SWIFT is planning on changing all of their payments to ISO 20022 by 2021. This is a huge step for the company and will result in faster and more efficient payments. Software Corporation is an ISO 20022 certified company which makes things faster, smarter and safer. Read more below about how Swift is switching over to ISO 20022 and the benefits of applying these standards.
Following a large scale industry consultation SWIFT Board recommends a migration of payments traffic to ISO 20022 starting November 2021
SWIFT community considers implications of ISO 20022 migration
In September 2017, prompted by the emergence of ISO 20022 as a global standard for market infrastructures, SWIFT launched a study into the use of ISO 20022 for cross-border business on the SWIFT network.
The study began with a consultation, which sought industry feedback on the drivers for a migration to ISO 20022, and on a number of high level proposals designed to address the practical challenges of such a migration.
Detailed feedback was received from over 100 respondents, including 44 country level responses, individual feedback from financial institutions and key market infrastructure operators, which represent the majority of SWIFT’s top users. The community feedback, together with recommendations on how to proceed, was presented to the SWIFT Board on 19th September.
“ISO 20022 is being adopted around the world for high-value, instant and domestic payment schemes. This migration completes the picture, providing a rich common data model for cross-border payments end-to-end, leading to improved customers services, more accurate compliance processes and better STP,” Stephen Gilderdale, Chief Platform Officer, SWIFT
Board approves move to ISO 20022 for payments and cash messaging
Based on the input from the consultation, the Board approved that SWIFT facilitate an industry migration of cross-border payments and cash. The start date is aligned with the adoption plans of High Value Payments Systems in the Eurozone, currently scheduled for November 2021. The US and UK payments market infrastructures are expected to adopt ISO 20022 in a similar timeframe.
This migration will include all users of payments and cash management messages (MT categories 1, 2, and 9).
MT and ISO 20022 will coexist for a period of 4 years and SWIFT will provide a shared service to translate between ISO 20022 and MT standards, enabling interoperability for the community.
The Board also recommended that SWIFT provide an ISO 20022 capability for cross-border securities flows for institutions to use on an opt-in basis, but does not propose to set an end date for the use of ISO 15022 (MT category 5 messages)
For treasury/FX and trade finance, responses to the consultation indicated little appetite to stop using MT messages at this time, and no plans to migrate to ISO 20022 have been made.
The conversation continues
A SWIFT board Information Paper (IR) with further details of the migration strategy will be provided to the community in December 2018.
In the meantime, join us the Standards Forum at Sibos in Sydney to discuss the practical implications of ISO 20022 migration with key market players and standards experts.