This video about ISO20022 migration is in french including french subtitles.
Professionals : Christian GAUME – Expert Cash management – Natixis CIB & Olivier HOLLETTE – Expert Cash management – Natixis CIB
Christian GAUME
The abandonment of these MT formats, which have been in place for over 40 years, addresses three main needs.
The first is to harmonize and eventually connect payment systems through a streamlining of formats on a global scale. This migration has already begun over ten years ago in Europe with SEPA.
The second objective is to enhance compliance filtering capabilities by allowing for better knowledge of the parties involved and the nature of transactions.
Finally, it aims to modernize the end-to-end payment chain to facilitate the emergence of new high-value-added services.
What benefits are there for businesses?
Olivier HOLLETTE
With the widespread adoption of ISO formats, it will be possible to manage only one format, regardless of the nature of the transfer, its currency, or its destination. This streamlining will benefit all players in the chain: customers, banks, and providers. However, the most significant consequence lies in the richness and accuracy of the data. For example, a payment can now be enriched with new data, including regulatory information, such as the Purpose Code required by certain countries for their balance of payments. The execution of the order will then proceed without friction or interruption of Straight-Through Processing (STP). Another example: thanks to ISO-compliant reporting, more precise commercial references will be transmitted end-to-end without alteration. The collection process for the final beneficiary is facilitated, as is the accounting reconciliation for the payment initiator.
What obligations do businesses have?
Christian GAUME
The adoption of ISO formats is primarily mandated for banks. They have already begun this migration in March 2023 for their national or regional systems. In Europe, for instance, with Target 2 for high-value or urgent individual transfers. Businesses have every interest in following suit by aligning with bank-to-bank formats. Otherwise, they would miss out on the benefits arising from the transmission of richer data. The only real obligation for clients by November 2026 is to structure the beneficiary addresses of their transfers. This is to facilitate the fight against money laundering and terrorism financing. They can already accomplish this with the ISO versions they use in SEPA, which they can simply extend to non-SEPA payments, particularly international payments.
How to stay in the loop?
Olivier HOLLETTE
Without the widespread adoption of ISO formats across the entire chain—from initiation to reporting—the benefits will be only partial. By November 2025, banks will have completed their migration. It will then be time for you, the clients, to take over. To this end, the teams at Natixis CIB are already positioning themselves alongside you to assist you in this last mile. So, it’s your turn to act.
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