Is the market ready for the end of the coexistence of ISO and MT messages? What needs to be accomplished in the coming months to fully realize the benefits of ISO 20022?
The afternoon session on the conclusion of the ISO 20022 coexistence period was moderated by Kjeld Herreman, founding partner at Paylume. The panel featured experts such as Christopher Gardner, ISO 20022 programme and change execution director at Deutsche Bank; Domenico Scaffidi, market infrastructure advisor at the Bank of England; Justin Brearley-Smith, global product lead at J.P. Morgan; Sylvain Dauge, product manager for cash clearing services at Société Générale; and Vitus Rotzer, chief product officer for financial messaging global at Bottomline.
Herreman outlined the specifics of the upcoming ISO 20022 deadline, referencing Swift statistics forecasting 91% readiness by November 2025. In a poll of attendees, 43% reported having completed all outgoing messages in ISO 20022. Brearley-Smith noted that while the audience appears ahead of global adoption rates, he anticipates a significant increase in adoption leading up to the FedWire migration in July. He predicted a potential plateau before a major uptick in November, coinciding with another significant change: the introduction of hybrid addresses.
The panel discussed the necessity of in-flow translation for many organizations before achieving full ISO-native capability. Rotzer compared this transition to a traffic jam during a busy weekend, emphasizing the importance of effective management across different systems. He warned that those who have not yet begun the transition could end up behind schedule.
Scaffidi highlighted the challenge for smaller institutions, which may lack the resources to migrate fully to ISO-native systems, raising concerns about systemic risks as a result.
A subsequent poll revealed that 60% of organizations preferred a fully native approach, while 23% were using a hybrid model, and 18% were primarily relying on translation.
Gardner acknowledged the positive trend toward native processing but recognized the necessity for some organizations to utilize translation due to architectural complexities. He noted that banks would need to adapt to new requirements from payment market infrastructures, such as structural remittance information for certain payments.
Importantly, the November deadline marks only the beginning of the transition, with Brearley-Smith likening ISO 20022 to the first installment of a blockbuster franchise. He mentioned that reporting and advising would become the next priorities for migration.
Gardner cautioned against underestimating the complexities involved in later stages, such as case management and investigation processes, and urged stakeholders to begin preparations promptly.
Finally, the panel emphasized the importance of engaging with corporates to ensure the development of practical use cases, arguing that successful migration hinges on a holistic approach rather than a mere compliance exercise.