It was announced this week that the Payments Council have reached an international agreement for real time payments to cooperate with the ISO 20022 standard.
The Payments Council have now published an ISO 20022 fact sheet which explains how the regulation will be implemented in the UK payments industry.
According to this fact sheet, the ISO 20022 standard has been developed to facilitate electronic data interchange between financial institutions and supports interoperability between all parties part of the payments process.
The fact sheet also explains how ISO 20022 will become a common language for all financial communications, regardless of where in the world the business is based.
The decision to implement internationally was made after over 40 financial institutions, international clearing houses and payments associations from around the world met in London in April to discuss the use of the ISO 20022 standard.
At the roundtable, it became evident that working together was the best way to ensure a greater chance of interoperability in the future.
Different versions of the ISO 20022 standard have evolved in the market, but decision makers at the meeting in April thought it would be best to embrace these variances, and SWIFT agrees with this. “As no two organisations are the same, SWIFT recognises that there is “no one-size-fits-all” approach to the implementation of ISO 20022. However, given the extent of ISO 20022 global adoption, it is likely that other communities have undertaken similar implementations within similar domains,” SWIFT says.
Interim chief executive of the Payments Council, Maurice Cleaves, says that communicating with international clients is advisable when developing payment systems. “Collaboration is often the key to success in the development of payment systems, so we are delighted to facilitate international dialogue to help with coordination on real time payments. The UK payments industry has a long history of being committed to common industry standards, and this meeting marks another important milestone,” Cleaves said.
Cleaves continued to say that the “Payments Council team involved has made a major contribution to ISO 20022 and has been a driving force in the development of a more efficient and faster way of implementing message standards that will serve as the basis for long-term financial services solutions.”
The global provider of secure financial messaging services, SWIFT, has also published a report called “Best Practice for Successful Implementation of ISO 20022 for Financial Institutions”, so that businesses can understand how to make informed decision when implementing the standard.
According to the report, SWIFT is attempting to ensure that the financial industry is moving towards a more coordinated use of ISO 20022.
Before the end of summer 2015, the aim is to deliver an initial variant of ISO 20022 messages for real time payments.
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