ISO 20022
Implementing a new payments language isn’t straightforward:
Whilst introduced nearly 20 years old, the ISO 20022 standards have only begun their journey to widespread adoption in the last few years. Designed to produce a global standard for the electronic communication and interpretation of financial transaction data, its goal is to enable seamless payments within and across borders, encouraging Fintechs and incumbents alike to take advantage of the benefits it offers to innovate around the services offered to customers.
ISO 20022 brings some great opportunities, including richer data models, flexibility, interoperability, and XML formatting. The adoption of ISO 20022 is expected to bring benefits such as enhanced efficiency in processing payments, improved data quality, reduced errors, and better compliance with regulatory requirements. Many financial institutions and systems worldwide are in the process of transitioning to this standard, with key dates for implementation varying by region and application. The Organisations set to drive the biggest returns are those who recognise the transformative nature of the services that can be offered and invest in ISO20022 native applications.
However, implementing ISO 20022 is by no means an easy ride. Without the right planning and groundwork, it can be an expensive & complex mission, which drains resources.
Our experience of working on these implementations with clients can be distilled into these 5 key recommendations:
Data Strategy/Adoption: Understanding the new language of ISO 20022, which offers a structured format and new data model, is essential. Prioritising industry compliance and commercialising new features is recommended. It’s important to support structured data requirements, considering the impact on storage and leveraging 3rd party information with a data inventory.
Phasing Strategy: Early assessment of existing correspondent and FMI relationships is critical, along with defining a clear rollout strategy. Banks must navigate new compliance challenges and decide on approaches like Core Payment System replacement or Legacy Systems with ISO wrappers.
Governance: Effective Organisation-level planning, clear communication strategies, and executive-level sponsorship are crucial. There should be clear program outcomes and agreed-upon criteria for various phases of the migration.
Testing and Validation: A comprehensive testing approach including E2E validation, internal and external stakeholder communication, and client testing using Swift MyStandards is highly recommended. Testing should cover real production use cases, involve other banks, and include both “happy” and “unhappy” flows.
Post Implementation: The migration normally involves three phases – the start of coexistence, migration to MX across MT 1, 2, and 9 message categories, and the adoption of enhanced and structured data. It is crucial to engage with corporate clients early for the adoption of enhanced data.
The implementation of ISO 20022 is a significant development in the payments system, offering benefits in terms of information and structured data leading to potential process automation. The journey is long and challenging, requiring continuous updates and resources.
May Business Consulting has deep expertise and marries both subject matter experts with Programme Managers who’ve lived the migration journey. They can help you to plan and execute an ISO 20022 migration project effectively, addressing challenges related to governance, data strategy, business phasing, testing, and post-implementation evolution. Get in touch for further information using the link below to speak to our lead Partner.
Data-Driven Decisions
How Analytics Can Power Your Growth and Success
In today’s data-saturated world, the ability to transform raw information into actionable insights is no longer a luxury, it’s a necessity. Collecting and storing data has been a real focus in large organisations now for several years and we’ve seen cloud-based data warehouse programmes deliver great success. Yet, many are falling short of realising truly transformative outcomes. Storing and accessing the data are just one half of the equation, the other is providing actionable insights.
This is where data analytics comes in. Bringing the power to propel your business to new heights in 2024 and beyond. However the effectiveness of analytics hinges on one crucial factor: presentation. Data, presented haphazardly, is akin to a hidden treasure map – cryptic and confusing, but with the potential to lead to great discoveries.
Gone are the days of static spreadsheets and obscure charts. Modern technology presents a buffet of options for data visualization, each vying for your attention and understanding. Let’s explore some of the most powerful weapons that should be in your data presentation arsenal:
Interactive Dashboards: Forget stale and formulaic reports! Dynamic dashboards pulsate with life, allowing users to drill down into specific data points, filter information on the fly, and uncover hidden patterns with ease. Think real-time sales figures dancing across a screen, or customer demographics morphing as you adjust filters. This level of interactivity breeds Senior engagement and drives informed decision-making.
Data Storytelling: Numbers have a voice, and talented data architects know how to make them sing. By weaving narratives through your data, you transform dry statistics into compelling stories that resonate with stakeholders. Consider crafting infographics that depict a journey or use animation to depict trends over time. Remember, a well-told story sticks, and so does the data within it.
AI-powered Insights: Artificial intelligence is no longer science fiction. Today, AI tools can analyse vast datasets, discover hidden correlations, and even predict future trends. Imagine an AI assistant whispering strategic recommendations in your ear as you navigate complex business decisions. The power of AI-powered insights lies in their ability to automate tedious analysis, freeing your human mind to focus on interpretation and action.
Harnessing the full potential of this technological smorgasbord requires skilled resources: data consultants and architects. These experts don’t just crunch numbers; they understand the art of data presentation. They know how to translate complex datasets into digestible visuals, tailor dashboards to specific user needs, and leverage AI tools and insights for maximum impact.
Here’s how data consultants and architects can turn good information into great management tools:
–Needs Assessment: They’ll work closely with you to understand your business goals, identify key performance indicators, and tailor data presentations to inform your unique decision-making processes.
–Technology Integration: They’ll navigate the ever-evolving landscape of data visualization tools, recommending the right platforms and technologies to fit your budget and needs.
–Training and Support: They’ll ensure your team is comfortable using the new tools and empowered to extract maximum value from the data.
In 2024, success doesn’t belong to those with the most data, but to those who use it effectively. By embracing innovative data presentation techniques and partnering with skilled data consultants and architects, you can transform the information you gather every day in your operations into a powerful engine for growth. Remember, data is the fuel, but presentation is the engine that drives your 2024 success.