements over the exclusive compensation standards that have dominated to this day. The standard uses a consumer XML format compatible with mature technologies and new technologies. This format is also expandable and allows you to adapt to future business changes. For example, it is not difficult to imagine how the new standard could, through new product developments and innovations, create opportunities for revenue growth, or how it could improve efficiency by reducing work requirements and maintenance costs. It could create opportunities to improve business productivity and automation. The impact on the entire customer experience (as fewer payments are declined and channel experiences are improved) must be clear. In the end, ISO 20022 is rapidly becoming the global language of financial news.

This is a sectoral mandate that is expected to standardize the processing of high-quality payments worldwide. The big question is whether banks and financial institutions will see the transition as an opportunity to seize value-creating opportunities or whether they will see it as another compliance project. Our view suggests that the best performing organizations will be those that choose the strategic path.