ISO 20022
The end of the SWIFT co-existence period is fast approaching. But there’s even more to think about in 2026 when unstructured addresses are nixed. Speak to our ISO 20022 experts today.
What is ISO 20022?
ISO 20022 is a global standard for financial messaging, providing a common format for the development of messages used in the financial industry. It aims to standardize the way financial institutions communicate by offering a unified methodology for message creation, regardless of the specific communication channel, including APIs.
With ISO 20022, banks will be readily able to integrate with one another’s APIs, seamlessly transfer data and facilitate payments. ISO 20022 is the messaging standard that will enable new financial innovations such as Instant Payments, Open Banking and Interoperable cross-border payments.
ISO 20022 has been around since 2004, but many banks are only just beginning to migrate their communications framework. Banks have until November 2025 to ensure they are compliant with ISO 20022. But the work doesn’t end there.
The ISO 20022 deadlines are approaching
Despite extending the original deadline to November 2025, many banks are still struggling in their efforts to implement ISO 20022. At this point, SWIFT will transition from its legacy MT messaging to ISO 20022 for cross-border payments. Institutions that are not ready by November 2025 face inevitable disruptions.
35%
As of December 2024, just over a third of financial institutions had initiated in ISO 20022 – way below industry forecasts.
63%
And a 2023 study by Seeburger found that only 63% of banks feel prepared for the switch to ISO 20022, meaning over a third are unready.
43%
A Bottomline poll found that nearly half of banks find end-to-end processing chain readiness the greatest challenge of ISO 20022, while 41% said it was supporting additional data.
Structured addresses
After November 2025, banks will need to prepare for yet another major shift: structured addresses.
Starting November 2026, unstructured postal addresses will no longer be supported in CBPR+ messages. From this point on, swift, and payment schemes, such as SEPA and CHAPS, will begin rejecting transactions with unstructured data. Banks need to adopt either a fully structured or hybrid address format to become compliant. Neglecting this may lead to payment failures, processing delays, higher costs, false compliance hits, and increased scrutiny from regulators and correspondent banks.
The benefits are far-reaching. Structure will bring clarity and precision to payments, improving financial crime compliance, sanctions screening, and processing speed.
But there are big, expensive hurdles to overcome first. Namely, updating libraries of messy customer data.
How will ISO 20022 benefit you?
ISO 20022 will enable banks and PSPs to achieve new standards of interoperability. The benefits from this global standardization range from fraud and anti-money laundering protection to new data based overlay services. The more banks are able to communicate with each other in these new format, the more benefits will be realized.
Global standardization
With banks able to exchange data and payments messages in standardized formats, ISO 20022 enables financial revolutions such as Instant Payments, Open Banking and Cross-border (interoperable and instant) Payments.
Richer data
ISO 20022 messages carry more detailed payment information. This will help to streamline reconciliation, allowing overlay data-based services.
Fraud and AML improvements
ISO 20022 improves security and compliance by making it easier to detect fraudulent transactions and align with global regulatory AML frameworks.
Future-proofing
Even as regulation and compliance changes, ISO 20022 can adapt seamlessly to make sure your bank delivers long-term strategic value.
How we can help
FastStart Assessment
Get the confidence to kick-start your payments project with our FastStart Assessment. FastStart is a best-in-market framework for deep-dive requirements gathering and end-to-end impact analysis. We’ve helped multi-national banks prepare for ISO 20022 in as little as six weeks.
Deep Dive
We'll analyze your current solution, workflows, and rules, focusing on people, technology, processes, and clients.
Identify Impacted Areas
We'll then determine which areas are affected and perform a project health check.
Articulate Key Challenges
We'll then clearly outline and share the primary challenges identified during the analysis.
Develop a Planning Phase Strategy
Finally, we'll create a comprehensive plan to guide the planning phase moving forward.
Global payments experts
Why choose RedCompass Labs?
We’ve helped some of the biggest banks on the planet embrace the future of payments.
22+
years in payments modernization
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countries
200+
years combined banking experience
300+
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How RedCompass Labs can help
Prepare for ISO 20022 with RedCompass Labs
If you’re struggling to get to grips with ISO 20022, RedCompass Labs is here to help. Speak to us to get started on your migration to ISO 20022 right away.