While the term ISO 20022 may not be widely known, it’s about to change the global payment landscape. This significant industry standardization initiative will impact the way businesses send and receive money, especially cross-border.
What is ISO20022?
Simply put, ISO 20022 is a global standard for payments. It is a common payments language for banks, clients and market infrastructure to communicate with each other. It has been made a global mandate, with industry compliance required by the Federal Reserve and SWIFT in 2025.
What is the main benefit of ISO2022?
The ultimate result of ISO 2022 will be a better end-to-end experience for all participants in the payments chain. With ISO 20022, data is more structured, empowering banks with a more straightforward understanding of the data being processed in payments transactions.
What’s next?
While the process of transitioning to ISO 20022 may take some time given all the interlinked systems that need to be updated, the benefits of structured and extended data are what makes this transition a necessary step for banks and their customers in the near future. By providing comprehensive educational resources, including workshops, webinars and detailed guides, financial institutions can better understand the intricacies of ISO 20022 and the steps needed to achieve compliance.
Santander Bank recognizes the importance of this transition for its Commercial clients and is committed to supporting them throughout the process, ensuring they are prepared to both anticipate potential headwinds and seize on the benefits of ISO 2022. The Commercial Bank’s support extends beyond technical training, offering strategic insights into how the new standard can be leveraged to drive business growth and innovation, while helping to strengthen the future of payments capabilities for the industry overall.
Greg Murray, Head of Transaction Banking Product Management for Santander Bank, N.A., breaks down ISO 20022 in the simplest terms, the implications it holds for payments, how Santander is helping clients navigate the ISO 20022 transition, as well as how the Bank is leveraging digital solutions in:
- FinTech Futures
- Fintech Finance News
- “Branching Out,” Deloitte’s retail and transaction banking podcast