The Importance of Data Structure: ISO 20022 and the Future of Payments

16 Treasury and Trade Solutions Conclusion The migration to ISO 20022 is challenging for the industry and will require significant effort from all institutions. It is not simply a shift from one messaging standard to another, but a change in data models and a move to a new language, which needs to be learned by both humans and machines. This new standard and language will need to be incorporated into all processes and procedures throughout the payments chain: a truly collaborative effort across the industry is essential. Despite the scale of the challenges, within the next few years, ISO 20022 is expected to dominate high- value payments, supporting over 87% of transaction values worldwide. It is therefore important for FIs worldwide to begin planning for full integration of the standard into their platforms as soon as possible. The rewards on offer justify the work required. If implemented fully, with a globally consistent approach, ISO 20022 has the potential to enable transformational technologies such as AI and ML, driving greater efficiency, digitization, and interoperability across the globe. As the world becomes increasingly complex and digital, with a slew of new market entrants, FIs that are prepared will realize the greatest benefits from ISO 20022 and will be best positioned to lead the industry in the future.