Thanks to Chloe Jenkins and the UK PMPG for inviting me to talk about Barclays’ migration to #ISO20022, some of the challenges we face with interoperability across schemes and how collectively we move the industry towards harmonization.
Some of the key points made:
-When we all started on this journey we spoke of common standards, harmonization and interoperability but we are already seeing incompatibility between scheme format requirements in addition to lack of clarity on enforcement of the formatting standards.
-The majority of banks are not on ISO native infrastructures and translation and transformation is often required, these incompatibilities result in friction and manual handling.
-Management of these issues will continue to be challenging. Initiatives such as the ‘Interoperability Charter’ advocated by the Bank of England will certainly help and there should be an aim by the industry to iron out the kinks between scheme formats over the coming years to reach the level of harmonization we all seek.
From a client perspective
1. There will always be a role for the bank to play in terms of supporting the data required to be sent by the client even if this sometimes required some creative mapping. For example supporting an LEI on a pain001.v3.
2. Banks need to keep pushing the benefits of ISO20022 to drive up adoption of enhanced data across the industry.
3. The end of co-existence maybe a little further off than planned but there is a long tail of banks who remain on MT and will need to migrate to MX. This could represent a concentration risk as we near the end, and hence lower STP and a high, albeit short term impact on operations and servicing teams.
In summary it was a good session and thanks to Howard Middleton who was covering off topics from a wholesale perspective.
Also, always nice to bump into some old colleagues too, it’s a small world in payments 😄
#iso20022
#payments
#pmpg
Andrew Peck , Julie Timpson , Jemma Parker , Paul Strachan , Barry Trowbridge , Sanjeev Bhatti , Adam Smart , Adam Bealey
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