What is ISO 20022?
ISO 20022 represents a major evolution in electronic data interchange within the financial sector, introducing a new international standard that revolutionizes the way financial transactions are processed and integrated into the digital value chain.
It unifies current payment standards, procedures, formats and documents within a single document: the QR invoice. This change enables more efficient transaction management, promoting better integration of interbank exchanges and more agile, secure payment management.
With the adoption of the new ISO 20022 standard, financial institutions, originators and other stakeholders benefit from an ISO 20022 XML format for messages, ensuring uniformity of postal and structured addresses worldwide. Scheduled for gradual implementation, with milestones in November 2025 and already since March 2023 for certain formats such as CFONB 320 in XML format, this standard promises to substantially improve payment management and the security of financial processes on a global scale.
How does ISO 20022 affect you?
The new ISO 20022 standard affects you directly if your business involves the use of enterprise software for financial management, such as transfers, direct debits, notifications and reports, or payment slips.
This standard, which establishes a global framework for interbank exchanges and payment management, uses the XML format to standardize communications between financial institutions worldwide.
Since its launch, it has aimed to simplify and secure financial transactions through the integration of ISO 20022 XML messages, replacing earlier formats such as CFONB 320. By adopting structured addresses and greater precision in originator data, ISO 20022 facilitates day-to-day operations, guaranteeing smoother interaction and improved integration with global banking processes.
Why adopt ISO 20022?
Adopting the ISO 20022 standard is a strategic move to align payment management practices in Switzerland and beyond, with international standards, in particular the Single Euro Payments Area (SEPA). This standard is a means of harmonizing payment traffic worldwide.
Collaboration between the various stakeholders, such as SMEs, software manufacturers and financial institutions, is crucial to the success of this complex transition, which began in March 2023 and will run until November 2025.
As a software publisher, keeping up to date with the evolutions of this new ISO 20022 standard enables us to respond effectively to the need for modifications to enterprise software, bringing significant added value in terms of payment management, thanks to better structuring of postal addresses and increased use of ISO 20022-compliant XML messages. As a result, companies benefit from smoother, more secure integration of payment processes into the overall framework of financial transactions.
What are the benefits of ISO 20022 for companies?
The benefits of ISO 20022 are numerous, positively impacting the efficiency, accuracy and security of global financial transactions:
Harmonization of procedures, standards and formats: This standard ensures more transparent and simplified payment processes, with integrated information through the use of ISO 20022-compliant XML messages, facilitating interbank exchanges and payment management on a global scale.
Increased automation: Companies can automatically compare and match cash receipts via their accounting software and trigger payment orders directly, optimizing cash management and increasing day-to-day efficiency.
Eliminate duplication: The elimination of redundant payment formats, such as EPO and DTA, in favor of a single format (pain.001), results in greater operational efficiency.
Reduced errors and delays: The adoption of IBAN numbers compliant with the international ISO 13616 standard minimizes input errors and delays, simplifies administration and facilitates automatic payment allocation.
Enhanced legal security: Compliance with anti-money laundering laws (AMLA) and other regulations is ensured, increasing transaction security.
Moins de documents, plus d'informations:
The introduction of the QR invoice reduces the need for paper documents and improves the transmission of information, such as structured postal addresses, via QR encoding.
Implementing ISO 20022: When and how?
The implementation of ISO 20022, a phased initiative to harmonize payment processes, follows a plan set out by the Swiss financial center, aiming for full adoption by 2020. The first steps were taken with the introduction of new payment formats at PostFinance on November 30, 2017, and the transition officially began in mid-2018.
Financial institutions are progressing at their own pace towards this harmonization, under the recommendation to coordinate closely with financial partners to align with the requirements of the standard, including the adoption of ISO 20022 XML messages and the updating of systems for new payment formats. This transition to more efficient and secure financial transactions must be completed by all stakeholders by November 2025.
How to prepare for ISO 20022?
To prepare effectively for ISO 20022, follow these key steps:
Contact your financial institutions for specific information on :
La date de transition vers la nouvelle norme ISO 20022.
Les différentes stratégies de transition vers les nouveaux formats.
Les options de test disponibles.
Check the compatibility of your hardware and software:
Assurez-vous que votre système actuel (configuration du système Giromat/PayPen) est compatible avec les exigences de la norme ISO 20022.
Planning and budgeting :
Planifiez et budgétisez les mises à jour nécessaires de votre logiciel pour répondre aux exigences de la norme ISO 20022.
Set up your software :
Mettez à jour les coordonnées bancaires, numéros de compte et données de base dans votre logiciel pour aligner avec les formats XML ISO 20022 et les exigences en matière d'adresses structurées et de gestion des paiements.
