ISO 20022 benefits rely on quality of data inputs
Corporates face challenge and opportunity as the payments industry moves towards implementation of the ISO 20022 messaging standard.
Migration from legacy payments messaging platforms is often primarily described as a bank-facing issue. However, the ability to send richer reference data and attachments alongside payment messages presents opportunities to address corporate pain points, particularly around payment automation and reconciliation.
As well as replacing various bank-specific formats, ISO 20022 supports additional data elements that are carried along the end-to-end payment chain, including the account statements that corporates receive from their bank. Enriched payment data also enables more advanced analytics for better liquidity forecasting or improved risk insights.
The remittance information in ISO 20022 payment initiation messages enables automatic reconciliation, invoice matching, and account receivables and payables management. When integrated with corporate enterprise resource planning (ERP) systems, it could also support automated cash-position reporting and enhanced traceability and assurance of payments.
Extra data for creditor and ultimate parties will need to be provided by the corporate originating the payment
According to the Celent report ‘Expectation versus reality for payments data monetization’, the implication is that payments data will not just become richer thanks to ISO 20022 but that this data will flow in real time.