Key takeaways
- Structured data improves straight-through processing and reconciliation.
- Richer information can support sanctions screening, fraud controls and case management.
- Technology and operations teams need to redesign processes, not simply map message fields.
A payment message is more than a technical instruction. It carries information used by banks, compliance teams, operations, treasury and customers.
ISO 20022 provides a richer data structure that can support better automation and transparency. But simply translating legacy messages into a new format does not capture the full benefit.
Institutions need to examine how payment data is collected at source, validated, screened, routed, reconciled and stored. Better data can enable better pre-validation, fewer exceptions and more effective investigation.
The opportunity is therefore operational as much as technological. Payment modernisation should be treated as an end-to-end transformation programme.
CCPI note: This article is an independent professional perspective for information and discussion. Regulatory, legal and tax matters should be verified against the latest official requirements and, where appropriate, with qualified professionals.