ISO 20022: Paving the way for financial innovation
Financial institutions face challenges in achieving interoperability and operational efficiency due to siloed payment operations. ISO 20022, a universal messaging standard for all types of payments, holds the potential to catalyze growth and innovation. This solution paper underscores the significance of adopting ISO 20022 native payment hub solutions. It explains how native solutions can help financial institutions in creating new revenue streams through ISO 20022 business use cases.
Legacy financial institutions, burdened by outdated payment systems, struggle to adapt to frequent regulatory changes, market competition from fintechs, and rapid innovation. The ISO 20022 financial messaging standard, often viewed primarily as a regulatory compliance mandate, can serve as a steppingstone for growth and innovation if integrated with intelligent native payment hub solutions.
This solution paper highlights the drawbacks of relying on tactical fixes like using ISO 20022 interpreters. It explains how adopting an ISO native payment hub solution, such as Finastra Global PAYplus, can provide financial institutions with the agility, scalability, and data uniformity needed to thrive in the rapidly evolving digital payments ecosystem. Additionally, it explores the potential for revenue enhancement and monetization through ISO 20022 business use cases in areas such as analytics, business intelligence, AML, and more.
