What is ISO 20022:2018 ?

ISO 20022:2019 is a widely adopted messaging standard for financial transactions. It provides a common language and syntax for exchanging data between financial institutions, businesses, and individuals across the globe. The purpose of ISO 20022:2019 is to enhance the efficiency, interoperability, and security of financial messaging and data exchange.

ISO 20022:2019 eliminates the need for multiple proprietary communication protocols, simplifies system integration, and reduces errors and misunderstandings in financial communications. Its key features include using a standardized format, identifying similarities and differences with existing formats, defining the necessary transformations or mappings, designing message structures, creating validation rules, and ensuring compatibility with the target system.

Once an organization has a clear understanding of its requirements, the next step is mapping the current message formats to the ISO 20022:2018 standard. This involves identifying the similarities and differences between the existing formats and the standard and defining the necessary transformations or mappings. After the mapping process is complete, organizations need to develop and test the new message formats.

ISO 20022:2018 is expected to continue to gain traction worldwide, with an increasing number of financial institutions embracing the standard for their messaging needs. As technology advances and global markets become more interconnected, the adoption and implementation of ISO 20022:2018 will likely become even more prevalent.

ISO 20022:2018 is also expected to support emerging trends in the financial industry, such as real-time payments, instant settlements, and cross-border transactions. Its flexibility and adaptability make it well-suited to address these evolving needs, providing a solid foundation for future innovations in financial data messaging.