Understanding the complexity of ISO 20022 as a payments standard
ISO 20022 introduces 750 new business components, and more than 1900 new message definitions. Understanding the rich, structured data and the business rules is of utmost importance when preparing to migrate to ISO 20022.
Need for a migration strategy and execution plan
National regulators have set different deadlines for ISO 20022 adoption, meaning that banks operating across borders need to carefully plan their migration strategy with a detailed implementation plan.
Understanding the migration risks and preparing mitigation strategies
Banks should consider the risks associated with a change as transformational as ISO 20022, and create associated mitigation strategies.From a regulatory compliance perspective, managing and storing new, additional transaction information while retaining old data also poses challenges. The change to this new format means a variety of downstream impacts; for example, complexities in reporting, additional costs of analytics and data storage.