ISO 20022 Guide
Getting ready for launch
September 2022
As more financial
institutions are
adopting the new
messaging standard,
learn how your business
can prepare for the ISO
20022 migration,
and find answers to
some of the most
common questions.
2
Payments messaging – the medium by
which transactions take place around
the world – is changing.
The rollout of ISO 20022, a universal
digital language that has been
designed to meet the needs of modern
banking, has been taking place for
several years – but there are still many
financial institutions and payment
systems that are yet to adopt this
shared code.
2023 is a milestone year for the
rollout. ISO 20022 will become the
standard for cross-border payments
and cash reporting starting in March.
After this date, the previous ‘MT’
messaging standard will be supported
for backward compatibility purposes
only – making it important that your
business is ready to begin integrating
the ISO 20022 standard in the coming
months. J.P. Morgan is equipped with
end-to-end processes, an ISO 20022
client resource center, and solutions to
aid institutions
in staying ahead of the upcoming
changes.
Ahead of the first March 2023
deadline, here are a few steps to
help your business prepare for the
migration to ISO 20022.
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What does ISO 20022 mean
for your institution?
To prepare, J.P. Morgan is advising Some important questions to ask
clients who are yet to implement at the outset are:
the new standard to ask important
questions of their business to ensure
it can accommodate these changes. ? How can my organization take advantage of the
new data?
By 2025, ISO 20022 will be the
common language of the global ? How will ISO 20022 impact my institution, the
services we provide, and also the services we
financial industry. We recommend
receive from others?
onboarding the standard sooner to
take advantage of benefits, structured
data to understand your payments
and your clients, and to have sufficient
time to plan, test and launch their ISO
20022 processes to be ready for the
changes in March.
Carefully evaluating the impact across each part
of your institution can help reveal potential issues
before they occur. It will also clarify how much
needs to change. Some may use systems that can
easily handle the migration, other businesses may
find they need to upgrade, adapt or even change
the systems they run on.
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STE P O NE
What does your
business need to
plan for?
Interrogating your processes, with the help of
trusted partners if necessary, will provide a
roadmap for what to do next.
• Plan thoroughly to update systems and processes, procedures
and testing, and create a backup plan to save time during the
later implementation and testing phases.
• If you are a financial institution, is your organization
ready to send/receive MX messages starting in
March? As a corporation, do you have a plan to
implement the new language?
• A ‘big bang’ approach could see you launch ISO 20022 in one
go, while a gradual strategy would integrate the new format in
stages into your business. Your company’s individual needs and
priorities will influence which approach is best.
• SWIFT is also urging businesses to test the receipt of
multi-format messages ahead of this deadline to ensure
both existing MT messages and the new ISO 20022
messages can be received and processed.
• Ensure your Institution constantly reviews the global industry
guidance provided by the SWIFT Payments Market Practice Group.
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STEP T WO
ISO 20022 and
SWIFT — What
are the key points
and deadlines?
• From March 2023, financial institutions must at least
be ready to receive ISO 20022 payment messages for
cross-border payments and reporting (CBPR+). Until
November 2025, previous MT messages can be used in
parallel to ensure it can process ISO 20022 messages
by March 2023 is mandatory.
ISO 20022: Getting ready for launch
1 To start
The Rollout of ISO 20022, the future of universal digital
language for payments
2 Go live and start of co-existence period
(March 2023)
Financial institutions must begin using ISO 20022 for
cross-border payments and reporting (CBPR+) – both ISO
20022 and former MT messaging will co-exist
3 Co-existence period ends (November 2025)
Full migration to ISO 20022 – Cross-border payments and
MT messages will retire and the co-existence
period ends
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STE P THR E E
How can you
manage execution
effectively during the
co-existence period?
During the three-year time period between March
2023 and November 2025, there is
a stage where both ISO 20022 and former MT
messaging will coexist.
• At this time, when thousands of entities will each
be rolling out their individual implementation plans, it’s
important to update and inform stakeholders of the changes.
• Whether this shift is run as a major program or simply
requires a change to current settings, it’s crucial that all system
developments are carried out with both internal and external
stakeholder impacts in mind.
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STEP FOU R
Going live — time
to capitalize on
the benefits ISO
20022 has to offer
A core benefit of ISO 20022 is enhanced
access to better-quality transaction data. As
the industry adopts the new standard and
takes advantage of the available benefits,
J.P. Morgan will offer support to clients by
managing both the old and new format. We
also encourage clients to continue reviewing
market guidance published by SWIFT.
• This should translate to faster transactions, with
fewer delays for customers, and less need for
human intervention to correct inaccurate information.
Importantly, it also offers the chance for institutions
to assess this richer data and to make improvements
for their processes as a result.
• Now is a good time to ask how better transaction
data could later benefit your business and to research
artificial intelligence (AI) solutions that can help
you to parse this data and use the insights to create
operational efficiencies and new business opportunities.
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STE P F I V E
Collaborate,
communicate and
test for a successful
switchover
As all parts of the financial industry will be
affected by this change, strong communication and
collaboration will be necessary.
• We advise talking with your providers and clients to ensure
your business is aware of its partners’ migration plans.
To learn more about ISO 20022 and how we can
provide onboarding and support, contact your
local J.P. Morgan representative.
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Visit our client resource center for more information:
https://pages-jpmcib.jpmorgan.com/ISO_20022_Migration.html
View the SWIFT ISO 20022 Information sheet for migration details:
https://www.swift.com/sites/default/files/files/iso-20022-migration-and-
interoperability-considerations-v1.pdf
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