The UK payments industry is moving to ISO 20022 which is the emerging global standard for payments messaging. This standard creates a common language for payments data across the globe.
Better data in payments promises to deliver significant long-term benefits for the economy. To adapt to the new messaging standard and accompanying data requirements, your organisation might have to make process and technology changes.
In 2018, the Bank of England, in conjunction with Pay.UK and the Payment Systems Regulator (PSR), consulted on the adoption of a common global messaging standard, known as ‘ISO 20022’, for payments in the UK. On 29 November 2018, we published our response.
Financial institutions are core users of the high value payment system.
Corporates use high value payments for buying supplies and paying tax.
ISO 20022 will need changes to be implemented in payment systems.
The members of many trade bodies and interest groups will be affected by the changes.
Solicitors and conveyancers use high value payments for property transactions.
ISO 20022 can adapt more easily than current messaging standards. So it’s more responsive to changes in the economy, emerging technologies and innovation.
Over 70 countries have already adopted ISO 20022, so messages will be harmonised with payment systems around the world.
Richer data will make it easier for businesses to detect fraud and help target financial crime.
ISO 20022 will be used across many payment systems. This improves resilience by allowing re-routing of messages which reduces the impact of outages on users.
More data can be carried. It enables more detailed and better structured reference information.
More flexibility means more competition and innovation in the financial sector. Better data may lead to product innovation.
Less need for banks to make manual interventions. Potentially fewer delays for the end customer.
Enriched data will improve analytics. More efficient data collection may improve the decision making.
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