ISO 20022: Making Payments Smarter Not Harder

There has been a lot of noise about ISO 20022 lately and if you don’t live in the world of payments, you could be forgiven for thinking it is just another system upgrade, but it is actually a pretty big deal.

ISO 20022 is a new global messaging standard that’s changing the way payment information is structured and shared. For those of us working behind the scenes, it’s not just interesting, it is very relevant.

For clients, it supports digital transformation and automation, in financial services and beyond.

ISO 20022 is being adopted by major payment systems around the world, including SWIFT, CHAPS, and Target2. Unlike traditional MT messages (the structured financial messages used in the SWIFT’s legacy system), which are limited in structure and content, ISO 20022 allows for richer, more consistent, and machine-readable data.

That results in more clarity across jurisdictions, fewer errors, and better visibility across the full payment flow.

So, what does ISO 20022 mean in reality?

• Cleaner data – fewer payment rejections and less back-and-forth with banks
• Consistent formats – less manual tweaking across different providers
• Better automation – fewer exceptions and easier reconciliation
• Better data matters – if the information going into the payment isn’t clear or accurate, the payment might fail
• Ongoing change – banks are adopting at different speeds, so staying on top of it is key

For operations teams, the benefits could be significant. Cleaner data could lead to fewer breaks, easier reconciliation, and faster resolution of exceptions. Over time, we may see a reduction in payment related queries, stronger reporting, and more intelligent automation across the process. It also supports improved compliance and fraud monitoring, as the structure of the messages allows for better screening and more detailed audit trails.

• In turn, this results in tangible benefits for clients:
• quicker processing times
• fewer delays due to incomplete or inconsistent payment details
• smoother cross-border transactions
• a better client experience overall.

It also strengthens data quality, which feeds into more accurate reporting and enhanced financial controls

The Challenges and Overcoming Them

That said, implementation is not without its challenges. From my own experience, one of the biggest difficulties has been navigating the differences in how and when banks are adopting the standard. Each provider is working to their own timeline and interpretation, which makes it easy to lose sight of what is required and when. That is why it is so important for businesses to stay actively on top of the implementations, ensuring payment platforms, file formats, and API connections are updated in line with evolving bank requirements but doing that in a live environment while managing daily volumes comes with its own complexity.

Staying close to your providers, asking questions early, and keeping communication open makes a real difference. Thankfully, we have been lucky enough to have Bláthnait Walker and an excellent wider team helping us on this journey and acting as our translator when the language gets a little too technical.

From my perspective, this is where strong operations teams add real value. Whether it is identifying gaps in payment data, supporting client teams through the transition, or flagging issues early, we play an essential role in making this work smoothly. The attention to detail we apply now will help create a more scalable and resilient process in the future.

Ultimately, ISO 20022 is not just about technology. It is about enabling more efficient, secure, and transparent payments. It moves the industry toward smarter infrastructure and stronger data quality.

While the transition will take time, those who engage early will be better positioned to deliver value and not just for their business, but for their clients too.

JTC’s Banking and Treasury team has been liaising closely with IT, our banking partners, and Trident developers to ensure our systems are updated to accommodate the additional information required under ISO 20022 – such as purpose codes and beneficiary addresses.

This means that when client teams instruct payments, they are prompted to provide the correct information upfront, helping to avoid unnecessary delays. The B&T team will also be providing communications to the relevant business areas each time a change is implemented, to ensure everyone remains aligned and informed.

For more information on how making or instructing payments can be optimised for you, please contact Katie directly.