ISO 20022 is the Beginning of Smarter Banking

Over the last few posts, we’ve explored ISO 20022 from different angles: its urgency, the practical hurdles, and the importance of choosing the right technology partner. Now, as we wrap up this blog series, it’s time to bring the bigger picture into focus. Because while compliance might be the trigger for change, the real opportunity lies beyond the deadline.

With over 70 countries already live and the U.S. Federal Reserve now mandating ISO 20022 for Fedwire, the shift is gaining global momentum. According to Payments Dive, it’s no longer optional, those who delay risk falling out of sync with the international payments ecosystem. ISO 20022 isn’t just a format update, it’s the new language of modern payments.

Let’s take a step back and reflect on where we’ve come, and what’s next for financial institutions that want to do more than just ‘keep up.’

Richer standardised data

If there's one consistent takeaway from early adopters, it’s that migration success depends as much on internal coordination as it does on technical readiness.

Recent insights from McKinsey show that while many banks have initiated ISO 20022 projects, few are fully capitalising on the richer data and improved straight-through processing it enables. Most are still dealing with the foundational issues, aligning their internal data models, managing format variations across corridors, and training teams to think differently about how payment data flows across systems.

These aren’t trivial tasks, but they’re not just boxes to check either, they’re the real enablers of long-term value.

Operational Improvement

As noted in EY’s “Supercharge Your Payments Business with ISO 20022” report, banks that put structured data to use have already begun to see measurable improvements in operations, fewer exceptions, higher reconciliation rates, and less manual intervention. These early signals confirm what many in the industry have suspected: that richer data isn’t just a theoretical benefit; it has day-to-day impact. But you only see that impact if your systems and teams are prepared to use the data effectively.

ISO 20022 future roadmap

We’ve mentioned before that ISO 20022 is more than a format, it’s a new way of handling information. That change will keep evolving even after go-live.

SWIFT has already signalled future updates to message schemas as adoption matures. Regional variations will continue to be a factor, and market infrastructures may introduce additional data requirements down the road. That’s why many forward-looking banks are building validation frameworks, continuous testing environments, and internal ownership models that go beyond the project phase.

ISO 20022 on practice

ISO 20022 adoption isn’t limited to one system or channel, it plays out differently depending on use case. In instant payment systems, the structured format enables real-time settlement with added layers of transparency and control.

For participant gateways, it provides the common language needed to connect banks, fintechs, and switches securely and efficiently. And when it comes to RTGS integration, ISO 20022 supports better liquidity oversight and simplifies message flows between central banks and internal systems.

• Instant Payment Systems – ISO 20022 enables real-time settlement with richer data, supporting wider use cases like Request to Pay and bulk disbursements. EthSwitch’s national IPS rollout is a strong example, using ISO 20022 to drive 24/7 transfers, QR-based payments, and broader ecosystem participation.
• Participant Payment Gateway – For banks and fintechs connecting to instant rails, ISO 20022 provides the structure needed for seamless, always-on integration. At Meezan Bank, ISO 20022 was introduced via BPC’s SmartVista platform to support real-time transactions, link to national schemes, and enable open banking architecture.
• RTGS integration – Migration to ISO 20022 enhances liquidity tracking and streamlines reconciliation in high-value settlement systems. Banks can automate fund movements, align with central bank formats, and reduce the friction of legacy MT-based processes.
  
  

Where BPC fits into your ISO 20022 journey

At BPC, we work closely with tier-1 and tier-2 financial institutions, as well as national switches, to help align their systems, teams, and workflows with ISO 20022 requirements. Whether it's managing message coexistence, supporting structured data flows, or preparing internal teams for operational shifts, our role goes beyond technology, we support execution from planning through to post-go-live operations.

For instance, Meezan Bank in Pakistan worked with BPC to modernise its instant payments infrastructure using ISO 20022. Through SmartVista, the bank gained real-time processing capabilities, integrated with national systems like RAAST and 1LINK, and laid the groundwork for open banking with strong API support.

Similarly, EthSwitch, Ethiopia’s national payment switch, partnered with BPC to roll out its Instant Payment System. By adopting ISO 20022, EthSwitch enabled 24/7 real-time payments, QR-based merchant transactions, and broader participation from banks, fintechs, and MFIs, all within a modern, scalable framework.

These examples reflect how ISO 20022 is not just a compliance project, but a catalyst for wider payment innovation, when paired with the right partner.

Our recent white paper “Your ISO 20022 migration 101: Steps and Strategies for banks”, explores how institutions can move from compliance to capability, with practical steps for planning, validating, and executing a migration that won’t just meet deadlines, but improve day-to-day operations.

If you’d like to go deeper into any of the topics covered here, especially how to structure your migration strategy around your real operational goals, we invite you to read the full white paper available for download here >