SIBOS, the global event that brings the financial world together to discuss significant industry issues, exchange ideas and views, learn, network and execute business, is now fast approaching and with it – growing excitement around ISO 20022. News of the Federal Reserve Banks imminent announcement of a timeline and approach for converting the U.S. wires systems is expected at the conference hosted by SWIFT. Developments from other geographies like Canada and Australia are also anticipated…So why all the hype? What is ISO 20022? What does it offer?
This is the first in a two-part series blog recapping highlights from the recent NACHA Annual Conference
Didn’t get a chance to attend this year’s PAYMENTS 2015 conference? Q INSIGHTS was there for all the action to bring key themes and observations from the event to you.
ISO 20022 is being lauded for its potential to re-engineer the payments industry. It could one day replace a fragmented landscape of standards to offer global coherence and interoperability. New payment market infrastructures initiatives are being designed based on the foundation of ISO 20022; there is also an increased adoption of the standard by financial institutions and businesses beyond the Single European Payments Area (SEPA). Now the question is, where do we stand in the U.S. with ISO 20022?
One of the biggest headaches that companies face today is the posting and reconciliation of payments. Details such as invoice number, customer account, and other key information that help explain the purpose of the payment often do not travel with the payment. In turn, this fragmented flow of remittance data leads to inefficiencies and errors related to the manual re-keying of information. Exacerbating the exchange of business-to-business (B2B) remittance data are the multiple business formats and industry practices for remittance information, combined with competing standards and proprietary technology.