ISO 20022 is an international standard for financial messaging that provides a common platform for the exchange of electronic financial messages between financial institutions and other organizations.
It was developed by the International Organization for Standardization (ISO) and is maintained by the ISO Technical Committee TC68 Financial Services. ISO 20022 provides a flexible and extensible format for financial messages, which allows for the efficient exchange of financial data between different systems and platforms. It is widely adopted in the financial services industry, including in areas such as payments, securities, and foreign exchange.
ISO 20022 helps financial firms in several ways:
- Standardization: It provides a common format for financial messages, which allows for the efficient exchange of financial data between different systems and platforms. This standardization helps reduce errors, lower costs, and improve efficiency in financial transactions.
- Interoperability: ISO 20022 enables financial institutions to communicate with each other, regardless of the systems they use. This improves the ability of financial firms to participate in global financial markets and to offer their services to a wider range of customers.
- Straight-through-processing: The use of ISO 20022 enables the automation of financial transactions, by providing a common language for different systems to communicate with each other. This can help reduce errors and costs associated with manual processing.
- Rich data: ISO 20022 provides a rich set of data elements that can be used to convey financial information, allowing for more detailed and accurate financial messaging.
- Innovation: ISO 20022 enables new financial services to be developed, by providing a common format for the exchange of financial messages. This allows for the development of new financial products, such as mobile payments, and services, such as real-time gross settlement systems.
Overall, ISO 20022 helps financial firms to reduce costs, improve efficiency, and increase their ability to participate in global financial markets.
Best,
Rand
I am not a financial advisor. Perform your own research before making any investment. You are responsible for your choices 🙂
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