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The Bank for International Settlements (BIS) Committee on Payments and Market Infrastructures (CPMI) has outlined key steps to accelerate the global adoption of harmonized ISO 20022 data standards, designed to enhance the efficiency of cross-border payments.
“This announcement aims to clarify the medium-term governance and maintenance of the harmonized data requirements during the global transition to the ISO 20022 messaging standard,” the CPMI stated in a press release on Tuesday (Jan. 7). “These steps also support industry-led initiatives to create ISO 20022 market practice guidelines for cross-border fast payments.”
To encourage widespread adoption, the CPMI will maintain the harmonized ISO 20022 data requirements through at least 2027. According to the release, a joint panel involving members of ISO 20022 global market practice groups will be formed, and semi-annual meetings will be held starting this year.
Additionally, the committee will advocate for the development of global ISO 20022 market practice guidelines for instant payments. CPMI emphasized that this initiative aims to ensure cross-border payments are secure and efficient.
Another focus of the committee is to collaborate with payment system operators and service providers, urging them to implement the harmonized data requirements by the end of 2027.
Interlinking fast payment systems (FPS) across jurisdictions has been identified as a crucial step in enhancing cross-border payments by making them more cost-effective, faster, accessible, and transparent. This was underscored in October when BIS highlighted the CPMI’s reports on facilitating interoperability and interlinking of payment systems.
“The increasing use of application programming interfaces (APIs) and the adoption of the ISO 20022 financial messaging standard have created new opportunities for payment system interlinking,” the BIS noted at the time.
The ISO 20022 standard, set for adoption by Federal Reserve banks in March, is seen as a transformative force in global finance. Its ability to improve data richness and foster interoperability can reduce friction and unlock innovations in the movement of money worldwide. By laying out these strategic steps, the BIS underscores its commitment to a seamless global transition to the ISO 20022 standard, paving the way for a more integrated and efficient payments ecosystem.
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