What Is ISO 20022 And Why Should I Care?

No matter how large or small your business is, if you are a company that sends or receives wire payments you will experience changes in how payment data is structured and reported. 

You may already have heard the term ISO 20022 floating around, but what exactly is it and why is it becoming so important? 

Understanding ISO 20022 

ISO 20022 is a global standard for financial messaging.

It defines a common language and model for exchanging data across payment systems, banks, and financial institutions. Unlike older formats like SWIFT MT, ISO 20022 uses XML-based syntax, allowing for richer, more structured data. 

This means transactions can carry more detailed information such as invoice numbers, payment purpose, and customer references, making reconciliation faster and more accurate. 

Why It Matters To You 

Whether you’re a payment provider, retailer, logistics company or corporate business, ISO 20022 affects how you send, receive, and process financial data.

Here’s why you should care: 

• Better Data Quality: More structured data means fewer errors and less manual intervention. 
• Improved Compliance: ISO 20022 supports regulatory reporting and anti-money laundering efforts. 
• Future-Proofing: Major financial institutions and central banks are adopting ISO 20022. Staying compatible ensures your systems remain relevant.
• Operational Efficiency: Enhanced automation and straight-through processing reduce costs and delays. 

The Cost Of Getting It Wrong 

Failed CHAPS payments can cost up to £35 each. And with 200,000 transactions a day, that’s a potential £7 million lost daily in fees alone. 

Every failed transaction means banks and financial institutions must absorb the cost. With the arrival of ISO 20022, precision in payment addressing has never been more critical.

That’s why leading financial institutions trust Hopewiser – experts in accurate addressing – to reduce failure rates and protect their bottom line.

How Hopewiser Can Help 

At Hopewiser, we understand the challenges of adapting to new standards.

Following our analysis of ISO 20022, we recognise that the compliant structure only accounts for 90% of UK addresses.

For instance, it does not include provisions for flats, floors, or units – common in student accommodations and other residential settings. Additionally, it does not cover house names or addresses that lack a street name.

Using our in-depth knowledge of data, along with our Address Validation and Data Cleansing solutions, we can help you achieve ISO 20022 compliance while maintaining data integrity.

With our solutions incorporated into your ISO 20022 processes, you will benefit from:

• Standardisation across borders and institutions
• Improved data analytics and forecasting
• Reduced payment friction and errors
• Enhanced fraud prevention and compliance

Ready To Future-Proof Your Payments?

Reach out to your Account Manager for more information, they will be happy to help.

Or, if you’re a new customer, reach out to us for a free, no-obligation data assessment and discover how Hopewiser can support your ISO 20022 journey.

Contact us to get started!