ISO 20022 not snowed under by icy responses
In the beautiful, pure world we inhabit it’s wonderful to know that the messaging standard ISO 20022 has received love and support.
Over the summer (the UK does have such a season), the Bank of England (BoE), in conjunction with Pay.UK and the Payment Systems Regulator (PSR), consulted on the adoption the common global messaging standard ISO 20022 for payments in the UK.
Their “Consultation Response: A Global Standard to Modernise UK Payments, ISO 20022” has been published and there were over 70 responses from banks, fintechs, corporates, and trade associations. The feedback was “largely supportive” of the proposals.
With the warm and fuzzy industry input, the trio now want to prepare for the next phase of this initiative.
BoE says: “The coordinated adoption of a single standard across UK payment systems should bring significant and long-term benefits for payment providers, and for the businesses and households they serve.”
The move to this new standard will be introduced as part of a renewed Real Time Gross Settlement (RTGS) service for CHAPS payments, and the delivery of a New Payments Architecture (NPA) for retail payments.
In addition to the support, the bank says there was “broad consensus” to introduce the Common Credit Message (CCM), which aims to “harmonise” messaging across the UK’s main interbank payment systems.
There was “wide support” for how the CCM will be introduced for CHAPS payments, including when additional data such as the use of legal entity identifiers (LEI) for transactions between financial institutions, will become mandatory.
The regulators explain that certain changes have been made to the proposals, to reflect industry feedback since the consultation was launched, and these will be reflected as they move to implementation.
As reported last month, the bank wants people for its new panel for payments messaging standards. An open call has been issued for those wishing to join a newly created Standard Advisory Panel.