(20 August 2024 – Global) As SWIFT advances toward the November 2025 deadline concluding older message type (MT) format coexistence, a major effort is being made to prioritise the adoption of ISO20022 payment instruction messages.
By 2025, ISO20022 will be the common language of the global financial industry. Full conversion to the standard is set to enable banks to take advantage of benefits such as structured data to better understand payments and clients.
Banks must start moving quickly to set aside enough time for the upcoming 2025 deadlines, recognising that preparation is key to success. It is critical to have a program implemented ahead of time as time will start to move quickly as the deadline approaches.
The Global Treasurer reports that as the November 2025 deadline approaches, financial institutions must accelerate their efforts to fully transition to ISO20022, focusing on payment instruction messages. The first year of coexistence between ISO20022 and legacy MT formats has produced several key observations and best practices including phased adoption, flexibility, data quality, operational continuity, interoperability, risk management, customer service, innovation opportunities and testing benefits.
“JPMorgan has invested a lot of effort in defining and maintaining over 5,000 end-to-end test cases, so we could prove our ISO capability based on the roles we can play as a bank. Our architectural approach was to deploy ISO20022 native components wherever possible and manage legacy systems issues by holding a golden copy of the native ISO 20022 message” commented JPMorgan Global Lead of Clearing Transformation, Colin Williams.
“Our ISO20022 Global Program has a workstream dedicated to business readiness and commercialisation, which continuously provides materials to all JPMorgan’s Sales, Operations and Client Service teams, including a detailed list of frequently asked questions. This working group also has numerous resources available to all clients that holds all ISO20022-related information which provides insights into our lessons learned and aims to help others financial institutions to adopt ISO 20022 standards” stated JPMorgan ISO Head of Business Readiness & Commercialisation, Jesús De Lara.