What is ISO20022 & How will it impact me?

Question

ISO 20022 is an international financial messaging standard designed to improve the efficiency, transparency, and security of financial transactions. It uses structured data formats (like XML) to allow richer, more detailed information in financial messages, making payments faster, more accurate, and cheaper.

Key Impacts of ISO 20022:

Faster Payments: Cross-border and domestic payments will be quicker, with lower fees and better transparency.

Improved Data: Richer transaction details will enhance record-keeping and make it easier to track payments.

Better Customer Service: With improved data quality, customer support will be more accurate and responsive.

Security and Compliance: ISO 20022 helps reduce fraud and improve regulatory compliance, making transactions safer.

Innovative Services: It opens the door for new financial products and more seamless, interoperable services.

Lower Costs: Financial institutions’ greater efficiency may lead to reduced fees for consumers.

Business Benefits: Businesses will benefit from improved automation in invoicing, payments, and reconciliation.

Personal Impact:

While the shift will mostly affect financial institutions, everyday consumers will experience faster, cheaper, and more secure transactions, both for domestic and international payments. You might notice smoother payment experiences, especially with cross-border transfers or services in fintech platforms. In my humble opinion outside of mainstream, you will become your own bank. This is not without issues, the end user will be responsible for all aspects of this new found liberty that for what seemed like an eternity was felt by only the affluent part of society.