Financial Institutions Unprepared for Upcoming ISO 20022 Standards
(11 June 2024 – United States) A significant number of United States financial institutions (Fis) are unprepared for upcoming ISO 20022 standards.
Kyndryl, a New York based IT service provider that works with payments companies, says that many financial institutions are not fully equipped to become compliant with new ISO standards, due to come into effect for US financial institutions in November 2025.
German software firm SEEBURGER states that only 63 percent of institutions would be entirely prepared for the 2025 switch, and Kyndryl say that the situation has not improved.
In an interview with Payments Dive, Kyndryl General Manager of Financial Services, Robert Turner, says that “Some of the studies show that some companies out there aren’t ready for the transition. It’s close to 50/50, or at least half have concerns about being ready for ISO 20022. We’re a little over a year away from the time when companies are supposed to be compliant.”
“It’s a big messaging change, and not just messaging on the front end. Some payment systems are not fully integrated end-to-end, and there’s a lot to integrate as they make these changes. There are some data challenges as well. A lot of it is around modernisation or making sure the applications they use are modernised.” Mr. Turner added.
Subscribe