ISO 20022

ISO 20022is anISO standardforelectronic data interchangebetweenfinancial institutions.It describes a metadata repository containing descriptions of messages andbusiness processes,and a maintenance process for the repository content. The standard covers financial information transferred between financial institutions that includes payment transactions, securities trading and settlement information,creditanddebit cardtransactions and other financial information.

The repository contains a huge amount of financial services metadata that has been shared and standardized across the industry. The metadata is stored inUMLmodels with a special ISO 20022 UML Profile. Underlying all of this is the ISO 20022 metamodel – a model of the models. The UML profile is the metamodel transformed into UML. The metadata is transformed into the syntax of messages used in financial networks. The first syntax supported for messages was XML Schema.

ISO 20022 is widely used in financial services. Organizations participating in ISO 20022 includeSWIFT.ISO 20022 is the successor toISO 15022;originally ISO 20022 was called ISO 15022 2nd Edition. ISO 15022 was the successor ofISO 7775.

Parts of the standard

ISO 20022 Financial services – Universal financial industry message scheme.


Part	Part Name
ISO 20022-1:2013	Metamodel
ISO 20022-2:2013	UML profile
ISO 20022-3:2013	Modeling
ISO 20022-4:2013	XML Schema generation
ISO 20022-5:2013	Reverse engineering
ISO 20022-6:2013	Message transport characteristics
ISO 20022-7:2013	Registration
ISO 20022-8:2013	ASN.1 generation

Management of the standard

The Standard is issued byISO Technical Committee 68(TC68), which is responsible for Financial Services in ISO.
The Standard is managed by Sub Committee 9 (SC 9) "Information exchange for financial services".
TheWorking Group 4(WG4), a sub-group of SC 9, who works on the next revision of ISO 20022.
The Standard defines a Registration Management Group (RMG) Composed of senior industry experts. It is the highest registration body.
SEG Standard Evolution Group composed of industry experts in specific business domains of the financial industry
SWIFTis the Registration Authority (RA) for ISO 20022. RA is the guardian of the ISO 20022 financial repository. The AG 1 Group oversees the performance of RA.

Adoption

A 2015 report by the United States'sFederal Reserve Systemclassified Europe having "mature adopters" of ISO 20022;India,South Africa,Japan,Singapore,andSwitzerlandas having "growing adopters"; andAustralia,Canada,theUnited Kingdom,andNew Zealandas having "interested adopters". The report concluded that the Federal Reserve should push for ISO 20022 adoption within the United States financial system.^[1]

Australia'sNew Payments Platform,launched in February 2018,^[2]uses ISO 20022 messaging.^[3]

The Reserve Bank of New Zealand plans to support ISO 20022 from November 2022 onward.^[4]

Nordic countries launched the P27 payment platform, but that initiative eventually failed in 2023.^[5]

TheEurosystemin March 2023 switched its real-time gross settlement to T2, which follows ISO 20022. The switch involves transactions for settling payments related to the Eurosystem's monetary policy operations, as well as bank‑to‑bank and commercial transactions. TARGET2 previously handled transactions for over 2000 G€ per day.^[6]

In the United States, TheFederal Reserve'sFedNowinstant payments service uses ISO 20022 messaging.^[7]ItsFedwirefunds transfer service will migrate to using ISO 20022 messaging in March 2025.^[8]The privateClearing House Payments Company,which operates the competing RTP instant payments service uses ISO 20022 messaging. ItsCHIPSfunds transfer service migrated to using ISO 20022 in April 2024.^[9]

References

^"Strategies for improving the U.S. payment system"(PDF).Federal Reserve System.26 January 2015.Retrieved2015-05-16.
^"The New Payments Platform Launches"(PDF).NPPA.13 February 2018.Retrieved2019-03-19.
^"The Platform".NPPA.Retrieved2019-03-19.
^"Moving to ISO 20022".RBNZ.Retrieved2022-09-06.
^Anupam Majumdar & Simone Remba (25 April 2023)."P27: Lessons Learned from the Latest Failure in Pan-European Payment Collaborations".Flagship Advisory Partners.
^"Successful launch of new T2 wholesale payment system".European Central Bank. 21 March 2023.Retrieved2023-03-21.
^"The FedNow Service Technical Overview and Planning Guide"(PDF).Federal Reserve.2023-04-23.Retrieved2023-07-20.
^"Fedwire Funds Service ISO 20022 Implementation Center".Federal Reserve.Retrieved20 July2024.
^"CHIPS Network Successfully Migrates to ISO 20022 Message Format".The Clearing House Payments Company.10 April 2024.Retrieved20 July2024.

External links

iso20022.orgISO/TC68/20022/RMG – Registration Management Group: Schema, newsletters, publications, extent of global adoption, presentations

[1] "Strategies for improving the U.S. payment system"(PDF).Federal Reserve System.26 January 2015.Retrieved2015-05-16.

[2] "The New Payments Platform Launches"(PDF).NPPA.13 February 2018.Retrieved2019-03-19.

[3] "The Platform".NPPA.Retrieved2019-03-19.

[4] "Moving to ISO 20022".RBNZ.Retrieved2022-09-06.

[5] Anupam Majumdar & Simone Remba (25 April 2023)."P27: Lessons Learned from the Latest Failure in Pan-European Payment Collaborations".Flagship Advisory Partners.

[6] "Successful launch of new T2 wholesale payment system".European Central Bank. 21 March 2023.Retrieved2023-03-21.

[7] "The FedNow Service Technical Overview and Planning Guide"(PDF).Federal Reserve.2023-04-23.Retrieved2023-07-20.

[8] "Fedwire Funds Service ISO 20022 Implementation Center".Federal Reserve.Retrieved20 July2024.

[9] "CHIPS Network Successfully Migrates to ISO 20022 Message Format".The Clearing House Payments Company.10 April 2024.Retrieved20 July2024.

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