ADOPTION STRATEGIES

As banks transition to ISO 20022, some important choices must be made regarding strategic and technological operations. There are a number of ways banks can approach the adoption, most of which can be grouped into one of three categories

 

Full Migration

Each individual system within a banks’ payment processing chain is upgraded so they can natively accept, process and send ISO 20022 format messages.

 

Simple Translation

Translation tools are used to transform inbound messages into their MT equivalents and outbound messages into their ISO counterparts, while underlying payment and reporting systems remain largely unchanged.

 

Bridged Translation

Underlying payment systems remain largely unimpacted, and messages are translated from MT to ISO formats and back. Overflow information from inbound messages is stored, so it can be reintegrated into the corresponding outbound messages.