Citi Payments Perspectives
16 Treasury and Trade Solutions Citi Payments Perspectives Global Initiatives Payments Infrastructure Developments Regional Developments (North America) In Other Words • Adoption is crucial for the cross- border ecosystem due to enhanced data structure and greater interoperability across financial market infrastructures and the SWIFT network. • ISO 20022 enables faster processing, improved visibility, greater automation and higher STP rates as well as an improved end- user experience. • PMPG report proposes proper usage of payments messaging standards in addition to SWIFT’s central inflow translation to help ensure risk minimization during coexistence period. PMPG Core Principles for a Successful Industry Migration to ISO 20022 The Payments Market Practice Group (PMPG) published “Core Principles for a Successful Industry Migration to ISO 20022.” The aim of the publication is to reiterate the need to transport data without loss across the cross-border payments chain and also provide the industry with a guide to navigate some of the biggest issues with interoperability that the payments ecosystem may face during the ISO 20022 transition period. Some of the key areas raised in this publication are around risk minimization during the coexistence period to avoid loss of data. 12 One of the risk-mitigants being proposed is through proper usage of payments messaging standards in addition to SWIFT’s central inflow translation, which is designed to help non- ISO ready banks to operate until they are ready to transition to the ISO 20022 data model. Further, the document advises banks to support their clients with legacy MT message formats until they are ready to consume ISO 20022 for reporting purposes. Citi ISO White Paper on Better Data Structure A successful migration to the ISO 20022 format for financial messaging has the potential to create significant efficiencies in payments, leading to greater speed, digitization, automation and an improved client experience. In Citi’s ISO whitepaper on Better Data Structure , we explore some of the potential benefits of moving to this new enriched data model for both banks and corporates as well as potential use cases with focus on compliance, operations/investigations and reconciliation. 13 Global Initiatives Financial Stability Board (FSB) Enhancing Cross-Border Payments Roadmap Emerging Payments and Digital Assets Payments Infrastructure Developments ISO 20022 SWIFT Transformation Instant Payments Financial Market Infrastructure (FMI) Interlinkage Initiatives Regional Developments (North America) Immediate Cross-Border Payments (IXB) TCH Request for Pay (RFP) Bill Pay Latest on Fed/CHIPS ISO Timelines Lynx — Canadian High-Value Payment System Glossary
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