Is ISO 20022 a replacement for SWIFT?
What is ISO 20022? Executive Summary: ISO 20022 is an emerging global and open standard for payments messaging.
or according to Wikipedia "is an ISO standard for electronic data interchange between financial institutions. It describes a metadata repository containing descriptions of messages and business processes, and a maintenance process for the repository content"
What are the benefits of ISO 20022? According to the ISO 20022 website it lists the following benefits
- Richer, better structured and more granular data
- Quality data means quality payments
- Improved analytics, less manual intervention
- Supporting end-to-end automation
- Using modern technology
- Worldwide adoption
My 2 cents cost adjusted for inflation... on their hints which can be found by quickly scanning my underlining! Anyone paying attention already knew this would be their next move. Granular data i.e. tracking to allow analytics (AI/ML) to help understand who is spending what, where. Global adoption.
Will SWIFT just be deprecated or play a role in the new ISO 20022?
- Registration authority - they oversee the registry and its security
- Content contributor - they control the 'programming'
- Market practice facilitator - Market harmonizer
- Knowledge and expertise provider - rest easy as they have the knowledge to make this work
Dummies Guide for ISO 20022 - https://www.swift.com/swift-resource/184556/download
Heads up this site wants a ton of personal info to access this download. I'm sure it will be protected and not shared w/ other parties. LOL
ISO 20022 Resources
I urge EVERYONE to go to this site https://www.swift.com/standards/iso-20022 and read about the intent then review the 'Related Materials section toward the bottom there are a few downloadable documents which don't require any info from your end.
Disclaimer - Nope not financial advice, just passing along prudence. Not an employee nor an agent of these organization bodies.