What is ISO20022
ISO20022 is a open standard for financial messaging for payments and other financial transactions. Provides consistent, rich and structured data to be exchanged between financial institutions.
Why?
Different payment systems were using different formats, message types and standards. Interoperability was difficult and the payment landscaape was disjointed. ISO20022 was introduced to bridge this gap.
What benefits does it bring?
- Common language
- Structured
- Data rich
- No data loss
- Enhanced interoperability
- Improved processing time
- Improved accuracy and efficient sanctons checking
- Reduced costs with multiple formats and legacy
Business domains
ISO20022 has defined messages for the below domains
- Payments
- Securities
- Trade
- Forex
- Cards
Adoption
ISO20022 has been adoped by many payment schemes. SEPA in Europe, RTGS in India, NPP in Australia have all adopted ISO20022 standard. For complete list, refer the ISO20022 wiki.