ISO 20022 has the potential to address many of the longstanding challenges in cross-border transactions and deliver benefits across the entire ecosystem, says Standard Chartered.
In a recently launched whitepaper developed in partnership with Zanders, it was discussed how the standard supports the inclusion of richer and more structured data, which means greater visibility of the payment details and enhances the potential for further automation and speed of payment settlements.
This reduces the need for banks to manually intervene in the process, making near real-time, cross border wholesale payments a reality.
The whitepaper focuses particularly on the potential of ISO 20022 XML, a messaging format that is specific to reducing friction in account receivable reconciliation and cash allocation processes.
It also explores how ISO 20022 XML can address inefficiencies and complexities that corporates and financial institutions face when making cross-border transactions.
Further, the whitepaper reviews how high-quality organised datasets allow technologies such as artificial intelligence and machine learning to thrive, identify patterns, predict future outcomes, and recommend actionable strategies – all of which will help corporates be more resilient, agile and prepared in adapting to future trends and challenges.
