ISO 20022 is an international standard for electronic data exchange between financial institutions. This standard defines a universal message structure that enables uniform and consistent communication between different system platforms and institutions.
The main features of the ISO 20022 standard are:
- Uniform message structure: ISO 20022 defines a common set of data elements used in messages between financial institutions. This ensures consistency in the exchange of information and facilitates interoperability between different systems.
- Extensibility: The standard enables the dissemination and adaptation of messages for the specific needs of institutions. This means that financial institutions can tailor messages based on their business processes and requirements.
- Support for various business processes: ISO 20022 covers a wide range of business processes, including payments, securities settlement, trading, business notifications and other financial transactions. This enables the standardization of communication in various financial sectors.
- International use: ISO 20022 is accepted and used internationally as it is supported by many financial institutions and organizations around the world. This standard helps to establish global interoperability between different system platforms and enables easy exchange of information between countries.
- Support for advanced data elements: ISO 20022 allows the inclusion of advanced data elements that can contain detailed information about transactions, such as metadata, customer identifiers, transaction descriptions and other relevant data. This enables better analytics, traceability and process automation.
The ISO 20022 standard plays an important role in improving the efficiency and reliability of electronic business in the financial sector. With a standardized message structure, it facilitates integration and interoperability between different financial institutions and contributes to better traceability, transparency and efficiency of financial transactions.