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ISO 20022 is not a messaging project

Payments1 minute read

Too many institutions have treated ISO 20022 as a messaging upgrade: map the old fields to the new ones, pass the test cases, move on. That meets the deadline and wastes the opportunity.

The data is the point

The standard carries far richer, structured information about who is paying whom and why. Used well, that data sharpens fraud detection and sanctions screening, cuts manual reconciliation, and gives corporate customers a clearer view of their own payments.

Where the value leaks

In most banks the richer message arrives intact at the gateway and is cut down at the first internal system that cannot store it. The core, the fraud engine, the data warehouse and the customer statement each keep only what they always kept. Compliance is achieved. The benefit is not.

The value of richer data is lost at the first system that cannot store it.

Start behind the gateway

The real work is in the systems downstream: what they store, what they pass on, and what they can do with structured remittance data. Map the journey of a single payment from end to end and note every place data is dropped. That map is your real ISO 20022 program.

Daria Vlasenko

Founder and managing partner of Vlasenko & Partners. She writes Notes from the Ledger, a monthly letter on finance and technology.

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