ISO 20022 is one of the major standards used in financial transactions. It is currently being discussed / implemented in close to 200 market infrastructure initiatives around the world (major examples include SEPA, TARGET 2, T2S, EBA, EURO 1 / STEP 1, DTCC, CPA, SADC, JASDEC, ASX, SGX and RTGS India) and is also increasingly used as the business language between banks and their corporate and financial institution clients.
Industry standards and formats are often unique and complex. Currently there are numerous messaging standards and initiatives addressing financial information flows. There are different standards for different services – low value payments, high value payments, bank statements, securities trades and so on. Moreover, many formats applied to these different standards are used for the same service, usually dependent upon the originating country, proprietary formats or other varying initial needs.
The communication between entities using these multiple standards is burdensome, causing increased complexity and time to process flows. Operational risks and costs are rising as well, resulting in lower profitability.