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.
We have published the final ‘like-for-like’ message set for the Introductory Phase of the ISO 20022 CHAPS migration. This documentation also contains additional information on our migration approach, including updates on the use of enhanced data messages, testing and work to ensure participant readiness.
We have published a separate update to explain the impact of these changes on other RTGS account holders.
The ‘like-for-like’ message set for the CHAPS ISO 20022 migration is available in the SWIFT My Standards application and in Pay.UK’s Standards Source. The Bank has published on two repositories to help industry alignment with other payment systems. Schemas within both repositories will deliver the same outcome when implemented. There are however some technical differences between the MyStandards and Standards Source platforms, which affects the presentation of the schemas. Developers should consider MyStandards to be the golden source and the primary platform for schema documents.
Those using Standards Source are strongly encouraged to read the explanatory note which is available on the platform, which details the differences in presentation.
The Bank has now launched the SWIFT MyStandards Readiness Portal to enable users to begin testing their CHAPS payment messages against the published schemas. We are encouraging all CHAPS Direct Participants to make use of the Readiness Portal to support their internal readiness for the CHAPS ISO 20022 migration. Other users, including indirect participants in CHAPS, software vendors supplying payment systems, and others in the payments industry are also welcome to use it. The Bank will monitor use of the Readiness Portal as part of our approach to assuring industry readiness for the migration.
The Readiness Portal will validate CHAPS ISO 20022 messages to ensure they comply with the schemas and that the format meets the mandatory requirements for a payment message to settle in RTGS. It will also enable users to validate examples of the cash management and administration messages that CHAPS Direct Participants will receive from RTGS, to enable them to prepare their systems to process them. It links with the SWIFT MyStandards documentation, not the Standards Source documentation.
To obtain access to the Readiness Portal, you will need to:
A set of use cases is being developed to support testing and will be shared with Direct Participants via the RTGS Renewal Testing Working Group. Users are also encouraged to use the Readiness Portal in any way which supports the development of their CHAPS ISO 20022 messages.
The Readiness Portal will be available throughout the RTGS Renewal Programme, and will be updated to include the schemas for the enhanced CHAPS ISO 20022 messages later this year.
Please contact rtgsreadiness@bankofengland.co.uk with any questions on the Readiness Portal.
In 2018, the Bank of England, in conjunction with Pay.UK and the Payment Systems Regulator (PSR), consulted on the adoption of ‘ISO 20022’ for payments in the UK. This consultation, together with our response, can be found here:
In September 2019, the Bank of England invited feedback on its proposals to revisit Phase 2 of the implementation approach for the ISO 20022 CHAPS migration. This document sets out the background to this decision and the questions posed to stakeholders.
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.
For more information on the Standards Advisory Panel, please see our Industry Engagement page.
As part of the RTGS Renewal Programme, the Bank will implement ISO 20022 compliant messaging standards in the High Value Payment System. As part of this the Programme set up two ISO 20022 Working Groups.
Details on our current Working Groups can be found on our Industry Engagement page.
If you would like email updates about our RTGS Renewal programme please contact: RTGSEngagement@bankofengland.co.uk.