Figure 1: Global ISO 20022 adoption overview 2021 GLOBAL SWIFT Nov 2022 EMEA
TARGET2 & EURO1 (EU) BoE RTGS (UK) BRPS-BESP (RU) SEP/NBU (UA) VIBER (HU)
US
CHIPS Fedwire
RITS (AU) Nov 2022 APAC
BahtNet (TH) RENTAS (MY) CHATS (HK) PhilPaSS (PH) MEPS+ (SG) BI-RTGS (ID)
Aug 2022 Aug 2022
Coexistence period Jul 2024 Enhanced ISO 20022 Oct 2023 Enhanced ISO 20022 Jul 2021 Like-for-like Aug 2022
Corporate bank – Data as of June 2022 1. This overview includes DB Cash Management countries only. Please consult PMPG’s document centre for the most comprehensive list of migrating Market Infrastructures
Mid-2023 Enhanced ISO 20022 2024 (tbc)
2. Like-for-like refers to an approach that implements a subset of ISO 20022 limited to the same functionality as the standard it replaces, e.g. MT
Enhanced ISO 20022 Enhanced ISO 20022 Nov 2022 Enhanced ISO 20022 Apr 2023 Enhanced ISO 20022 (tbc) Coexistence period Q1 2023* Enhanced ISO 20022 Mid-2024 Enhanced ISO 20022 Nov 2023
Enhanced ISO 20022 Mar 2025
Coexistence period Enhanced ISO 20022 Enhanced ISO 20022 Enhanced ISO 20022 Nov 2024 2022 2023 2024 Coexistence period 2025
*The timeline has moved from August 2022 to Q1 2023, but there is still a lot of uncertainty surrounding the migration, due to the ongoing conflict in Ukraine
Source: Deutsche Bank
Manager at Deutsche Bank. By leveraging the Ultimate Debtor/Creditor address information – new to ISO 20022 – banks will, for example, be able to monitor the true initiator and destination of a payment, and better fight fraud as a result. It is not only banks that stand to benefit. Corporates could also gain significantly, with standardised formats and processes for payment reporting and exception handling messages facilitating end-to-end automation, from invoicing and liquidity management to exception handling and reconciliation.
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For example, delays in cross-border
payments are often now caused by the need for manual compliance checks. “Think, for example, of a beneficiary living on Cuba Avenue, Staten Island, New York,” says Christof Hofmann, Global Head of Corporate and Payment Solutions. “Any payment for a beneficiary with this address would likely involve the payment being stopped and manually investigated. In the future, ‘Cuba’ will be provided in the dedicated street name field, enabling this payment to be processed without any disruption, instantly.”
Considering coexistence It is important to note that the promised benefits of ISO 20022 will not be available overnight. From November 2022 to November 2025, there will be a coexistence period in the correspondent banking space during which some financial institutions will begin sending ISO 20022 messages, while others will rely on translation services to continue sending the existing Message Type (MT) messaging format.
Banks remaining on MT should note that, when receiving an ISO 20022 payment message from another agent, some data
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