In response to growing concerns regarding the inconsistent application of the ISO 20022 international messaging standard across various jurisdictions, the Committee on Payments and Market Infrastructures (CPMI) under the Bank for International Settlements (BIS) has released a comprehensive proposal. The proposal, presented in the report “Harmonised ISO 20022 Data Requirements for Enhancing Cross-Border Payments,” outlines a standardized set of messaging standards aimed at fostering greater efficiency in cross-border payment transactions.
Sir Jon Cunliffe, chair of the CPMI and deputy governor for financial stability at the Bank of England, says: “The increased adoption of ISO 20022 by payment systems around the world is a major opportunity to improve their interoperability. But this opportunity will not be realised if jurisdictions implement the international messaging standard for payments in inconsistent ways. The CPMI’s harmonised ISO 20022 data requirements address that risk and provide a common basis for use of the new messaging standard in cross-border payments.”
How far the benefits of adopting these requirements are realised will depend on their uptake. Market participants are encouraged to begin preparations to align with the harmonised ISO 20022 data requirements in earnest and by end-2027 at the latest.
Michele Bullock, former co-chair of the CPMI Messaging Workstream, and governor of the Reserve Bank of Australia, comments: “Implementation of these data requirements will require coordinated effort across the global payments community, but the entire community stands to benefit in the long run from a convergence on these shared data practices.”
—————————————————————————————————
About Innovation Streets:
Welcome to InnovationStreets.com! Get the latest insights from the finance and technology industries. Discover industry updates on Fintech Innovations, Regulatory Developments, Industry Insights, Events, and Banks/Insurance partnerships with fintechs. A platform for C-level executives to submit Thought Leadership content for their peers. Subscribe for updates!
