Friday, 26 April 2024
SWIFT delays ISO 20022 migration
At its March 2020 meeting, the SWIFT board and executive endorsed ambitious plans for SWIFT to support financial institutions’ payments and securities businesses and make the SWIFT platform richer, smarter and faster.
Acting on feedback from the community, SWIFT will enable ISO 20022 messages for cross-border payments and cash reporting businesses starting from the end of 2022, which extends the originally announced date by one year.
The delay will allow banks to adopt at their own pace and reduce the total industry costs of realising the benefits of ISO 2022 together with the new platform. This modifies timings announced to the community in September 2018 in view of the new strategic direction.
The work already undertaken by the community for ISO 20022, including data remediation, channel improvements and back-office processing is not wasted and will play a critical role in enabling future innovation by banks.
The end-date to enable full ISO 20022 for cross-border payments remains as originally planned, November 2025. The coexistence period for current SWIFT MT messages and a new API-based exchange will last until that date.
This means that financial institutions can maintain existing standards or migrate, and plan change at their own pace in line with their own innovation priorities.
SWIFT will enable transactions to move instantly and frictionless from account-to-account anywhere in the world across the end-to-end payments chain.
Rich data lies at the heart of this vision. It will provide the foundations for financial institutions to innovate and deliver better payments and digital experiences to end customers as well as enable them to leverage the full value of the new platform.
In line with that vision, SWIFT is fully committed to improving transaction data quality through ISO 20022 and will continue to accelerate industry support to adopt ISO 20022 for market infrastructure initiatives, including Trans-European Automated Real-time Gross Settlement Express Transfer System migration/ Eurosystem Single Market Infrastructure Gateway, EURO1 and Bank of England real-time gross settlement renewal.
Re-disseminated by The Asian Banker
